SEM1 1.02

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

exchanges with customers.

Marketing• Marketing can be summed up in 4 “P’s”

• Product: What are you selling? Is it a good or a service?

• Price: How much does it cost to make? How much are you selling it for?

• Place: Where are you selling it? How are you going to get it there?

• Promotion: How are you going to inform consumers?How can you entice consumers to buy?

Define: sports marketing

• Sports Marketing: • the process of planning, pricing, promoting,

and distributing sports ideas, sports goods, and sports services.

• Satisfy the needs and wants of the consumer

Define: entertainment marketing

• Entertainment Marketing: • the process of planning, pricing, promoting,

and distributing entertainment ideas, entertainment goods, and entertainment services.

Define: event marketing• Event Marketing– Designing and developing a live-themed activity,

occasion, display, or exhibit.

– Events are Unique Experiences• Different experience for Spectators and Participants• Events are produced and consumed at the same time

– Event Marketing includes both Sports and Entertainment

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

Sporting Event Components:– Athletes/participants: partakes or competes in the event– Spectators/fans: observe, but do not participate– Venue: facility where the product is offered– The game

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

What does Sports Marketing actually Market?

• Sporting Goods – Equipment, licensed merchandise, collectibles, and

memorabilia.• The Sporting Event– Games, Teams, TV, Radio

• “Other” Goods or Services through Sports– Non-sports related products

• Products to Sporting Events– Equipment for the event (Uniforms, gear) – Food and beverages to be sold at venue– TV/Radio broadcast rights

Growth and Marketing of the Sports Industry

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

• 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