History of Sports and History of Sports and Entertainment MarketingEntertainment Marketing

Similarities in Marketing

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Differences in MarketingDifferences in Marketing

Chapter Objectives

Discuss the history of sports and entertainment.

Discuss the impact of sports and entertainment history on today’s markets.

Explain how sports and entertainment marketers use tools to sell their products.

Explain risks and risk management of sports and entertainment events.

Identify differences between marketing sports and entertainment products.

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Sports and Entertainment Connections

What do sports and entertainment have in common? They have thrilled and entertained people for centuries—since the ancient Olympic games and Greek plays.

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A Brief History of Leisure

Marketers sell participation in sports and entertainment events to consumersconsumers.

consumers people who use products

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The growth of the sports and entertainment industries has relied on consumers with free time, discretionary incomediscretionary income, and a desire for recreation.

discretionary income money left to spend after necessary expenses are paid

A Brief History of Leisure

By the late 1880s, both wealthy and working-class families could seek similar forms of entertainment, thanks to public transportation.

kinetoscope a device used to view a sequence of moving pictures

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In the late 1890s, Thomas Edison invented the kinetoscopekinetoscope.

A Brief History of Leisure

Other milestones in the history of leisure include:

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Mary Pickford becomes the first international movie star in 1918.

The first talking movie in 1927 (The Jazz Singer)

Babe Ruth sets records in baseball that would stand for decades.

The development of television

Development of Sports and Entertainment Marketing

William “Bill” Veeck was a key figure in the development of sports marketing. He conceived of marketing activities and events that surround baseball games.

Adolph Zukor, founder of Paramount Pictures, was one of the first film producers to draw big box-office crowds and own a chain of theaters.

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Bill Veeck – Sports Marketer

1941 – Milwaukee

1942 – Philadelphia

1946 – Indians

1947 – Larry Doby

1948 – Satchel Paige

1948 – World Series

1949 – Good Old Joe Night

1951 – Eddy Gaedel

1959 – Scoreboard

1976 – Minnie Minoso

1980 – Minnie again

1979 – Disco Demolition

Other Promotions– Harry Carey– Curtain Calls– Shorts

Marketing Today

Sports and entertainment vendorsvendors compete for a share of the money people spend on recreation.

vendors sellers of products

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Sports and entertainment marketing directs consumers toward sports and entertainment productsproducts.

product a good or service that any for-profit industry sells to its customers

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Fan Clubs Grow Online

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celebrities. Some fan clubs charge fees, such as Tiger Woods’ tigerfans.com at $30. Other Web sites are free. For example, fanemporium.com, which operates for a group of musical celebrities, charges no dues. Sites offer newsletters, merchandise, contests, event updates, and more.

For more information on sports and entertainment marketing, go to marketingseries.glencoe.com.

Fan clubs for athletes and celebrities make good marketing tools. Thanks to the Internet, thousands of official and unofficial clubs are formed. They are run by fans, corporations, and

SECTION 2.1 REVIEW

Name two inventions that helped to enable more equal access to entertainment for the wealthy and the working classes in the 1890s.

Who was a key figure in the development of sports marketing?

How did Adolph Zukor help the entertainment market grow?

1.

2.

3.

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Write down these answers in a WORD document and upload to schoolloop – Sports CH2

Changes in Marketing

Communicating through promotionpromotion is more important than ever.

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promotion any form of communication used to persuade people to buy products

New technologies have broadened the scope and reach of marketing messages, and they can be entertainment products themselves.

Marketing Similarities

The marketing of sports and entertainment products differs from marketing traditional products in the following four areas:

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endorsement approval or support of a product or idea, usually by a celebrity

Product– EndorsementEndorsement– Core productCore product– Ancillary productAncillary product– RevenueRevenue

continued

core product the main product, such as sports event, movie, stage show, or book

ancillary product a product related to or created from the core product

revenue gross income

WHAT DO YOU THINK?

Write down who these people are and what are your feelings towards them? Explain their persona.

Marketing Similarities

Place

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piracy the unauthorized use of another’s music, movies, or copyrighted material

continued

royalty a payment for material that has been copyrighted, or legally declared as belonging to the creator

continued

Price– PiracyPiracy– RoyaltyRoyalty– CopyrightCopyright

Marketing Similarities

Promotion– Product tie-inProduct tie-in– Cross-promotionCross-promotion

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product tie-in use of ancillary products such as merchandise as promotional tools

cross-promotion any form of communication through which one industry relies on another industry to promote its product

continued

Marketing Similarities

ConvergenceConvergence expands the potential for profit in sports marketing and entertainment marketing.

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convergence the overlapping of product promotion

synergy a combined action that occurs when products owned by one source promote the growth of related products

Convergence and cross-promotion help to develop synergysynergy.

Risks and Risk Management

In any industry, including the entertainment industry, there are risksrisks.

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risks unforeseen events and obstacles that can negatively affect business

risk management a strategy to offset business risks

Successful sports and entertainment marketers develop risk managementrisk management strategies.

SECTION 2.2 REVIEW

What is celebrity endorsement?

What is the difference between core and ancillary products?

Give an example of synergy.

1.

2.

3.

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Write down the answer to these questions and add to the other document.

Different Players, Different Games

The differences between sports and entertainment can be found in three areas:

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Consumer loyalty

Product

Revenue stream

Differences in Consumer Loyalty

If sports fans feel their team is trying to win, the team can retain its consumer loyaltyconsumer loyalty.

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consumer loyalty consumers’ attitude that occurs when they are happy with a company and become repeat customers

The entertainment consumer is not motivated by brand or team loyalty, but by a desire for satisfying entertainment.

Differences in Product

The sports product is consistent, or stable.

The entertainment product is variable, or changeable.

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Differences in Revenue Stream

The streams of revenue created by marketing products in entertainment are very diverse.

Sporting events do not usually produce the same amount of revenue from merchandising and royalties as entertainment events.

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Differences in Revenue Stream

Sports franchises earn revenue from sponsorshipsponsorship.

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sponsorship the promotion of a company in association with a property

Sports franchises also earn revenue from advertising and broadcast rights.

Similarities and Differences in Marketing

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Sports Marketing Entertainment Marketing

Place

Product

Price

Promotion

Convergence

Consumer Loyalty Lack of ConsumerLoyalty

Consistent Product Variable Product

Many Ancillary ProductsFew Ancillary Products

SECTION 2.3 REVIEW

List two differences in consumer loyalty between sports and entertainment.

What are differences between marketing sports product and entertainment product?

In what one way does the stream of revenue in sports differ from the stream of revenue in entertainment?

1.

2.

3.

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Add these answers to you other work.

Identify three people in sports and entertainment history.

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Discuss one way that sports and entertainment history has affected marketing today.

Name three different marketing tools.

William “Bill” Veeck conceived of marketing activities and events that surround baseball games.  Adolph Zukor was one of the first to market dramatic stories and popular stars in movies.  Charles Howard marketed Seabiscuit well enough that some say he invented sports marketing.  Other answers are possible. 

1. As new inventions and technology made entertainment more available to the working classes, marketing was affected; it is currently being affected by computer technology and the Internet.

2. endorsements, ancillary products, convergence, and synergy

3.1.

2.

3.

Checking Concepts

continued

Define royalty.

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Give an example of a royalty.

Give an example of cross-promotion for a film.

A royalty is a payment for material that has been copyrighted, or legally declared as belonging to the creator.

4. Answers will vary because anything that can be copyrighted can earn a royalty if it is used by a person or entity other than the creator. Some examples might be books, songs, scripts, etc.

5. Answers will vary but may include the star of a new movie can appear on a talk show.

6.

Describe one risk involved in a sports event.

Many answers are possible, including damaged property, cancellation, injury to audience, damage to equipment.

7.4.

5.

6.

7.

Checking Concepts

continued

Explain one method of risk management for one risk.

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Critical Thinking

8.

Checking Concepts

Write this answer in your document.

9. What is your overall viewpoint on sports advertising and marketing?

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