Importance of Sports and Entertainment Marketing

Importance of Sports and Entertainment Marketing

Do NowHow do you think sport differs from entertainment?

What is an Industry?A group of organizations involved in the producing or handling of the same product or type of serviceIndustries can be further defined by subdivisions

Examples of IndustriesThe Music IndustryThe Hotel IndustrySubdivisionsCountryRockHip-HopR&BSubdivisionsFull service (resorts)Limited serviceEconomyExtended StayExamples of IndustriesThe Television IndustryThe Sports Camp IndustrySubdivisionsReality TVTalk ShowsDramaSitcomSubdivisionsFootball CampCheerleading CampDance CampBasketball Camp5The Sports IndustrySport: source of diversion or physical activity engaged in for pleasure

Entertainment: any activity which provides a diversion or permits people to amuse themselves in their leisure timeThe Entertainment IndustryExamples:Television Live ShowsMoviesMusicBooksMagazines

How Are They Different?SportsEntertainmentSpontaneous/not plannedUnpredictable outcomeInvolves competitionFans support one teamUsually planned with a script or programConsumers are not motivated by brand or teamConsumers do not remain loyal to a brand

The Sports and Entertainment IndustriesToday these industries are two of the most profitable in the USFans spend BILLIONS on recreation and related products every year

What is Sports MarketingApplying marketing principles and processes to promote sports productsSports equipment Sports apparel Sports drinksRG3 AdidasUnder Armour- This is How We Run

"Fate"

What is Sports MarketingThe marketing of non-sports products through association with sports or sports figures

Papa John's and the NFL

Hanes - Sports and Entertainment

Head and ShouldersGillette - Lochte

Sample Sports Marketing Ads

What is Entertainment Marketing?Marketing of entertainment products or using entertainment to attract customers

BK AD

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Dr. Pepper/ Iron ManGrowth of the Sports IndustryThe sports industry generates about $200 billion a yearGrowth is measured in..1. Event Attendance Figures2. Media Coverage (ESPN, Golf Channel, NFL Network)3. Employment Figures (4.5 million jobs and growing)4. Global Market Expansion

Growth of the Entertainment IndustryIn 2011 the film industry grossed $10.6 BILLIONThe largest grossing movies wereThe Avengers" ($617 million)The Hunger Games" ($407 million)Dark Knight Rises" ($359 million)

Trends in Sports and Entertainment3D movies (Piranha 3D, Toy Story 3, Avatar) Midnight releases (Twilight Saga)The use of social networks (Twitter, Facebook)

Economic Concepts and Their Impact on the Industry

CompetitionThe struggle among companies for scarce customer dollars

Based on the theory that only the strong will surviveThose organizations with the best products at the best price will stay in business

Types of CompetitionPrice Competition: when a business uses the price of their product to compete in the marketplaceNon-Price Competition: when a business uses other product features (such as quality, image or service) to compete in the marketplace

Economic ResourcesAll of the things used in the production of a good or serviceLand anything from the earth or seaLabor the people who work to produce the good or serviceCapitol the money, buildings, hardware, tools, etc. used in production

Factors that influence demand for a Sports or Entertainment eventPrice of the ticketsHow often the event takes placeHow much promotion is used People involved in event (key players or performers)AssignmentSituation: You are to assume the role of director for an amateur tennis tournament. Because of the tournaments size, two different tennis clubs and several hotels within your town must be used. The town mayor is unsure about presenting this project to the town councilActivity: Convince the town mayor to support hosting your eventEvaluation: You will be graded on how effectively you cover the following topics:Explain the economic impact of sports and entertainment events on a community/areaDescribe factors that influence the demand for servicesExplain the concept of competitionExplain the concept of economic resourcesDescribe trends in sports and entertainment marketing