EVENT DISTRIBUTIONSports Entertainment and Recreation Marketing

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Review – The 5 P’s

involve the goods, services, or ideas used to satisfy consumer needs.

Product

involve the exchange process between the customer and the seller.

Price

involve making the product available to the customer.

Place

involve how the goods or services are communicated to the consumer.

Promotion

involves the target market that the manufacturer is trying to reach

People

3

Place Decisions

Involves getting the product into the hands of your customer

First step is determining the type of customer you have

(or the TARGET MARKET)

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Channels of Distribution

The path a product takes from the producer to the consumer

Companies will use either direct or indirect channels of distribution

Manufacturers

Wholesalers Retailers Consumer

s

Agents

What is the difference?

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Examples of Channel Distribution

NIKE products can be purchased - (or distributed)

1. Website

Direct or Indirect?

2. Retail Store

Direct or Indirect?

3. Factory Outlet

Direct or Indirect?

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Examples of Channel Distribution

Movie and event tickets can be purchased - (or distributed)

1. Box Office

2. Online

3. Ticket Brokers

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Place Distribution

Sports are produced and consumed at the same time

The Stadium, Arena, or Venue serves as both the location and the method of distribution for the event

The media also provides for distribution of sports events News, TV, PPV, Radio,

Internet…

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Fan Involvement in Events

There are many ways that fans shape and effect games and events: “Home Court Advantage” Noise meters Attendance records Ticket Prices & “Scalping” Media Input & Purchasing

DirecTV, Satellite Pay-Per-View

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New Stadium

New venues incorporate luxury boxes Increase revenue for

team

Incorporate new technology with “old style” atmosphere”

Example New Yankee Stadium

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Venue Videos

10 New Super Stadiums

Yankee Stadium

Cowboys Stadium

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Stadiums Funding

80% of funding is TAX DOLLARS

Luxury Boxes Add $10-$40

Million annually Increases in

salary and payroll

Signing top players

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Ticket Distribution

Team & Venue Sales Sale Price: face value of tickets Luxury seats are more expensive

Ticket Brokers Sales Price + Service Charge

Game Marketing Advertising Tech Support Customer Service Sales Force Customer Complaint: Service Fees Too High

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Goal of Stadium

Create value in time spent at park (better than watching from home)

Attract more spectators

Make “Experience” Bigger & Better In stadium technology Seat side concession

ordering, instant replay, player statistics . . .

14 Yankee Stadium Food Choice

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Media Distribution

Delivering sports and entertainment events with media Television Internet Radio Satellite

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How does American Idol help with the

distribution of new artists’ music?

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Rights to Distribution

Networks Buy “Rights” to Broadcast Advertisers buy advertising time during

broadcast Sponsors pay for exposure from Broadcast NBC – Olympic Games FOX– Super Bowl

Media Revenue goes to Team or League

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Benefits of Media Rights

Guaranteed Mass Audiences Specifically Young Male Target Market

Networks can use sports and entertainment events to create & maintain their IMAGE

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Cable and Satellite

Cable & Satellite Services DirecTV, PrimeStar, Dish Network, Digital

Cable

Offer Specialty Broadcasting Provide specialty target markets for advertising Provide statistical data (Pay-per-View)