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Similarities in Marketing

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					Similarities in Marketing

      Chapter 2 Section 2
Changes in Marketing
   Many marketers consider People to be the
    fifth P in the marketing mix.
   Marketers have new tools to work with that
    they did not have years ago.
   Direct TV, TiVo, video, CD’s, CD burners,
    DVD’s, MP3’s, PC’s, PDA’s, interactive gaming,
    and virtual advertising.
   New technologies have broaden the scope of
    marketing messages.
Marketing Similarities
   Sports and Entertainment products are
    similar in that they are marketed
    different from traditional products
   They differ in four areas: product,
    place, price, and promotion.
Product
   S and E products are not often physical
    products that can be stacked on a shelf.
   Entertainment presentations and athletic
    competitions are both dynamic and can be
    used to promote unrelated products.
   ESPN restaurants do not sell tickets to the
    game, and Tiger Woods sells everything from
    cars to clothing.
Product
 Endorsements-
  Is approval or support of a product or idea,
  usually by a celebrity lending his or her image
  or name to a product.
Have you ever purchased a product based on
  an endorsement?
Marketers must match the celebrity with a
  proper product. George Foreman and make-
  up do not mix.
Product
 A Core product- is the main product.
  The sporting event, the play, the movie, etc,
  etc.
 The ancillary product- is a product that is
  created from the core product.
  A ride in an amusement park based on a
  movie. A DVD recording from a play is
  another example.
See page 34, figure 2.1
Product
   Companies can increase their revenue
    by using the core product and the
    ancillary product together as
    promotional tools.
Place
   The changing nature of the place
    component in the marketing mix has
    affected traditional marketing more
    than sports and entertainment
    marketing. E-commerce has changed
    where people buy their products.
Place
   Successful S and E marketing strategies
    have always appealed to the desire to
    go out to a special event.
Price
   Pricing S and E products is different from
    traditional products.
   S and E product pricing is never lowered and
    has risen steadily over the past few years.
   Price is set and adhered to uniformly based
    on what theaters and sports teams can
    charge and what people can pay.
   Box seating vs outfield seating- a customer
    gets more for their money in a box seat.
Price Problems
   Actors Guild strike
   Players strike
   Piracy- unauthorized copying of a
    movies or songs. Invades the
    intellectual property rights of the
    producer of the movie or song
   Ticket Scalping
Price Royalties
   When people purchase entertainment in
    a store, or use it in another form for
    profit, a portion of that profit called a
    royalty usually goes to the artist or
    owner. It is a payment for material that
    has been copyrighted, or legally
    declared as belonging to the creator.
   North Penn plays for example.
Promotion
   S and E marketing uses two tools to
    promote goods.
   The first one is Product tie ins- it is
    the use of ancillary products such as
    merchandise as promotional tools.
    Example would be a Happy meal from
    Micky D’s.
Promotion
   Cross-Promotion-
    Is the second type of promotion used.
    It is any form of communication
    through which one industry relies on
    another industry to promote its product.
    NASCAR racing is an example.
Promotion
   Convergence- is the overlapping of
    product promotion. A studio may
    use TV advertising to promote a
    movie that one day may be sold to
    television.
Promotion
   Synergy- one of the biggest similarities
    between S and E marketing is the potential
    for convergence and cross-promotion. These
    two entities help create a product’s synergy.
    Synergy is a combined action that occurs
    when products owned by one source promote
    the growth of related products.
    Oprah’s magazine and her show. One feeds
    off the other.
Risks and Risk Management
   Risks are unforeseen negative events
    which affect a business. Injuries to
    players and illness to actors are
    examples.
   Risk Management is the legal aspect of
    a business. People are hired to identify
    possible business risks.
Risks and Risk Management
   Writing contracts
   Writing insurance policies
   See page 37 for different types of risk
    insurance coverage.

				
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posted:11/9/2011
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