What is Sports & Entertainment Marketing?
Chapter 1
UNDERSTANDING THE SPORTS INDUSTRY
 Sport definition
o an athletic activity
requiring skill or physical prowess and often of a
competitive nature
o Source of diversion or physical activity engaged in for pleasure

Growth of the Sports Industry
o 11th largest of all U.S. industry groups
o US’s output for sports goods and services estimated at $213 – 350 billion
annually
o How do we measure growth in the sports industry?
 Growth measured in:
 Attendance Figures
 Media Coverage
 Employment Figures (4.5 million jobs
)
 Global Markets Sports Goods
UNDERSTANDING THE ENTERTAINMENT INDUSTRY
 Entertainment definition
o Agreeable occupation for the mind; diversion
; amusement
o Whatever people are willing to spend their money and spare time viewing rather
than participating in
o sports or the arts
o Typically, movies, theater, music concerts, the circus, etc.

Growth of the entertainment industry
o 1.3 billion
tickets sold to movies in 2012
o Highest grossing film of all time – Avatar
$2.7 billion
o $16 million goes through Broadway
a year
o Fortune 500 Ranking
 Walt Disney
65
 News Corp
83
 Time Warner
95
 Marriott International
210
 Harrah’s Entertainment
264
 Ceasars Entertainment
277
o What was the highest grossing film of 2014?
UNDERSTANDING MARKETING
 Marketing definition
o Marketing is a process of bringing together sellers and buyers
o the creation and maintenance of satisfying exchange relationships

The marketing mix
o how a company gets their product to the consumers using the following four
elements
 Product
 What a business offers to satisfy needs
 Products include both Goods and Services
 Examples of goods and services:

Price
 How much
consumers are willing to pay for product
 Discretionary Income
o the amount of money individuals have available to spend
after paying for necessities

Place (distribution)
 The locations and methods
available to customers

used to make products
Promotion
 Ways to make customers aware of products
 Encourages customers to buy

A Marketing Mix Example in the Sports Industry – Super Bowl
o Product - a game
between the best teams of the AFC and NFC.
o Price – ticket prices
, travel, lodging
, dining, etc.
o Place (Distribution) - includes the location of the host city
and ticket
sales.
o Promotion - involves media outlets , related-product contests, and advertising.

A Marketing Mix Example in the Entertainment Industry – State Fair
o appeal to rural and urban residents
o set reasonable ticket prices
o advertise about the fair
o determine fair location
o plan ticket sales
SPORTS AND ENTERTAINMENT MARKETING
 Involves the use of sports and entertainment to develop, promote and distribute goods
and/or services to satisfy the wants and needs of customers.

Impact of Sports and Entertainment Marketing
o Generates an average of $400 billion
in annual revenue.
o 64% of Americans watch NFL football
o The NFL has $20.4 billion
in television deals with CBS, FOX, ABC, and ESPN
o 17,273 was the average NBA
attendance in 2013 (Chicago)
o Over 65 million people attended MLB
games in 2013
EVOLUTION OF ENTERTAINMENT AND ENTERTAINMENT MARKETING
 At the beginning of the twentieth century, audiences needed to travel
entertainment source.
 Audience feedback was instantaneous and live
.
 Technology distanced entertainers from their audiences.
to the
The Beginning of Change
 1888 First moving picture
 1927 First movie with sound
 1928 Steamboat Willie
 1938 Snow White
 1955 Disneyland opens

Disneyland represented a new approach to the marketing mix of entertainment – the
Theme Park
The Big Eye in Every Room – Television!
 1945 9 stations, less than 7,000
TV sets in U.S.
st
 1946 1 broadcast sporting event (boxing match)
 1949 98 stations
 1956 82% of all TVs watched Elvis on The Ed Sullivan Show
 1964 60% watched the Beatles
 1969 500 million
people worldwide watched moon landing

Ratings - the number of viewers the programming attracted
Change Accelerated
 Technology improvements, including the internet, have facilitated distribution of sports
and entertainment to the masses.
 2012 Olympics
o 4 billion television viewers worldwide
o 18 million global unique users
on BBC website
o 29 million
video requests from website
Technology and Customer Feedback
o Audiences can use a variety of communication technologies to provide
entertainment feedback.
o American Idol
 132 million votes