SEM1 1.02A - Marketing

• PE - Understand sport/event marketing’s role and function in business to facilitate economic

exchanges with customers.

• PI - Explain the nature of sport marketing• PI - Explain the nature of event marketing

Define: sports marketing

• Sports Marketing: • the process of planning and executing the

conception, pricing, promotion, and distribution of sports ideas, goods and services to create exchanges that satisfy individual and organizational objectives –

• Satisfy the needs and wants of the consumer

Sports Products

• Goods and Services• Goods: tangible, physical product

• Service: intangible, performed for a customer, for a price or a fee. Often a unique experience.– Also considered a product– Events are considered service-product

Categories of Sports Products

• Sporting Goods • Personal Training

• Sports information

• Sporting Event

Categories of Sport Products• Sporting Goods: – Goods-Product– Tangible – manufactured products– make the game possible – equipment, clothing, licensed merchandise

Categories of Sport Products

• Personal Training: – Service-Product

• Sports Information: – Good AND Service?– Radio, TV, Magazines, Newspapers, Internet

Categories of Sport Products• The Sporting Event: – Service-Product– Intangible: an experience you can see,

hear, feel, and participate in– Perishable: Once over, the product is gone– Athletes/participants: partakes or competes in the event– Spectators/fans: observe, but do not participate– Venue: facility where the product is offered

Categories of sport consumers

• 1. Unorganized participants: – No rules or guidelines–walk in the woods, jogging

Categories of Sport Consumers• 2. Organized participants: – Follow regulations and rules for participation– Amateurs: not paid to play• regulated on local, state, national level

– Professionals: paid to play• occupation (income) is playing the game

– Sanctioning Bodies: • Organizations that establish rules for the games• Control advertising and promotion to promote growth

Categories of Sport Consumers

• 3. Spectators/fans: – observers of the sporting event– create excitement

• 4. Sponsors: – businesses or organizations– pay to associate their names or products with a

sporting event, team, – or athlete – recognition/affiliation/publicity

Growth and Marketing of the Sports Industry

• A product (good or service) becomes more popular because of marketing

• http://www.youtube.com/watch?v=zMT6koOncLs

• Marketing opportunities increase as the product grows – resulting in increased sales and profits

Benefits from Sports

• Good for You– Increases opportunity for employment– Benefit those who participate either by playing or watching– Recreation– Entertainment

• Good for the Local Community– Economic effect of a major event– Improve city’s image– Generates billions of dollars of revenue each year– More jobs– Multiplier effect

Define: Entertainment Marketing

• The use of entertainment to develop, promote, price and distribute goods and services to satisfy the wants and needs of customers.

Define: Event Marketing• designing and developing a live-themed

activity, occasion, display or exhibit– a sports game, music festival, or concert – promote a product, cause, or organization.

• Produced and consumed at the same time • Unique experience: for each participant or spectator

Types of Events

• Corporate Events– Conferences, seminars, trade shows, team building,

theme parties, VIP events, incentive travel• Private Events – Invitation only– weddings, birthdays, family events, anniversaries

• Public Events – Anyone can attend– Concerts, games, shows, festivals

Benefits of Event Marketing.

• Start a dialogue: face to face marketing • Personal connection: builds consumer trust

for the product• Immediate fulfillment: produce and consume

the product at the same time• Brand awareness: build awareness of your

product by marketing the event - Examples: sales flyers, ads, promotion & PR