Chapter 3
Chapter 3Industry SegmentsFans commitments to favorite athletes
often spill over into fan club activities. When they join a fan
club, fans have access to athletic statistics, personal facts,
schedules, and other information about the sports figure. Fan clubs
are good for the entertainment industry because they give consumers
the opportunity to communicate with their favorite celebrities. The
Internet has increased access to fan clubs and has become an
important marketing tool for athletes and entertainers.
Work with a partner: Choose a sports or entertainment figure who
has a fan club on the Internet. What features does the club offer
to its members? Do you think it is worth joining? Why or why not?
Discuss your finding with the class.SPORTS & ENTERTAINMENT
INDUSTRYIndustry a group of organizations involved in producing or
handling the same product or type of services.Industries may be
further defined by subdivisions. Example: Division =
MusicSubdivisions = Country, rock, R&B, jazz,
rapIndustriesHotel Industry Subdivisions = ?? Full service, limited
service, economy, extended stayCollege SportsSubdivisions = ?
Football, baseball, soccer, basketball, lacrosse, gymnastics,
etc.
Racing Car IndustryStock carNASCARTelevision IndustryTalk
showRealitySitcomsSoap operasSportsIndustry Standards &
TrendsIndustry standards the guidelines and goals set for different
entertainment industriesResearch is done to determine an industry
norm, or the average expectation within the industry.Hotel Industry
standardsClean, nicely furnished room Swimming poolFitness
centerRoom serviceInternet connectivity
Industry Standards & Trends cont.-Industry norms provide
examples of what to expect for attendance, revenue, length of
events and other important factors for sports and entertainment
plannersExamples of Industry Norms the average attendance at state
fair or home college football gamethe average cost for a 3-day
sports campthe average salary for a professional athlete
Industry trends showthe latest demand for
sports/entertainment.consumer response to
sports/entertainment.their relative growth or decline over
time.ExamplesCollected data over time may show an trend of growing
attendance at NASCAR events.Pro and collegiate sports industries
are concerned with the trend of young children showing less
interest in organized sports than children of previous
generations.(Marketing plans are often based on trends.)
Top Ten Sports/Social Media TrendsMarketing Decisions for an
IndustryDecisions are based on upon industry standards, norms, and
trends.Entrepreneurs planning a basketball camp would checkindustry
standards to determine what should be taught at the camp and the
amount of liability insurance to cover possible injuries.industry
norms might include # of days, price charged, maximum enrollment,
average revenue from related sponsors.Sports camp trends could
include popularity of a particular camp, best time of year, and
most effective advertising for the camp.U.S. Sports Camps (USSC) of
San Rafael, CaliforniaSpecializes in 1 and 2 week overnight
campsProvides 1-1 training Manages the marketing and administration
of camSome camps are on college campuses across the U.S.Offers
variety of sports like tennis, tennis, swimming, golf, etc.
Have close ties to Nike who sponsors many camps and provides
apparel to participants and staff
USSCs websiteInvested $80,000 that has produced superstar
results. Received $1.4 million in online sales in one year.
Advertising invites readers to find more info.Gives detailed info.
for camps & provides for online registration.
Has 20% increase in business.Provides links to travel
agencies.Also attributes much of its success to direct-mail
campaigns and ads in specialized sports magazines geared toward
young athletes.
College SportsTrend: continual increase in salaries to attract
top coaches for football and basketball.
To cover expenses, colleges are expanding stadiums and
attracting major sponsorships.
ISP SportsLeader in collegiate sports marketing.Network has more
than 500 radio and 100 TV outlets.Largest & fastest growing
multimedia company.Serves as a partner with 27 of Americas leading
universities.
Relationships with schools provide sponsoring opportunities such
asOfficial university publicationsRadio/TV programmingInternet
sitesGame/event promotionsStadium/arena signage
Television IndustryConstantly searches for programming that will
produce higher viewer ratings.
Reality TV, makeover shows, and talent search programs have
replaced more expensive sitcoms and traditional programs.Ordinary
people dont demand the millions of dollars required for
celebrities.
Networks are constantly trying new methods to reach viewers
through the Internet, video iPods, and on demand services.
Concert IndustryMay be facing huge crisis. Fewer stars have
universal appeal of older groups such as the Beatles.
Face huge challenge of replacing aging rock stars.
Few artists demand the $300-$400 ticket prices.
Cant fill large venues.
Concert IndustryOld SchoolNew School2 largest rock
concertsBetween 2001 and 2004 McCartney and Rolling StonesEach
grossed $100 millionMcCartneys 47-city tour sold out
2004 average ticket price were $59Industry sold $1.96 billion in
tickets.Youth dont see concerts as important.Fewer music events
happening in big venues.Needs to adjust for expected trends.State
and County FairsMade dramatic changes to remain visible. Most state
fairs last from 1-4 weeks.County fairs last 3-10 days.State fairs
looking to younger management for fresh marketing ideas.Successful
fairs have stepped up technology with online ads and ticket sales,
online premium books, and special topic news releases.
California State FairExpanded schedule to 4 weeks (no
Mondays).
Attendance grew from 2,515 people to 918,253.
Perfect weather and great combination of entertainment
events.
Added special events like a beach party theme, new teen and
childrens programs, new sporting events, and emphasis on art.
Wisconsin State FairGot financial boost through major
sponsorships.US Cellular provide $1 million for ads and
sponsorshipThe fairs main gate was renamed to US Cellular Main
Gate.US Cellular also received logo inclusion on the fair grounds
electronic message board so it can be seen by drivers on nearby
expressway.
What do you know?List 3 different forms of sports or
entertainment and a current industry trend for each one.
(You may have to search on the Internet.)
Think CriticallyAssume you are a marketing executive for your
favorite sport or other form of entertainment. Use the Internet and
current publications to study your area. List five current industry
trends for that sport or form of entertainment. Think of a
marketing strategy you would use to react to one of those
trends.
Write a memo to your marketing manager explaining the trend,
your idea, and why your idea is a desirable response to the
trend.Write CriticallyFCA #1: Your memo should include a statement
about each of the 5 trends. (25 pts.)
FCA #2: Explain one trend, your idea, and why your idea is an
effective response to the trend. (30 pts. )
FCA #3: Memo is in correct format. (10 pts.)
SPECIAL MARKETING TOOLSMotivational Speaking and WritingMany
people love listening to and reading what well-known individuals
have to say. This can result in big marketing opportunities for
athletes/entertainers.Public speaking and writing is a natural job
extension for many professional athletes and celebrities.What
famous person would you want to listen to? Why?Successful
SpeakingDepends on more than sports ability.Tools neededExcellent
speaking and communication skillsWell-written speechesMessage that
the audience is interested in hearing time and time again.Speakers
rely on strong marketing and promotional campaigns and an agent to
book speaking engagements.Public Speaking is big business.Training
can be rigorous.Speakers may hire speech writers.May hire coaches
to help them create a positive public image.The Price of
MotivationThe All American Speakers Bureau is a booking agency that
offers a wide choice of sports figures, celebrities, and other
speakers charging anywhere from $5,000- $50, 000 for an individual
speech.Terry Bowden TV broadcaster and former Auburn University
football coachDynamic, motivating, inspiring and funnyFees range
from $10,000 - $20,000 per speechPat SummitFamous University of
Tennessee Womens Basketball CoachHall of Fame CoachFees range from
$20,000 - $30,000 per speech
http://www.allamericanspeakers.com/Writing Their StoriesAnother
way to extend or expand a sports or entertainment career
profitably.
People love a good story about someones personal experiences,
failures, triumphs, and lessons learned.
Broadening the Audience: Book will appeal to people who follow
the sport but can draw larger audience because of universal themes
and concerns. Example: I Am ThirdWritten by football great Gale
Sayers over 30 years agoBook is about football, friendship, faith
and loveIt inspired a movie, Brians Song
Writing Their StoriesThe Publishing Process:Many sports and
celebrity authors dont actually write their own booksThey tell
stories to a ghost writer, a sports/entertainment writer who then
commits it to paper for a fee.The publisher arranges for editing,
printing, and distribution of book.Author receives a royalty (a
payment of 10% or more of the price of every copy sold).Book prices
are determined by public demand and the extent of distribution.
Author hires literary agent (for a percentage of the sales, plans
the marketing campaign and personal appearance).Create an
AvatarSelect an entertainer or athlete of your choice.Think about 3
reasons why this person would be a good representative to speak at
Mt. Healthy High School.Go to Voki.com.Create an avatar for that
person.Create a message for your avatar. Include the reasons why
this person should speak at MHHS.Publish/send the avatar to
[email protected]
Have you ever heard a good motivational speaker? What kinds of
information did he or she include in the presentation? For how long
did it affect you? Athletes and coaches with strong reputations and
winning personalities can make a great deal of money on the lecture
circuit. Inspiring speakers can have a strong emotional and
motivating impact . As the emotional impact of hearing the first
speech fades, fans will often buy tickets to hear their favorite
celebrity speak again.
Inspirational books work in much in the same way. Athletes and
entertainers often write about how they reached their level of
success. Fans hope that by reading the book, they can improve their
chances of success by applying the celebritys knowledge and
expertise to their own lives.
Work with a partner. Find a book that is written by a sports or
entertainment figure. Would you want to read it? Why or why
not?SPORTS CAMPS AND CLINICSWhy would serious young athletes want
to participate in a sports camp headed by a famous athlete or
coach?Hopes for a professional career???
Hope for professional contact who can help them get their foot
in the door for a professional career?
Parents may think its a way to help child
succeed.SponsorshipsMajor consideration for sports
camps/clinics.Feature athlete will need to be paid.$$ is needed for
leasing space for camp/clinic.Can help decrease costs to
campers.Can promote their products and get to know their customer
base better.Camp/clinic organizers target corporations to solicit
sponsorship.What do sponsors get/expect?Recognize promotional value
of sponsoring childrens camps/clinics.Receive positive
publicityVisibility and spoken recognition of its
sponsorship.Advertising space in the camp/clinics
publications.Presence of sponsorship banners, posters, and fliers
as well as placement of logos on all print materials.Potential
sales of its products at the camp.
Camp ExpectationsFamilies expectations???
lodging, food, & specific schedule of planned activities
(standard stuff)Personal lesson from superstarConvenient to
home/work
Camps vs. ClinicsCampsClinicsWeeklongConcentrate on variety of
skillsMany participants Fun and work hardStaff of
coaches/counselors
Maybe one or two daysMay focus only on one skillLimited
participationMore intense/concentratedMaybe one celebrity
athleteSeveral short clinics sessionsHelp capture larger fan
base
Good Marketing = SuccessCamps/clinics compete for motivated
athletes.Parents demand quality for their money.Good camps/clinics
rely on reputable marketers and organizers to help them
succeed.Promotional materials must be enticing AND accurate.Good
Marketing = SuccessPromotionGet word out about eventPublicize
camp/clinicBrochuresDetails about camp/clinicObjectives of
campSchedulesAges and skill levelsHousingDates LocationCosts
Promotional CampaignShould include a variety of media and
methodsLocal newspaper, television, radio advertisingContests or
giveaways offering a free week at camp, a free t-shirt, an item
signed by the camp/clinic celebrity, or something similarInterview
and photosA community appearance by the camp/clinics celebrity
Ongoing PromotionsMarketing doesnt end once camp/clinic is in
sessionSome sport camp organizers will work with PR professionals
to ensure that articles about camp and attendees along with photos
make the local papersSponsors may choose to hold weekly publicity
and promote goodwillProvide survey forms to parents and
athletesMaintain list of participants for future
AdvertisingWell-planned camps fail because they are
insufficiently advertised.Sports marketers should conduct research
in the area in which a camp/clinic is being held to find outWhat do
citizens read daily?Are there free, weekly publications that have
high rates of advertising success?Do the area school have a high %
of participation in sport?At which local sports facilities could
posters/brochures be placed?What are best radio stations to
consider for promotional ads?(Newsprint, Magazines and E-Zines,
Mailings/Brochures)
Locate a CampList 3 good locations for a sports camp.
Explain which sport(s) these locations are suited for and
why.
Also suggest suitable sponsors for each of the camps and explain
your answers.
(Incorporate Google Earth)Be a CelebrityBasketball coach Rick
Pitino uses TEAM as his speech acronym, standing for Together
Everyone Achieves More. Come up with your own acronym for
developing a speech. Explain what each letter of your acronym
represents and how it could help you to organize your speech.
DESTINATIONS: TRAVEL & TOURISMTravel Industry worlds largest
industryEmploys over 220 million people (expected to grow to 240 by
2013)
Tourism: considered traveling for pleasureIncludes vacations,
family visits, and attending convention or sports and entertainment
events
MAJOR SOURCE OF INCOME for cities, states, countries
Benefits of TourismService Industries benefit from
tourismTransportation services such as airlines, cruise ships,
taxicabs, UBER.
Hospitality Services such as accommodations including hotels and
resorts.
Entertainment Venues such as amusement parks, casinos, shopping
malls, music venues, and theatersThe Worlds Top Tourism
DestinationsRankings (2014)# of arrivals1 France83.7 million2
United States74.8 million3 Spain 65 millionInternational
EconomicsRankings (2014)Amount of IncomeRankings (2014)Amount of
Expenses1 United States$177.2 billion1 China$164.9 billion2
Spain$65.2 billion2. United States$110.8 billion3 China$56.9
billion3 Germany$92.2 billionAttracting TouristsMost people who go
to Super Bowl will have to travel.Major reason cities want to host
events like the Super Bowl is to attract out-of-town
visitors.Visitors will purchase airline tickets, book hotel rooms,
rent cars, visit local tourist attractions, and eat at local
restaurants.MISSION is to increase the volume of visitors and their
spending
Economic Impact (Super Bowl example)DirectIndirectTotal of new
spending resulting from the event or attraction.100,000 people
visit city1/3 are companions who dont go to gameVisitors stay 3-4
daysSpend more than $375/day
Determined by the multiplier effect
A portion of the money spent by visitors on local goods and
services that is in turn spent locally by employers and
employees.*Determining impacts is not an exact science. Tailor-Made
VacationsNiche Travel
Recreational travel to tours planned around special
interests.
Can be designed for a group of music enthusiasts traveling
through Europe listening to classical concerts.
EcotourismEcotourismResponsible travel to natural areas that
conserves the environment and sustains the well-being of local
people.
Attempts to minimize the negative impacts of visitors unique and
sensitive environments and cultures while helping the people of the
host country.
Involves local people in planning the products and services that
will attract tourists.
Halls of FameCan serve as a basis for promoting tourism.Cover
every recreation from lacrosse to jousting from chess to
marbles.Rock and Roll Hall of Fame???Motorsports Hall of Fame
???Astronaut Hall of Fame??? College Football Hall of Fame???Pro
Football Hall of Fame???Baseball Hall of Fame???World Golf Hall of
Fame (St. Augustine, Florida)Entertainment options include playing
golf, visiting museums, shopping, and wide selections of dining
Halls of FameDo you know where they are?Rock and Roll Hall of
Fame (Cleveland)Motorsports Hall of Fame (Detroit)Astronaut Hall of
Fame (Kennedy Space Center)College Football Hall of Fame(South
Bend, Indiana)Pro Football Hall of Fame(Canton, Ohio)Baseball Hall
of Fame(Cooperstown, NY)
RESORTS AND THEME PARKSRESORTSTHEME PARKSAimed at adultsFocus on
single recreational sport, such as golf and other relaxing
activities with or without a celebrity connection
Family orientedActivities, rides, characters, or TV shows that
are well-known to childrenMany travel destinations have combined
theme park and resort features offering the best of both in an
effort to attract a wide range of visitors.WORLDWIDE SPORTS &
ENTERTAINMENT EVENTSGlobal Sports & EntertainmentExpanding
IndiaDemocracy for more than 60 yearsRapidly changing from third
world country into one of the fastest growing economies in the
worldMore people have more money to spend on
sports/entertainmentGrowing economy means steady jobsAmusement
parks & theme parks are becoming more affordable.Global Sports
& EntertainmentAn expanding ChinaPotential for growth of sports
& entertainment industry is huge.Economy has grown by more than
10% each year.Number of middle class wage earners has
expanded.Theme parks, amusement parks, and zoos have opened.Parks
have failed due to poor marketing research, poor planning and too
much competition among similar parks.Standing out requires a unique
marketing mix.Yao
Minghttp://www.miamiherald.com/2011/07/11/2308726/yao-retirement-risks-nba-profile.html
Global Sports & EntertainmentA World MouseDisney continues
to be worldwide leader in the industry.Opened Tokyo Disney Resort
in 1983Opened Disneyland Resort in Paris in 1992Opened Hong Kong
Disneyland in 2005 (includes theme park, two hotels, retail shops,
restaurants and other entertainment venues)Joint venture in which
The Walt Disney Company and the Hong Kong government share the
costs and profits.The govt was responsible for developing site and
much of the infrastructure, which includes water, sewer, roadways,
and all other underlying framework.Park is 10 minutes from
airport.A Sponsors DreamGerman sporting goods manufacturer
Adidas-Salomon competes with Nike to be world leader of sporting
goods sales.
Each company estimates $1.5 billion in soccer-related sales in
the years that a World Cup tournament is held.
Adidas is one of the official sponsors and partners with FIFA to
organize the tournament.
Adidas provides funding and is given certain rights to display
signage, run ads, and use the World Cup logo on its merchandise and
in advertisement.
Bring it!Assume you work for the convention and visitors bureau
in your state. You want a theme park to be built in your state.
Recommend a specific location and write a one page letter of why
investors should choose your state. Specify what your state has to
offer.
FCA #1: Describe three amenities (i.e. airports, highways,
dining) that your state has to offer potential visitors.(30
pts.)FCA #2: Describe two other attractions that will draw
visitors.(20 pts.)FCA #3: Use proper letter format.(30 pts.)
