1.1 Marketing Basics
1.2 Sports Marketing
1.3 Entertainment Marketing
1.4 Recreation Marketing

• Today, more than any other time in history, are the two most profitable industries in the U.S.
• Fans spend billions of dollars each year on recreation
• Reaches around the globe as well
• Entertainment is a main export of the U.S.

• Nike:
• “Just Do It”
• Wheaties:
• “Breakfast of Champions”
• Under Armour:
• “Protect this house”
• Lowes:
• “Lets build something together”
• Butterfinger:
• “Nobody better lay a finger on my butterfinger”
• Apple:
• “There’s an app for that”
You have been exposed to marketing.

The process of planning, pricing, promoting, selling, and distributing ideas, goods, or services to create exchanges that satisfy customers
• To sum it up – Marketing is the creation and maintenance of satisfying exchange relationships.
• Marketing is an “umbrella” term
• Current marketing practices focus on customers and maintaining a close relationship with them

• Describes how a business “blends” the four marketing elements.
• The 4 P’s
– Product
– Place (Distribution)
– Price
– Promotion

– Product—what a business offers customers to satisfy needs
– (Place) Distribution—the locations and methods used to make products available to customers
– Price—the amount that customers pay for products
– Promotion—ways to encourage customers to purchase products and increase customer satisfaction

• Goods
– Tangible items that have monetary value and satisfy your needs & wants (can touch them)
– Examples: sports equipment, TV, clothing, candy.
• Services
– Intangible items that have monetary value and satisfy your needs & wants (can’t touch them)
– Examples: tickets, banks, dry cleaners, amusement parks.

• Involves the locations and methods used to make products available to customers.

• Where do you buy a pair of sneakers or a theater ticket?
– Internet?
– Retail Store?
– Theater?
– Telephone Solicitation?
– Wholesaler?
– Retailer?

• Amount that customers pay for products/services.
• Approximately
50% of an item’s price is for the marketing costs!
• Did you know? – On average, stores raise the price around 50% more than what they paid for it?

Buy 2, get 1 free!!
• ways to encourage customers to purchase products/services.
• increase customer satisfaction.
• includes: advertising, publicity, personal selling, and public relations
Our product will make you better at everything!

• Newspaper
• Magazine
• Radio
• Television
• Direct Mail
• Internet Advertising

pg 5
• MOST important aspect of marketing!
• Must perform the following:
– Identify customer needs
– Develop products/services that customers consider better than other choices
– Operate business profitably

• Every marketing activity can be classified into seven functions of marketing
1. Product/Service
Management
2. Distribution
3. Selling
4. Marketing-
Information
Management
5. Financing
6. Pricing
7. Promotion

– Product/Service Management
• Designing, developing, maintaining, improving, and acquiring products/services so they meet customer needs.
– Ex: Focus groups
– Distribution
• Determining the best way to get a company’s products/services to customers.
– Ex: Best Buy

– Selling
• Direct and personal communication with customers to assess and satisfy their needs.
– satisfying customers
– anticipating customers’ future needs
– Marketing-Information Management
• Gathering and using information about customers to improve business decision making.
– Marketing research
» Domino’s pizza expanding to Japan

• TV Sports Survey Questionnaire

• Why do you watch TV sports?
– To relax (2)
– For entertainment (19)
– I do not watch TV sports (1)
– Other “Watch when I’m bored” (2)
• Approximately how many hours do you spend watching sports during the week?
– 1 or less (13)
– 2-4 hours (6)
– 5 or more hours (5)

• How many tv sets do you have in your household?
– 1-2 (3)
– 3 or more (21)
• Approximately how many live sports events do you attend during the week?
– 0-1 (15)
– 2-3 (9)
– 1 student did not respond

• Which of these tv sports do you watch?
– Basketball (11)
– Football (15)
– Hockey (5)
– Tennis (2)
– Curling (2)
– Swimming (1)
– Other—baseball (11)
– Other—soccer (2)
– Other– racing (2)
– Other – wrestling (2)
– Other – golf (1)
– Other – boxing, UFC (1)

• Would you be interested in a cable channel that showed classic sports events?
– Yes (6)
– No (5)
– Maybe (13)

• Financing
– Requires a company not only to budget for its own marketing activities, but also provides customers with assistance in paying for the company’s products/services.
• Ex: General Motors

• Pricing
– Process of establishing and communicating the value or cost of goods/services to customers.
• Ex: Concert tickets. Consumers like, price high
• Promotion
– Used in advertising & other forms of communicating information about products/services, images, and ideas to achieve a desired income.
• Ex: coupons on back of tickets

• Spectators of sporting events are the potential consumers of a wide array of products/services.
• Sports marketing
– Using sports to market products

• Target Market
– A specific group of people you want to reach.
• Ex: Reebok & Nike have a large market for athletic shoes, but smaller, homogenous (similar) group for tennis, golf, running, walking, and so on.
• Demographics
– Specific info. such as the age ranges in the group, marital status, gender, educational level, attitudes and beliefs, and income.

• Disposable Income
– Income that can be freely spent.
• Spending Habits of Fans
– Important to research spending habits of fans
– Maximize profits on items they purchase at sporting events

• Sports Logos on clothing
– Shows team loyalty, value of merchandise is increased in the eyes of the buyer, consumers feel more successful.
• Royalties - (% of sales)
• New Sports, New Opportunities
– Arena Football League (AFL) was one of the fastest growing sports in the country.

(page 11 Marketing Myths)
• When organizations participate in events to some degree rather than sponsor the event.
• Why would companies want to do this?

• Gross Impressions
– Number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainment.
– Product Placement
• Timing
– The popularity of teams and sports figures is based almost completely on continued winning.

Lesson 1.3 pg 14
• Entertainment Marketing-Influencing how people choose to use their time and money
• First, Entertainment is looked at as a product to be marketed.
• Second, use EM to attract attention to other products
– Ex: hiring celebs to endorse related mdse. or events.

• Entertainment
– Whatever people are willing to spend their money and spare time viewing rather than participating in.
• Any examples?
• Ex: movies, theatre, circus, or even athletic events

• Beginning of 20 th Century
– Performing arts were the major form of entertainment
– Live theater, ballet, opera and concerts
• Marketing was limited
– Posters, newspapers, magazines and word-of-mouth
• People had to travel to the show
– Show wasn’t brought to the consumers as it is today

• Louis Le Prince
– Made the first moving pictures (movies)
– first made in Britain in 1888

• 1950s- TV began to arrive in great numbers in American homes
• Sports and Entertainment marketers found a wide-open distribution channel into the homes of Americans

•Early 1940s - Nine TV stations and fewer than
7,000 working TV sets existed in the US
•October 1945 – Gimbel’s Department Store in
Philly had over 25,000 people come to watch the first demonstration of TV
•Soon after, advertising on TV was encouraged

• Ratings – the number of viewers the programming attracted
– Elvis #1 – September 1956
– Elvis #2 – October 1956 Forrest Gump!
– Beatles

Lesson 1.4 pg 20
• Recreation
– Renewing or rejuvenating your body or mind with play or amusing activity.
• Recreational Activities
– Activities involved in travel, tourism, and amateur sports that are NOT associated with educational institutions.

• No Couch Potatoes
– Participation requires purchase of a combo. of products/services
• A Better Image
– LPGA
• Annika Sorenstam – first woman in over 50 years to play in men’s PGA tournamnet
• Michelle Wie – first LPGA tournament at 13!

• World’s largest industry
• Tourism
– Traveling for pleasure
– Vacations, honeymoons, conventions, and family visits
• Data Mining
– Collecting data about which people travel, where, and when.

• Niche Travel
– Recreational travel or tours planned around a special interest.
– Ex: Caribbean Cruise for Singles or Vacation package for college spring breakers
• Disney now offers travel packages that include hotel, airfare, rental car and park tickets
• Thomas Cook – first to introduce package tours to seaside resorts