Importance of Sports and Entertainment Marketing
description
Transcript of Importance of Sports and Entertainment Marketing
Importance of Sports and Entertainment
Marketing
Do NowHow do you think sport differs
from entertainment?
The 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 time
The Entertainment Industry
Examples:Television Live ShowsMoviesMusicBooksMagazines
How Are They Different?Sports
Entertainment
Spontaneous/not plannedUnpredictable outcomeInvolves competitionFans support one team
Usually 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 US
Fans spend BILLIONS on recreation and related products every year
What is Sports Marketing?
Using sports to market a productApplying marketing principles and
processes to sports products Sports equipment, sports apparel, sports drinks
The marketing of non-sports products through association with sports
Celebrity endorsement, Sponsorship: Papa Johns - official sponsor of the Redskins
NFL and Verizon
What is Entertainment
Marketing?Marketing of
entertainment products or using entertainment to attract customers
BK AD
Growth of the Sports Industry
The 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 in the Sports Industry
Growth of the Entertainment IndustryIn 2009 the film industry grossed $10.6
BILLIONThe largest grossing movies were
"Transformers: Revenge of the Fallen" ($402 million)
"Avatar" ($352 million)
"Harry Potter and the Half-Blood Prince" ($302 million)
This was a record year of revenue for the movie industry, up from $9.9 billion in 2008
Trends in Sports and Entertainment
3D 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 dollarsBased on the theory that only the strong will survive
◦Those 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 marketplace
Non-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 sea
Labor – the people who work to produce the good or service
Capitol – the money, buildings, hardware, tools, etc. used in production
Factors that influence demand for a Sports or Entertainment event
Price 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 tournament’s 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 council
Activity: 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/area◦ Describe factors that influence the demand for services◦ Explain the concept of competition◦ Explain the concept of economic resources◦ Describe trends in sports and entertainment marketing