GROWTH, TRENDS & IMPACTOF SER MARKETING

Essential Questions:

How can I satisfy customers?

What are sports?

What is entertainment?

What is recreation?

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2

GROWTH

3

GROWTH BASED ON INCREASE IN –

free timediscretionary incomedesire for recreation and

entertainment

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DEVELOPMENT

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ANCIENTS – OlympicsGreek PlaysGladiators – staged army battlesChinese OperasShakespeare Plays

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ONLY FOR THE WEALTHY UNTIL MID 1800’S

Upper class had more : time and money to spend, and personal vehicles to travel

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LABOR UNIONS FOUGHT FOR:HIGHER WAGES AND REASONABLE WORKING HOURS

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PUBLIC TRANSPORTATION SUCH AS TROLLEYS & BUSSES PROVIDED LOW COST TRANSPORTATION TO EVENTS FOR MANY IN MIDDLE & LOWER CLASS

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KINETISCOPE INVENTED - DEVICE FOR VIEWING MOTION PICTURESBIRTH OF THE FILM INDUSTRY

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AFTER THE 1920’S BECAME STAPLES OF EVERYDAY LIFEWelcome distraction from Great Depression and World War II

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1950’s

Tv in every homeLocal movie theatersDisneylandMany sports franchises started

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Bill Veeck’smarketing activities at baseball games

Fireworks, dazzling scoreboards, special events nights, names on jerseys and giveaways

Appeal to fans and media Made sports more profitable

because:People enjoyed the game moreSo more people came to more gamesCompany’s bought more advertising

and sponsorships

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ONE WAY TO TAKE ON THIS TOUGH MARKETING JOB IS TO DISTRACT PEOPLE’S ATTENTION:•    THE CLASSIC EXAMPLE HAPPENED WHEN BILL VEECK SENT UP 3 FOOT 7 INCH EDDIE GAEDEL, UNIFORM NUMBER 1/8, TO PINCH HIT FOR THE LAST-PLACE MAJOR LEAGUE BASEBALL ST. LOUIS BROWNS IN 1951.

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In 1960’s International

Management (IMG)began to link athletes to corporations

Signed golfing legend Arnold Palmer

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TRENDS

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TV IS THE MOST POPULAR ENTERTAINMENT FOR MOST AMERICANS

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MAGAZINES AND NEWSPAPERS ARE BECOMING MORE INTERNET BASED

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DIGITAL MUSIC AND MOVIES LED TO PROBLEMS WITH PIRACY

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INTERACTIVE VIDEO GAMES LIKE THE WII SURPASSING TRADITIONAL PLATFORMS

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HIGH DEFINITION TV AND 3D TV

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SOCIAL NETWORKING

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LARGER VENUES/STADIUMS – INCREASED DEMAND FOR TICKETS, BETTER SEATS, SUITES

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THINK, PAIR, SHARE

Who do you think are the highest paid athletes?

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SKYROCKETING PLAYER’S SALARIES – A RESULT OF FREE AGENCY GIVING MORE CONTROL TO PLAYERS THAN OWNERS

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THINK, PAIR, SHARE

Who do you think are the highest paid celebrities?

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HIGHEST PAID CELEBRITIES

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NONTRADITIONAL SPORTS WOMEN’S SPORTS

Brandi Chastain1999 World CupScored winning goal

Lisa LelsieCandace Parker

Venus & SerenaWilliams

Jennie Finch

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EXTREME SPORTS

X Games

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YOUTH APPEAL – MARKETING TO KIDS THRU YOUTH THEMES AND APPAREL, ORGANIZED SPORTS AT YOUNGER AGES

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IMPACT

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FASHION

Clothing we wearHairstyles

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MERCHANDISE LINES

Clothing and accessories - Rocawear, Air Jordan, Dereon, Applebottom

Video games - NBA Live, Madden NFL, Karaoke Revolution: American Idol

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THEME PARK RIDES

Batman, Superman, SpongBob 3D ride, Joker, Disney World, Universal Studios

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RESTAURANTS

ESPN Zone, Planet Hollywood

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SPONSORSHIPS

Gatorade – Lebron James Nike – Kobe Bryant Proactive – Gabrielle Union,

Jessica Simpson Covergirl – Rhianna, Queen

Latifa

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EXPRESSIONS –

I’ll be back – Terminator Houston, we have a problem – Apollo 13 Show me the money – Jerry McGuire

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ECONOMY – HUNDREDS OF BILLIONS OF DOLLARS

Entertainment industry – top 10 highest grossing segment of the economy

Sports industry – top 25 largest industry

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41LEISURE TIME

TIME

LEISURE TIME –discretionary time outside of compulsory activities

ACTIVE – RecreationExertion of physical or mental

energy

PASSIVE – Entertainment does not exert significant physical or mental

energy (relaxing) – provides a diversion or allows people to be amused

Low Impact(little energy or

competition)

High Impact(High energy or

competition)

Hobby(non

competitive activities)

Walking/YogaBoatingBikingFishingCamping

White-water raftingRunningMountain bikingRock climbingPlaying an Instrument

Sport(organized, competitive,

skillful physical activity)

GolfXcountry skiingCheerleadingSwimmingCroquet

Football HockeyBasketball SoccerBaseballBoxing Downhill Skiing

Game(organized, competitive,

skillful mental activity)

BingoCardsBoard Games

ChessVideo/Computer games

Watching or

Going To:

Cinema/moviesConcertsGames/TournamentsShopping MallRodeo, Truck Jam, Disney on IceSporting EventsTheater/playsTheme park/ ZooTV

Listening to

Music/Radio

Reading:Books MagazinesNewspapers Internet

Socializing

In personOn the phoneTextingSocial networking websites

Eat Sleep WorkGo to school

Do homework

Household chores: cook, clean, pay bills, cut

grass

Personal care: bath, brush teeth

TravelREQUIRED DUTIES

REQUIRED DUTIES – ACTIVITIES WE ALL NEED TO DO FOR OUR HEALTH, LAW OR SOCIAL CUSTOMS

EAT

SLEEP

WORK

GO TO SCHOOL

DO HOMEWOR

K

HOUSEHOLD CHORES: COOK, CLEAN, PAY BILLS, CUT GRASS

PERSONAL CARE: BATH, BRUSH TEETH, COMB HAIR

Travel time: to and from work, school, etc.

LEISURE TIMEDiscretionary time

outside of compulsory activities

PASSIVE – ENTERTAINMENTDoes not exert significant physical or mental

energy(relaxing) – provides a diversion or allows people to be amused

WATCHING OR GOING TO:

Cinema/movies Conerts Games/tournaments Shopping mall Rodeo/Monster Truck Jam/ Disney on Ice Sporting Events Theater/plays Theme park/Zoo TV

LISTENING TO MUSIS/RADIO

READINGBooksNewspapersMagazinesinternet

SOCIALIZING

In person On the phone Texting Social networking sites

ACTIVE – RECREATION

Exertion of physical or mental energy

Hobby(non competitive activities)

Low Impact(little energy or

competition)

High Impact(High energy or

competition)

Walking/YogaBoatingBikingFishingCamping

White-water raftingRunningMountain bikingRock climbingPlaying an Instrument

Sport(organized,

competitive, skillful physical activity)

GolfXcountry skiingCheerleadingSwimmingCroquet

Football HockeyBasketball SoccerBaseballBoxing Downhill Skiing

Game(organized,

competitive, skillful mental activity)

BingoCardsBoard Games

ChessVideo/Computer games

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SIMILARITIES AND DIFFERENCES IN SPORTS AND ENTERTAINMENT MARKETING

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SER MARKETING

SER Marketing - satisfy customers through sports, entertainment, recreation, amusement or any method of occupying time.

SER Marketing relies on – Meeting consumer demand for excitement and diversion at a price the customer is willing to pay

Entertainment–

Consumer Loyalty• Fads

ProductTV –

• Ratings• Prime Time• SyndicationMusic/Radio – • Air play

• Prime Time• Label• CoverFilms -

• Evergreens• Trailers

• Primary Market• Secondary Market

Revenue Stream• Intellectual Property• Piracy/Bootlegging

• Royalty

Sports–

Consumer Loyalty• Success/Winning

Product• Young Amateur• Recreational• High School

• NCAA - College/University• Professional• Olympic

• Women’s - Title IX• Extreme Sports

Revenue Stream• Scalping

• TV Broadcast Deals• Sponsorship

• Stadium Signage• Stadium Naming Rights• Corporate Boxes/Suites

• Venue Design

Similarities and Differences in Sports and Entertainment Marketing

Similarities – • Discretionary Income

• Leisure Time• Opportunity cost

• Amateur vs. Professional• Niche Marketing

• Consumer Loyalty/Fans

• Core Products• Ancillary Products/Licensing

• Endorsements• Concessions

• Impulse Spending• Break Even

• Gross vs. Net Revenue

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SIMILARITIES

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SIMILARITIES

• Discretionary Income - Money left to spend after necessary expenses are paid

• Leisure Time – Time free from work or duties

• Opportunity cost - When you make a decision to spend your money on 1 thing you can’t spend it on something else (ex. Cd vs. t-shirt)

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THINK, SHARE

What are some necessary expenses? What might you spend your discretionary

income on? Do teens have more or less income than

adults? Do teens have more or less discretionary

income than adults? What is your favorite thing to do in your

leisure time?

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SIMILARITIES

• Amateur - Person who does not get paid to perform

• Professional - person who has the will and ability to earn income from performing

• Niche Marketing - Focuses on a small target market of consumers who have very similar interests

• Consumer Loyalty/Fans

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THINK, SHARE

List 5 amateur athletes or entertainers

List 5 professional athletes or entertainers

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SIMILARITIES

• Core Products - Main product, ex. Sports event, movie, book

• Ancillary Products/Licensing - Product related to core product, ex. Lunch boxes, t-shirts, back packs, park rides

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SIMILARITIES

Endorsements - Approval or support of a product or idea

How should companies decide who to ask to endorse their products?

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SIMILARITIES

• Concessions - Snack bars that sell refreshments such as popcorn, soda and candy

• Impulse Spending - Buying without proper planning ex. Food, gifts, souvenirs and apparel

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SIMILARITIES

• Break Even - Have costs and expenses equal revenue

• Revenue - Income or money made from selling products

Gross Revenue - Total income from sales BEFORE costs, expenses and taxes

Net Revenue – total income from sales AFTER costs, expenses and taxes

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GROSS VS. NET REVENUE

A theater makes $200,000 from the sales of movie tickets and concessions

After paying for the popcorn kernels, rent, and wages to employees, a theater makes $25,000

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WHAT PERCENT OF A FILM REVENUE COMES FROM ANCILLARY PRODUCTS?

10%25%50%75%

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DIFFERENCES

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CONSUMER LOYALTY

SPORTSSuccess/winning

ENTERTAINMENTFads - Short term popular trend,Industry is always looking for the

“next big thing”

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PRODUCTS - SPORTS

Categories of Sports - Amateur, high school, college, professional

Title IX - Law that bans gender discrimination in schools that receive federal funds

Extreme Sports - Involve nontraditional daring methods of competition,

ex. X Games - Skateboarding, rollerblading, stunt bikers, snowboarders

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THINK, PAIR, SHARE

What percent of homes have at least 1 TV?

What is the average # of hours teens watch TV?

TV shows survive based on size of their what?

How many content minutes are there in a 30 min TV show?

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PRODUCTS – ENTERTAINMENTTV

Ratings - Rankings of TV or radio show popularity in a certain time period

Most famous rating company - Nielson Prime Time - 8pm – 11pm, bring in greatest

audiences and highest advertising revenue Syndication - Selling TV programs to individual

stations not networks Sitcoms – high rerun value, Reality TV – high

ratings, but low rerun value

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PRODUCTS – ENTERTAINMENTMUSIC/RADIO

Airplay or time on the radio - Primary means of introducing new artists

Radio prime time hours - 6am-9am A record company is also called a - label Cover - When another artist records the same

song

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PRODUCTS – ENTERTAINMENTFILMS

Evergreens - Films or products that are popular year after year

Trailers - Previews of coming movies shows before the main feature to create interest in new releases

Primary Market - Target audience who sees a movie on the first release in theaters

Secondary Market - Target audience who sees a movie in TV, discount theaters, dvd or rental

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REVENUE STREAM - SPORTS

Scalping – unauthorized reselling of tickets TV Broadcast deals Sponsorship Stadium Signage Stadium Naming Rights Corporate Boxes/Suites Venue Design

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REVENUE STREAM - ENTERTAINMENT Intellectual property - Idea, concept or

written work that is unique and protected by a copyright

*would need permission from the author, plus would have to pay a royalty fee

Piracy - The unauthorized use of an owner’s copyrighted material, ex. Books, movies

Royalty - Payment for a material that has been copyrighted

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THINK, PAIR, SHARE

How long is work protected by a copyright?

8,000 commercial albums are produced every year, what percent make a profit?

What is the highest percent of retail price for each album sold that a talent might receive?

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ESSENTIAL QUESTIONS:WHAT ARE SPORTS?WHAT IS ENTERTAINMENT?WHAT IS RECREATION?

Competencies:

Explain the importance and impact of SER

Describe the growth & development of SER

Analyze trends in SER