Unit 2 – What is SEM? Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 OBJECTIVES What is SEM? 1) Define sports marketing and entertainment marketing 2) Explain the two primary types of sports marketing and entertainment 3) Compare and contrast sports marketing marketing and entertainment 4) Describe the seven functions of marketing Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 OBJECTIVES What is SEM? 5) Understand what makes sports and entertainment products unique 6) Explain the concept of competition for dollars 7) Identify the five P’s of event entertainment marketing 8) Explain the event triangle Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.1 Sports & Entertainment Marketing Defined Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 "I'm tired of hearing about money, money, money, money, money. I just want to play the game, drink Pepsi, wear Reebok.” - NBA Star, Shaquille O'Neal Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 What is Sports & Entertainment Marketing? To define Sports & Entertainment Marketing, you must first understand the foundation of the term: Marketing Sports Entertainment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing Sports The process of developing, promoting, and distributing products, or goods and services to satisfy customers’ needs and wants A source of diversion or physical activity engaged in for pleasure Copyright © 2010 by Sports Career Consulting, LLC Entertainment Whatever people are willing to spend their money and spare time viewing rather than participating What is SEM? UNIT 2 Leisure Time It is the goal of the sports and entertainment marketer to provide a product or service that can satisfy the needs and wants of those individuals who choose to be entertained during their leisure time Leisure time is the time available to people when they are not working or assuming responsibilities, often times referred to as “free time” Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.2 The Fusion of Marketing with Sports & Entertainment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Sports Marketing is the act of using sports as a platform to market products or services and increase sales or the process the of marketing and selling the sports property itself Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Fundamental Concept of SEM: Marketing through Sports & Entertainment vs. Marketing of Sports & Entertainment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing through Sports & Entertainment Companies use sports and entertainment as a vehicle to gain exposure for their products Kia Motors sponsoring the World Cup VitaminWater affiliating its product with celebrities like Steve Nash, Carrie Underwood, Jennifer Aniston, David Ortiz and Steve Nash HP serving as presenting sponsor of the Sundance Film Festival Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing through Sports & Entertainment A CEO entertaining potential customers at a PGA Golf Event in the hospitality area as a sales tool Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing through Sports & Entertainment Product placement is a tactic companies use to place their products within a particular form of entertainment to gain visibility or exposure Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing through Sports & Entertainment Audi being prominently featured in the new “Iron Man 2” movie Judges on the hit show American Idol drinking Coke products during episodes Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing of Sports & Entertainment Marketing of Sports & Entertainment involves the promotion and sales of the sports and entertainment products themselves The Potomac Nationals baseball club selling special “Holiday” ticket packages Branding the 2010 Winter Games with the slogan “With Glowing Hearts” Paramount Pictures spending over $130 million in marketing and promotion for the film “The Last Airbender” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Marketing of Sports & Entertainment Marketing of Sports & Entertainment involves the promotion and sales of the sports and entertainment products themselves Nike advertising the launch of a new sneaker or shoe line Astro Turf selling and installing a synthetic grass football field to a college Artist Jay Sean attending the "Jersey Shore" soundtrack album release party in New York City Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic Let’s say Adidas invests in a luxury suite at the Staples Center in Los Angeles. Is this an example of the marketing of sports or an example of marketing through sports? Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic The Adidas investment in a luxury suite at the Staples Center arena provides an example of BOTH marketing of sports and marketing through sports Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic Marketing of Sports: The marketing OF sports occurs as the Staples Center marketing staff actively engages in the activity of selling suites to corporations, thereby marketing their products Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic Marketing through Sports: Occurs as Adidas uses the suite for events (NBA’s Lakers or Clippers basketball games, Disney on Ice, Rolling Stones Concert, Barnum & Bailey Circus, Harlem Globetrotters, NHL’s Kings, WNBA’s Sparks etc.) to entertain customers, prospective customers and employees Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Sports Management vs. Sports Marketing Sports management is the study and practice of all people, activities, businesses or organizations involved in producing, facilitating, promoting or organizing any sport-related business or product Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Sport management areas of study might include: Sport law Facility management Human resources Sport governance Leadership Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Sports Marketing Tostitos sponsoring the Fiesta Bowl A NHL team offering payment plan options for season ticket buyers NBC paying $5.7 billion for the TV rights in the U.S. to the Olympics from 2000 to 2012 Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Sports Marketing A corporation’s purchase of a courtside tickets in a NBA Arena A sign or banner displaying a company’s logo at a hockey rink Coca-Cola paying for “pour rights” at an event or facility Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Sports Marketing A local restaurant sponsoring the local high school soccer team The Goodyear Blimp flying over sporting events Fans receiving free bobble head dolls at a baseball game Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Sports Marketing Nike partnering with Apple to launch new technology for runners Foot Locker stores offering special sales or coupons to help increase sales Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Sports Marketing Former NBA star Charles Barkley hosting Saturday Night Live Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Entertainment Marketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customer’s needs and wants through entertainment, or any diversion, amusement, or method of occupying time Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Entertainment Seeing the Houston Symphony perform at Jones Hall in downtown Houston Attending a LSU Tigers football game Reading Stephanie Meyer’s novel Twilight Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Entertainment Visiting the Seattle Aquarium Going to a Justin Timberlake or Jack Johnson concert Listening to the newest Lady GaGa song on your mp3 player Watching the Broadway musical “Lion King” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examples of Entertainment Going to the Ringling Bros. and Barnum & Bailey circus at the American Airlines Center in Dallas Universal Studios announcing ‘Transformers’ as a new theme park ride Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM A podcast is a digital media file, or a series of such files, that is distributed over the Internet using syndication feeds for playback on portable media players and personal computers Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM The NHL’s league website (nhl.com) features a podcast page which includes podcasts of its NHL radio show (“This Week in the NHL”) and podcasts for individual teams in both audio and video format (the Minnesota Wild podcast show is referred to as the “pondcast”, St. Louis Blues have a “BluesCast”, Washington Capitals have a “Caps Report” etc.) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Podcast technology opened the door for comedian Adam Corolla to reinvent and revive his career after his network show was cancelled. Since launching his self-produced podcast show in February of 2009, "The Carolla Podcast" has frequently been the most popular podcast on iTunes, even edging out President Obama’s weekly address and drawing over 3 million downloads in a given week. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Sticky marketing is the practice of creating online content that encourages consumers to visit a specific Website frequently with the goal of getting the visitor to explore the site in greater detail while maximizing the amount of time the user spends on the site Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Sports Illustrated’s Peter King is widely credited with the development of one of the first true “sticky” web marketing applications. His column, “Monday Morning QB” gets more than three million page views per week! Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Yahoo’s site featured dedicated coverage to the 2010 Winter Games in Vancouver provides provides an excellent example of sticky marketing, boasting an impressive total of 314 million total minutes spent by visitors on the site, compared to the 218 million total minutes spent by visitors to NBC's Olympics site (official broadcaster of the Games). Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Online video rentals (Netflix, Blockbuster etc.) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Streaming audio and video capabilities Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Streaming Live Events In 2010, many major global sporting events like the British Open Golf Tournament were streamed through the Internet allowing fans to watch online and/or on mobile devices Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM To celebrate the band’s reunion, Blink 182 staged plans to offer one a new twist on traditional touring by streaming an interactive 3D concert online. The concert, sponsored by Doritos required only that fans purchase a bag of chips (Doritos brand of course) and place the bag in front of their computers webcam for admission to the show. Throughout the concert, fans were able to move and shake their bag of chips to activate certain interactive actions such as, zooming in and out and other features and noise picked up from computer microphones would influence the band’s encore. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Consumer’s ability to purchase entertainment on the Internet Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Advertising: Signage and Displays American Airlines Arena unveiled new technology capable of delivering “live and dynamic billboard advertising”, making the NBA’s Miami Heat the first U.S. sports franchise to tap into the next generation of outdoor media systems designed to drive revenue Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Advertising: Signage and Displays The Kansas City Royals teamed up with Cisco Systems and AT&T Inc. to launch a new video platform that offers customized advertising, capable of delivering live game video, concessions menus and customized fan content Technology enables us to enrich the experience for our fans, who are celebrating 40 years of Royals baseball this year,” said Kevin Uhlich, Royals senior vice president of business operations Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Advertising: Virtual Ads Advertising firm “Instadium.com” sells promotional materials and “touchpoints” to advertisers at venues such as Coors field in Denver. They have ads positioned in hundreds of locations around the stadium, from rotational signage around the field perimeter to ads in the restrooms, concessions areas, and concourses. Fans can’t help but be exposed to their messages. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Advertising: Virtual Ads During the 2009 playoffs, the NHL provided an opportunity for a sponsor to preview the potential impact of virtual advertising when, during the third period of MSG Network’s telecast of two playoff games, Subway logos were superimposed on the glass areas behind each goal and at center ice. The results were impressive, as sponsors averaged nearly 20 minutes of quality on-screen time per game from the high-tech broadcast enhancement. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Advertising: Interactive Shopping An upcoming Blu-ray film will reportedly feature an ecommerce application that will allow viewers to shop for products in the movie and purchase them through the Internet with BD Live (BD-Live is a newly developed Blu-ray feature that allows users to access additional content with any internet-connected Blu-ray player) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Audio / Visual Enhancement In a sentiment shared by sports consumers everywhere, ESPN writer Bill Simmons discusses how HD television has revolutionized the fan (viewer’s) experience: “It's a new world for sports fans: an intimacy that can't be found otherwise, unless you're paying through the nose for great seats. I thought I'd like sports less when I got older. Actually, I like them more. And it's partly because of HD. I'm constantly saying to myself, I can't get over how great that looks!” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Audio / Visual Enhancement Over 1,000 FM radio stations are now broadcasting in high definition (special HD-ready receivers are required to hear the high quality signal) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Audio / Visual Enhancement A 2010 estimate suggests that global sales of Blu-Ray players will reach 62.5 million units by 2011 Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Audio / Visual Enhancement According to a report by Variety, 2.7 million Blu-Ray copies of Avatar were sold in the first four days of its retail release. Perhaps a testament to the growing demand for Blu-ray content, Blu-ray accounted for 40% of sales for the movie in that four-day window. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Video Games Games now feature enhanced graphics, creating a more realistic user experience Game players now enjoy greater accessibility and interactive capabilities through the Internet Through Nintendo’s Wii system, video game enthusiasts can now enjoy motion sensor technology, allowing for users to simulate various activities (such as golf or tennis) using a video game controller Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Video Games In 2010, Microsoft plans to up the ante in the motion sensor technology arena with the launch of their “Kinect” accessory that allows users of the Xbox 360 console to interact with games without a controller by simply using gestures and spoken commands Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Apparel/Footwear/Sporting Goods Just prior to the 2008 Summer Olympics, Speedo introduced the LZR Racer swimsuit, a technologically advanced piece of swimwear that features a finely woven water-repellent microfiber that cuts down on drag and features localized compression, which Speedo officials say reduces swimmers' energy loss Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Apparel/Footwear/Sporting Goods The technology was so effective that, in 2010, swimming's governing body adopted new rules to limit the role of high-tech suits after seeing more than 100 world records fall after the suit’s introduction just one year earlier Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Apparel/Footwear/Sporting Goods In 2008, Nike teamed up with Apple to launch the Nike+iPod Sports Kit, a device which allows users to measure and record the distance and pace of a walk or run Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Apparel/Footwear/Sporting Goods In 2010, Adidas introduced similar technology with MiCoach, a system the company’s website calls “the interactive personal coaching and training system” which relies on a mobile phone’s GPS systems allowing the app to track distance, pace, and calories, all while coaching athletes based on their pace and training regimen Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Broadcasting / Viewer Experience In 2009, golf fans were able to view multiple video feeds of the Masters on their TV screens to keep up with action at different points on the course Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Broadcasting / Viewer Experience With the re-emergence of 3D technology (3D has been around since silent films in the early 20th century), the viewing experience has been taken to a whole new level Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.3 Sports ARE Entertainment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Sports ARE Entertainment! Watching a Broadway show Sports are a form of entertainment Listening to music on an mp3 player Entertainment may be presented in the form of sports Watching a movie Watching a football game Playing a game of soccer Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Technology’s Impact on SEM Sports ARE Entertainment “I believe sports is entertainment. I know there’s athletic excellence. But when I watch a gamelet’s say I’m watching Charles (Barkley’s) show on (TNT)-it’s not just for the athletic excellence. Every piece of information is available in that telecast: scores, highlights, standings, analysis-0right? I watch it because it’s entertaining. It’s about being entertained. It’s about being consumed. You’re a consumer, and you’re consumed by the entertainment, you’re engaged by the entertainment.” - PETER GUBER Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Differentiating Between Sports & Entertainment Sports are “unscripted” Unscripted: Consumers of sports do not know the outcome of the event in which they are participating Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Differentiating Between Sports & Entertainment Sports entertainment relies heavily on emotion Consumers of sports products have an emotional investment or interest in the outcome of the event (winning vs. losing, close games vs. “blow outs”) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Differentiating Between Sports & Entertainment Sports expose differences in customer loyalty Customer Loyalty: A customer decision to become a repeat consumer of a particular product or brand Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Integrating Sports with Entertainment Super Bowl Half-Time Shows ESPN’s ESPY Awards Cross Promotion: Universal Studios partnering with the Dodgers to promote the park's new King Kong attraction TNT tapping pop stars Jamie Foxx and Justin Timberlake to lead a marketing campaign for the 2010 NBA playoffs The convergence of two entertainment properties working together to market products or services Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Integrating Sports with Entertainment Cross promotion can be an effective sales and branding tool for all parties involved Variety.com reports that a significant factor in ESPN’s successful launch of its Chicago-based website on all things Windy City was cross promotion, suggesting the cable company used “plenty of cross-promotion as a way to attract listeners to the site” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Integrating Sports with Entertainment By July of 2010, ESPNChicago has become the city’s top sports site, attracting about 590,000 unique visitors in the month of June alone while the city’s historic newspaper company’s (Chicago Tribune) online sports section drew just 455,000 unique visitors Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Integrating Sports with Entertainment Ratings for the 2010 Tour de France increased 83% on the Versus network through the first nine days of competition. Versus President Jamie Davis credited part of the ratings jump on cross-promotion during its coverage of the NHL Stanley Cup Playoffs. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Integrating Sports with Entertainment In the summer of 2009, MLB partnered with Walt Disney Pictures and Jerry Bruckheimer Films to cross promote the 3-D comedy G-Force, this time determined to push the promotion cautiously. Five years earlier the league badly botched a SpiderMan 2 promotion in which MLB had planned to feature the Spider-Man logo on each base during the All-Star Game. The league received such opposition from fans and baseball purists that the promo was eventually pulled. + = Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.4 Primary Marketing Functions Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Pricing Distribution Promotion Financing Selling Information-Management Product and Service Management Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Pricing: Assigning a value to products and services Price is determined on the basis of supply and demand Tickets to the Super Bowl are very expensive because demand is high In July of 2009, the NFL’s New York Giants announced a reduction in ticket prices on seats in several sections of their new stadium that had not yet been sold Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Supply and demand is a major factor influencing pricing strategies, so much so that many teams are evaluating the possibility of moving toward a “dynamic pricing” structure for tickets in which games in higher demand cost more than the same ticket for a game with lower demand Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Red Box created a price point of $1 in an effort to capture a piece of the lucrative movie rental business Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Distribution: Determining how best to get products and services to consumers EA Sports sells their video games in Target and Best Buy stores, knowing that consumers shop at those stores for video games and entertainment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing In 2009, TiVo announced plans to provide “on-demand” access to Blockbuster’s film catalog to TiVo subscribers Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Google announcing plans to open a digital music store online to challenge iTunes Hotel chains offering movie rental opportunities from the comfort of a hotel room Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing The top selling on demand theatrical movie titles in hotel guest rooms in 2009 1. The Hangover 6. Gran Torino 2. Taken 7. Inglourious Basterds 3. Paul Blart: Mall Cop 8. Quantum of Solace 4. Angels & Demons 9. X-Men Origins 5. The Proposal 10. The Ugly Truth Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Promotion: Communicating information about products and services to consumers Prior to the start of the 2010 NFL training camp, Nike announced that former college QB Tim Tebow would have his own Nike shoe through a combined EA Sports/Nike cross promotion that coincided with the rollout of the NCAA Football 2011 video game Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing The Sacramento Kings initiated a ticket sales promotion shortly after the 2010 NBA draft to capitalize on the excitement surrounding first-round draft pick DeMarcus Cousins in which the franchise extended new offers every hour between noon and 8 p.m. on their website. The special offers included season ticket deals for less than $17 per game, access to a VIP reception with the team’s new draft picks and $150 merchandise vouchers. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing In 2009, Sony Pictures Home Entertainment launched a promotion encouraging consumers to stay home for vacation with “Movie Staycations” where Sony movies were being offered at retail stores for less than $10. Consumers also had the opportunity to visit the “Movie Staycation” Web page online to download coupons for an additional $2 off DVDs and $3 off Blu-ray Discs. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Financing activities could include: Creating a budget for a company’s marketing plan Analyzing the cost effectiveness of existing or past marketing efforts Providing customers with flexibility in purchasing company products or services Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing In NHL Commissioner Gary Bettman’s 2009 mid-season “state-of-the-league address”, revenue projections were updated by dropping its initial growth expectations. Mr. Bettman suggested the league expected to generate $2.63 billion to $2.64 billion in hockey-related revenue for the 2008-09 season. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing In Hollywood, a decrease in sales of DVDs and significant increase in production and marketing expenses has prompted industrywide reforms that include a crackdown on budgets In production of the fourth installment in the Pirates of the Caribbean, super producer Jerry Bruckheimer has been working with a budget at least a third less than the last "Pirates" movie and will include far fewer shooting days and visual effects shots Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Like many professional sports franchises, MLB’s Washington Nationals offer payment plans for customers purchasing ticket packages. According to the team’s website, the Nats’ “Grand Slam E-Z Payment Plan allows season ticket holders to pay a fraction of the total cost of their tickets in easy monthly payments. This is available for either Full, Half, or Partial Season Ticket Plans.” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Selling: Communicating with consumers to assess and fill their needs, as well as anticipating future needs Cultivating prospective buyers (or leads) in a market segment Conveying the features, advantages and benefits of a product or service to the prospective buyer Closing the sale Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Many professional sports teams utilize a call center ticket sales to revenue generated by A call center is a physical location where calls are placed, or received, in high volume for the purpose of sales, marketing, customer service; typically through the use of telemarketers Call centers employ a staff to perform telemarketing activity with the goal of selling ticket packages over the telephone Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing In 2009, Georgia Tech outsourced the portion of their ticket sales operation to a company (Aspire Group) to manage ticket sales for football and men’s basketball. Aspire has a full-time sales staff of 15 to 20 people who work from Georgia Tech’s downtown Atlanta campus. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Marketing Information-Management: Gathering and using information about customers to improve business decision making Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages) after determining through customer research that full season ticket plans were often too costly and/or time consuming for many fans to purchase Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 We Have a Seat for You! PAC-10 Power Pack (Men's): Cal * USC * UCLA * Arizona * Arizona State Best of the West (Women's): Washington · Cal * UCLA * USC * Arizona Fun for Five Family Plan The best deal in town! The Fun-for-Five Family Plan allows you and four friends general admission tickets to over 10 home games, men's or women's, at Maples Pavilion at the remarkable cost of only $2 per person! Stanford basketball season tickets guarantee your seat for an entire schedule of college hoops excitement! Follow both teams as they march towards March Madness and guarantee yourself the opportunity to buy post-season tickets when they get there. Mini Power-Packages Designed especially for the first time buyer and reserve power player, this five-pack of our most popular games offers big-time college hoops access to the PAC-10 season for only $59. As a mini-pack subscriber, you'll receive reserved seats and guarantee yourself the opportunity to purchase post-season tickets. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing As visitors pass through the turnstiles at Disneyland in California, guests are randomly selected to answer interview questions from friendly staff members equipped with hand held data recording devices. This provides Disney management with up to date information about park guests, such as where they are from, how many are in their group, and how many times they have visited the theme park in the past. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Product/Service Management: Designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing One of Nike’s product management efforts includes the “Nike Kids Field Tester Program” in which selected applicants will wear Nike shoes for typically 4-8 weeks. Testers keep a daily written account of information relating to the product. Also, testers are required log the number of hours the shoes were worn each day, the surfaces shoes were worn on, observations regarding the shoe’s fit, performance and durability. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Nike’s field tester program requires a thorough and detailed application process Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Sketchers recently unveiled the Shape Up shoe, endorsed by football legend Joe Montana. The shoes are a new innovation in sport shoe technology and claim to improve posture, “tone” leg muscles and promote weight loss. Copyright © 2010 by Sports Career Consulting, LLC