What Is Sports And What Is Sports And Entertainment Entertainment

Marketing ?Marketing ?

Chapter 1

1.1 Marketing Basics1.1 Marketing Basics

ObjectivesObjectives

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?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 MixMarketing Mix

The Marketing Mix describes how a business blends the four marketing elements of Product, Distribution, Price, and Promotion.

The Marketing MixThe Marketing Mix

Product – What a business offers a customer to satisfy needs.

Distribution – Involves the location and methods used to make products available to customers.

Price – The amount that customers pay for products.

Promotion – This describes ways to encourage customers to purchase products and increase customer satisfaction.

Satisfying Customer NeedsSatisfying 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 Marketing Functions: Functions:

The Basis of All The Basis of All Marketing Marketing ActivitiesActivities

Product / Service Product / Service ManagementManagement

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.

DistributionDistribution

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.

FinancingFinancing

This requires a company to not only budget for their own marketing activities but to provide the customer with assistance in paying for the product.

*General Motors offers loans to customers through its GMAC Division.

Marketing Information Marketing Information ManagementManagement

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

PricingPricing

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.

PromotionPromotion

The use of advertising and other forms of communicating information about products, services, images, and ideas 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.

SellingSellingDirect and personal communication

with customers to assess 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”

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 Marketing1.2 Sports MarketingObjectivesObjectives

Define sports marketing.

Understand the importance of target markets.

Identify sports marketing strategies.

What Is Sports Marketing?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 ranging from apparel and athletic equipment to food.

Target MarketTarget Market

A target market is a specific group of people you want reach.

In order to promote and sell products and services, a company must know the needs and wants of the target market.

How To Find A Target MarketHow To Find A Target MarketA Company Must First….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)

Disposable IncomeDisposable Income

Income that can be freely spent.

Income left over after all obligations have been met.

Spending Habits of FansSpending Habits of Fans It is important to research the spending

habits of fans in order to maximize profits on items that are purchased at sporting events.

The price 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 and food and travel expenses to and from a game.

Did You Know……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.

Marketing StrategiesMarketing StrategiesSports Logos on ClothingSports 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 StrategiesMarketing StrategiesNew Sports Produce New New Sports Produce New

OpportunitiesOpportunities

Offer new opportunities for endorsements and marketing.

Arena football founded in 1998

WNBA (Women’s National Basketball Association)

Gross ImpressionGross 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 StrategiesMarketing StrategiesTimingTiming

Popularity is 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 CriticallyThink 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 1.3 Entertainment Marketing ObjectivesObjectives

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 MarketingEntertainment 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 EntertainmentWhat 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……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 MarketingTelevision 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 Television’s Increasing InfluenceInfluence

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 Marketing1.4 Recreation MarketingObjectivesObjectives

Apply the marketing mix to recreation marketing

Describe marketing for the travel and tourism consumer.

Recreational SportsRecreational 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 TourismTravel 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 TravelNiche TravelRecreational 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.