unit 2 – what is sem? copyright © 2010 by sports career consulting, llc

Unit 2 – What is SEM?

Copyright © 2010 by Sports Career Consulting, LLC

What is SEM?

UNIT 2 OBJECTIVESUNIT 2 OBJECTIVES


1) Define sports marketing and entertainment marketing

2) Explain the two primary types of sports and entertainment marketing

3) Compare and contrast sports marketing and entertainment marketing

4) Describe the seven functions of marketing

What is SEM?

UNIT 2 OBJECTIVESUNIT 2 OBJECTIVES


5) Understand what makes sports and entertainment products unique

6) Explain the concept of competition for entertainment dollars

7) Identify the five P’s of event marketing

8) Explain the event triangle

Lesson 2.1

Sports & Entertainment Marketing Defined


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What is SEM?


"I'm tired of hearing about money, money, money, money, money. I just want to play the game, drink Pepsi, wear Reebok.”

- NBA Star, Shaquille O'Neal

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What is SEM?

What is Sports & Entertainment Marketing?

To define Sports & Entertainment Marketing, you

must first understand the foundation of the term:

Marketing

Sports

Entertainment


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What is SEM?

Sports EntertainmentMarketing

The process of developing, promoting, and distributing products, or goods and services to satisfy customers’ needs and wants

Whatever people are willing to spend their money and spare time viewing rather than participating

A source of diversion or physical activity engaged in for pleasure


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What is SEM?

It is the goal of the sports and entertainment marketer to provide a product or service that can satisfy the needs and wants of those individuals who choose to be entertained during their leisure time

Leisure Time

Leisure time is the time available to people when they are not working or assuming responsibilities, often times referred to as “free time”


Lesson 2.2

The Fusion of Marketing with Sports & Entertainment


Sports Marketing is the act of using sports as a platform to market products or services and increase sales or the process the of marketing and selling the sports property itself


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What is SEM?

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What is SEM?

Fundamental Concept of SEM:


Marketing through Sports & Entertainment

vs.

Marketing of Sports & Entertainment

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Companies use sports and entertainment as a vehicle to gain exposure for their products

Kia Motors sponsoring the World Cup

VitaminWater affiliating its product with celebrities like Steve Nash, Carrie Underwood, Jennifer Aniston, David Ortiz and Steve Nash

HP serving as presenting sponsor of the Sundance Film Festival

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A CEO entertaining potential customers at a PGA Golf Event in the hospitality area as a sales tool

Marketing through

Sports & Entertainment

Product placement is a tactic companies use to place their products within a particular form of entertainment to gain visibility or exposure


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What is SEM?

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What is SEM?

Marketing through

Sports & Entertainment


Audi being prominently featured in the new “Iron Man 2” movie

Judges on the hit show American Idol drinking Coke products during episodes

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What is SEM?



Marketing of Sports & Entertainment involves the promotion and sales of the sports and entertainment products themselves

The Potomac Nationals baseball club selling special “Holiday” ticket packages

Branding the 2010 Winter Games with the slogan “With Glowing Hearts”

Paramount Pictures spending over $130 million in marketing and promotion for the film “The Last Airbender”

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What is SEM?



Marketing of Sports & Entertainment involves the promotion and sales of the sports and entertainment products themselves

Nike advertising the launch of a new sneaker or shoe line

Astro Turf selling and installing a synthetic grass football field to a college

Artist Jay Sean attending the "Jersey Shore" soundtrack album release party in New York City

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What is SEM?

Discussion Topic

Let’s say Adidas invests in a luxury suite at the Staples Center in Los Angeles. Is this an example of the marketing of sports or an example of marketing through sports?


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What is SEM?

The Adidas investment in a luxury suite at the Staples Center arena provides an example of BOTH marketing of sports and marketing through sports

Discussion Topic


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What is SEM?

Discussion Topic

Marketing of Sports:

The marketing OF sports occurs as the Staples Center marketing staff actively engages in the activity of selling suites to corporations, thereby marketing their products


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What is SEM?

Discussion Topic

Marketing through Sports:

Occurs as Adidas uses the suite for events (NBA’s Lakers or Clippers basketball games, Disney on Ice, Rolling Stones Concert, Barnum & Bailey Circus, Harlem Globetrotters, NHL’s Kings, WNBA’s Sparks etc.) to entertain customers, prospective customers and employees


Sports Management vs. Sports Marketing

Sports management is the study and practice of all people, activities, businesses or organizations involved in producing, facilitating, promoting or organizing any sport-related business or product


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What is SEM?

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Sport law

Facility management

Human resources

Sport governance

Leadership

Sport management areas of study might include:


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What is SEM?

Tostitos sponsoring the Fiesta Bowl

A NHL team offering payment plan options for season ticket buyers

NBC paying $5.7 billion for the TV rights in the U.S. to the Olympics from 2000 to 2012

Examples of Sports Marketing


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A corporation’s purchase of a courtside tickets in a NBA Arena

A sign or banner displaying a company’s logo at a hockey rink

Coca-Cola paying for “pour rights” at an event or facility



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A local restaurant sponsoring the local high school soccer team

The Goodyear Blimp flying over sporting events

Fans receiving free bobble head dolls at a baseball game



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What is SEM?

Nike partnering with Apple to launch new technology for runners

Foot Locker stores offering special sales or coupons to help increase sales



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Former NBA star Charles Barkley hosting Saturday Night Live



Entertainment Marketing is the process of developing, promoting, and distributing products, or goods and services, to satisfy customer’s needs and wants through entertainment, or any diversion, amusement, or method of occupying time


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What is SEM?

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Seeing the Houston Symphony perform at Jones Hall in downtown Houston

Attending a LSU Tigers football game

Reading Stephanie Meyer’s novel Twilight

Examples of Entertainment


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What is SEM?

Visiting the Seattle Aquarium

Going to a Justin Timberlake or Jack Johnson concert

Listening to the newest Lady GaGa song on your mp3 player

Watching the Broadway musical “Lion King”



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What is SEM?

Going to the Ringling Bros. and Barnum & Bailey circus at the American Airlines Center in Dallas

Universal Studios announcing ‘Transformers’ as a new theme park ride



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What is SEM?


Technology’s Impact on SEM

A podcast is a digital media file, or a series of such files, that is distributed over the Internet using syndication feeds for playback on portable media players and personal computers

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The NHL’s league website (nhl.com) features a podcast page which includes podcasts of its NHL radio show (“This Week in the NHL”) and podcasts for individual teams in both audio and video format (the Minnesota Wild podcast show is referred to as the “pondcast”, St. Louis Blues have a “BluesCast”, Washington Capitals have a “Caps Report” etc.)

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Podcast technology opened the door for comedian Adam Corolla to reinvent and revive his career after his network show was cancelled.

Since launching his self-produced podcast show in February of 2009, "The Carolla Podcast" has frequently been the most popular podcast on iTunes, even edging out President Obama’s weekly address and drawing over 3 million downloads in a given week.

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What is SEM?



Sticky marketing is the practice of creating online content that encourages consumers to visit a specific Website frequently with the goal of getting the visitor to explore the site in greater detail while maximizing the amount of time the user spends on the site

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Sports Illustrated’s Peter King is widely credited with the development of one of the first true “sticky” web marketing applications. His column, “Monday Morning QB” gets more than three million page views per week!

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What is SEM?



Yahoo’s site featured dedicated coverage to the 2010 Winter Games in Vancouver provides provides an excellent example of sticky marketing,

boasting an impressive total of 314 million total minutes spent by visitors on the site, compared to the 218 million total minutes spent by visitors to

NBC's Olympics site (official broadcaster of the Games).

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Online video rentals (Netflix, Blockbuster etc.)

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Streaming audio and video capabilities

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Streaming Live Events

In 2010, many major global sporting events like the

British Open Golf Tournament were streamed through the

Internet allowing fans to watch online and/or on

mobile devices

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What is SEM?



To celebrate the band’s reunion, Blink 182 staged plans to offer one a new twist on traditional touring by streaming an interactive 3D concert online. The concert, sponsored by Doritos required only that fans purchase a bag of chips (Doritos brand of course) and place the bag in front of their computers webcam for admission to the show.

Throughout the concert, fans were able to move and shake their bag of chips to activate certain interactive actions such as, zooming in and out and other features and noise picked up from computer microphones would influence the band’s encore.

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What is SEM?



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Consumer’s ability to purchase entertainment on the Internet

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Advertising: Signage and Displays

American Airlines Arena unveiled new technology capable of delivering “live and dynamic billboard advertising”, making the NBA’s Miami Heat the first U.S. sports franchise to tap into the next

generation of outdoor media systems designed to drive revenue

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What is SEM?



Advertising: Signage and Displays

The Kansas City Royals teamed up with Cisco Systems and AT&T Inc. to launch a new video platform that offers customized advertising,

capable of delivering live game video, concessions menus and customized fan content

Technology enables us to enrich the experience for our fans, who are

celebrating 40 years of Royals baseball this year,” said Kevin Uhlich, Royals

senior vice president of business operations

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What is SEM?



Advertising: Virtual Ads

Advertising firm “Instadium.com” sells promotional materials and “touchpoints” to advertisers at venues such as Coors field in Denver. They have ads positioned in

hundreds of locations around the stadium, from rotational signage around the field perimeter to ads in the restrooms, concessions areas, and concourses. Fans can’t help

but be exposed to their messages.

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What is SEM?



Advertising: Virtual Ads

During the 2009 playoffs, the NHL provided an opportunity for a sponsor to preview the potential impact of virtual advertising when, during the third period of MSG Network’s

telecast of two playoff games, Subway logos were superimposed on the glass areas behind each goal and at center ice. The results were impressive, as sponsors averaged

nearly 20 minutes of quality on-screen time per game from the high-tech broadcast enhancement.

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What is SEM?



Advertising: Interactive Shopping

An upcoming Blu-ray film will reportedly feature an e-commerce application that will allow viewers to shop for products in the movie and purchase them through the

Internet with BD Live (BD-Live is a newly developed Blu-ray feature that allows users to access additional content with

any internet-connected Blu-ray player)

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What is SEM?



Audio / Visual Enhancement

In a sentiment shared by sports consumers everywhere, ESPN writer Bill Simmons discusses how HD television has revolutionized the fan (viewer’s) experience: “It's a new world for sports fans: an intimacy that can't be found otherwise, unless you're

paying through the nose for great seats. I thought I'd like sports less when I got older. Actually, I like them more. And it's partly because of HD. I'm constantly saying

to myself, I can't get over how great that looks!”

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Over 1,000 FM radio stations are now broadcasting in high definition (special HD-ready receivers are required to hear the high quality signal)

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A 2010 estimate suggests that global sales of Blu-Ray players will reach 62.5 million units

by 2011

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According to a report by Variety, 2.7 million Blu-Ray copies of Avatar were sold in the first four days of its retail

release. Perhaps a testament to the growing demand for Blu-ray content, Blu-ray accounted for 40% of sales for the

movie in that four-day window.

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What is SEM?



Video Games

Games now feature enhanced graphics, creating a more realistic user experience

Game players now enjoy greater accessibility and interactive capabilities through the Internet

Through Nintendo’s Wii system, video game enthusiasts can now enjoy motion sensor technology, allowing for users to simulate various activities (such as golf or

tennis) using a video game controller

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What is SEM?



Video Games

In 2010, Microsoft plans to up the ante in the motion sensor technology arena with the

launch of their “Kinect” accessory that allows users of the Xbox 360 console to interact with

games without a controller by simply using gestures and spoken commands

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What is SEM?



Apparel/Footwear/Sporting Goods

Just prior to the 2008 Summer Olympics, Speedo introduced the LZR Racer swimsuit, a technologically

advanced piece of swimwear that features a finely woven water-repellent microfiber that cuts down on

drag and features localized compression, which Speedo officials say reduces swimmers' energy loss

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What is SEM?




The technology was so effective that, in 2010, swimming's governing body adopted new rules to limit the role of high-tech suits after seeing more than 100

world records fall after the suit’s introduction just one year earlier

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In 2008, Nike teamed up with Apple to launch the Nike+iPod Sports Kit, a

device which allows users to measure and record the distance and pace of a

walk or run

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In 2010, Adidas introduced similar technology with MiCoach, a system the

company’s website calls “the interactive personal coaching and training system” which relies on a

mobile phone’s GPS systems allowing the app to track distance, pace, and calories, all while coaching athletes

based on their pace and training regimen

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What is SEM?



Broadcasting / Viewer Experience

In 2009, golf fans were able to view multiple video feeds of the Masters on their TV screens to keep up with action at different points on the course

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What is SEM?



Broadcasting / Viewer Experience

With the re-emergence of 3D technology (3D has been around since silent films in the early 20th century),

the viewing experience has been taken to a whole new level

Lesson 2.3

Sports ARE Entertainment


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What is SEM?

Sports ARE Entertainment!

Sports are a form of entertainment

Entertainment may be presented in the form of sports

Watching a Broadway show

Listening to music on an mp3 player

Watching a movie

Watching a football game

Playing a game of soccer


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What is SEM?



Sports ARE Entertainment

“I believe sports is entertainment. I know there’s athletic excellence. But when I watch a game-let’s say I’m watching Charles (Barkley’s) show on (TNT)-it’s not just for the athletic excellence. Every piece of information is available in that telecast: scores, highlights, standings, analysis-0-

right? I watch it because it’s entertaining. It’s about being entertained. It’s about being consumed. You’re a consumer, and you’re consumed by the entertainment, you’re engaged by

the entertainment.”

- PETER GUBER

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What is SEM?

Differentiating BetweenSports & Entertainment

Sports are“unscripted”


Unscripted:

Consumers of sports do not know the outcome of the event in which they are participating

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Sports entertainment relies heavily on

emotion


Consumers of sportsproducts have anemotional investmentor interest in theoutcome of the event(winning vs. losing,close games vs. “blow outs”)

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Sports exposedifferences

in customer loyalty

Customer Loyalty:

A customer decision to become a repeat consumer of a particular product or brand


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Integrating Sports with Entertainment

Cross Promotion:

The convergence of two entertainment properties working together to market products or services

Super Bowl Half-Time Shows

ESPN’s ESPY Awards

Universal Studios partnering with the Dodgers to promote the park's new King Kong attraction

TNT tapping pop stars Jamie Foxx and Justin Timberlake to lead a marketing campaign for the 2010 NBA playoffs


http://espn.go.com/espy2004/s/04bestfemalegolfernominees.html

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Variety.com reports that a significant factor in ESPN’s successful launch of its Chicago-based website on all things Windy City was cross promotion, suggesting

the cable company used “plenty of cross-promotion as a way to attract listeners to the site”

Cross promotion can be an effective sales and branding tool for all parties involved

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What is SEM?



By July of 2010, ESPNChicago has become the city’s top sports site, attracting about 590,000 unique visitors in the month of June alone while the city’s historic newspaper company’s (Chicago Tribune) online sports section drew just 455,000 unique visitors

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Ratings for the 2010 Tour de France increased 83% on the Versus network through the first nine days of competition. Versus President Jamie Davis credited part of the ratings jump on

cross-promotion during its coverage of the NHL Stanley Cup Playoffs.

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What is SEM?


In the summer of 2009, MLB partnered with Walt Disney Pictures and Jerry Bruckheimer Films to cross promote the 3-D comedy G-Force, this time determined to push the promotion cautiously. Five years earlier the league badly botched a Spider-Man 2 promotion in which MLB had planned to feature the Spider-Man logo on each base during the All-Star Game. The league received such opposition from fans and

baseball purists that the promo was eventually pulled.


+ =

Lesson 2.4

Primary Marketing Functions


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What is SEM?

Pricing

Distribution

Promotion

Financing

Selling

Information-Management

Product and Service Management

Primary Functions of Marketing


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Pricing: Assigning a value to products and services


Price is determined on the basis of supply and demand

Tickets to the Super Bowl are very expensive because demand is high

In July of 2009, the NFL’s New York Giants announced a reduction in ticket prices on seats in several sections of their new stadium that had not yet been sold


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Supply and demand is a major factor influencing pricing strategies, so much so that many teams are evaluating the possibility of moving toward a “dynamic pricing” structure for tickets in which games in higher demand cost more than the same ticket for a game with lower demand


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Red Box created a price point of $1 in an effort to capture a piece of the lucrative movie rental business


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Distribution: Determining how best to get products and services to consumers

EA Sports sells their video games in Target and Best Buy stores, knowing that consumers shop at those stores for video games and entertainment


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In 2009, TiVo announced plans to provide “on-demand” access to Blockbuster’s film catalog to TiVo subscribers


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Google announcing plans to open a digital music store online to challenge iTunes


Hotel chains offering movie rental opportunities from the comfort of a hotel room

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The top selling on demand theatrical movie titles in hotel guest rooms in 2009


1. The Hangover 2. Taken

3. Paul Blart: Mall Cop 4. Angels & Demons 5. The Proposal

6. Gran Torino

7. Inglourious Basterds

8. Quantum of Solace

9. X-Men Origins

10. The Ugly Truth

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What is SEM?

Primary Functions of MarketingPromotion: Communicating information about products and services to consumers

Prior to the start of the 2010 NFL training camp, Nike announced that former college QB Tim Tebow would have his own Nike shoe through a combined EA Sports/Nike cross promotion that coincided with the rollout of the NCAA Football 2011 video game


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What is SEM?

Primary Functions of MarketingThe Sacramento Kings initiated a ticket sales promotion shortly after the 2010 NBA draft to capitalize on the excitement surrounding first-round draft pick DeMarcus Cousins in which the franchise extended new offers every hour between noon and 8 p.m. on their website. The special offers included season ticket deals for less than $17 per game, access to a VIP reception with the team’s new draft picks and $150 merchandise vouchers.


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What is SEM?

Primary Functions of MarketingIn 2009, Sony Pictures Home Entertainment launched a promotion encouraging consumers to stay home for vacation with “Movie Staycations” where Sony movies were being offered at retail stores for less than $10. Consumers also had the opportunity to visit the “Movie Staycation” Web page online to download coupons for an additional $2 off DVDs and $3 off Blu-ray Discs.


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Financing activities could include:

Creating a budget for a company’s marketing plan

Analyzing the cost effectiveness of existing or past marketing efforts

Providing customers with flexibility in purchasing company products or services


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In NHL Commissioner Gary Bettman’s 2009 mid-season “state-of-the-league address”, revenue projections were updated by dropping its initial growth expectations. Mr. Bettman suggested the league expected to generate $2.63 billion to $2.64 billion in hockey-related

revenue for the 2008-09 season.


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What is SEM?

Primary Functions of MarketingIn Hollywood, a decrease in sales of DVDs and significant increase in production and marketing expenses has prompted industrywide reforms that include a crackdown on budgets

In production of the fourth installment in the Pirates of the Caribbean, super producer Jerry Bruckheimer has been working with a budget at least a third less than the last "Pirates" movie and will include far fewer shooting days and visual effects shots


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What is SEM?


Like many professional sports franchises, MLB’s Washington Nationals offer payment plans for customers purchasing ticket packages. According to the team’s website, the Nats’ “Grand Slam E-Z Payment Plan allows season ticket holders to pay a fraction of the total cost of their tickets in easy monthly payments. This is available for either Full, Half, or Partial Season Ticket Plans.”


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Cultivating prospective buyers (or leads) in a market segment

Conveying the features, advantages and benefits of a product or service to the prospective buyer

Closing the sale


Selling: Communicating with consumers to assess and

fill their needs, as well as anticipating future needs

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Many professional sports teams utilize a call center to revenue generated by ticket sales

A call center is a physical location where calls are placed, or received, in high volume for the purpose of sales, marketing, customer service; typically through the use of telemarketers

Call centers employ a staff to perform telemarketing activity with the goal of selling ticket packages over the telephone


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What is SEM?


In 2009, Georgia Tech outsourced the portion of their ticket sales operation to a company (Aspire Group) to manage ticket sales for football and men’s basketball. Aspire has a full-time

sales staff of 15 to 20 people who work from Georgia Tech’s downtown Atlanta campus.


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Marketing Information-Management: Gathering and using information about customers to improve business decision making


Professional sports teams began offering smaller ticket packages (half-season, quarter-season, five-game packages) after determining through customer research that full season ticket plans were often too costly and/or time consuming for many fans to purchase

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What is SEM?

We Have a Seat for You!

Stanford basketball season tickets guarantee your seat for an entire schedule of college hoops excitement!

Follow both teams as they march towards March Madness and guarantee yourself the opportunity to buy

post-season tickets when they get there.

Mini Power-Packages

Designed especially for the first time buyer and reserve power player, this five-pack of our most popular games

offers big-time college hoops access to the PAC-10 season for only $59. As a mini-pack subscriber, you'll

receive reserved seats and guarantee yourself the opportunity to purchase post-season tickets.

PAC-10 Power Pack (Men's):

Cal * USC * UCLA * Arizona * Arizona State

Best of the West (Women's): Washington · Cal * UCLA * USC * Arizona

Fun for Five Family Plan The best deal in town! The Fun-for-Five Family Plan allows you and four friends general admission tickets to over 10 home games, men's or women's, at Maples Pavilion at the remarkable cost of only $2 per person!


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What is SEM?

Primary Functions of MarketingAs visitors pass through the turnstiles at Disneyland in California, guests are randomly

selected to answer interview questions from friendly staff members equipped with hand held data recording devices. This provides Disney management with up to date

information about park guests, such as where they are from, how many are in their group, and how many times they have visited the theme park in the past.



Product/Service Management:

Designing, developing, maintaining, improving, and acquiring products or services so they meet

customer needs


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One of Nike’s product management efforts includes the “Nike Kids Field Tester Program” in which selected applicants will wear Nike shoes for typically 4-8 weeks. Testers keep a daily written account of information relating to the product. Also, testers are required log the number of hours the shoes were worn each day, the surfaces shoes were worn on, observations regarding the shoe’s fit, performance and durability.


http://www.nike.com/

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What is SEM?

Nike’s field tester program requires a thorough and detailed application process


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What is SEM?


Sketchers recently unveiled the Shape Up shoe, endorsed by football legend Joe Montana. The shoes are a new innovation in sport shoe

technology and claim to improve posture, “tone” leg muscles and promote weight loss.


unit 2 – what is sem? copyright © 2010 by sports career consulting, llc

Documents

sports career consulting

contrast sports marketing

sports property

llc marketing

llc unit

primary types of sports

functions of marketing

fusion of marketing