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 and entertainment marketing 3) Compare and contrast sports marketing and entertainment marketing 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 entertainment dollars 7) Identify the five P’s of event 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 Entertainment A source of diversion or physical activity engaged in for pleasure Copyright © 2010 by Sports Career Consulting, LLC 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 Copyright Leisure time is the time available to people when they are not working or assuming responsibilities, often times referred to as “free time” © 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 Copyright 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 © 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 e-commerce 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, Bluray 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! Sports are a form of entertainment Entertainment may be presented in the form of sports Watching a Broadway show Listening to music on an mp3 player 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 game-let’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-0-right? 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 Unscripted: Sports are “unscripted” Copyright Consumers of sports do not know the outcome of the event in which they are participating © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Differentiating Between Sports & Entertainment Sports entertainment relies heavily on emotion Copyright Consumers of sports products have an emotional investment or interest in the outcome of the event (winning vs. losing, close games vs. “blow outs”) © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Differentiating Between Sports & Entertainment Customer Loyalty: Sports expose differences in customer loyalty Copyright A customer decision to become a repeat consumer of a particular product or brand © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Integrating Sports with Entertainment Super Bowl Half-Time Shows Cross Promotion: ESPN’s ESPY Awards 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 Copyright The convergence of two entertainment properties working together to market products or services © 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 Spider-Man 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. Copyright The Ugly Truth © 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 midseason “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 EZ 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 to revenue generated by ticket sales 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 postseason 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 Lesson 2.5 Understanding the Sports & Entertainment Product Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Sports Product Products: Tangible products are capable of being physically touched Copyright Tangible, physical goods as well as services and ideas © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Primary Functions of Marketing Sports products are the goods and services designed to provide benefits to a sports spectator, participant or sponsor Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Sports Product Sports Product: The goods and services designed to provide benefits to a sports spectator, participant or sponsor Licensed merchandise Promotional items Participation Sports facilities Entertainment Marketing research Equipment and apparel Management services Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Sports Product Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Entertainment Product The entertainment industry’s top revenue producing products and services include: Film & Cinema Video Games Television Theme Parks Music & Concerts Publications - Radio Copyright Newspapers Books Magazines © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Unique Nature of Sports & Entertainment Products Sports and entertainment products often share common characteristics of services: Services are perishable Services are intangible Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Sports Product Many sports and entertainment products are perishable Copyright Perishability is the ability or need to store or inventory a product © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Unique Nature of Sports & Entertainment Products Once a game or event has already taken place, they no longer carry a value You can’t sell a seat to yesterday’s game, yesterday’s concert or yesterday’s ski-lift ticket! Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Unique Nature of Sports & Entertainment Products Perishability can also apply to playing careers which impacts product quality Dallas Mavericks owner Mark Cuban said in a recent interview, “I wrote a blog post a few years back saying that NHL players lost more than 1 billion in wages for their missed season. It could be more than that if the NFL walks out. The players can't ever get that money back. Their playing time is perishable.” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Unique Nature of Sports & Entertainment Products Intangible Product Attributes: The unobservable characteristics which a physical good possesses, such as style, quality, strength, or beauty Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Unique Nature of Sports & Entertainment Products Examples of intangible product attributes: The exhilaration we get from running our best marathon The thrill of winning a competition The satisfaction of scoring well on a challenging golf course The pride we feel when teams we support win Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Unique Nature of Sports & Entertainment Products Examples of intangible product attributes: The emotional attachment fans invest in their affiliation with a favorite team The connection fans feel with other fans (whether they know them or not) supporting the same players or teams Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.6 Competition for the Entertainment Dollar Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Competition for the Entertainment Dollar Discretionary Income: Money left to spend after necessary expenses are paid Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Competition for the Entertainment Dollar There is only so much discretionary income available in today’s economy The competition for entertainment dollar increases when the economy is in a recession Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Competition for the Entertainment Dollar The results of a Fortune poll released in May of 2009 showed discretionary spending in America to be at a thirty year low Regardless of economic conditions, the role of the sports and entertainment marketer is to find ways for consumers to spend those dollars with their organization Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic: Competition for the Entertainment Dollar Consider what you do with your leisure time… Where do you spend your entertainment dollars? What entertainment options are available to you in your community? Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic Competition for the Entertainment Dollar Let’s examine the many entertainment possibilities available to residents in the Denver Metro Area… Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.7 Reaching Consumers Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Elusive Fan In 2006, the sports marketing book entitled “The Elusive Fan” was published to examine the volatility of the sports/entertainment marketplace and the challenges today’s sports business professionals face Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 An Excerpt from The Elusive Fan “It’s an October Saturday in Chicago. On television are two MLB playoff games, two preseason NBA games, fourteen college football games, five golf tournaments, an AHL game, an international horse race, two NASCAR races, and eight soccer matches. The University of Illinois and Northern Illinois University football teams and the AHL’s Chicago Wolves have home games. Hawthorne Race Course has a full card and there’s harness racing at Balmoral Park. There are twenty-nine high school football games and the final round of the boys and girls Illinois high school state championship golf tournaments…” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 An Excerpt from The Elusive Fan “…Youth and recreational league games are also being played in every community of the Chicago area. What about the Chicago Bulls, Bears, Blackhawks and Northwestern Wildcats? The Bulls played at home last night, the Bears play at home tomorrow, the Blackhawks are away and the Wildcats had their midseason bye. Of course this does not include the hundreds of satellite television channels broadcasting soccer, rugby or cricket games all over the world; the millions of sports Web sites with fantasy games, insider information and gamecasts; and a wide variety of increasingly realistic sports video games.” Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic: What is a sports and entertainment business and marketing professional to do? What do we mean by the term “elusive fan”? What challenges lie ahead for sports and entertainment business professionals? Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals The primary challenge for today’s sports/entertainment business professional is capturing consumer interest and building loyalty once that connection has been made Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals Why is loyalty important? Most marketers follow the widely accepted “20/80 rule”: 20% of customers account for 80% of company sales Fans of the popular Twilight film franchise and comic books will see the movie Twilight Saga: Eclipse whether or not the movie gets positive reviews (fans actually camped out three days in advance in Los Angeles hoping to snag tickets to the premiere) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals Because NASCAR fans are among the most brand loyal in all of sports, more Fortune 500 companies invest in NASCAR marketing programs than any other major sports property Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals Because loyalty is so important, many sports and entertainment organizations implement “loyalty programs” to reward core customers UCLA unveiled a loyalty-based point system in 2009 that will help determine the order by which fans get to choose their seats in the new basketball arena before it opens its doors for 2012-13 season Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals New and emerging sports and entertainment properties keep the marketplace in a constant state of competition and evolution Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals In 2010, Nike announced that its action sports division is the fastest growing category within the Nike Brand. The Company anticipates doubling its current estimated $390 million business by 2015. Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals Many industry analysts are beginning to ponder the growth potential of cricket in the U.S. The American College Cricket Championship began in 2009, with five Colleges, and quickly grew to 20 Colleges in 2010 Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals ESPN’s action sports X Games franchise’s consumer products and licensing business does more than $120 million in retail sales each year Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals In a sport once publicly denounced by Senator and Presidential Candidate John McCain, Mixed Martial Arts (MMA) has gained mainstream appeal The sport is now sanctioned in every state with an athletic commission except New York Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Challenges for Today’s Sports Business Professionals UFC's pay-per-view audience surpassed boxing and World Wrestling Entertainment for the first time in 2006, and has been on top ever since Nearly ever major MMA event today results in a sold out venue Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examining the Elusive Fan Primary influencers of the fan decision making process are money and time Other factors can include personal issues like spending time with family, camaraderie among friends and relaxation Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Examining the Elusive Fan Innovation, enhancement of the overall fan (consumer) experience and careful market research become essential components of marketing plans and strategies Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” 1) Pressurized competitive environment 2) Higher fan expectations 3) Paradox of commercialism 4) New technology 5) Individualism 6) Change in family structure/behavior 7) Time pressure Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Pressurized Competitive Environment The sports marketplace is extremely crowded Paintball, while not a direct competitor of the NHL, poses an indirect threat as the sport gains popularity and has the potential to attract new sports fans Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Higher Fan Expectations Fans demand a higher consumer experience than ever before with more concessions options, newer facilities and advances in broadcast technologies Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Paradox of Commercialism In 2010, the WNBA’s New York Liberty The New York Liberty became the fourth WNBA team to feature corporate logos on their jerseys by entering a multiyear partnership with Foxwoods Resort Casino (the jerseys say "Foxwoods" across the front with a small Liberty logo above) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Paradox of Commercialism Also in 2010, Bank of Montreal renewed their jersey sponsorship with Major League Soccer’s Toronto FC for a reported $4 million annually through 2015 Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Paradox of Commercialism While the debut continues, sports teams who choose NOT to sell jersey advertising are passing up the potential for extremely lucrative sponsorship deals (Manchester United receives $30.4 million annually from global insurance company Aon to advertise on their jerseys) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” New Technology Never before have consumers had so much information or access to sports and entertainment products at their fingertips with the proliferation of media channels The fan experience is being consistently upgraded as a direct result of new technologies as consumers can absorb the sport experience from almost anywhere Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” New Technology Devices like the Slingbox or iPhone enable users to watch live sports or television programming remotely In a poll conducted by thebusinessofsports.com, nearly 2/3 of survey participants indicated they use Twitter to consume sport-related content Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Individualism Society as a whole has become less focused on group interaction and developed more specialized interests Individualism has slowly resulted in the deterioration of the popularity of team sports (4 of the 5 fastest growing sports last year were the individual sports of backpacking, surfing, trail running and bicycling on non-paved surfaces Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Change in Family Structure/Behavior Today, more than half of all U.S. families are divorced, single parent or diverse groups of unrelated people As a result, the decision making process for sports and entertainment participation becomes more complicated Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Seven Characteristics of the “Elusive Fan” Time Pressure The time demands Americans face today offer fewer hours for the consumption of sport in any capacity, be it as a spectator or participant It is not simply the activity itself that poses challenges for consumers Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic Think about the last time you participated as a spectator in a sports or entertainment event (basketball game, movie, concert etc). How much of your leisure time was spent consuming the activity? Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Discussion Topic Consider the plight of a sports fan that purchased tickets to see a Washington Wizards game. Tip-off is at 7:00 p.m. and the fan leaves work at 5:00 to meet a friend at a local restaurant for a pre-game dinner. Given traffic and parking issues, that fan may not get home until 11:30 p.m… That two or three hour game has now eaten up almost six hours of the consumer’s day! Copyright © 2010 by Sports Career Consulting, LLC Lesson 2.8 Introduction to Event Marketing & Management Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Marketing Event Marketing: Refers to the actual marketing of an event by its organizers. For sports events, this type of event marketing can involve a number of different areas of marketing Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Examples Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Marketing Event marketing has become a profitable segment of the sports/entertainment industry Marketers spent over $9.0 billion on event marketing in 2010 The 2010 FIFA World Cup generated a record $3.2 billion in revenue (representing a forty eight percent increase over 2006 World Cup revenues) Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Marketing Event marketing has become a profitable segment of the sports/entertainment industry The 2009 Bassmaster Classic set an attendance record by drawing more than 135,000 fans to the event The organizer’s of Montreal’s International Jazz Festival operate on a hefty $30 million budget Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Marketing Event marketing has become a profitable segment of the sports/entertainment industry L.A. Live (the entertainment district in Los Angeles which is home to the Staples Center, Nokia Theatre, Conga Room and Grammy Museum) played host to over 1,000 events in 2009, reaching over 10 million fans Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Marketing For sports events, event marketing can involve a number of different marketing activities Recruiting athlete participation in event Creating a publicity strategy to increase coverage of the event Promoting the event to boost attendance Selling sponsorships to corporations Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Marketing The role of corporate support in event marketing has increased dramatically in the past few decades. Without sponsorships and corporate support, many events would not be profitable. The ADT Championship, one of the LPGA's most prestigious events, was canceled in 2009 because the event sponsor, Stanford Financial, went into receivership and the event was unable to secure a new sponsor in their place Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The 5 P’s of Event Marketing 1) Participation 2) Product / Brand Experience 3) Promotion 4) Probe 5) Prospect Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The 5 P’s of Event Marketing Participation: Getting consumers to attend the event and interact with the company, whether visually, verbally or interactively Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The 5 P’s of Event Marketing Product / Brand Experience : Distributing samples or having the consumer try on or try out your product at the event Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The 5 P’s of Event Marketing Promotion: Generating media exposure by creating stories within the event and further increasing corporate awareness through promotions Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The 5 P’s of Event Marketing Probe: Conducting research before, during and after the event to make sure that you are effectively reaching and penetrating your target audience Prospect: Implies that companies should approach event marketing as a long-term commitment in order to see returns on investment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Planning Key factors to consider when planning an event Working with vendors Ticketing & Admissions Facility selection Sponsorship Staffing & Volunteers Award Ceremonies Traffic & Parking Special Accommodations Security Weather Concessions Hotels & Lodging Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Event Triangle The 3 Key Components of the Triangle 1) The Event 2) The Sponsor 3) Spectators Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Event Can be amateur or professional The Event: Typically provides some form of entertainment for spectators Provides exposure for sponsors Copyright A function that will draw participants, spectators and sponsors © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Event Examples Super Bowl Olympic Games Local “Blues” and Music Festivals Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Sponsor Will utilize the event to market its products or services Will leverage its relationship to advance future business opportunities Copyright The Sponsor: A company using the event to reach important consumers © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 The Spectator Typically must pay to attend the event The Spectator: Exposed to promotions for the event and event sponsors Those attending the event as a source of entertainment Copyright © 2010 by Sports Career Consulting, LLC What is SEM? UNIT 2 Blank Slide Available for Teacher Edits Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 REVIEW (ANSWERS) What is SEM? 1)Define sports marketing and entertainment marketing 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 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 UNIT 2 REVIEW (ANSWERS) What is SEM? 2) Explain the two primary types of sports and entertainment marketing 1-Marketing of sports & entertainment 2-Marketing through sports & entertainment 3) Compare and contrast sports marketing and entertainment marketing Sports are entertainment but several key differences separate the two: sports are unscripted, sports customers are extremely loyal and an emotional attachment is very prevalent in sports Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 REVIEW (ANSWERS) What is SEM? 4) Describe the seven functions of marketing 1- Pricing 2- Distribution 3- Promotion 4- Financing 5- Selling 6- Marketing information-management 7- Product and service management Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 REVIEW (ANSWERS) What is SEM? 5) Understand what makes sports and entertainment products unique Sports and entertainment products share the same characteristics as services in that they are often times intangible and perishable. Once a game or event has already taken place, they no longer carry a value and cannot be sold. Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 REVIEW (ANSWERS) What is SEM? 6) Explain the concept of competition for entertainment dollars The role of the sports and entertainment marketer is to find ways for consumers to spend discretionary dollars with their organization. The competition for those discretionary dollars is always on the rise with new, innovative ways to entertain constantly being introduced to the market Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 REVIEW (ANSWERS) What is SEM? 7) Identify the five P’s of event marketing 1- Participation 2- Product/brand experience 3- Promotion 4- Probe 5- Prospect Copyright © 2010 by Sports Career Consulting, LLC UNIT 2 REVIEW (ANSWERS) What is SEM? 8) Explain the event triangle The event triangle is the model for studying the exchanges developed in sports marketing. It places emphasis on the relationships between producers and consumers. Three key components to the triangle include the event itself, the sponsor(s) and the spectators Copyright © 2010 by Sports Career Consulting, LLC End Unit 2 Copyright © 2010 by Sports Career Consulting, LLC