Post on 18-Mar-2018
History of Sports and
Entertainment Marketing
Similarities in Marketing
2
Differences in Marketing
Chapter Objectives
Discuss the history of sports and entertainment.
Discuss the impact of sports and entertainment
history on today’s markets.
Explain how sports and entertainment marketers
use tools to sell their products.
Explain risks and risk management of sports and
entertainment events.
Identify differences between marketing sports
and entertainment products.
3
Sports and Entertainment
Connections
What do sports and entertainment have in
common? They have thrilled and entertained
people for centuries—since the ancient Olympic
games and Greek plays.
4
A Brief History of Leisure
Marketers sell participation
in sports and entertainment
events to consumers.
consumers people who
use products
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The growth of the sports
and entertainment
industries has relied on
consumers with free time,
discretionary income,
and a desire for recreation.
discretionary income
money left to spend after
necessary expenses are
paid
A Brief History of Leisure
By the late 1880s, both wealthy and working-class families could seek similar forms of entertainment, thanks to public transportation.
kinetoscope a device
used to view a sequence
of moving pictures
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In the late 1890s, Thomas
Edison invented the
kinetoscope.
A Brief History of Leisure
Other milestones in the history of leisure include:
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Mary Pickford becomes the first international
movie star in 1918.
The first talking movie in 1927 (The Jazz Singer)
Babe Ruth sets records in baseball that would
stand for decades.
The development of television
Development of Sports and
Entertainment Marketing
William “Bill” Veeck was a key figure in the
development of sports marketing. He conceived of
marketing activities and events that surround
baseball games.
Adolph Zukor, founder of Paramount Pictures, was
one of the first film producers to draw big box-office
crowds and own a chain of theaters.
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Bill Veeck – Sports Marketer
1941 – Milwaukee
1942 – Philadelphia
1946 – Indians
1947 – Larry Doby
1948 – Satchel Paige
1948 – World Series
1949 – Good Old Joe
Night
1951 – Eddy Gaedel
1959 – Scoreboard
1976 – Minnie Minoso
1980 – Minnie again
1979 – Disco Demolition
Other Promotions
– Harry Carey
– Curtain Calls
– Shorts
Marketing Today
Sports and entertainment
vendors compete for a
share of the money people
spend on recreation.
vendors sellers
of products
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Sports and entertainment
marketing directs consumers
toward sports and
entertainment products.
product a good or
service that any for-profit
industry sells to its
customers
Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.
Fan Clubs Grow Online
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celebrities. Some fan clubs charge fees, such as Tiger
Woods’ tigerfans.com at $30. Other Web sites are free. For
example, fanemporium.com, which operates for a group of
musical celebrities, charges no dues. Sites offer newsletters,
merchandise, contests, event updates, and more.
For more information on sports and entertainment marketing,
go to marketingseries.glencoe.com.
Fan clubs for athletes and celebrities
make good marketing tools. Thanks to
the Internet, thousands of official and
unofficial clubs are formed. They are run
by fans, corporations, and
SECTION 2.1 REVIEW
Name two inventions that helped to enable more
equal access to entertainment for the wealthy and
the working classes in the 1890s.
Who was a key figure in the development of sports
marketing?
How did Adolph Zukor help the entertainment
market grow?
1.
2.
3.
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Changes in Marketing
Communicating through
promotion is more
important than ever.
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promotion any form of
communication used to
persuade people to buy
products
New technologies have
broadened the scope and
reach of marketing
messages, and they can be
entertainment products
themselves.
Marketing Similarities
The marketing of sports and
entertainment products differs
from marketing traditional
products in the following four
areas:
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endorsement approval or
support of a product or
idea, usually by a celebrity
Product
– Endorsement
– Core product
– Ancillary product
– Revenue
continued
core product the main
product, such as sports
event, movie, stage show,
or book
ancillary product a
product related to or
created from the core
product
revenue gross income
WHAT DO YOU THINK?
Marketing Similarities
Place
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piracy the unauthorized
use of another’s music,
movies, or copyrighted
material
continued
royalty a payment for
material that has been
copyrighted, or legally
declared as belonging to
the creator
continued
Price
– Piracy
– Royalty
– Copyright
Marketing Similarities
Promotion
– Product tie-in
– Cross-promotion
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product tie-in use of
ancillary products such
as merchandise as
promotional tools
cross-promotion any
form of communication
through which one
industry relies on another
industry to promote its
product
continued
Marketing Similarities
Convergence expands the
potential for profit in sports
marketing and entertainment
marketing.
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convergence the
overlapping of product
promotion
synergy a combined
action that occurs when
products owned by one
source promote the
growth of related products
Convergence and cross-
promotion help to develop
synergy.
Risks and Risk
Management
In any industry, including the
entertainment industry, there
are risks.
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risks unforeseen events
and obstacles that can
negatively affect
business
risk management a
strategy to offset business
risks
Successful sports and
entertainment marketers
develop risk management
strategies.
SECTION 2.2 REVIEW
What is celebrity endorsement?
What is the difference between core and
ancillary products?
Give an example of synergy.
1.
2.
3.
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Different Players,
Different Games
The differences between sports and entertainment
can be found in three areas:
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Consumer loyalty
Product
Revenue stream
Differences in Consumer
Loyalty
If sports fans feel their team
is trying to win, the team can
retain its consumer loyalty.
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consumer loyalty
consumers’ attitude that
occurs when they are
happy with a company
and become repeat
customers
The entertainment consumer
is not motivated by brand or
team loyalty, but by a desire
for satisfying entertainment.
Differences in Product
The sports product is consistent, or stable.
The entertainment product is variable, or
changeable.
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Differences in Revenue
Stream
The streams of revenue created by marketing
products in entertainment are very diverse.
Sporting events do not usually produce the same
amount of revenue from merchandising and
royalties as entertainment events.
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Differences in Revenue
Stream
Sports franchises earn
revenue from sponsorship.
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sponsorship the
promotion of a company
in association with a
property
Sports franchises also earn
revenue from advertising
and broadcast rights.
Similarities and Differences in Marketing
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Sports Marketing Entertainment Marketing
Place
Product
Price
Promotion
Convergence
Consumer Loyalty Lack of Consumer
Loyalty
Consistent Product Variable Product
Many Ancillary Products Few Ancillary Products
SECTION 2.3 REVIEW
List two differences in consumer loyalty between sports and entertainment.
What are differences between marketing sports product and entertainment product?
In what one way does the stream of revenue in sports differ from the stream of revenue in entertainment?
1.
2.
3.
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Identify three people in sports and entertainment history.
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Discuss one way that
sports and entertainment
history has affected
marketing today.
Name three different
marketing tools.
William “Bill” Veeck
conceived of marketing
activities and events that
surround baseball
games. Adolph Zukor
was one of the first to
market dramatic stories
and popular stars in
movies. Charles
Howard marketed
Seabiscuit well enough
that some say he
invented sports
marketing. Other
answers are possible.
1. As new inventions and
technology made
entertainment more
available to the working
classes, marketing was
affected; it is currently
being affected by
computer technology
and the Internet.
2. endorsements,
ancillary products,
convergence, and
synergy
3. 1.
2.
3.
Checking Concepts
continued
Define royalty.
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Give an example of a
royalty.
Give an example of
cross-promotion for a film.
A royalty is a
payment for
material that has
been copyrighted,
or legally declared
as belonging to the
creator.
4. Answers will vary
because anything
that can be
copyrighted can
earn a royalty if it is
used by a person
or entity other than
the creator. Some
examples might be
books, songs,
scripts, etc.
5. Answers will vary
but may include the
star of a new movie
can appear on a
talk show.
6.
Describe one risk
involved in a sports event.
Many answers are
possible, including
damaged property,
cancellation, injury
to audience,
damage to
equipment.
7. 4.
5.
6.
7.
Checking Concepts
continued
Explain one method of
risk management for one
risk.
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Critical Thinking
Answers will vary.
One possibility is
purchasing
insurance policies to
protect clients from
industry-related
risks.
8. 8.
Checking Concepts
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