Sports and Entertainment
Marketing Mix = 4 P’s
5. People = 5th P!
Should S and E be in the same
• Sports are Entertainment right?
• Aren’t Athletes famous?
• Are the ‘products’ of Sports and
Entertainment different enough to be in
• Sports and Entertainment Products are
different than traditional consumer
• Sports Products
• Competitions, Film, Comedy Shows, Concerts, Tournaments, Paint
• ESPN Restaurants – sell sports appeal
• Endorsements: approval or support of a product or idea, usually by
a celebrity lending his or her image or name for approval. This is for
Sports or Entertainment Marketing
• Music, Fashion, TV, or Film Celebrity Endorsement is a powerful
• Celebrities have a public persona, or personality perceived by the
• Fans Identify with celebrities – connection with product or service.
• Marketers must match their products with the correct celebrities.
• Have you ever purchased a product on the
basis of the celebrity endorsement?
• Ancillary Products
• Core / Main Products
related to or created
(sports event, movie, from the core product.
stage show, comic
Ex: park ride, cereal,
DVD, movie, candy,
Sports and Entertainment Products
• Can earn companies REVENUE
• T Shirts, Sheets, Lunch boxes, Jersey’s,
Hats, Hoodies, Pens, DVD’s, Bumper
Stickers, Posters, Trading Cards
The changing nature of place component in the
marketing mix has affected traditional marketing
more in S & E Mkt.
• Main Street once was in completion with the
• The Mall in competition with the internet.
• S & E draw customers TO the game or event!
• Technology has drawn added value to
sports and entertainment mkt!
• Fans review movies online
• Buy merchandise online
• Easier access to scores, game times,
merchandise, and fan clubs, purchase
soundtracks, track blogs, and download
• $ - Pricing is different for S&E than
• Movie Theaters, games, events rarely
• $ Set to what games can charge
Customers believe they are getting more for
their money… is this true?
• What is ‘more’?
• Stadium Seating, Nachos in addition to
pop corn, stadiums with sushi bars,
• Issue when highly paid players and
celebrities go on strike for salary increases
• Fan loyalty can be damaged
Ticket Scalper: stand outside
games offering tickets at
higher prices, esp. for sold
out games or concerts.
• Unauthorized use of an owner’s or creator’s
music, movies, or other copyrighted material.
• Any intellectual property can be copyrighted.
• Intellectual Property: idea, concept, written
or creative work that is protected by
• Promotion: any form of communication
used to inform, persuade, or remind
customers about a product/service
• S & E Mkt use two tools to promote goods:
– Product Tie-Ins
– Cross Promotion
• Product Tie-In’s
– Use of ancillary products such as
merchandise as promotional tools.
• Cross Promotion
Any form of communication through which
one industry relies on another to promote
Web sites- Word of Mouth (Blogs) promote
TV, Radio, Magazines, Newspapers, Online
• When you join forces with other credible
people who also reach your market you
can reach your customers more efficiently,
credibly and memorably with the right
offers and services.
• The overlapping of product promotion.
• Studio uses TV, Radio, and Online
• Websites host links, and online shopping
• Combined action that occurs when
products owned by one source promote
the growth of related sports
Risk and Risk Management
• Synergy is not always easy to achieve.
• Risks, unforseen events or obstacles that
can negatively affect busienss.
• Sports and Entertainment are risky in
• Athletes and Celeb’s are unpredictable
• Injury, Illness, Weather
• Insurance Policies and Risk Mgt.
Differences in Marketing
• Both Sports and Entertainment Products
are dynamic and a lot of fun! … but each
product has distinction… creativity,
athleticism, competition … for a Target
• Consumer Loyalty
• Revenue Stream
… happy consumers –
• Support one or two teams / sport
• Franchises try to market a
winning season and maintain
existing core group vs. trying to
attract different consumer groups
• Marketers target a core group of
loyal fans … and expanding it!
Steelers – Female Fans
• Entertainment fans not motivated by brand
or team loyalty, but a desire for satisfying
• Subject to trends … ‘what’s hot and what’s
• Consumers quickly TURN – no loyalty if a
book, CD, DVD, Sitcom, ride, magazine
does not DELIVER
• Target’s a well defined consumer group
• Artists may have loyalty – but production
companies … not so much.
• Job of Entertainment Marketer:
Find a winning formula … know what
your customers want … CREATE that
• Job of Sports Marketer:
Find a winning Team… Know what your
customers want … Try to DELIVER that
In groups of 2 or 3 … answer the following
questions on paper:
The key difference between the job of a
sports marketer and the entertainment
marketer: DELIVER and CREATE.
1. Which one of these tasks is more difficult?
Differences in PRODUCT
• SPORTS PRODUCT • ENTERTAINMENT
– Stability and – Variability and
– Same venue, facility, – Predict trends / fads
team, (logos – most of – politics
Differences in REVENUE ($)
Entertainment (1 film) Sports
– Ancillary products • One sports event
– Sold to cable tv (other than a
– Pay per view championship) does
– On-demand not produce the same
– Rented (VHS, DVD) revenue
– Game, TV series, • Regular NFL game
book vs. one Rolling
– Clothing line Stones concert …
– Royalties, Sales, • Stones = More $
• Sponsorship: promotion of a company in
association with a property.
Ex: A co. sponsors (gives $) to another
person or company to fund a project or
production in exchange for something.
– Something: Advertising
Sponsorship and NASCAR
Video : Nascar
What is Sponsorship?
A COMMERCIAL DEAL –
• one of the means open to a company to bring
itself or its products to the attention of
consumers and present them in a favorable
• Advertising is the most frequently used
marketing tool and speaks to a consumer in a
direct way. It announces the availability of a
product and creates an image for a brand. It can
also provide information on product quality,
characteristics, price and performance
Sponsorship is a commercial
• between a company and a sport to enter
into a joint venture to promote their mutual
• In return for a financial contribution a
sports organisation will allow the use of its
name in commercial activities.
• Some of the most obvious are:
• Display of the brand name on kit
• banners / signage around the venue
• advertisements in program merchandise.
• Production of joint websites
• Corporate Boxes in Stadiums (marketing
tool to entertain and network work with
their own clients)
• Stadium Naming Rights
– Citizen’s Bank Park, Lincoln Financial Field
Sponsorships vs. Endorsements
• Aren’t they the same thing?
• WHAT IS AN ENDORSEMENT?
an endorsement is defined as the
expressed or implied recommendation by
a popular and/or well-respected and/or
influential celebrity or athlete, of a
particular manufacturer's product, product
line, or service.
• WHAT IS ITS PURPOSE?
Endorsements are designed to increase
product or brand-name awareness (and
sales) through the use of a familiar
Ever since Red Rock
Cola hired Babe Ruth
to endorse its soft
drink brand in the
have utilized athletes
to pitch their products
and serve as
• Kobe Bryant
• Sponsor: McDonald's
Lost sponsorship because: Charged with sexual assault
Kobe Bryant used to be the ideal choice for businesses looking for a
celebrity endorsement: a stellar player with a squeaky-clean image. In
February of 2001, McDonald's signed Bryant up to a $10 million
That source of income dried up after the summer of 2003, when a 19-year-
old woman accused Bryant of sexually assaulting her at a Colorado resort.
The married Los Angeles Lakers star admitted to committing adultery, but
said the sex was between two consenting adults.
Nevertheless, McDonald's dropped Kobe like a hot French-fried potato.
Several months later, the company announced that it would not be renewing
their three-year contract with Bryant, which expired at the end of 2003.
Ferrero, maker of the Nutella chocolate spread, also decided to abandon
their endorsement deal with the beleaguered basketball star. Coca-Cola
soon followed them, pulling their Sprite ads that featured Bryant and
eventually replacing him with another young NBA star, LeBron James. An
Associated Press report suggested that Bryant lost between $4 million and
$6 million in endorsement income because of the sexual assault case.
As for the case itself, prosecutors eventually dropped the charges against
Bryant. A pursuant civil lawsuit was settled out of court.