sports and entertainment marketing © thomson/south-western chapter 7 slide 1 bell work please read...
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Sports and Entertainment Marketing© Thomson/South-Western
Chapter 7Slide 1
Bell WorkPlease read page 171 and be prepared to
discuss.
Sports and Entertainment Marketing© Thomson/South-Western
Chapter Chapter Chapter Chapter
The Product Is Sports and Entertainment 7.1 The Product Mix 7.1 The Product Mix
7.2 Recruiting Athletes and 7.2 Recruiting Athletes and Entertainers Entertainers
7.3 Customized Entertainment 7.3 Customized Entertainment
7.4 Product Marketing Strategies 7.4 Product Marketing Strategies
7
Sports and Entertainment Marketing© Thomson/South-Western
Chapter 7Slide 3
Winning Strategies
Brad Pitt has used his fame to draw attention to those in need. children with AIDS in Africa the plight of Haitian children global poverty conditions helped sponsor architectural competition to
rebuild part of New Orleans
Fame and Fortune Used to Benefit Those in Real Need
Sports and Entertainment Marketing© Thomson/South-Western
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Lesson 7.1
The Product Mix
Goals Define product mix, product extension,
and product enhancement. List and describe the components of
the product mix.
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Terms product mix product extensions product enhancements product line brand trademark licensed brand
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WHAT IS A PRODUCT MIX?
tangible parts physical features that can be seen and felt
intangible parts the nonphysical service features
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the total assorted features associated with the product brand name various products offered under the brand product packaging
product extensions items added to a product to make it more
attractive to the target market guarantees warranties instructional CDs
product mix
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Basic vs. Enhanced Product
product enhancements features added to the basic product that
satisfy additional needs and wants with the same purchase
add value to the product and may increase the purchase price
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Provide three examples of a product enhancement.
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PRODUCT MIX COMPONENTS
Product mix includes product line, packaging, and brand development.
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Product Line
product line a group of similar products with slight
variations to satisfy the different needs of consumers
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Packaging
Product packaging components to consider include ease of use safety accessibility environmental friendliness
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Brand brand
the name, symbol, word, design, or combination of these elements that identifies a product, service, or company
trademark the legal protection of words and symbols used by
a company licensed brand
a well-known name and/or symbol established by one company and sold for use by another company
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nonrecognition rejection recognition preference insistence
The five stages of brand recognition are
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What are the components of the product mix?
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Bell Work
Do you think a coach that does not have a good graduation rate should be able to keep his job at a higher education institution?
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Lesson 7.2
Recruiting Athletes and Entertainers
Goals Define the bottom line for sports. Explain the high cost of sports and
entertainment events.
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Terms blue-chip athletes NCAA fringe benefits
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THE BOTTOM LINE FOR SPORTS blue-chip athletes
excellent athletes demonstrate good character and leadership
qualities on and off the field
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The bottom line for business is profit. Winning teams generate profit.
The bottom line for sports is winning.
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NCAA Regulations
NCAA a voluntary organization through which the
nation’s colleges and universities govern their athletics programs
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Compensation for Athletes?
Athletes receive scholarships and grants for their college education.
After signing with an agent, a college athlete can no longer participate in college sports.
In some states, proposals have been brought to the legislature to pay college athletes.
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What is the bottom line for sports and how is it related to the bottom line for business?
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THE COST OF SUCCESS
Success requires skilled coaches top-notch players popular entertainers
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Attracting and Keeping Coaches The best coaches can command
annual salaries in excess of $1 million. fringe benefits
incentives received in addition to base salary
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Attracting and Keeping Star Athletes Competition for top athletes is fierce. Recruiters compete with professional
teams as well as with other colleges. Recruiters need a well refined sales
and marketing effort to attract talent to their schools.
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The Price for Top Musicians and Other Entertainers Popular performers can attract large
enough crowds to make an event profitable.
Popular celebrities help increase the advertising revenue of their television shows.
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Marketing Women’s Sports
In recent years, women’s sports have grown in popularity.
Relative to male counterparts, women receive far less pay.
Creative marketers may develop new products to appeal to females who are relatively new sports fans.
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Why is it important for young, talented, and highly sought-after athletes to hire trustworthy agents to represent them?
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Bell Work
Write down three cable companies that are direct towards a specific target market.
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Lesson 7.3
Customized Entertainment
Goals Define customizing. Describe the financial impact of Baby
Boomers on the entertainment industry.
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Terms customizing impromptu tiering
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CUSTOMIZING PRODUCTS
customizing changing a product to fit the needs or wants
of a particular market
--
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spontaneous and changing
impromptu
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Local TV American Style
Although local programming is less expensive to produce, it has fallen out of favor with major networks.
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Because hosts of locally produced TV shows had such a large impact on children, parents requested that hosts not endorse products. Advertisers lost interest in sponsoring locally
produced children’s shows.
Children’s Programming
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Excessive salaries of sports figures have helped drive up the costs of television coverage of sporting events.
tiering specific sports programs will be offered
outside the basic cable or satellite package
Sports Programming
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Public TV and Radio
Public TV and Radio are viewer- and listener-supported. programming is tailored to local audiences
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Why is different TV programming shown in different cities or regions of the United States?
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MARKETING TO BABY BOOMERS Baby Boomers, born between 1946 and
1964, are one of the best-known market segments.
--
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Boomers Won’t Retire
Baby Boomers have the discretionary income to pay for the products and services they desire.
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Segmenting the Group
The U.S. population is aging. Marketers will need to focus their efforts
on this aging market.
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Entertaining the Boomers
Baby Boomers are increasing their movie attendance.
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Understanding All Parts of the Group Through 2002, Baby Boomers will
continue to be a major target of entertainment marketing.
As the Boomer group is so large, marketing messages need to be developed for specific subgroups of Boomers.
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Why are Baby Boomers important to entertainment marketers?
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Bell Work
What products do you use now that you think will be around in 20 years? What products do think will not be around in 20 years? Why?
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Lesson 7.4
Product Marketing Strategies
Goals List and describe the stages of the
product life cycle. Explain how products are positioned in
the marketplace.
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Terms product life cycle skimming price strategy penetration price strategy positioning
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THE PRODUCT LIFE CYCLE
product life cycle introduction, growth, maturity, and decline
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Introduction Stage
introduction stage product is a novelty only one brand of product is available
skimming price strategy introduces new products at a very high price
penetration price strategy uses low pricing to help capture a large
market share early
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Growth Stage
second part of product life cycle target market purchases the product
regularly advertising focuses on customer
satisfaction competition increases
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The Maturity Stage
third stage of product life cycle sales are level or slowing down marketing costs increase sales prices often offered to hold off
competition
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The Decline Stage sales decrease alternatives include
drop a product sell/license
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regionalize modernize/alter recommit
discount
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What are the stages of the product life cycle?
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POSITIONING A PRODUCT positioning
used by a company to differentiate its products or services from its competitors’ products or services status, price, or brand recognition