Post on 17-Dec-2015
CHAPTER 1
Marketing Basics
What is Marketing?
Creation & maintenance of satisfying exchange relationships. Creation suggests product development Maintenance indicates marketing continues
as long as the business operates Satisfaction implies marketing must meet
the needs of both the business & customers
Sports & Entertainment Marketing
Huge industry offering numerous products and services.
People must choose which sports & entertainment activities/events they will enjoy with their limited time and resources.
Marketers must assess consumer demand, the competition, and financial valuation of goods and services.
Athletes and entertainers play a prominent role in marketing by endorsing products and services. Former NFL player Brett Favre endorses Snapper riding lawnmowers, and comedian David Spade is associated with Capital One’s ‘What’s in your wallet?” campaign. People like to be identified with celebrities and sports stars. Product endorsements by famous people are good marketing strategies.
Work with a group. Identify four advertising campaigns that feature celebrities or athletes. Discuss how the campaigns have affected your thinking about the products. If you were in the market for products, would you buy the celebrity endorsed brands? Why or why not?
GROUP ACTIVITY
Related Articles
Celebrity Endorsement Ads http://www.celebrityendorsementads.com/celebrity-endorsements/
Nike re-signs Vick to endorsement deal http://www.wcpo.com/dpp/sports/nike-re-signs-vick-to-endorsement-dea
l
Nike endorsement deals http://money.cnn.com/2003/08/18/news/companies/nike_endorsements/i
ndex.htm
Celebrity deals gone wrong http://www.businessinsider.com/lost-celebrity-endorsement-deals-2009-
12#
Related Articles
Do Celebrity Endorsements Really Work? http://www.cnbc.com/id/41081075/Do_Celebrity_Endorsements_Really_
Work
In Search of the Next Great Celebrity Brand Ambassador http://www.business2community.com/branding/in-search-of-the-next-gre
at-celebrity-brand-ambassador-022
NBA Finals: The Good, The Bad, The Ugly Marketing http://thebiglead.com/index.php/2011/06/13/nba-finals-the-good-the-ba
d-the-ugly-marketing/
Collage Project
Research and create a list of 5 athletes/entertainment celebrities and the products/brands that they endorse.
Design a collage on poster board or on the computer that shows the 5 celebrities and the products they endorse.
Collage Project
Collage needs to include a combination of at least 5 celebrities from the sports and entertainment industries. (10 pts.)
Identify at least two products/services that each celebrity endorses. (20 pts.)
Write a brief paragraph describing what effect you think these celebrity endorsements on the sales of these products. (25 pts.)
The Marketing Mix
Describes how a business blends the 4 marketing elements of…1. Product2. Distribution3. Price 4. Promotion
Marketing Mix Considerations Individuals have many entertainment
options for their discretionary income.
The amount of money individuals have available to spend after paying for necessities.
PRODUCT
What a business offers customers to satisfy needs. Product offerings for sports and
entertainment marketing must be constantly evaluated & updated.
Too much of a product might = price mark downs
Too little of a product might = lost sales
PRICE
Amount customers pay for products. Influences consumer decisions. Businesses must offer products/services
they need and want at prices customers are willing to pay AND cover costs and earn a profit. Championship teams will increase consumer
demand and ticket prices.
DISTRIBUTION
Involves locations and methods used to make products available to customers. Involves transporting or delivering goods to
final customers. Ex: Athletic uniforms arriving by UPS. Turf for a football field arriving by a semi truck.
Involves planning the location of events. Ex: A 3-day outdoor music concert event must
be held in a location near customer base and other business such as hotels and restaurants.
PROMOTION
Describes ways to make customers aware of products and encourage them to buy. Essential to inform prospective customers
about sports & entertainment events and products
Ex: TV commercials, newspaper ads, special offers on ticket stubs
Requires creativity AND can be costly
SUPER BOWL
Billion $ event that results in large sums of money from sponsorships and ticket sales.
What is the PRODUCT? What is the PRICE? How is DISTRIBUTION involved? How is it PROMOTED?
SUPER BOWL
PRODUCT? Game matching best AFC & NFC teams
PRICE? Actual is $400-600. Some pay more.
DISTRIBUTION? Selecting a city that is easily accessible for fans. Near airport, major highways, nearby
accommodations Ticket sales (NFL offices, Ticketmaster, Internet)
PROMOTION? TV commercials, Sports magazines
STATE FAIR
What is the PRODUCT? What is the PRICE? How is DISTRIBUTION involved? How is it PROMOTED?
STATE FAIR
PRODUCT? livestock shows, exhibits, carnivals, wide
array of musical & other entertainment PRICE?
Admission (must be sensitive to demand). DISTRIBUTION?
Location of fair and outlets where people can buy tickets
PROMOTION? TV commercials, radio ads, newspaper ads
TIME OUT
In 2006, a family of four could expect to pay an average of $352 to attend one Chicago Cubs baseball game. This price includes… Four tickets Parking Four hot dogs Four drinks Two programs Two souvenir caps
Get a Partner….
With new technology, live cybercasts of music concerts can be heard and viewed around the world through the Internet. Movie companies are using the Internet to broadcast movie trailers and to market movie-related merchandise to consumers.
Think Critically: You and your partner need to visit the home pages of 3 movies that have related merchandise for sale.
1. Determine what information is collected from customers.
2. Discuss how the marketing information gathered could be used in the future to promote and sell other products.
6 CORE STANDARDS OF MARKETING
1. Distribution2. Marketing Information Management3. Pricing4. Product/Service Management5. Promotion6. Selling7. (Financing)
CORE standards OF MARKETING
1. Distribution Determining the best way to get a
company’s products/services to customers
EX: Sony sells its products through retailers like Best Buy
EX: (Sports) Involves selecting right location for event and making tickets available
CORE standards OF MARKETING
2. Marketing/Information Management
Gathering and using information about customers to improve business decision making
EX: Domino’s Pizza used research findings to adapts its pizza to Japanese tastes
CORE standards OF MARKETING
3. Pricing Establishing and communication to
customers the value of goods and services
EX: prices may be set high if the seller knows people will buy the high price
EX: Super Bowl ticket prices go through the ceiling since there are limited number of tickets and huge demand
CORE standards OF MARKETING
4. Product/Service Management Designing, developing, maintaining,
improving, and acquiring products for the purpose of meeting customer needs and wants
EX: Fisher Price tests toy ideas with children and parents to make sure kids enjoying playing with the toys
CORE standards OF MARKETING
5. Promotion Using advertising and other forms of
communication to distribute information about products and services, images, and ideas
EX: Sports fans often find coupons on the back of ticket stubs
CORE standards OF MARKETING
6. Selling Direct and personal communication with
customers to assess and satisfy needs and wants
Usually includes Internet purchases
CORE standards OF MARKETING
Extra: Financing Requires the company to budget for its
own marketing activities. EX: A company can obtain financing from
sponsors and investors Sponsors spend lots of $$to be visible
during sports and entertainment events
6 CORE standards (LaRosa’s Pizza)
1. Distribution (delivery, dine in, carry out, events)
2. Marketing Information Management (what kind of toppings, what other pizza places, kind of deals/specials, other products)
3. Pricing ($6…inexpensive to encourage customers)
4. Product/Service Management (add new toppings, offer specials/deals, improve ingredients, use taste tests, use surveys)
5. Promotion (coupons on ticket stubs, commercials, specials for teachers)
6. Selling (surveys, online ordering)
What do you think???
Think of one of your recent purchases. List and describe how the six core standards or marketing were involved with the purchase.
Design an advertisement…
Design a newspaper advertisement for an upcoming concert. Incorporate all of the marketing mix elements, including product, distribution, price, and promotion.
FCA#1: Include the 4 elements of the marketing mix. (20 pts.)
FCA#2: Write a paragraph describing why you selected the specific product, distribution, price, and promotion. (10 pts.)
What is Sports Marketing?
Using sports to market products. Marketers research demographics and
spending habits of fans in order to maximize profits Demographics: common characteristics of a
group such as age range, marital status, gender, ethnic background, income level, and educational level
Price fans are willing to pay for a ticket depends on interest of market, national importance of event, the popularity of event/athletes
What is the GOAL?
Use the right marketing mix to meet customer needs while generating a profit. To be successful, marketers must consider…1. New Opportunities: endorsement and
marketing opportunities Ex: Arena football (founded in 1987) – offer
affordable ticket prices ($17.50); players meet fans and sign autographs after every game; work with video game creators
What is the GOAL?
2. Gross Impression: the # of times per advertisement, game, or show that a product or service is associated with an athlete, team or entertainer
Ex: Every time you see a product or logo on the back of a pair of shoes, in a scene in a movie, or on the license plate of a car, your brain records that image.
Advertisers hope you will remember it when you’re ready to buy such a product.
What is the GOAL?
3. Timing: Popularity of teams and sports figures is base on sustaining a winning record.
Fans want products/services that identify with a winner.
If one major athletic company has a successful marketing campaign, competitors will increase their marketing efforts. Competition must be monitored so a company’s marketing can remain unique.
The Value of Sports Marketing
Multi-billion $ global industry that impact the economy. Automobile industry…parents transport
families to numerous sporting events Restaurants, hotels, and service stations that
count on business generated from these events
Entertainment and venues must be maintained…requires building managers, security personnel, maintenance crews, etc.
Athletes need trainers, handlers, personal attendants…also hire agents.
The Value of Sports Marketing Emotional Value
Fans have emotional ties to their favorite teams
Emotions often compel fans to buy tickets and other sports related merchandise
People will freely spend discretionary income on sporting events that capture their hearts so marketers try to appeal to emotion
The Value of Sports Marketing So Many Channels
Marketers for the hundred of TV network must consider strategies to capture the highest possible percentage of the viewing audience for the least amount of $
Must find right mix of programming to reach audiences, attract sponsors, and maximize profits
CINCINNATI - ESPN The Magazine ranked the best franchises in sports and for the second year in a row, the Cincinnati Bengals were dead last. Out of 122 teams across the MLB, NFL, NHL and NBA, the Bengals were ranked by the magazine as the worst sports franchise. The rankings were based on team analysis that examines a team’s efficiency in spending fan money compared to its on-field performance. It also factors in feedback from more than 70,000 fans nationwide in 21 categories including the players' likeability, fan relations, affordability, stadium experience, ownership, title track (which consists of the championships won or expected to be won in a fan's lifetime) and coaching. The Bengals ranked last in fan relations, likeability of players and title track. Peter Keating of ESPN.com wrote "Who Dey? Fans are asking, 'who cares?'“ It's easy to see from Cincinnati's perspective how the Bengals might fall in to such a rating: They haven't won a playoff game in 20 years, they continue to make head-scratching decisions on personnel and the starting quarterback has decided he'd rather retire than continue playing for them. On the flip side, the Cincinnati Reds ranked 15th overall, a 28-spot improvement from last year in lieu of their 2010 playoff run and the extension of reigning NL MVP Joey Votto's contract.The reigning Super Bowl champion Green Bay Packers took the top spot of the 122 teams examined. The Tampa Bay Lightning came in second with the New Orleans Saints, the Los Angeles Angels of Anaheim and the San Antonio Spurs rounding out the top 5.
Bengals rated worst sports franchise
What do you think? Are the Bengals the worst team in sports? From a marketing standpoint, what suggestions would you give the Bengals organization?
Do the research!!
Watch a college or professional sporting event on television. Select a sports brand represented in association with the event, and keep track of how many gross impressions are made during the telecast.
Entertainment for Sale
People have a limited amount of leisure time & money. What is Entertainment?
Whatever people are willing to spend their money and spare time viewing rather than participating
Can include sports or the arts. Sports: generally applied to games of athletic
skill. Entertainment: generally applied to movies,
theater, music concerts, the circus, etc. Must maintain accurate info. about customers
in order to succeed in marketing to them
Evolution of Entertainment Mktg.
1888 -- 1st moving pictures in Britain1895 -- 1st projected movie to a paying
audience1927 -- 1st movie with sound, Jazz Singer1928 -- Mickey Mouse arrived1955-- Disneyland opened
Evolution of Television
1945 – 9 TV stations; fewer than 7,000 working TV sets existed in US
1946 – NBC & the Gillette Co. staged 1st televised sports spectacular (heavyweight boxing)
1949 – # of TV stations grew to 98
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Sports Marketing with TrinityOne’s CEO http://video.forbes.com/fvn/sportsmoney/trinityones-ceo