What Is Sports And Entertainment Marketing ?. Chapter 1. 1.1 Marketing Basics Objectives. You will be able to describe the basic concepts of marketing. You will be able to describe the seven key marketing functions. . What Is Marketing?.
What Is Sports And Entertainment Marketing ?
Marketing is planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
The American Marketing Association
Marketing is the creation and management of satisfying exchange relationships.
Product – What a business offers a customer to satisfy needs.
Distribution – Involves the location and methods used to make products available to customers.
Price – The amount that customers pay for products.
Promotion – This describes ways to encourage customers to purchase products and increase customer satisfaction.
The most important aspect of marketing is satisfying the customer. Customer needs should be the primary focus during the planning, production, distribution, and promotion of a product or service.
1. Identify customer needs
2. Develop products that customers consider
better than other choices
3. You must be able to operate a business profitably
Marketing Functions: The Basis of All Marketing Activities
The designing, developing, maintaining, improving, and acquiring products or services so they meet customer needs.
**Fisher Price tests new toy ideas with both children and parents to make sure children will play with them and parents will buy them.
Determining the best way to get a a company’s products or services to the customer.
**Television manufacturers like Sony sell their products through electronic retailers like Circuit City.
Direct and personal communication with customers to asses and satisfy their needs. Selling also includes anticipating the customer’s future needs.
**Today selling also includes items purchased over the internet with no personal communication.
**Loretta Lynn and her husband traveling to sell radio stations on her single “Honky Tonk Girl”
Gathering and using information about customers to improve business decision making.
**Domino’s used marketing research to adapt to a new market in Japan.
Smaller pizza’s to be eaten as snacks
Non traditional toppings corn / tuna
This requires a company to not only
a.) budget for their own marketing activities
b.) but to provide the customer with assistance in paying for the product.
*General Motors offers loans to customers through its GMAC Division.
The process of establishing and communicating the value or cost of goods and services to customers.
**Prices to professional sports events and concerts are often very expensive because the demand for them is very high.
The use of advertising to communicate a products, services, or images to the customer to achieve a desired outcome.
**Coupons on the back of tickets promote products or services and entice fans into trying the products or services shown.
Think of 3 recent sports or entertainment purchases you have made. Identify how each purchase involved the seven marketing functions.
EX. Apparel, Athletic Equipment Food
DEFINITION: Income that can be freely spent.
~Income left over after all obligations have been met.
In 1998, a family of 4 could expect to pay $115.00 on average to attend a major league baseball game.
This price included tickets, parking, hot dogs and drinks, programs, and souvenir caps.
The highest cost was for the New York Yankees: $148.56.
The lowest cost was for the Cincinnati Reds: $89.97.
Gross Impression is the number of times per advertisement, game, or show that a product or service is associated with an athlete, team, or entertainer.
Often the message is is a very subtle one.
Advertisers hope you will remember when it is time to make a purchase.
There are two ways to look at Entertainment Marketing
Entertainment is whatever people are willing to spend their money and spare time viewing rather than participating in. This includes
Sports and the Arts, and can be viewed in person or in broadcast or recorded form.
Sports are games of athletic skill.
Entertainment can be movies, the theater, the circus, or even traditional athletic contests.
The marketing of entertainment is evolving faster and faster with daily changes in technology.
Products that were innovative yesterday are out-of-date today.
Information managers and promoters must be creative and forward thinking in order to anticipate the wants of the buying public.
Recreational sports marketers entice people away from home-based entertainment. Golf, tennis, bowling, hiking, snow skiing, snow boarding, and biking are a few of the more popular recreational sports activities.
Recreational travel or tours planned around a special interest.
Niche travel can be designed for a group of music enthusiasts traveling through Europe.
The marketing mix in niche travel is critical to the success of the business. Planning the right tour, promoting and distributing it to the right customer, pricing it to attract the customer, and making a profit, all require marketing information.