Importance of Sports and
Entertainment Marketing
Do Now
How do you think sport differs
from entertainment?
What is an Industry?

A group of organizations
involved in the producing or
handling of the same product
or type of service

Industries can be further
defined by subdivisions
Examples of Industries
The Music Industry
Subdivisions
The Hotel Industry
Subdivisions

Country

Full service (resorts)

Rock

Limited service

Hip-Hop

Economy

R&B

Extended Stay
Examples of Industries
The Television
Industry
Subdivisions
The Sports Camp
Industry
Subdivisions

Reality TV

Football Camp

Talk Shows

Cheerleading Camp

Drama

Dance Camp

Sitcom

Basketball Camp
The Sports Industry
Sport: source of diversion or physical
activity engaged in for pleasure
The Entertainment Industry
Entertainment: any activity which
provides a diversion or permits people
to amuse themselves in their leisure time
Examples:
Television
Live Shows
Movies
Music
Books
Magazines
How Are They Different?
Sports
Spontaneous/not planned
Unpredictable outcome
Involves competition
Fans support one team
Entertainment
Usually planned with a
script or program
Consumers are not
motivated by brand or team
Consumers do not remain
loyal to a brand
The Sports and
Entertainment Industries
Today these industries
are two of the most
profitable in the US
Fans spend BILLIONS on
recreation and related
products every year
What is Sports Marketing

Applying marketing
principles and processes to
promote sports products
◦ Sports equipment
◦ Sports apparel
◦ Sports drinks
RG3 Adidas
"Fate"
Under Armour- This is How We Run
What is Sports Marketing
 The
marketing of non-
sports products through Papa John's and the NFL
association with sports
or sports figures
Gillette - Lochte
Hanes - Sports and Entertainment
Head and Shoulders
Sample Sports Marketing Ads
What is Entertainment
Marketing?
Marketing of entertainment
products or using
entertainment to attract
customers
BK AD
Dr. Pepper/
Iron Man
Growth of the Sports Industry
The sports industry generates
about $200 billion a year
Growth is measured in…..
1. Event Attendance Figures
2. Media Coverage
(ESPN, Golf Channel, NFL Network)
3. Employment Figures
(4.5 million jobs and growing)
4. Global Market Expansion
Growth of the
Entertainment Industry
In 2011 the film industry grossed
$10.6 BILLION
The largest grossing movies were
“The Avengers"
($617 million)
“The Hunger Games"
($407 million)
“Dark Knight Rises"
($359 million)
Trends in Sports and
Entertainment

3D movies (Piranha 3D, Toy Story 3, Avatar)

Midnight releases (Twilight Saga)

The use of social networks (Twitter, Facebook)
Economic Concepts and
Their Impact on the
Industry
Competition
The struggle among
companies for scarce
customer dollars
Based on the theory that
only the strong will survive
◦ Those organizations with
the best products at the
best price will stay in
business
Types of Competition
 Price Competition: when a
business uses the price of their
product to compete in the
marketplace
 Non-Price Competition: when
a business uses other product
features (such as quality, image
or service) to compete in the
marketplace
Economic Resources
All of the things used in the
production of a good or service
Land – anything from the earth or sea
Labor – the people who work to
produce the good or service
Capitol – the money, buildings,
hardware, tools, etc. used in
production
Factors that influence demand for
a Sports or Entertainment event
 Price of the tickets
 How often the event takes place
 How much promotion is used
 People involved in event (key players
or performers)
Assignment
Situation: You are to assume the role of director for an amateur
tennis tournament. Because of the tournament’s size, two
different tennis clubs and several hotels within your town
must be used. The town mayor is unsure about presenting
this project to the town council
Activity: Convince the town mayor to support hosting your
event
Evaluation: You will be graded on how effectively you cover the
following topics:
◦ Explain the economic impact of sports and entertainment events
on a community/area
◦ Describe factors that influence the demand for services
◦ Explain the concept of competition
◦ Explain the concept of economic resources
◦ Describe trends in sports and entertainment marketing