Chapter 1

What Is Sports and

Entertainment Marketing?
1.1 Marketing Basics
1.2 Sports Marketing
1.3 Entertainment Marketing

Sports and Entertainment Marketing

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Winning Strategies
From $50 to $4 Million
 A determined athlete
 A supportive family
 Opportunity Costs – the cost of passing up the
next best choice when making decisions

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Winning Strategies
 Explain the relationship between
persistence and success as indicated in
this article
 Success does not come overnight
 Michelle trained and competed from an
early age
 She and her father were persistent in
fulfilling Michelle’s dream
 With Michelle’s dream and persistency =
success

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Winning Strategies
 An entrepreneur is someone who takes
risks to start a new business. How is
Michelle Kwan’s father an
entrepreneur?
 Michelle’s father took risks
 He made sacrifices to invest in his
daughter’s skating career = opportunity
costs
 Risks resulted in personal and financial
satisfaction
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Lesson 1.1

Marketing Basics
Goals
 Describe the basic concepts of
marketing.
 Explain the marketing mix.
 Define the six core standards of
marketing.

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Terms
 marketing
 marketing mix
 product
 distribution
 price
 promotion
 discretionary income

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Opening Act

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What is Marketing?
 What are examples of good and
services consumers demand in the
world of sports and entertainment?

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WHAT IS MARKETING?
 marketing
 the creation and maintenance of satisfying
exchange relationships
 Creating = product development
 Maintenance = continuity
 Satisfaction = meeting needs
 Exchange relationship = 2 parties give and
receive

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Satisfying Customer Needs
 identify your customer and the needs of
your customer
 develop superior products
 operate your business profitably

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Sports and Entertainment
Marketing
 Marketers of sports and entertainment
marketing must assess
 consumer demand
 the competition
 the financial valuation of the goods and
services they offer

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 What is marketing?

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THE MARKETING MIX
 marketing mix
 how a business blends the following four
elements
 product
 distribution
 price
 promotion

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 product
 what a business offers to satisfy needs
 goods and services
 distribution
 the locations and methods used to make
products available to customers

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 price
 amount customers pay for products
 promotion
 ways to make customers aware of
products
 encourages customers to buy

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Marketing Mix Considerations

 discretionary income
 the amount of money individuals have
available to spend after paying for
necessities
 Striking the right balance between
price, distribution and promotion is
important.

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A Marketing Mix Example in
the Sports Industry
 The product the Super Bowl offers is a game
between the best teams of the AFC and
NFC.
 Consumer costs extend beyond ticket prices
and include travel and lodging expenses.
 Distribution includes the location of the host
city and ticket sales.
 Promotion involves media outlets and
related-product contests.

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A Marketing Mix Example in
the Entertainment Industry
 State fairs need to
 appeal to rural and urban residents
 set reasonable ticket prices
 advertise about the fair
 determine fair location
 plan ticket sales

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 What are the elements of the marketing
mix?

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CORE STANDARDS OF MARKETING

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 Distribution
 Distribution involves determining the best
way to get a company’s products and
services to customers.

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 Marketing-Information Management
 gathering and using information about
customers to improve business decision
making

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 Pricing
 the process of establishing and
communicating to customers the value or
costs of goods and services

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 Product/Service Management
 designing, developing, maintaining,
improving and acquiring products or
services to meet customer needs

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 Promotion
 using a variety of communication forms,
including advertising, to distribute
information about products, services,
images and ideas to achieve a desired
outcome

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 Selling
 any direct and personal communication
with customers to assess and satisfy their
needs

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 Financing
 A company must budget for its own
marketing activities and provide
customers with assistance in paying for
the company’s products and services.

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 List and provide an example of each
core standard of marketing.

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Lesson 1.2

Sports Marketing
Goals
 Define sports marketing.
 Explain the value of sports marketing to
the economy.

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Terms
 demographics
 sports marketing
 gross impression

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WHY SPORTS MARKETING?
 demographics
 common characteristics of a group
 age, marital status, income, education
 sports marketing
 using sports to market products

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New Sports, New Opportunities
 continual innovation provides new
opportunities
 extreme sports
 arena football

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Gross Impression
 gross impression
 the number of times per advertisement,
game, or show that a product or service is
associated with an athlete, team or
entertainer

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Timing
 Fans want products and services that
identify them with winning teams and
athletes.
 Marketing efforts may need to be
tweaked based on changes in winning
trends.

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 Why are gross impression and timing
important in sports marketing?

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THE VALUE OF SPORTS
MARKETING
 Sports marketing is a multi-billion-dollar
global industry that has a definite
impact on the economy.

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Emotional Value
 Emotional connections to teams
motivate fans to buy tickets to games.

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So Many Channels
 High profile sporting events generate
strong promotional revenues for
broadcasters.

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 Name three ways that sporting events
help boost the local economy and/or
national economy.

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Lesson 1.3

Entertainment Marketing
Goals
 Define entertainment.
 Describe the impacts of advances in
entertainment technology on
entertainment marketing.

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Terms
 entertainment marketing
 entertainment
 ratings

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ENTERTAINMENT FOR SALE
 entertainment marketing
 influencing how people choose to spend
their time and money on entertainment

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What Exactly is Entertainment?
 entertainment
 whatever people are willing to spend their
money and spare time viewing rather than
participating in

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 What are the two ways of looking at
entertainment marketing?

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EVOLUTION OF ENTERTAINMENT
AND ENTERTAINMENT MARKETING
 At the beginning of the twentieth
century, audiences needed to travel to
the entertainment source.
 Audience feedback was instantaneous
and live.
 Technology distanced entertainers from
their audiences.

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The Beginning of Change
 Disneyland represented a new
approach to the marketing mix of
entertainment.

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The Big Eye in Every Room
 The Early Days of Television and
Marketing
 TV changed the marketing of
entertainment in a profound way.
 Television’s Increasing Influence
 ratings
 the number of viewers the programming
attracted

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Change Accelerated
 Technology improvements, including
the internet, have facilitated distribution
of sports and entertainment to the
masses.

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Technology and Customer
Feedback
 Audiences can use a variety of
communication technologies to provide
entertainment feedback.

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 Name a few benefits of television to
marketers and advertisers.

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PERFORMANCE INDICATORS
EVALUATED
 Communicate an appropriate advertising
campaign through writing and speaking.
 Analyze relevant data to make recommendations
for an appropriate plan of action.
 Demonstrate critical thinking and problem-solving
skills when creating the advertising campaign.

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 Demonstrate teamwork to complete a group
project.
 Demonstrate advertising budgeting skills.

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THINK CRITICALLY
1. Why is an advertising campaign necessary to
overcome the city’s previous reputation?
2. Give several examples of activities other than
sporting events to attract customers
downtown.
3. What is the advantage of having new
condominiums in the downtown area?
4. Does the light rail system present an
advantage for your advertising campaign?
Explain your answer.
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