Nick Michels Russell Webb Participation Consumercustomer marketer has sold participation in sports and entertainment Consumers USE PRODUCTS Discretionary income money left over paying expenses recreation ID: 449445
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Slide1
Chapter Two
Nick
Michels
Russell WebbSlide2
Participation – Consumer/customer marketer has sold participation in sports and entertainment
Consumers – USE PRODUCTS
Discretionary income – money left over paying expenses (recreation) Unions – Higher Wages, Better Work Environment, & Reasonable Hours
A Brief History of LeisureSlide3
GDP vs. DISCRETIONARY
Income of the world-
Asia
Russia
Middle East
Africa
Australia & Norway Slide4
Kinetoscope – a device for viewing a new phenomenon
The creation of public transportation meant that a working-class can use.
Entertainment for EveryoneSlide5
William
Veeck
, a key figure in the development of sports marketing.(owner of the White Socks.) He believed that fans wanted to be more involved than just the final score.At the white socks games he would shoot off fireworks, dazzling scoreboards, special-event nights,
other fun family events to make games more enjoyable.
Development of Sports and Entertainment MarketingSlide6
Vendors – selling of products
Vendors would compete for a share of money people spend on recreation.
Product – a good or service that any for-profit industry sells to its customers.It isn't enough to just sell single game tickets, they want to sell Season tickets
Marketing todaySlide7
Status and exposure of sports stars on television, in magazines, and in advertising are equal to if not greater than celebrity
Use images to sell products
Due to their similarities, sports have blurred lines between sports and entertainment industries
Similarities and Differences in MarketingSlide8
Some marketers consider people as one of the 5 P’s in marketing mix
Promotion is a good way to advertise the product
Sales are very important for selling the productNew technology has broadened scope of marketing messages
Changes in MarketingSlide9
Professionals agree that sports and event marketing are similar in that they market different
4 P’s- Product, place and price and promotion and it differs
Marketing Similarities Slide10
Sport and Entertainment products are different then consumer products- not physical goods
Entertainment presentations and athlete competitions and can be used to promote unrelated products
Endorsement- Approval or support of a product or idea, usually by a celebrity All celebrities have person persona that fans identify with to feel connected to them
Marketers use celebs to market certain products to sell to certain people
Core product- Main product such as sports event or book
Ancillary product- Product backed off core product
Revenue- Gross income
Companies use core and ancillary products to increase revenue
ProductSlide11
Changing place component has changed traditional marketing techniques.
E-commerce has changed where most people shop traditional consumer products
Malls are competing with online shoppingOccasion appeal of events contributes to entertainment value
PlaceSlide12
Pricing sports and entertainment products is different from traditional consumer products
Prices for movies and sports tickets have risen over the past 10 years
Customers believe they are getting more for their moneyThis kind of perception affects sports and entertainment marketing from traditional marketing
Price becomes an issue when players and celebs go on strike for salary increases
Fan loyalty can be damaged
Ticket scalpers are unauthorized ticket sellers who sell tickets at a higher price
Piracy- The unauthorized use of an owners music, movies or other copyrighted material
Intellectual property- A idea that is stolen
Profit- Usually goes to a owner
Royalty- A payment for material that has been copyrighted or legally declared to the creator
PriceSlide13
Marketers use cross-production and tie-in to promote goods
Product tie-in- Use of ancillary products as promotional tools
Cross-promotion- Any form of communication through which one industry relies on another industry to promote its productsCelebs use personal interviews and appeal to sell movieWebsites provide info and highlights of a product and word of mouth
PromotionSlide14
Convergence- The overlapping of product promotion
W
ebsites are used a promotional tool and source of revenue expands potential for profit in sports and entertainment marketingSynergy- A combined action that occurs when products owned by one source promote growth of related products
Convergence- Part of the Marketing MixSlide15
Risks- unforeseen events and obstacles that can negatively effect business
Risk management- a strategy to offset business risks
Some insurance polies will reimburse for direct and indirect losses Both sports and entertainment products are similar and share risks but differences require marketers to adjust for each specific industry
Risk and Risk ManagementSlide16
Chapter Three
Differences in marketing
Section
threeSlide17
The differences between sports and entertainment can be found in three areas.
Consumer loyalty
ProductRevenue System
Different players, different gamesSlide18
Consumer loyalty- occurs when consumers are happy with a company’s product and become repeat customers.
Where this differs in entertainment consumers aren’t motivated by brand loyalty but the desire for satisfying entertainment
People will not normally go see a bad movie twice but fans will still go to games if their team is on a losing streak
Differences in consumer loyaltySlide19
Where sports and entertainment differ in product is in their consistency or stability of the sports product
In entertainment the products variability, and changeability is what differ.
Sports marketers core product doesn’t change much throughout the years( team, event, and facility)Entertainment marketers have to predict trends and change the product to satisfy audience demands.
Differences in productSlide20
Entertainment products can be developed into merchandise used for promotion, and create profit through sales of ancillary products.
A single film can generate a lot of different ancillary goods.
With the exception of a championship game sporting events does not produce the same amount of revenue in merchandise as an entertainment event.
Differences in revenue system