MAYNARD – Sports & Entertainment Marketing
TOPIC
Growth, Trends and Impact of SER
ESSENTIAL
QUESTION
NAME
What are sports? What is entertainment? What is recreation?
AIM:
Competencies &
Related SOLs
Mktg8175.034 Explain the importance and impact of the sports, entertainment, and recreation industries
Mktg8175.035 Describe the growth and development of the SER industries
Mktg8175.036 analyze trends in SER
English 10.4 The student will read and interpret informational materials
English 11.4 the student will read and analyze a variety of informational materials
English 12.4 the student will read and analyze a variety of informational materials including electronic
resources
HW:
Do Now:
DATE
Study notes for quiz on Growth, Trends and Impact of SER
Take Growth, Trends & Impact preassessment
SCORE _____________________
RED (scores 61 and below) – Vocab Review
Match the terms with the definitions below (use text pages 6 – 11 as a resource).
1. SER marketing
2. Break even
3. Impulse spending
4. Fad
5. Prime time for TV
6. Extreme sports
7. Leisure time
8. Professional sports
9. Amateur athlete
a. The main purpose of __________________________ is to get the best players in order to win events
that attract fans and sell merchandise.
b. A short term trend
c. Buying without proper planning
d. Time spent outside of work and other duties
e. Selling goods through sports, entertainment, recreation, amusement or any method of occupying time
f. When costs equal revenue
g. Not paid for playing the sport
h. Between 8pm and 11pm
i. Involve non-traditional and daring methods of competition
YELLOW (scores 62 – 80) – Journal Prompt
Interpersonal Skills – Serving Customer
Marketers often target teenagers because they have more leisure time and discretionary income than many
adults. List some (legal & appropriate) ways teens spend their time and money related to sports, entertainment
and recreation?
GREEN (scores 81 – 100) – Current Event
Read Business Week Article – Lights, Camera, Website on page 264 in text. Answer the following:
1. What unique method of marketing did Fox use to promote X-men?
2. Choose one of your favorite movies. Write down and describe 3 elements you would include on the
website to promote your movie:
1
Growth, Trends and Impact of SER
Growth based on increase in:



free time
discretionary income
desire for recreation and entertainment
Development throughout History:



Ancients
Only for the wealthy until mid 1800’s
After the 1920’s became staples of everyday life
Trends:










TV is the most popular
Magazines and newspapers are internet based
Digital music and - piracy
Wii surpassing traditional platforms
High definition TV and 3D TV
Social networking
Larger venues/stadiums
Skyrocketing player’s salaries
Nontraditional sports
Youth appeal
Impact:







Fashion
Merchandise lines
Theme park rides
Restaurants
Sponsorships
Expressions
Economy
2
CLASS LECTURE NOTES
TERMS/TOPICS
DEFINITIONS/DETAILS
Growth & Development
Growth
Growth based on increase in 1.
2.
3.
Development Throughout History
1. Ancients
a.
b.
c.
d.
e.
2. Only for the
a. Upper class had more:
wealthy until mid
i.
1800’s
ii.
b. Labor unions fought:
i.
ii.
c. Public transportation such as trolleys and busses provided: low cost
transportation to events for many in middle and lower class
d. Kinetiscope invented - Device for viewing motion pictures
i. birth of the ______________________________
3. After the 1920’s
a. Welcome distraction from ____________________ and _______________
became staples of
b. 1950’s
everyday life
i.
ii.
iii.
iv.
c. Bill Veeck’s marketing activities at baseball games
i. Fireworks, dazzling scoreboards, special events nights, names on
jerseys and giveaways
ii. Appeal to _________________________
iii. Made sports more profitable because
1.
2. So more people came to ___________________
3. Company’s bought more _____________________________
d. In 1960’s
i. International Management (IMG)began to
___________________________________________
ii. Signed ____________________________________
3
Trends








Skyrocketing player’s salaries –
__________________________________________________________________
__________________________________________________________________
WHO DO YOU THINK ARE THE HIGHEST PAID ATHLETES?
1.
2.
3.
4.
5.
WHO DO YOU THINK ARE THE HIGHEST PAID CELEBRITIES?
1.
2.
3.
4.
5.


4
Impact
1. Fashion
a.
b.
2. Merchandise lines
a. Clothing and accessories b. Video games -
3. Theme park rides
4. Restaurants
5. Sponsorships
6. Expressions –
7. Economy –
hundreds of
billions of dollars

Gatorade –

Nike –

Proactive –

Covergirl –

I’ll be back –

Houston, we have a problem –

Show me the money –

Entertainment industry –

Sports industry –
5
TIME
REQUIRED
DUTIES
LEISURE TIME –
discretionary time outside of compulsory activities
Low Impact
High Impact
(little energy or
competition)
(High energy or
competition)
Hobby
(non
competitive
activities)
Watching
or
Going To:
Sport
(organized,
competitive,
skillful physical
activity)
Listening to
Reading:
Game
Socializing
(organized,
competitive,
skillful mental
activity)
PASSIVE – Entertainment
ACTIVE – Recreation
Exertion of physical or mental energy
does not exert significant physical or mental energy
(relaxing) – provides a diversion
or allows people to be amused
6
Similarities and Differences
in Sports and Entertainment Marketing
Sports–
Consumer Loyalty
•Success/Winning
Product
•Young Amateur
•Recreational
•High School
•NCAA - College/University
•Professional
•Olympic
•Women’s - Title IX
•Extreme Sports
Revenue Stream
•Scalping
•TV Broadcast Deals
•Sponsorship
•Stadium Signage
•Stadium Naming Rights
•Corporate Boxes/Suites
•Venue Design
Entertainment–
Similarities –
•Discretionary Income
•Leisure Time
•Opportunity cost
•Amateur vs. Professional
•Niche Marketing
•Consumer Loyalty/Fans
•Core Products
•Ancillary Products/Licensing
•Endorsements
•Concessions
•Impulse Spending
•Break Even
•Gross vs. Net Revenue
Consumer Loyalty
•Fads
Product
TV –
•Ratings
•Prime Time
•Syndication
Music/Radio –
•Air play
•Prime Time
•Label
•Cover
Films •Evergreens
•Trailers
•Primary Market
•Secondary Market
Revenue Stream
•Intellectual Property
•Piracy/Bootlegging
•Royalty
7
TERMS/TOPICS
Entertainment Marketing
DEFINITIONS/DETAILS
Satisfy customers through sports, entertainment, recreation, amusement or any
method of occupying time.
SER marketing relies on:
Meeting consumer demand for excitement and diversion at a price the
customer is willing to pay
Discretionary income
SIMILARITIES
Money left to spend after necessary expenses are paid
Leisure time
Time free from work or duties
Opportunity cost
When you make a decision to spend your money on 1 thing you can’t spend it
on something else (ex. Cd vs. t-shirt)
What are some necessary
expenses?
What might you spend your
discretionary income on?
Do teens have more or less
income than adults?
Do teens have more or less
discretionary income than
adults?
What is your favorite thing to
do in your leisure time?
Amateur
Person who does not get paid to perform
Professional
person who has the will and ability to earn income from performing
Niche Marketing
Focuses on a small target market of consumers who have very similar interests
Consumer Loyalty/Fans
List 5 amateur athletes or
entertainers
Core Product
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
Main product, ex. Sports event, movie, book
Ancillary Product/ Licensing
Product related to core product, ex. Lunch boxes, t-shirts, back packs, park
List 5 professional athletes or
entertainers
rides
Endorsement
Approval or support of a product or idea
8
How should companies decide
who to ask to endorse their
products?
Concessions
Snack bars that sell refreshments such as popcorn, soda and candy
Impulse spending
Buying without proper planning ex. Food, gifts, souvenirs and apparel
Break even
Have costs and expenses equal revenue
Revenue
Income or money made from selling products
Gross Revenue
Total income from sales before costs, expenses and taxes
Net Revenue
Total income from sales AFTER costs, expenses and taxes
Which is NET Revenue and Which is GROSS Revenue?
A theater makes $200,000 from the sales of movie tickets and concessions
After paying for the popcorn kernels, rent, and wages to employees, a theater
makes $25,000
What % of film revenue comes
from ancillary products?
50%
DIFFERENCES
Consumer loyalty
S Success/winning
E Fads - Short term popular trend, Industry is always looking for the “next big thing”
Product
S Categories of Sports - Amateur, high school, college, professional
Title IX - Law that bans gender discrimination in schools that receive federal funds
Extreme Sports - Involve nontraditional daring methods of competition,
ex. X Games - Skateboarding, rollerblading, stunt bikers, snowboarders
E TV Think, pair, share:
 What percent of homes have at least 1 TV?
 What is the average # of hours teens watch TV?
 TV shows survive based on size of their what?
 How many content minutes are there in a 30 min TV show?
Percent of homes w/ 1 TV - 99
Average # of hours teens watch TV: 4-6 hours
TV shows survive based on size of - Audiences
# content mins in 30 min TV show - 22 (8 minutes of commercials)
Ratings - Rankings of TV or radio show popularity in a certain time period
Most famous rating company - Nielson
Prime Time - 8pm – 11pm, bring in greatest audiences and highest advertising revenue
Syndication - Selling TV programs to individual stations not networks
Sitcoms – high rerun value, Reality TV – high ratings, but low rerun value
9
Music/Radio Airplay or time on the radio - Primary means of introducing new artists
Radio prime time hours - 6am-9am
A record company is also called a - label
Cover - When another artist records the same song
Films Evergreens - Films or products that are popular year after year
Trailers - Previews of coming movies shows before the main feature to create interest in new releases
Primary Market - Target audience who sees a movie on the first release in theaters
Secondary Market - Target audience who sees a movie in TV, discount theaters, dvd or rental
Revenue Stream
S
Scalping – unauthorized reselling of tickets
TV Broadcast deals
Sponsorship
Stadium Signage
Stadium Naming Rights
Corporate Boxes/Suites
Venue Design
E
Intellectual property - Idea, concept or written work that is unique and protected by a copyright
*would need permission from the author, plus would have to pay a royalty fee
Piracy - The unauthorized use of an owner’s copyrighted material, ex. Books, movies
Royalty - Payment for a material that has been copyrighted
Think, Pair, Share
 How long is work protected by a copyright?

8,000 commercial albums are produced every year, what percent make a profit?

What is the highest percent of retail price for each album sold that a talent might receive?
10
IMPORTANCE and IMPACT
Mktg8175.034 Explain the importance and impact of the sports, entertainment, and recreation industries
Choose ONE of the following core products:
Find as many ancillary products related to this core product as you can (minimum of 10).
Present your findings in 1 of the following options:
 Create a collage with labels – must show relationships in a diagram with arrows (see page
261 in text for example)
 Write a 2 page typed report, 12 pt font
 Create a 6 slide powerpoint presentation – with at least 2 bullets on each slide and a
picture on every slide
 Create a brochure in Publisher – all 6 sections on both sides should be filled with
information
11
GROWTH and DEVELOPMENT
Mktg8175.035 Describe the growth and development of the SER industries
Interactive Timeline Project
1. Research the growth and development of the SER industries on the list of websites
provided.
2. Add a minimum of 3 events to the interactive timeline for your class period:
Go to www.timetoast.com
Login
Username – Maynard
Password – Maynard
Select the timeline for your class period
12
Select the edit timeline link
Click on the Add Event Button
Then, add your
1. Event title
2. Date
3. Description of event – INCLUDING YOUR NAME
4. Upload a saved image related to the event - see next page
5. Click the Create Event button
13
To upload an image:
1. Find an image that relates to your event on the internet
2. Right click on the image
3. Choose Save Picture As
4. While editing your event, click on the Choose an Image Button
5. Click on the Upload an Image button
6. Browse to the folder where you saved your picture and click open
7. Select your image
8. Click the Done button
14
TRENDS
Mktg8175.036 analyze trends in SER
Choose one of the trends in Sports, Entertainment and Recreation Marketing below:










TV is the most popular entertainment for most Americans
Magazines and newspapers are becoming more and more internet based
Digital music and movies led to problems with piracy
Interactive video games like the Wii surpassing traditional platforms
High definition TV and 3D TV
Social networking
Larger venues/stadiums – increased demand for tickets, better seats, suites
Skyrocketing player’s salaries – a result of free agency giving more control to players than owners
Nontraditional sports – X games, women’s sports, extreme sports
Youth appeal – marketing to kids thru youth themes and apparel, organized sports at younger ages
And complete 1 of the following Project Options:
 Write a 2 page typed report, 12 pt font
 Create a 9 slide powerpoint presentation – with at least 2 bullets on each slide and a
picture on every slide
 Create a brochure in Publisher – all 6 sections on both sides should be filled with
information
Criteria –
Pts
Pts Possible
Includes all 4 categories
20
Appropriate for company chosen
4
Creative and unique
1
TOTAL
25
15
16