Sports and Entertainment Marketing Similarities.ppt

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					Sports and Entertainment
 Marketing Similarities

         Marketing Mix = 4 P’s
1.   Product
2.   Price
3.   Place
4.   Promotion
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
  separate categories?
• Sports and Entertainment Products are
  different than traditional consumer
  products …
                    Product Cont..
• Sports Products
• Competitions, Film, Comedy Shows, Concerts, Tournaments, Paint
  Ball Competition
• 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
  Marketing tool.
• 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?

• Why?
             Products Cont.
                          • 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,
                            lunch boxes)
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
        Place Considerations
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!
       Place Considerations
• 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
  player statistics!
Place Considerations
      Pricing Considerations
• $ - Pricing is different for S&E than
  traditional products.
• Movie Theaters, games, events rarely
  lower prices
• $ Set to what games can charge
Customers believe they are getting more for
  their money… is this true?
      Pricing Considerations
• What is ‘more’?
• Stadium Seating, Nachos in addition to
  pop corn, stadiums with sushi bars,
  gourmet coffee
           Pricing Problems
• Issue when highly paid players and
  celebrities go on strike for salary increases
• Fan loyalty can be damaged
                   • Why?
         Pricing Problems
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
Pricing Problems
• 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
           Promotion Cont.
• 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
  it’s product.
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.
       Section 2.3
Differences in Marketing
      Dynamic Differences!
• 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
                  • Product
              • Revenue Stream
 Consumer Loyalty
… happy   consumers –

          repeat customers
        Sports Fans!
• 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
• 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
         Entertainment TM’s
• 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?
2. Why?
   Differences in PRODUCT
  – Stability and              – Variability and
    Consistency                  Changeability
  – Same venue, facility,      – Predict trends / fads
    team, (logos – most of     – politics
    the time)
  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 $
    Licensing Fees
  Sponsorship Differences
• 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?
• 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
        agreement …
• 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?
  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.
  Endorsements are designed to increase
  product or brand-name awareness (and
  sales) through the use of a familiar
        Athlete Endorsements

Ever since Red Rock
  Cola hired Babe Ruth
  to endorse its soft
  drink brand in the
  1930's, companies
  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
    endorsement deal.
    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.

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