Selling Sports and Entertainment

12.1 The Sales Process 12.2 Ticket Sales

12.3 Group and Corporate Sales

Chapter 12

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A small community can host a huge entertainment event with the right help.◦ corporate or organizational sponsorship◦ related events held in conjunction with the

concert◦ tiered ticket prices ◦ affordable campsites◦ web sit promotion

Winning StrategiesCountry Stampede - Financial Boost for Manhattan, Kansas

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Goals List the steps involved in the sales process.

Discuss the management skills and knowledge necessary for successful salespeople.

Lesson 12.1

The Sales Process

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selling◦ the direct, personal communication with

prospective customers in order to assess and satisfy their needs with appropriate products and services

personal selling◦ the sales person becomes the link between

the customer and the business

SELLING SPORTS AND ENTERTAINMENT

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The six steps of effective selling are:

1. The Pre-Approach2. The Approach3. Demonstration4. Answering questions5. Closing the sale6. Follow-up

Discussed on following 6 Slides…

The Sales Process

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Salespeople learn about the:◦ products and services offered◦ target market◦ competition

Salespeople must:◦ be knowledgeable◦ understand consumer need

# 1 ~ Pre-Approach

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Contract the Customer◦ Gain their attention

Listen carefully to consumer needs Create a favorable impression on consumer

Create lasting relationship

# 2 ~ The Approach

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Enthusiastically present product

Make sure to address consumer needs

Highlight benefits and features

Approach consumer about purchasing item

# 3 ~ Demonstration

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Consumer voice any objections, questions, or concerns about the product

Questions = Considering the purchase?

Provide additional info to help persuade their decision

#4 ~ Answering Questions

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Offer discounts or incentive to buy today Suggest additional items for purchase

suggestion selling◦ asking customers if they want to purchase related

products

Would you like to “Super-Size it?” “Make that a combo?”

Do you need case or screen protector for your new phone?

#5 Closing the Sale

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Long-Lasting Relationships

Contact consumer Are they satisfied? Do they additional needs?

Improved customer service from feedback

# 6 ~ Follow-up

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Advantage of Personal Selling◦ opportunity to address any concerns that may be

causing hesitation

Knowledgeable Salespeople◦ Offer information about the product◦ Demonstrate the product◦ Make comparisons with similar products◦ Tell stories about personal experiences with

product◦ Answer questions about the product

When Is Personal Selling Appropriate?

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Benefits of Feedback◦ Enables sellers to improve on future sales

strategies

Feedback from Consumers◦ Level of satisfaction during ◦ Suggestions to make buying process better/easier

for the consumer

Disadvantage of Personal Selling◦ High costs, time commitment per customer &

required skills and trainings for employees

When Is Personal Selling Appropriate?

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Personal selling is effective for:◦ expensive, complex products◦ markets with a few large customers◦ unfamiliar, unique products◦ customers in a limited area◦ complicated, long decision-making processes◦ customers who expect personal attention

When Is Personal Selling Appropriate?

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Explain why personal selling is necessary when selling expensive items like luxury suites at a professional football stadium.

◦ Customers take more time to make purchasing decisions related to more expensive items.

◦ They expect more personal attention from the sales associates since they are selling the money.

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Salespeople need to◦ effectively manage themselves, customers & info

be motivated use time wisely be emotional and physically stable to deal with public

◦ Continued Education / Professional Development is helpful to keep current in their profession

◦ Know & understand the following…

MANAGEMENT SKILLS AND KNOWLEDGE FOR SUCCESS

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Salespeople need a thorough knowledge of the product or service they sell.

◦ Successful salespeople know all parts of the marketing mix (4 P’s)

◦ Sources of info: Info sheets, product manuals Special trainings on product & on new sales

strategies

◦ Salespeople must effectively communicate: Product info including benefits & unique features

Know the Product

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Know the customer and their needs in order to present the most appropriate products.

cold calling◦ contacting potential customers randomly without

researching their needs first Marketing-oriented businesses do not depend on CC.

leads ◦ customer contact info obtained from market

research◦ customers have shown interest or a in target market

Research: who needs the product, resources they have to purchase product and authority to make the purchase

Know the Customer (1 of 2)

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Understand Customer Decisions◦ A five-step decision-making process for purchases

1. recognition of a need for a product or service2. search for info about alternative products or services3. evaluate all options (best fits their needs)4. a decision is reached and a purchase occurs5. evaluate the decision to determine if needs were met

Manage Customer Information◦ customer management

building a customer base carefully scheduling time spent with customers

“Time is Money” ~ too much time spent with one could be lost sales with another.

Know the Customer --

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Salespeople must be able to:◦ explain how their products are unique (different)

from the competition’s◦ provide solid evidence that the product is

superiority

Consumers want to buy the most satisfying (the best) product at the best price.

Know the Competition

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List three things successful salespeople must understand.

◦ Salespeople must understand: the product/service they are selling, their customers and their competition.

Goals Explain the difference between

ticket brokers and ticket scalpers.

Describe the ticket economy and strategies for getting highly sought tickets.

Lesson 12.2

Ticket Sales

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High Demand = High Prices

ticket brokers◦ registered businesses that legally buy and sell

tickets to a variety of events and guarantee ticket authenticity

◦ Typically online exchanges

◦ Reputable T.B. should be members of: National Association of Ticket Brokers & Better Business Bureau

◦ Offer wide array of tickets to reach more consumers

HIGH PRICES FOR THE MOST DEMANDED ENTERTAINMENT

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ticket brokers◦ Operate businesses that depend on customer contact

◦ Some brokers have contracts to obtain the best tickets before they are put up for sale. (unethical & unfair) Try to monopolize the ticket market Offer bribes to people in control of ticket supply

(box-office employees, venue managers, promoters, ticket agents)

◦ Ticketmaster – Strategies to fight back Different ticket release times, during week rather than Sat. VIP club members receive password to early release time

HIGH PRICES FOR THE MOST DEMANDED ENTERTAINMENT

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ticket scalpers◦ sell tickets to major sporting events, often outside the

venue on the day of the event, at inflated prices◦ illegal in some states

◦ “the practice of buying and selling event tickets by private citizens, rather than by the sponsoring venue or organization.”

◦ Laws about ticket scalping vary by state, and there is no federal law that prohibits the practice.

◦ Approx.16 of the 50 states have a law that makes it illegal.

◦ Seven states - including PA - require a special license to resell tickets.

Ticket Scalpers

When ticket scalping laws are broken, consequences are often not enforced. ◦ Police officers handle the offense according to severity. ◦ Scalping tickets is a nonviolent crime without a victim

It is a crime where both parties are agreeable to the transaction. Therefore, cops are often hesitant to get involved.

◦ Ticket scalping laws became even more difficult to enforce when the practice became widespread online. Internet sites such as StubHub, TicketsNow and RazorGator

are regulated, tax-paying websites that capitalize on fans’ eagerness to purchase tickets at any cost.

If the official website for the event sells out, these sites promote themselves as a second chance. Efforts to make scalping illegal are overshadowed by such websites.

http://www.wisegeek.com/is-ticket-scalping-illegal.htm 26

Ticket Scalpers

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Some events make fans think that a “once-in-a-lifetime” event is worth a large ticket price.◦ Sellouts with the hour◦ Forming lines the night before tickets go on sale◦ Season Tickets = Status Symbol

When season ticket holders for the Green Bay Packers pass away, they can bequeath (leave, hand-down) the tickets to someone in their will.

Ticket Frenzy

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Explain why scalping is illegal in some states.

◦ It involves unfair pricing for consumers.

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Ticketmaster controls ticket sales for most venues in the country.

◦ Telephone, Internet, Box-Offices◦ Saturdays at 9am or 10am◦ Greatest sales happen within opening hour

Average consumers compete with scalpers and corporate sponsors for tickets.

THE TICKET ECONOMY

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Buy over the Internet.

Pre-register your credit card and mailing address on the web site before the on-sale date.

Log on to the site a few minutes early.

If the concert sells out, check back with the website for a few days to see if additional dates were added.

Try again the day of the show.

Work the System

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70,000 tickets are distributed for the SuperBowl◦ 500 tickets available by lottery◦ overpriced hotel packages offer tickets through

NFL-approved tour operators & travel agencies◦ ticket brokers sell tickets

NATB Standard for Super Bowl Tickets◦ If a legitimate broker fails to deliver the tickets, they

must provide a refund that is 200% of the ticket price.

The FBI receives reports of fraudulent ticket sales for the Super Bowl.◦ Consumers should never send cash payments or use

wire transfer services for tickets.

Landing Super Bowl Tickets

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By 2007, movie theater operators had planned to screen live sports events in 3D.◦ lure sports fans to entertainment options◦ to boost weekday theater ticket sales◦ team gear sold in lobby◦ fans encouraged to cheer as if they were at ball park

Ticket sales dropped in 2005 due to:◦ lackluster films, ◦ competition from other entertainment options ◦ and increased in-home entertainment technology

Movie Theaters Aim for 3D Sports

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Consumers no longer have to wait in long lines.

Purchase tickets from the convenience of home.

Many people buy tickets and resell them on online auction sites.

Electronic Ticket Distribution

How has the Internet changed the way that tickets are sold for sports & entertainment events?

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Goals Explain sales strategies for attracting

groups to sports and entertainment venues. Describe how corporations use sports and

entertainment to motivate employees and impress clients.

Lesson 12.3

Group and Corporate Sales

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Appealing to Groups◦ Games played during the week are less likely to sell

out.◦ Special Group/Corporate promotions used to fill seats.

◦ group packages special prices for group purchases of 15 or more tickets

◦ Groups: churches, senior citizens, schools, scouts, youth teams, student organizations, businesses, etc.

◦ Group recognition during announcements◦ Promos build future customer base

FILLING THE STANDS

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University alumni who make substantial contributions to athletic departments and scholarship funds may receive perks.

easier access to tickets special seating at sporting events season tickets suites naming honors on suites or fields

Special Privileges

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Explain how group packages can help fill entertainment venues.

◦ Group package deals provide incentive for groups to attend events because they receive a discount and at the same time get to enjoy the fellowship of the group.

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Corporations might use sporting event tickets in a variety of ways.

◦ to promote bonding/teamwork of employees◦ as a performance reward◦ to entertain clients, impress the client

CORPORATE PERKS

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luxury boxes (luxury suites)◦ fancy rooms inside stadiums and arenas that

allow corporate executives and wealthy private individuals to entertain clients and friends while watching the game.

◦ high in the stands◦ near the press-box level◦ close-circuit televisions (for close-ups)

◦ good source of additional revenue for stadium

Special Seating

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◦ premium stadium seats that provide another source of high revenue for owners.

◦ vary by venue, but usually:

cushy and roomy

provide a good view of the action

often comes with added benefits Special access to indoor air-conditioned areas Access to special restaurants, merchandise stands

and lounge areas not available to regular ticket holders.

club seats

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How do corporations outside of the sports and entertainment industries use sports and entertainment events for business purposes?

◦ Corporations use sports and entertainment events to entertain clients, reward employees, and encourage employee team bonding,