What Is Sports And
Entertainment
Marketing ?
Chapter 1
1.1 Marketing Basics
Objectives
You will be able to describe the basic
concepts of marketing.
You will be able to describe the
seven key marketing functions.
What Is Marketing?
Marketing is planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and
services to create exchanges that
satisfy individual and organizational
objectives.
The American Marketing Association
Marketing is the creation and management
of satisfying exchange relationships.
Marketing Mix
The Marketing Mix describes
how a business blends the
four marketing elements of
Product, Distribution, Price,
and Promotion.
The Marketing Mix
Product – What a
business offers a
customer to satisfy
needs.
Price – The amount
that customers pay
for products.
Distribution – Involves
the location and
methods used to
make products
available to
customers.
Promotion – This
describes ways to
encourage customers
to purchase products
and increase
customer satisfaction.
Satisfying Customer Needs
The most important aspect of marketing is
satisfying the customer. Customer
needs should be the primary focus
during the planning, production,
distribution, and promotion of a product
or service.
1. Identify customer needs
2. Develop products that customers consider
better than other choices
3. You must be able to operate a business
profitably
Marketing
Functions:
The Basis of All
Marketing
Activities








Please Don’t Forget My Pizza Party Saturday
Please-Promotion
Don’t-Distribution
Forget-Finance
My-Marketing Information Management
Pizza-Product/Service Management
Party-Pricing
Saturday-Selling
Product / Service
Management
The designing, developing,
maintaining, improving, and
acquiring products or services so
they meet customer needs.
**Fisher Price tests new toy ideas with
both children and parents to make
sure children will play with them and
parents will buy them.
Distribution
Determining the best way to get a a
company’s products or services to
the customer.
**Television manufacturers like Sony
sell their products through electronic
retailers like Circuit City.
Selling
Direct and personal communication
with customers to asses and satisfy
their needs. Selling also includes
anticipating the customer’s future
needs.
**Today selling also includes items
purchased over the internet with no
personal communication.
**Loretta Lynn and her husband traveling to
sell radio stations on her single “Honky
Tonk Girl”
Marketing Information
Management
Gathering and using information
about customers to improve
business decision making.
**Domino’s used marketing research to
adapt to a new market in Japan.
Smaller pizza’s to be eaten as snacks
Non traditional toppings corn / tuna
Financing
This requires a company to not only
a.) budget for their own marketing activities
b.) but to provide the customer with
assistance in paying for the product.
*General Motors offers loans to customers
through its GMAC Division.
Pricing
The process of establishing and
communicating the value or cost of
goods and services to customers.
**Prices to professional sports events
and concerts are often very
expensive because the demand for
them is very high.
Promotion
The use of advertising to communicate
a products, services, or images to
the customer to achieve a desired
outcome.
**Coupons on the back of tickets
promote products or services and
entice fans into trying the products
or services shown.
Think Critically
Think of 3 recent sports or
entertainment purchases you
have made. Identify how each
purchase involved the seven
marketing functions.
1.2 Sports Marketing
Objectives
Define sports marketing.
Understand the importance of
target markets.
Identify sports marketing
strategies.
What Is Sports Marketing?
Sports Marketing is using SPORTS to
market products or services.
Spectators of sporting events are the
potential consumers of a wide array
of products.
EX. Apparel, Athletic Equipment
Food
Target Market
A
target market is a specific
group of people you want reach.
 To
promote & sell products, a
company must know the needs &
wants of the target market.
Market Segmentation

Is a way of analyzing a market by specific
characteristics to create a target market.

These characteristics include geographics,
demographics, psychographics and product
benefits.
Geographics

Consideration is given to where the consumer
lives.
 Examples include…
– Beach related items are marketed to beach
towns and cities on the coast
– Sweet tea traditionally was marketed in
South because it orginated there
How To Find A Target Market
A Company Must First….

Identify the customer.

Learn specific information (Demographics)
about the customer such as
– Age ranges in the group
– Marital status
– Gender
– Educational level
– Attitudes and beliefs
– Income (especially disposable income)
Psychographics

Include characteristics such as attitudes,
opinions lifestyles.
 Examples include…
– Marketing new sports or recreational
equipment to those who believe exercise is
important to their life style
Product Benefits
This means the marketer studies consumers’
behaviors, needs and wants regarding
specific product benefits to consumers.
 Examples include..
– Hearing aide to the elderly

Disposable Income
DEFINITION: Income that can
be freely spent.
~Income left over after all
obligations have been met.
Spending Habits of Fans


Important to research spending habits of fans to
maximize profits on items that are purchased at
sporting events.
The price that fans are willing to pay for a ticket
depends upon:
–
Interest of the target market
– The national importance of the event
–
The popularity of the participating athletes
– The rivalry associated with the contest

Fans also pay for:
– team clothing or equipment
– food
– travel expenses to and from a game
Did You Know……
In 1998, a family of 4 could expect to pay $115.00 on
average to attend a major league baseball game.
This price included tickets, parking, hot dogs and
drinks, programs, and souvenir caps.
The highest cost was for the New York Yankees:
$148.56.
The lowest cost was for the Cincinnati Reds: $89.97.
4 Marketing
Strategies Used in
Sports Marketing
Marketing Strategies
1. Sports Logos on Clothing

Show fan loyalty

Increase the value of the clothing in the eyes of
the fan

Some Consumers feel more successful
themselves if they can purchase and wear
clothing with logos

Endorsements make money for professional
athletes and professional and college teams.
Marketing Strategies
2. New Sports Produce New
Opportunities

Offer new opportunities for endorsements
and marketing.

Arena football founded in 1989

WNBA (Women’s National Basketball
Association)
Marketing Strategies
3. Gross Impression
Gross Impression is the number of
times per advertisement, game, or
show that a product or service is
associated with an athlete, team, or
entertainer.
Often the message is is a very subtle
one.
Advertisers hope you will remember
when it is time to make a purchase.
Marketing Strategies
4. Timing






Popularity based on continued winning.
Loosing streaks can cost more than points in a
game.
Timing is extremely important when marketing
sporting goods.
Fans want to identify with winners.
Trends need to be monitored for time to
change.
Success sparks rivalry
Think Critically

Design a new logo for a major sporting goods
manufacturer. Explain what the logo
represents and why it will be successful. This
logo cannot resemble current logos.

Watch a college or professional sporting
event on television. Select a sports brand
represented and keep track of how many
gross impressions were made during the
telecast.
1.3 Entertainment Marketing
Objectives

Understand why marketing must relate to
the specific audience.

Relate advances in entertainment
technology to changes in distribution.

Recognize the power of television as a
marketing tool.
Entertainment Marketing
There are two ways to look at Entertainment
Marketing
 Entertainment must be looked at as a
product to be marketed.

Marketing should be looked at in light of
the way it uses entertainment to attract
attention to other products
What Is Entertainment
Entertainment is whatever people are willing to
spend their money and spare time viewing
rather than participating in. This includes
Sports and the Arts, and can be viewed in
person or in broadcast or recorded form.
Sports are games of athletic skill.
Entertainment can be movies, the theater, the
circus, or even traditional athletic contests.
Just A Little History……
At the beginning of the 20th century the
performing arts represented a major form of
entertainment. This included the live theater,
the ballet, the opera, and concerts.
 Marketing was limited to posters and word of
mouth.
 In order to enjoy professional entertainment
people had to travel and travel was
sometimes slow and tedious.
 In 1888 Louis LePrince made the first moving
pictures in Britain.


In 1895 the Lumiere brothers were the first to
present a projected movie to paying
customers in a café in Paris.

The first movie with sound was The Jazz
Singer which opened in the United States in
1927.

Mickey Mouse arrived in 1928 in Walt
Disney’s Steamboat Willie

10 years later Snow White and the Seven
Dwarfs became the first full length animated
film.

July 1955 Disney opened Disneyland in
Anaheim California.

With the opening of Disneyland a totally new
form of entertainment was born – the theme
park!

Once started technologies of all sorts
changed marketing, advertising, and
distribution forever.

A current trend is to name sports arenas for
corporate sponsors.
The marketing of entertainment is
evolving faster and faster with daily
changes in technology.
Products that were innovative
yesterday are out-of-date today.
Information managers and promoters
must be creative and forward
thinking in order to anticipate the
wants of the buying public.
Television and Marketing

Television provided sports and entertainment
marketers with a wide-open distribution
channel into the billfolds of consumers. The
market grew quickly and continues to
advance throughout much of the world.

In October 1945, more than 25,000 people
came to Gimble’s Department Store to see
the first demonstration of TV.

Nine television stations and fewer than 7,000
working TV sets existed in the United States
at the end of World War II.
Television’s Increasing
Influence

The pricing of television commercial time is
tied to the number of viewers the
programming attracts.

9 TV stations in 1945 grew to 98 stations by
1949.

In 1996 there were more than 223 million TV
sets with many homes having at least 2.

Advertisers spent almost 42.5 billion in 1996.

In 1945 The American Association of
Advertising encouraged the start of television
advertising.

Television changed the marketing of
entertainment in a profound way. TV
advertising hooked the imagination of the
consumer.

In 1946 the Gillette Company staged the first
television sports spectacular – a heavy
weight boxing match. There was an estimated
audience of 150,000 on 5,000 sets!
1.4 Recreation Marketing
Objectives
 Apply
the marketing mix to
recreation marketing
 Describe
marketing for the travel and
tourism consumer.
Recreational Sports
Recreational sports marketers entice
people away from home-based
entertainment. Golf, tennis, bowling,
hiking, snow skiing, snow boarding,
and biking are a few of the more
popular recreational sports activities.

Recreation – can be defined as renewing or
rejuvenating your body or mind with play or
amusing activity.

Recreational Activities – are those activities
involved in travel, tourism, and amateur sports
that are not associated with educational
institutions.

Participation in recreational activities usually
requires the purchase of a combination of
products and services.

Participation also requires a time commitment.

Marketing costs must be included in the
financing of a recreational sports facility.

Professional sports marketers work to increase
interest in related recreational sports.

Exciting professional sports figures can increase
interest in recreational sports and can also help
increase sales of related merchandise. For
example Tiger Woods and his success in golf.
Travel and Tourism

World wide the travel industry employs 130
million people and is the world’s largest
industry.
 Tourism is generally considered traveling for
pleasure whether the travel is independent or
tour-based.
 Tourism includes vacations, honeymoons,
conventions, and family visits.
 A major function of the travel industry is data
mining- this function is the collection of data
about which people travel, where they travel,
and when they travel.
Niche Travel
Recreational travel or tours planned around a
special interest.
Niche travel can be designed for a group of
music enthusiasts traveling through Europe.
The marketing mix in niche travel is critical to
the success of the business. Planning the
right tour, promoting and distributing it to the
right customer, pricing it to attract the
customer, and making a profit, all require
marketing information.