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
service
Industries can be further
defined by subdivisions
Examples of Industries
The Music Industry The Hotel Industry
Subdivisions
Country
Rock
Hip-Hop
R&B
Subdivisions
Full service
(resorts)
Limited service
Economy
Extended Stay
Examples of IndustriesThe Television
IndustryThe Sports Camp
Industry
Subdivisions
Reality TV
Talk Shows
Drama
Sitcom
Subdivisions
Football Camp
Cheerleading
Camp
Dance Camp
Basketball Camp
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 planned
Unpredictable outcome
Involves competition
Fans support one team
Usually planned with a script or program
Consumers are not motivated by brand or team
Consumers 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
Applying marketing
principles and processes to
promote sports products
◦Sports equipment
◦Sports apparel
◦Sports drinks
RG3 Adidas Under Armour- This is How We Run"Fate"
What is Sports Marketing
The 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
Dr. Pepper/ Iron Man
Growth of the Sports Industry
The sports industry generates about $200 billion a yearGrowth is measured in…..
1. Event Attendance Figures
2. 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 were
“The Avengers" ($617 million)
“The Hunger Games" ($407 million)
“Dark Knight Rises" ($359 million)
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 dollars
Based 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 Resources
All 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 tickets
How often the event takes place
How 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 event
Evaluation: 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
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