Changes in Marketing

Sports & Entertainment MarketingMrs. Wilson

PromotionAny form of communication used to persuade people to buy products through advertising, publicity, personal selling, or sales.

Thirty years ago the tools to promote were totally different!

Scope and reach are incredible now.

Sports & Entertainment ProductsDifferent from traditional products

By nature, these products are not physical goods that can be stacked on a store shelf

ESPN-themed restaurants do not sell tickets to a game

They sell burgers and drinks by using the appeal of sports

Golf celebrities sell everything from cars to watches—non-sports related products

Comparing Traditional to SportMarketing Mix

ComponentTraditional Entertainment Sports

Light Bulb Movie Baseball Game

ProductWho is my consumer?

Someone in the dark needs it

Someone who wants to be entertained by a plot/character

Someone wants to be entertained by sports

PlaceWhere will I sell it?

In a local hardware store

In local theaters, stores, online, pay-per-view

At local stadiums, sports bars, online, TV

PriceHow do I compete for customers?

Price better for quality than the competition and increases sales

Consumer choice to buy a movie ticket is not based on price

Consumer choice to buy a baseball ticket is not based on price.

PromotionHow do I inform customers?

Advertising in print, TV, in store

Web site, in-theater, TV previews, talk shows, lunch boxes

Games on TV, selling jerseys, give-away, radio, etc.

EndorsementThe approval or support of a product or idea, usually by a celebrity lending his or her image or name to a product

Not only in sports marketing

Celebrities and a “public persona”

Marketers must match their product to the right celebrity

George Foreman endorsing Cover Girl??

Core & Ancillary ProductsCore

The main product, such as the sport event, movie, stage show, or book

AncillaryA product related to or created from the core product

Name some core & ancillary…Core

Movie

AncillarySoundtrackVHS/DVDAction figures

RevenueGross income

Generated by using core and ancillary products as promotional tools

Occasion AppealContributes to the entertainment value of the process

When fans get home, they can also go online and purchase the soundtrack and book version of a film

They can download player statistics from a sports web site, or they can catch the highlights of the game on television

Price Pricing sports & entertainment products is radically different from pricing traditional consumer products

Movie theaters RARELY lower their ticket prices to compete with each other

Price is set and uniformly adhered to

People are feeling they are getting more for their money

Stadium seatingFood courts

Price ProblemsPrice becomes an issue when highly paid players and celebrities go on strike for salary increases

Fan loyalty can be damaged

ScalpingUnauthorized ticket sellers who stand outside a game

PiracyUnauthorized use of an owner’s or creator’s music, movies, or other copyrighted material

Intellectual PropertyAn idea, concept, or written or created work that is protected by copyright

Piracy can occur online

Street vendors—bootlegged items

Royalties are lost

PromotionProduct tie-in

The use of ancillary products such as merchandise as promotional toolsHappy meal©

Cross PromotionAny form of communication through which one industry relies on another industry to promote its productLate night TV appearances, web sites, word of mouth, chat rooms, online voting surveys and….

BUZZA no or low-cost method of marketing associated with people telling other people about a company's products and/or services,

Buzz marketing is based on peoples' direct experiences with specific services/products or on the experiences others have related to them.

Both online and offline buzz marketing are synonymous with word-of-mouth marketing and networking

ConvergenceOverlapping of product promotion

Studio may use TV advertising to promote a movie that will one day be sold on TVWeb sites are used both as promotional tools and a source of revenue hosting links and online shopping for merchandise

This convergence or overlap expands the profit in sports & entertainment marketing

Marketers must consider all the elements, obstacles and opportunities and develop strategies for this convergence or overlap

SynergyA combined action that occurs when products owned by one source promote the growth of related products

Oprah Winfrey is a good exampleHas an image as a “lifestyle guru”TV show is core productVisibility and viewer ship to promote ancillary products—magazine, production company, and products she endorses

Risk and Risk ManagementRisks

Unforeseen events and obstacles that can negatively affect businessIllness or bodily injury, property damage, loss or damage to equipment, event cancellation

Risk ManagementA strategy to offset business risksInsurance policies

If you were planning a rock concert, what would you insure?

Public liability

Covers your liability against claims from the public while attending your event. The premium is often dependent upon the number of people attending your event.

The levels of cover can vary depending on your needs and you should discuss these with the event insurance broker. This cover is usually a compulsory element of an event insurance policy.  

Property insuranceCovers the property used in the event. The premium is usually dependent upon the value of the property to be covered. The levels of cover can vary depending on your event needs and you should discuss these with the event insurance broker. 

If you were planning a rock concert, what would you insure?

Additional insurance…Employers liability

Covers you as the organizer against any claims from any staff that you might employ for the event. The premium tends to be in relation to the number of staff which you employ for the event.The levels of employers liability cover can vary depending on your needs and you should discuss these with the event insurance broker. 

Cancellation and Abandonment coverCovers your event against cancellation or abandonment, postponement, failure to vacate, adverse weather and rainfall affected and any other eventuality beyond the control of the organizer of the event. Covers can vary depending on your needs and you should discuss these with the event insurance broker.

What is celebrity endorsement?The approval or support of a product or idea

Can you give examples?