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1.1 Marketing Basics
1.2 Sports Marketing
1.3 Entertainment Marketing
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Read: Winning Strategies Page 3
 Answer Questions
1. Explain the relationship between persistence and
success indicted in article
An entrepreneur is someone who takes risks to
start a new business.
1. How is Michelle Kwan’s father an entrepreneur?
Goals
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Describe the basic concepts of
marketing.
Explain the marketing mix.
Define the six core standards of
marketing.
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marketing
marketing mix
product
distribution
price
promotion
discretionary income
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Name examples of goods and services
consumers demand in the world of sports
and entertainment
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Name your favorite commercial
Are any famous celebrities in the
commercials cited?
Why do companies spend large sums of
money to have famous people endorse
their products?
marketing
 the creation and maintenance of
satisfying exchange relationships
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identify your customer and the needs of
your customer
develop superior products
operate your business profitably
 Creation suggests that marketing
involves product development
 Maintenance indicates that
marketing must continue as long as a
business operates
 Satisfaction implies that marketing
must meet the needs of both
businesses and customers when
exchanging products or services
 Exchange relationship is when both
give and receive something of value
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Marketers of sports and
entertainment marketing
must assess and monitor
 consumer demand
 the competition
 the financial valuation of the
goods and services they offer
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What is marketing?
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marketing mix (4-Ps)
 how a business blends the following four
elements
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product
place (distribution)
price
promotion
 product
 what a business offers to
satisfy needs
▪ goods and services
 place (distribution)
 the locations and methods
used to make products
available to customers
 price
 amount customers pay for
products
 promotion
 ways to make customers
aware of products
 encourages customers to buy
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discretionary income
 the amount of money
individuals have available to
spend after paying for
necessities
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Striking the right balance
between product, price,
place (distribution), and
promotion is important.
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Think Critically:
 Visit the home pages of at least
three (3) movies that have
related merchandise for sale
 Determine what information is
collected from customers
▪ Question: How can the marketing
information gathered could be used in
the future to promote and sell other
products.
Sports event of the year: Superbowl
 Billion-dollar event results in large sums of
money from sponsorships to ticket sales
 Actual ticket prices range from $400 to $600
 Individuals attending spend much more…
▪ Lodging
▪ Travel
▪ Restaurants
▪ Tourism
▪ Shopping
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The product the Super Bowl offers
is a game between the best teams
of the AFC and NFC.
Consumer costs extend beyond
ticket prices and include travel,
food, and lodging expenses.
Place or distribution includes the
location of the host city and arena
ticket sales.
Promotion involves media outlets
and related-product contests.
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State fairs need to
 Product: Must appeal to rural and urban
residents
▪ Livestock shows, domestic and commercial exhibits,
carnivals, and music
 Price: Family-type event admission price
is important
▪ Charge enough to remain fiscally stable while still
attracting attendance
 Promotion: Advertise about the fair
▪ Ads on radio, newspapers across state, TV may be
too expensive
 Place: Determine fair location and
outlets for tickets
▪ Central location, tickets available at gate or online
or outlets
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What are the elements of the marketing
mix?
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Sports are the 11th largest businesses of all U.S. industry
groups
Nation’s output for sports goods and services is estimated at
$213-350 billion annually
Sports Managers measure growth in the sports industry by:
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Team Operating Expenses ($22.9 Billion)
Attendance Figures ($26.7 Billion)
Media Coverage (Broad Cast rights $6.9 Billion)
Employment Figures (4.5 million jobs)
Global Markets (Advertising $27.4 Billion)
Sports Goods ($36.1 Billion)
Sports Information ($ 2.3 Billion)
Sponsorships ($6.5 Billion)
 Media Coverage is Increasing
▪ 200 million people watched NBC coverage of the
Summer Olympic Games and 3.7 billion people
watched worldwide
▪ ESPN, the original sports-only network launched in
1979, reaches some 76 million homes with its 4900
hours of sports programming and, ESPN2 reaches 65
million viewers.
▪ $2.3 billion to secure the broadcast and cable rights
for the Olympic Games in 2004, 2006, and 2008 and
additional $2.2 billion for 2010 and 2012.
 Media Coverage is Increasing
▪ Overall for the week, NBC averaged 26.7 million
viewers in primetime during the Olympic Games.
▪ $2.64 billion paid by NBC and Turner Sports to
televise NBA contests, $18 billion paid by the
networks for the NFL, $2.5 billion for post season
MLB
▪ New sports networks, such as the College Sports
Television, Tennis Channel, Blackbelt TV, and the
Women’s Sports Network
▪ Internet, satellite stations, and pay-per-view cable
television are growing in popularity
There are 13 major career areas in sport:
event suppliers, event management and
marketing, sports media, sports sponsorship,
athlete services, sports commissions, sports
lawyers, manufacturers and distribution,
facilities and facility suppliers, teams,
leagues, college athletics, and finance
 Marketing & Public Relations
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Professional Sports
Intercollegiate Sports
Youth Sports
Olympic Sports Organizations
Sport Commissions
Amateur Sports
Corporate Sports Marketing
Sports Marketing Firms
Licensing Firms
Baseball World
Series BrochureSEM Omaha NE
 Distribution
 Distribution involves determining the best
way to get a company’s products and
services to customers.
 Marketing-Information Management
 gathering and using information about
customers to improve business decision
making
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 Pricing
 the process of establishing and communicating
to customers the value or costs of goods and
services
 Product/Service Management
 designing, developing, maintaining, improving
and acquiring products or services to meet
customer needs
 Promotion
 using a variety of communication forms,
including advertising, to distribute
information about products, services,
images and ideas to achieve a desired
outcome
 Selling
 any direct and personal communication with
customers to assess and satisfy their needs
 Financing
 A company must budget for its own marketing
activities and provide customers with
assistance in paying for the company’s
products and services.
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List and provide an example of each core
standard of marketing for a movie
operation.
Distribution?
Different chains? Frank’s, AMC, IMAX, etc
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Distribution
MIM
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Movie Chains
Who and where?
 Targets, Channels, Audience
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 No Passes
Pricing
Product Management  Genre, Series, Trilogy
 When do we Advertise?
Promotion
 Early, sales, momentum
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Selling
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Financing
Testimony
viewers/critics
 Cost of marketing
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 Ads, posters, commercials
Goals
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Define sports marketing.
Explain the value of sports
marketing to the economy.
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demographics
sports marketing
gross impression
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Spectators of sporting events are
consumers of a wide array of products
 From apparel to athletic equipment to food items
and automobiles
 Common traits of spectators are important
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demographics
 common characteristics of a group
▪ age, marital status, income, education
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sports marketing
 using sports to market products
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continual innovation provides new
opportunities
 extreme sports
 arena football
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gross impression
 the number of times per advertisement,
game, or show that a product or service is
associated with an athlete, team or entertainer
Question: How
many times do you
need to see a
message to make
it part of your
memory?
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Fans want products and
services that identify
them with winning
teams and athletes.
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Marketing efforts may
need to be tweaked
based on changes in
winning trends.
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Why are gross impression and timing
important in sports marketing?
Both are important in cognitive
processing to deepen memory
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Sports marketing is a
multi-billion-dollar global
industry that has a
definite impact on the
economy.
 Name some ways that
sports impact you and your
family?
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Emotional connections
to teams motivate fans
to buy tickets to games.
 Some fans live for the
weekends
 Emotions compel fans to
spend or act
 Purchase tickets or other
sport-related merchandise
 People spend discretionary
income willingly if their
heart is captured
▪ Common for marketers to
target emotions
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High profile sporting events
generate strong promotional
revenues for broadcasters.
 100s of TV and Radio Stations and
networks must capture the
largest audience for the least
amount of money
▪ 1960-2000: Sitcoms
▪ 2001-2008: Reality shows
▪ 2009-today: Sports events
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Name three ways that sporting events
help boost the local economy and/or
national economy.
Goals
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Define entertainment.
Describe the impacts of advances in
entertainment technology on entertainment
marketing.
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entertainment marketing
entertainment
ratings
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entertainment marketing
 influencing how people choose to spend their
time and money on entertainment
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entertainment
 whatever people are willing to spend their
money and spare time doing rather than
participating in ….
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At the beginning of the
twentieth century, audiences
needed to travel to the
entertainment source.
Audience feedback was
instantaneous and live.
Technology distanced
entertainers from their
audiences.
 Internet Feedback (How)
 Hits…
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Disneyland represented a new approach to
the marketing mix of entertainment.
Early Days of Television and Marketing
 TV changed the marketing of
entertainment in a profound way.
 In 1945, Only 9 TV stations and 7000 TVs existed
▪ 25,000 people came to Gimbel’s in Phila to see TV
 In 1946, MBC and Gillette staged 1st Sporting
Event (heavy-weight boxing)
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Television’s Increasing Influence
 All major corporations lined up to use TV
 Charged by influence and ratings
 ratings
▪ the number of viewers the programming attracted
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In 1956, 82% of all TVs tuned into
The Ed Sullivan Show, weekly
Sunday-evening variety show.
 Launched Big Name stars:
▪ Elvis Presley
▪ The Beatles
 Set the standard for marketing
▪ Talent displayed to millions by using
technology for distribution
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Technology improvements, including the
internet, have facilitated distribution of
sports and entertainment to the masses.
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Audiences can use a variety of
communication technologies to
provide entertainment feedback.
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Name a few benefits of
television to marketers and
advertisers.
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Textbook Review pages 23, 24
Class Discussion, Pages 25 & 26
Student Project:
 Core Marketing Analysis Project
▪ 6 Products (Group Activity)
▪ Respond to the item listed
▪ Will present analysis to the class
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For your product:
 Give 10 ways to Distribute
 Set a local unit price
 Identify 3 possible shortfalls of
your product and list plans for
improvement
 Identify 5 forms of promotion
for your product
 Create a slogan/catch phrase
to “sell” your product