SEM 1 Portfolio 2
Objective 1.02
Understand sport/event marketing’s role and function in business to
facilitate economic exchanges with customers.
GUIDED NOTES
1
Define Sports Marketing
Definition: the process of planning and executing the conception, pricing, promotion, and
distribution of sports ideas, goods and services to create exchanges that satisfy individual and
organizational objectives
2
Explain Sporting Events
A. Intangible - an experience you can see, feel, and participate in.
B. Perishable Experience – Example: A football game you played or watched; you will
never play/watch that game again.
C. The athletes - make the game happen.
D. The facility / “venue” - where the game takes place. Example: Time Warner Cable
Arena
3
Define Sports Products
Definition:
information
Includes the sporting event, sporting goods, personal training, sports
•
Sporting Event: Includes the athletes and the facility
•
Sporting Goods: tangible, manufactured products that make the game possible.
– Equipment, clothing, licenses merchandise
•
Personal Training: get ready to compete, participating in an exercise class at the local
health club
•
Sports Information: ESPN, Sports Illustrated, newspapers
Sport Consumers – Who uses these sports products/services?
A. Unorganized Participants: walk in the woods, jogging, freedom from rules.
B. Organized Participants: have rules – NCAA, MLB, MBA, MMA (sanctioning bodies).
C. Amateurs are not paid to play, regulated on local, state, national level.
D. Professionals are paid but follow strict rules by their governing body. It is their
occupation.
E. Spectators : observers of the sporting event. As important as the athletes! Help create
excitement and enthusiasm.
F. Sponsors: businesses or organizations that pay to associate their names or products
with a sporting event. Example: NASCAR
4
Define Event Marketing
Designing or developing a live themed activity, occasion, display or exhibit, such as a
sports, music festival or concert to promote a product, cause, or organization
• Perishable
• Promotes and sells a unique experience
• It is produced and consumed at the same time
A. Events provide a unique experience and are unique. Events are produced and
consumed at the same time.
B. Types of events:
5.

Corporate events - Conferences, seminars, trade shows, team building, theme
parties, VIP events, incentive travel.

Private events - weddings, birthdays, family events, anniversaries.
Define Disposable Income
Definition: The amount of money people have to spend, save, or dispose of, after they have
paid their taxes. Disposable income is used to cover necessary living expenses like food,
shelter, and transportation. Discretionary income is the amount that remains after all
necessities have been paid. Discretionary income includes money that is spent on luxury
items, vacations and non-essential goods and services.
A. Marketing to consumers with discretionary income is VERY important in the SEM
Industry because the products associated are not required to live.
B. SEM goods and services are those people buy with their discretionary income.
REVIEW AND APPLICATIONS
1. How does marketing help the sports industry grow?
o A sports product becomes more popular because of marketing
o Sports marketing affects millions of people throughout the world from young
children to senior citizens
o Marketing opportunities increase as the product grows
2. What are some of the benefits of sports marketing?

Good for You
o Increases opportunity for employment
o Benefit those who participate either by playing or watching
o Recreation
o Entertainment

Good for the Local Community
o Economic effect of a major event
o Improve city’s image

Good for Society
o Generates billions of dollars of revenue each year
o More jobs
o Snowball effect
3. What are some benefits of event marketing?
o
o
o
o
Start a dialogue: face to face marketing
Personal connection: builds trust
Immediate fulfillment
Brand awareness