History of Sports and History of Sports and Entertainment MarketingEntertainment Marketing

Similarities in MarketingSimilarities in Marketing

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Differences in MarketingDifferences in Marketing

Sports and Entertainment Connections

What do sports and entertainment have in common? They have thrilled and entertained people for centuries—since the ancient Olympic games and Greek plays.

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Marketing Today

Sports and entertainment vendorsvendors compete for a share of the money people spend on recreation.

vendors sellers of products

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Sports and entertainment marketing directs consumers toward sports and entertainment productsproducts.

product a good or service that any for-profit industry sells to its customers

Marketing Similarities

The marketing of sports and entertainment products differs from marketing traditional products in the following four areas:

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endorsement approval or support of a product or idea, usually by a celebrity

Product– EndorsementEndorsement– Core productCore product– Ancillary productAncillary product– RevenueRevenue

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core product the main product, such as sports event, movie, stage show, or book

ancillary product a product related to or created from the core product

revenue gross income

Marketing Similarities

Place

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piracy the unauthorized use of another’s music, movies, or copyrighted material

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royalty a payment for material that has been copyrighted, or legally declared as belonging to the creator

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Price– PiracyPiracy– RoyaltyRoyalty– CopyrightCopyright

Marketing Similarities

Promotion– Product tie-inProduct tie-in– Cross-promotionCross-promotion

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product tie-in use of ancillary products such as merchandise as promotional tools

cross-promotion any form of communication through which one industry relies on another industry to promote its product

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Marketing Similarities

ConvergenceConvergence expands the potential for profit in sports marketing and entertainment marketing.

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convergence the overlapping of product promotion

synergy a combined action that occurs when products owned by one source promote the growth of related products

Convergence and cross-promotion help to develop synergysynergy.

Different Players, Different Games

The differences between sports and entertainment can be found in three areas:

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Consumer loyalty

Product

Revenue stream

Differences in Consumer Loyalty

If sports fans feel their team is trying to win, the team can retain its consumer loyaltyconsumer loyalty.

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consumer loyalty consumers’ attitude that occurs when they are happy with a company and become repeat customers

The entertainment consumer is not motivated by brand or team loyalty, but by a desire for satisfying entertainment.

Differences in Revenue Stream

Sports franchises earn revenue from sponsorshipsponsorship.

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sponsorship the promotion of a company in association with a property

Sports franchises also earn revenue from advertising and broadcast rights.