© south-western/thomson sports and entertainment marketing chapter 11slide 1 chapter 11 chapter 11...

CHAPTER 11 SLIDE 1 © SOUTH-WESTERN/THOMSON

SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

CHAPTERCHAPTER 1111Marketing Plans

11.111.1 Advertising

11.211.2 Marketing Research

11.311.3 Develop a Marketing Plan

11.411.4 The Bottom Line



LESSON 11.1LESSON 11.1

Advertising

GOALSGOALSExplain the steps in the advertising

process.Understand the importance of

measuring advertising effectiveness.



Advertising

Advertising—paid, non-personal communication between an identified sponsor and a potential customer about a product or service



Step By Step Set measurable advertising goal Develop the advertising budget Create an advertising theme Choose the advertising media Create the advertisement Develop an advertising schedule Measure the effectiveness of the advertisement



The Goal

Determine a specific measurable goalAd effectivenessBrand recognition—the number of

people who recognize the brand name of a product



The Budget

Marginal analysisPercent of salesBarteringFixed sum per unitPayout planningCompetitive parity



The Theme

Tag line—theme of an adConveys the main message of the ad



The Media Print Broadcast/cable The Internet Media strategy—choosing the media that will

bring the most effective advertising message to the targeted consumer

Reach—information about which targeted demographic segments are most likely to be reached



The Advertisement

CopyArtWear out—when an ad loses its

effectiveness due to overexposure or poor message quality



The Schedule

Cost-effective mediaConcentration strategy of schedulingDominance strategy



The Effectiveness

Response rateAd effectiveness helps to shape and

improve a business’s future media strategy



Pulling It All Together

Dominance strategyRunning the show

Shows “pitched” to advertisersPrimetime advertisingExpected audience ratings




Marketing Research

GOALSGOALSDefine the purposes of marketing

research.Understand the human element in

marketing research.



Researching the Market

New marketing medium 1940—televisionEarly 21st century—Internet

Mass market—broad categories of people



Marketing Information Marketing research—the process of

determining what customers want Define the problem Analyze current conditions Develop the process Collect, organize, and analyze the data Determine a solution to the problem Evaluate the results from the changes



Data Mining

Data mining—digging up data needed to make decisions

Nielsen Media ResearchSample—an estimate of how many

people watch a TV show



School’s Out

School holiday and weekends U.S. youth ages 8–21

52 millionAnnual income of $211 billionHarris Interactive YouthPulseE-commerce



Who Is Asking?

Specialized marketing researchCustom researchSyndicated researchWhat’s in it for me?



Worldwide Data

Global market continues to growCulture of potential new customersMarketing information must be used to

shape its product for new customers



Careers in Marketing Research

Collect dataTrack salesMonitor advertising spending




Develop a Marketing Plan

GOALSGOALSExplain the purpose of a marketing

plan.Describe the components of a strategic

marketing plan.



Know Where You Are Headed

Marketing plan—a written component of the strategic plan that addresses how the company will carry out the key marketing functions

Mission statement—the identification of the nature of the business or the reasons the business exists



A Sense of Direction

Analyze dataDecide what your customers wantDeliveryCustomers’ future needsSpecific needs of the firm and the

products



Focusing on the Customer

BlockbusterOverhauled business model and

marketing strategy planMore of what the customer wants



What’s The Plan?

Perishable productPre-sale



Components of a Strategic Marketing Plan Mission Goals Product planning Marketing-information

management Distribution system Pricing Promotional strategies Financing Purchasing

Risk management Selling People Internal communication

systems Timelines for

implementing the plan Intervals of review and

evaluation The future




The Bottom Line

GOALSGOALSDiscuss the profit motive behind sports

and entertainment marketing.Describe the types of financing related

to sports and entertainment marketing.



Let’s Make Money!

Profit—the amount of money remaining after all costs, including salaries, advertising, utilities, and other expenditures, have been paid

Who gets the money?



And More Money!

Challenges of physical limitsNew homes for sports teamsDid we make money?



Challenges of Physical Limits

Limited number of seatsSources of revenue with potential

growthPersonal seat licensesConcessions Commercial licenses



New Homes for Sports Teams

Professional sports stadiums costlyPublic subsidyHigher ticket prices



Did We Make Money? Forecast—predicts the cost of expenses and

expected revenues from an event Budget—provides estimates of expected

expenditures and revenues Balance sheet—shows the company’s current

assets, including cash, property, and equipment, and it current liabilities, including debts owed and loans

Income statement—a record of all revenue received and all expenses incurred

© south-western/thomson sports and entertainment marketing chapter 11slide 1 chapter 11 chapter 11...

Documents