Sports & Entertainment
Marketing
Management
Minot High School
Section 1
Marketing Basics
What is Sports & Entertainment
Marketing
A
huge industry offering numerous
products and services
is
a subdivision of marketing which
focuses on the promotion of sports
events, teams, or entertainment
promotion
of other products and services
through these events often arise: apparel,
toys, promotional items, teams etc.
Primary Focus
 Identify
the customer and their needs
and wants
 Develop products that customers
consider better than other choices
 Make a profit off your business
Sports Marketing
 The
use of sports events to market products
 Multi-billion
 Value
dollar global industry
of Sports Marketing
Large
$$$ spent on events and related products
Automobile
industry – transport to/from national
events and personal kids sporting events
Restaurants,
Jobs
hotels, service stations
created: parking attendants, trainers,
security and personal attendants
Entertainment Marketing
 Entertainment
is whatever people are
willing to spend their money and spare
time viewing rather than participating
 Viewed in person, in broadcast or
recorded form
 Movies, theater, music concerts, circus
and so forth
Marketing Mix
When developing plans for sports and
entertainment, marketers must consider
the marketing mix!
Product, Place, Price & Promotion
Marketing mix in sports &
entertainment marketing
 Product
 The
brand name, the various products offered
under the brand, packaging and any product
extensions and enhancements
 Product
extensions are items added to make it more
attractive ie. Guarantees, warranties, new seating
 Enhancements: features added to the basic product
to satisfy additional needs. ie special seating areas
etc.
 Core
product: main product
 Ancillary product: product related to or created
from the core product
Core product
Ancillary product
Marketing Mix Price
 Based
on what entertainment venues
and sports teams can charge and what
people will pay
What
people pay based on:
Interests
of the market
National
importance of event
Popularity
Rivalry
of athletes
of the contest
Marketing Mix Price
 Price
Problems
1.
Fan loyalty can be damaged when
players/celebrities go on strike
2.
Ticket scalping (unauthorized ticket sales)
3.
Piracy (unauthorized use of an owner’s music,
movies, or other copyrighted materials)
4.
Royalty (payment for material that has been
copyrighted)
Marketing Mix Place
 Place
Event
location and distribution of products
Bringing
in turf or other venue props needed
Ticket
sales of event - direct, online,
ticketmaster etc.
People
go online after an event to purchase
related products
People
get highlights of the game on TV
Marketing Mix Promotion
Promotional
mix: Television, newspaper, web,
and radio ads
In
stadium ads (coupons on back of tickets)
Endorsements:
Sponsorships
Marketing Mix Promotion
Endorsements:
a person’s public expression of
approval or support for a product (goods,
service, or idea).
usually
by a celebrity lending his/her image/name
to a product
Jordan Spieth
 What
product does Spieth Endorse?
 How many logos was he wearing
during the masters?
 Has
a contract until 2025
Marketing Mix Promotion
Sponsorships
– a person, organization, or
business that gives money or donates products
and service to another organization or event in
exchange for public recognition
Section 2
Sports Marketing
Spending habits of fans
 Disposable
income (freely spent income)
 Research
spending habits of fans to
maximize profit on merchandise at sporting
events
 Fans
are willing to pay for
 team
or celebrity identified
merchandise
 Expenses
 Travel
of food
to and from games
Sports marketing strategies
 Goal:
attract high population of target
market
 Marketing strategies used
1.
Sports logos on clothing
2.
New sports, new opportunities
3.
Gross impression
4.
Perfect timing
1. Sports logos on clothing
Why do people wear clothing that has the logos
of their favorite teams or that is endorsed by a
professional athlete?
 Team logos show loyalty
 Value of the merchandise is increased in the
eyes of the buyer (same shirt without logo
would cost less)
 Some consumers feel more successful
themselves if they own products endorsed by a
successful person
2. New sports, new opportunities
 Opportunities
for endorsements and
marketing
 Example: Arena football, 1987
 Affordable
ticket prices
 Players meet fans and sign
autographs
 Continuous action
 Elements that add
excitement and build
interest
3. Gross impression
 Number
of times per
advertisement, game, or show
that a product or service is
associated with an athlete,
team, or entertainer
 Brands shown in movies, TV
shows, televised sporting events
 Your brain records the brands it
sees and encourages you to buy
4. Perfect Timing
 Popularity
of teams and sport figures is
based almost completely on winning
record
 Fans want products and services that
identify them with a winner
 Successful trends monitored to
determine when marketing strategies
need to change
Section 3
Entertainment Marketing
Entertainment marketing
 Process
of developing, promoting, and
distributing products to satisfy
customers’ needs and wants through
any diversion, amusement, or method
of occupying time
What is entertainment?
 Whatever
people are willing to spend
their money and spare time viewing,
rather than participating
The entertainment industry
 Entertainment
marketing is influencing how
people spend their time and money on
entertainment
 $200 billion market of products and services
with one goal
 Goal:
to provide diversion, excitement, and
amusement
 Today,
revolves around celebrities, cartoon
characters, and concepts such as water
parks, video games, concerts, and festivals
Entertainment marketing then & now
 Performing
arts represent a major form of
entertainment
 Live
theatre, ballet, opera, concerts
 Marketing was limited to posters, newspapers,
magazines, word of mouth
 Change
 The
occurred due to technology
advent of the television revolutionized
Entertainment marketing.
 Buses are rolling billboards, vehicle ad panels,
sports stadiums named after advertisers, social
media
Media & entertainment
 Media:
the methods used for
communicating or transmitting
messages
Forms of media used as
entertainment today (greatest
amount of time to least)
1.
2.
3.
4.
5.
6.
TV
Radio
Recorded music
Newspapers and magazines
Video games (at home or arcade)
Films (theatrical or at home)
Walt Disney Company example
 TV
production
 ABC TV
 Movie studios
 Video distribution
 Theme parks
 Cruise line
 Publishing
 Broadway shows
 ESPN
 Hockey team
One company owns the other
companies, although each
company in the chain continues
to perform separate tasks.
This is called vertical
distribution.
Entertainment products
1.
2.
3.
4.
5.
Film and music merchandising
Electronics and video games
Print books and magazines
Theme parks and water parks
Special entertainment events
Product: film & music
 Movies,
plays, musical productions
 Concessions—snack-bars that sell
refreshments
 DVD/video rentals and sales
 Record clubs—organizations in which
members receive free records if they
agree to purchase additional records
within a certain time period
Product: electronics & video games
 Game
consoles (Xbox, PlayStation, etc.)
 Marketers cross-market in video game
distribution (game makers works with
films, TV shows, sports teams, etc.)
 Advergaming—marketers place certain
products in video games to increase sales
and awareness
Product: print books & magazines
 One
of the oldest sources of
entertainment
 Magazines offer a good opportunity for
marketers to reach their target market
Specific
groups of customers buy specific
magazines
Product: theme parks & water parks
 Provide
recreation, but also sell tangible
goods
 Location-based entertainment (LBE)—
entertainment that includes amusement,
theme, animal, and water parks
 Visitors buy admission ticket and other
souvenirs, apparel, food, gifts, etc.
 Edutainment—recreation-based entertainment
linked to education (museums, zoos, historic
sites, etc.)
Product: special entertainment events
Circuses,
Each
state fairs, pageants
event provides the opportunity for
selling related entertainment products