SPORTS AND ENTERTAINMENT MARKETING CHAPTER 1 What Is Sports and Entertainment Marketing? 1.1 Management Basics 1.2 Sports Marketing 1.3 Entertainment Marketing 1.4 Recreation Marketing CHAPTER 1 SLIDE 1 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING LESSON 1.1 Marketing Basics GOALS Describe the basic concepts of marketing. Define the seven key marketing functions. CHAPTER 1 SLIDE 2 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Marketing Concepts What is marketing? Marketing mix Satisfying customer needs CHAPTER 1 SLIDE 3 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING What Is Marketing? Marketing—the creation and maintenance of satisfying exchange relationships CHAPTER 1 SLIDE 4 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Marketing Mix Marketing mix—describes how a business blends the four marketing elements Product—what a business offers customers to satisfy needs Distribution—the locations and methods used to make products available to customers Price—the amount that customers pay for products Promotion—ways to encourage customers to purchase products and increase customer satisfaction CHAPTER 1 SLIDE 5 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Satisfying Customer Needs Primary focus Identify customer needs Develop products Operate a business profitably CHAPTER 1 SLIDE 6 © SOUTH-WESTERN/THOMSON Key Marketing Functions SPORTS AND ENTERTAINMENT MARKETING Product/service management Distribution Selling Marketing-information management Financing Pricing Promotion CHAPTER 1 SLIDE 7 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING LESSON 1.2 Sports Marketing GOALS Define sports marketing, and understand the importance of target markets. Identify sports marketing strategies. CHAPTER 1 SLIDE 8 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING What Is Sports Marketing? Sports marketing—using sports to market products CHAPTER 1 SLIDE 9 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Determine the Target Market Target market—a specific group of people you want to reach CHAPTER 1 SLIDE 10 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING How to Find a Target Market Disposable income—income that can be spent freely Demographics—specific customer information CHAPTER 1 SLIDE 11 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Spending Habits of Fans Tickets Clothing or equipment Food Travel CHAPTER 1 SLIDE 12 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Marketing Strategies Sports logos on clothing New sports, new opportunities Gross impression Timing CHAPTER 1 SLIDE 13 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Sports Logos on Clothing Fan loyalty Increased value Feeling of success CHAPTER 1 SLIDE 14 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING New Sports, New Opportunities Arena football Television broadcasts Sponsorships CHAPTER 1 SLIDE 15 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Gross Impression Gross impression—the number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer CHAPTER 1 SLIDE 16 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING LESSON 1.3 Entertainment Marketing GOALS Understand why marketing must relate to the specific audience. Relate advances in entertainment technology to changes in distribution. Recognize the power of television and the Internet as marketing tools. Understand feedback from the customer. CHAPTER 1 SLIDE 17 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Entertainment for Sale What exactly is entertainment? Entertainment—whatever people are willing to spend their money and spare time viewing rather than participating in Entertainment can include sports or the arts. Sports—games of athletic skill CHAPTER 1 SLIDE 18 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Sports or Entertainment? Is a distinction required for successful marketing? Marketing-information management Specific product promotions Knowing customer needs CHAPTER 1 SLIDE 19 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Modern Entertainment Marketing The beginning of change Change accelerated CHAPTER 1 SLIDE 20 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING The Beginning of Change Louis Le Prince—first moving pictures (1888) Lumiere brothers—first to present a projected movie to a paying audience (1895) The Jazz Singer—first movie with sound (1927) Mickey Mouse—animation arrived (1928) Disneyland—theme park a new approach to the marketing mix of entertainment (1955) CHAPTER 1 SLIDE 21 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Change Accelerated Improvement of technology Ease of distribution to the masses Evolution of entertainment media The Internet CHAPTER 1 SLIDE 22 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING The Big Eye in Every Room The early days of television and marketing Television’s increasing influence Entertaining the customer CHAPTER 1 SLIDE 23 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING The Early Days of Television and Marketing The first demonstration of TV in 1945 The American Association of Advertising Agencies encouraged start of television advertising NBC and the Gillette Company staged the first television sports spectacular in 1946 CHAPTER 1 SLIDE 24 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Television’s Increasing Influence Major national corporations began to advertise Ad pricing tied to ratings or number of viewers Appeal to a mass audience CHAPTER 1 SLIDE 25 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Entertaining the Customer Instant feedback from the customer Marketing mix of reality shows is unique Marketing mix fine-tuned based on customer input CHAPTER 1 SLIDE 26 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING LESSON 1.4 Recreation Marketing GOALS Apply the marketing mix to recreation marketing. Describe marketing for the travel and tourism consumer. CHAPTER 1 SLIDE 27 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Recreational Sports Recreation—renewing or rejuvenating our body or mind with play or amusing activity Recreational activities—travel, tourism, and amateur sports that are not associated with education institutions CHAPTER 1 SLIDE 28 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Not for the Couch Potato Time and money Lessons Practice Equipment Travel CHAPTER 1 SLIDE 29 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING A Better Image Ladies Professional Golf Association (LPGA) Promotion of a strong image to draw sponsors and a broader audience CHAPTER 1 SLIDE 30 © SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING Travel and Tourism Tourism—traveling for pleasure Data mining Relax and smell the roses Niche travel—recreational travel or tours planned around a special interest Complete travel packages/tours CHAPTER 1 SLIDE 31 © SOUTH-WESTERN/THOMSON