SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4 Marketing Products

SPORTS AND ENTERTAINMENT MARKETING CHAPTER 4 Marketing Products and Services Through Sports 4. 1 Using Sports to Market Products 4. 2 Sponsorship 4. 3 Promotion 4. 4 Endorsements CHAPTER 4 SLIDE 1 © SOUTHWESTERN/THOMSON

LESSON 4. 1 SPORTS AND ENTERTAINMENT MARKETING Using Sports to Market Products GOALS n Understand the enormous market for sports. n Explain emotional ties to sports and earning power of women in sports. n Discuss the marketing cycle. CHAPTER 4 SLIDE 2 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Market Audience Size n The Audience n Sports Events Attract More Viewers And Participants Than Any Other Form Of Entertainment Today n Businesses Want To Align Themselves With A Team Or Athlete n Fan = Fanatic n An Audience Of Avid Fans Is Captive n Exposed To Ads When Watching Games CHAPTER 4 SLIDE 3 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING The Power of Sports n Power Of Emotional Ties n People Experience Intense Emotions Over Sports n Pride In Their City n Rioting After Championship Games n Fans May Overlook Athlete’s Bad Behavior n Emotional Involvement With Children’s Performance CHAPTER 4 SLIDE 4 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING The Power of Sports n http: //www. youtube. com/watch? v=fztl. Lw g. SFCg&feature=related CHAPTER 4 SLIDE 5 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING The Power of Sports n Power Of New Markets n Rising Popularity Of Women’s Athletics n WNBA, World Cup Soccer, High School & College Athletics n Title IX: The Prohibition Against Gender Discrimination In School Programs That Receive Federal Funds CHAPTER 4 SLIDE 6 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Marketing Cycle n A Company Buys The Right To Advertise Or Use A Logo On Products n Television And Radio Stations And Networks Sell Broadcast Time n Cities Buy The Rights To Host Teams n Consumers Buy The Products Advertised CHAPTER 4 SLIDE 7 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING How Companies Decide n Outside Consulting Firms n Sports Marketing Groups n Where do I get the best value for dollars spent? CHAPTER 4 SLIDE 8 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING LESSON 4. 2 Sponsorship GOALS n Understand sponsors and their investments. n Discuss prohibited sponsorship. CHAPTER 4 SLIDE 9 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Sponsors and Investments n Reasons for sponsorship n Need for profit n Sponsorship in niche markets n Examples of niche markets CHAPTER 4 SLIDE 10 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING What is a Sponsor? A person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition. CHAPTER 4 SLIDE 11 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Reasons for Sponsorship n n n n n Increase sales Introduce a new product or service Compete where potential customers are in one place Identify an event with a target market Earn the goodwill of the audience Show community commitment Enter new markets Entertain clients, employees, or potential customers Enhance the companies’ image CHAPTER 4 SLIDE 12 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Need for Profit n Market research measures the results of its sponsorships n Return—the profit the sponsor earns from its support of an athlete or team n Guaranteed amount of exposure, recognition, or acknowledgement, or dollar return CHAPTER 4 SLIDE 13 © SOUTHWESTERN/THOMSON

Sponsorship in Niche Markets SPORTS AND ENTERTAINMENT MARKETING n Niche marketing—researching a target market to determine the specific items or services a small group of people will buy n Examples of Niche Markets n. NASCAR n. X Games CHAPTER 4 SLIDE 14 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Can Anyone Sponsor Anything? n Newer sports offer attractive opportunities for smaller businesses n Minor league baseball n Affinity sports—niche markets whose participants are just as passionate about their sports as are enthusiasts of the more traditional sports n Loss of sponsor—Tobacco Backlash (NASCAR: Winston Cup became Nextel Cup) CHAPTER 4 SLIDE 15 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING LESSON 4. 3 Promotion GOALS n Discuss promotion and its objectives. n Understand the tools used in promotion. CHAPTER 4 SLIDE 16 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Promotion n. Selling n. The Exchange Of A Product Or Service For Another Item Of Equal Or Greater Value n. Result Of Promotional Activities n. Face-to face, letters, phone calls CHAPTER 4 SLIDE 17 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Promotion n Publicizing Or Advertising A Product, Service, Or Event With The Goal Of Selling It n Information About A Product, Service Or Event Given To Consumers n Communication Process n Information Leads The Consumer To Want The Product CHAPTER 4 SLIDE 18 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Promotion Targets n Primary goal of promotion is to increase sales or attendance n Winning new customers n Maintaining customer satisfaction, loyalty, and repeat business CHAPTER 4 SLIDE 19 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Promotion Objectives n What Do You Want to Accomplish? n Decide On Target Market (Demographics, Psychographics, Geographic, Product Usage, And Benefits) n Decide On The Message (Persuade, Inform, Broaden Awareness, Image) n Determine What It Wants Consumers To Do (Try Product, Come To A Store/Event, Repeat Purchase) CHAPTER 4 SLIDE 20 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Promotional Tools n The four elements in a promotion plan (promotional mix) are: n. Personal Selling n. Advertising n. Publicity n. Sales Promotion CHAPTER 4 SLIDE 21 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Personal Selling n Personal Selling—in-person, Face-toface Communication Between A Seller And A Customer n Identify Customer Needs, Overcome Customer Hesitation n Courteous And Professional Salespeople Cause Customers To Return CHAPTER 4 SLIDE 22 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Advertising n Advertising—paid communication between the product maker or seller and the audience or customer n Clearly Explain Benefits n Reach Broad Audience n Print Media n Broadcast Media n http: //www. youtube. com/watch? v=3 r. Zs 8 ZKTsp 0 n http: //www. youtube. com/watch? v=QWQkf 0 w 5 JR 4 n http: //www. youtube. com/watch? v=20 op. Y 41 Cjh. A n Social Media: Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks. A corporate message spreads from user to user and presumably resonates because it is coming from a trusted source, as opposed to the brand or company itself. CHAPTER 4 SLIDE 23 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Publicity n Publicity—any Free Notice About A Product, Service, Or Event n Newspaper Articles, Television Coverage, n Keeps Your Name In The Public Eye n Publicity Can Be Good Or Bad CHAPTER 4 SLIDE 24 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Sales Promotion n Sales Promotion—any Action Or Communication That Will Encourage A Consumer To Buy A Product n Specials: Coupons, Giveaways, Contests, Sweepstakes, Samples, Items With Company’s Name On It, Limited Offers-BOGO CHAPTER 4 SLIDE 25 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING LESSON 4. 4 Endorsements GOALS n Describe endorsements and their restrictions. n Describe qualifications for endorsers. CHAPTER 4 SLIDE 26 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING What Is an Endorsement? n Endorsement—a person’s public expression of approval or support for a product or service CHAPTER 4 SLIDE 27 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Legal Restrictions on Endorsements must always reflect the honest opinions, findings, and beliefs or experience of the endorser. n The endorser must have real experience with the product. n The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser. CHAPTER 4 SLIDE 28 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Legal Restrictions on Endorsements (continued) n Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion. n The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements. n If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product. CHAPTER 4 SLIDE 29 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Advantages and Disadvantages n Consumers will buy products endorsed by celebrities more often than products that are not so endorsed n Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character n Consumers tend to believe celebrities, especially those who are chosen for their good public image CHAPTER 4 SLIDE 30 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING How Controversial Can an Endorser Be? n A difference between harmful endorsement and questionable endorsement n Dennis Rodman n Terrell Owens n Kanye West n Tiger Woods CHAPTER 4 SLIDE 31 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Should Endorsers Speak Out? n Debate over whether celebrity endorsers have a moral obligation to speak out on controversial topics n Athletes are not experts in the field of politics, labor, human rights, or global issues n Athletes have a responsibility to know what’s going on with the business they endorse CHAPTER 4 SLIDE 32 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING What Businesses Look for in an Endorser n Positive, charismatic, trustworthy image n A celebrity most consumers know n A celebrity whose career is in process (not retired) n Presents few risks n Believable relationship with the product CHAPTER 4 SLIDE 33 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Wheaties Explain the benefit to Wheaties of having a star athlete on its box. n Explain the benefit to the athlete. n Name some risks to Wheaties of having real people on its boxes. CHAPTER 4 SLIDE 34 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Wheaties Endorsements n http: //www. wheaties. com/fuel. Win. Repea t/index. html n http: //www. youtube. com/watch? v=x. Ho. By. Xsz. PE CHAPTER 4 SLIDE 35 © SOUTHWESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETING Wheaties The Breakfast of Champions n The director of marketing has asked you to recommend three potential athletes to consider for the next box of Wheaties. 1. The three athletes must include one from a mainstream sport, an alternate sport, and a female athlete. 2. List each of your choices and justify their selection based on the criteria outlined in your text. Each recommendation must be a minimum of one paragraph. 3. Create and print a Wheaties box for each athlete (see Wheaties web site) CHAPTER 4 SLIDE 36 © SOUTHWESTERN/THOMSON