WHAT IS SPORTS & ENTERTAINMENT

MARKETING?

QUESTION

• Do you consider golf a sport?• Why or why not?

EXACTLY WHAT IS AND WHAT ISN’T A SPORT?

• Exercising• Cheerleading• Chess• Lawn Mower Racing• Spelling Bee

UNDERSTANDING THE SPORTS INDUSTRY

• Sport• an athletic activity requiring skill or physical prowess and

often of a competitive nature• Source of diversion or physical activity engaged in for

pleasure

• Sports Entertainment• “We’ve recognized for several years that sport is part of

entertainment. The market now is really sports, fashion and music. We can’t expect to ignore reality and survive.”• Robert Meers, former Reebok president

SPORTS = ENTERTAINMENT

GROWTH OF THE SPORTS INDUSTRY

• 11th largest of all U.S. industry groups• US’s output for sports goods and services

estimated at $213 – 350 billion annually• How do we measure growth in the sports

industry?• Growth measured in:• Attendance Figures• Media Coverage• Employment Figures (4.5 million jobs)• Global Markets Sports Goods

UNDERSTANDING THE ENTERTAINMENT INDUSTRY

• Entertainment• Agreeable occupation for the mind; diversion;

amusement• Whatever people are willing to spend their money and

spare time viewing rather than participating in• sports or the arts• Typically, movies, theater, music concerts,

the circus, etc.

GROWTH OF THE ENTERTAINMENT INDUSTRY

• 10.9 billion tickets sold to movies in 2012• Highest grossing film of all time - Avatar $2.7 billion • Frozen is the highest grossing film for 2013 at 1.2 billion,

still ranking #5 overall

• $16 million goes through Broadway a year• Fortune 500 Ranking• Walt Disney 66• News Corp 91• Time Warner 105 • CBS Corporation 186• Viacom 198• CC Media Holdings 407

• Marketing is a process of bringing together sellers and buyers

• the creation and maintenance of satisfying exchange relationships

WHAT IS MARKETING?

THE MARKETING MIX

• Marketing Mix• how a company gets their product to the consumers

using the following four elements• Product• Price• Place (distribution)• Promotion

PRODUCT

• What a business offers to satisfy needs• Products include both Goods and Services

Goods Services

Tangible Intangible

PRICE

• How much consumers are willing to pay for product• Movies

• Average ticket price $7.96• Up 3% from last year 3D

• Broadway Shows• The Book of Mormon $195• Wicked $103• Mama Mia $ 81

• Professional Sports• NFL $168• NBA $ 51• MLB $ 27

• Disney World • Family of 4, 4-days/3-nights $2,000 - $12,000

• Super Bowl XLVII• Prices ranged from $2,100 - $53,333 for a game ticket on StubHub

PRICE

Tour Ave. Price

Tour Ave. Price

One Direction $674 Justin Timberlake $221

The Rolling Stones $637 Justin Bieber $214

Beyonce $358 Taylor Swift $214

Eagles $312 John Mayer $208

Pink $299 Dave Matthews Band $202

Paul McCartney $273 Lil Wayne $193

Fleetwood Mac $270 Rush $192

Depeche Mode $263 Bon Jovi $191

Bruno Mars $250 Matchbox 20 $182

Black Sabbath $227

• Discretionary Income • the amount of money individuals have available to spend after

paying for necessities

PLACE

• The locations and methods used to make products available to customers• Top live music venues in Richmond• The National• The Camel• Strange Matter• Rare Olde Times• Friday Cheers at Brown’s island• Hat Factory• Sound Check Studios

PROMOTION

• Ways to make customers aware of products • Encourages customers to buy• Regrettable promotions• Ball Night Dodgers Stadium August, 1995

• Free baseball giveaway turns ugly when fans throw 200 balls at players after an argument on the pitchers mound

• Disco Demolition Night Comisky Park July, 1979

• Free admission to anyone who brings in old disco records to destroy• Expected 5,000 fans; 75,000 show up• Rowdy fans begin throwing discs on field• Last forfeited game in the American League

• Man sues Anheuser Busch 1991

• Lawsuit filed citing false and misleading advertising that allegedly caused emotional distress, mental injury and financial loss

• Upset because companies portrayal of "scenic tropical settings [and] beautiful women and men engaged in endless and unrestricted merriment" — turned out to be "untrue."

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.

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

• Involves the use of sports and entertainment to develop, promote and distribute goods and/or services to satisfy the wants and needs of customers.

• Impact of Sports and Entertainment Marketing• Generates an average of $400 billion in annual revenue.• 64% of Americans watch NFL football• The NFL has $20.4 billion in television deals with CBS, FOX,

ABC, and ESPN• 21,876 was the average NBA attendance in 2013 (Chicago)

• Over 65 million people attended MLB games in 2013

SPORTS AND ENTERTAINMENT MARKETING

DISNEY WORLD

• Disney World Fun Facts• 2013 Attendance Figures ~ 70 million visitors• Magic Kingdom, 18.58 million visits (No. 1 worldwide)• Epcot, 11.29 million visits (No. 5)• Disney's Animal Kingdom, 10.19 million visits (No. 7)• Disney's Hollywood Studios, 10.11 million visits (No. 8)

• 75 million Cokes consumed each year• If you were to wash and dry one load of laundry every

day for 52 years, you’d clean as much as the folks at Walt Disney World Laundry do in a single day

• Walt Disney World Resort is the largest single-site employer in the United States (62,000 employees)

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.

THE BEGINNING OF CHANGE

• 1888 First moving picture• 1927 First movie with sound• 1928 Steamboat Willie• 1938 Snow White• 1955 Disneyland opens• Disneyland represented a new approach to the marketing

mix of entertainment – the Theme Park

THE BIG EYE IN EVERY ROOM

• The Early Days of Television and Marketing• 1945 9 stations, less than 7,000 TV sets in U.S.• 1946 1st broadcast sporting event (boxing match)• 1949 98 stations• 1956 82% of all TVs watched Elvis on The Ed Sullivan Show• 1964 60% watched the Beatles• 1969 500 million people worldwide watched moon landing

• Ratings• the number of viewers the programming attracted

CHANGE ACCELERATED

• Technology improvements, including the internet, have facilitated distribution of sports and entertainment to the masses.• 2012 Olympics• 4 billion television viewers worldwide• 18 million global unique users on BBC website • 29 million video requests from website

TECHNOLOGY AND CUSTOMER FEEDBACK

• Audiences can use a variety of communication technologies to provide entertainment feedback.• American Idol• 132 million votes

FUTURE OF SPORTS AND ENTERTAINMENT MARKETING?

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