Chapter 6

The Marketing Game

Plan
6.1 The Game Plan
6.2 Entertainment and Sports
Strategies
6.3 Mapping the Plan

Sports and Entertainment Marketing

© Thomson/South-Western
Winning Strategies
AEG
 Anschutz Entertainment Group (AEG) is a
key player in movie exhibition
 AEG dominates specific markets
 second largest promoter of live events in the
U.S.
 AEG sells more than $500 million in tickets
annually

Chapter 6 Sports and Entertainment Marketing

Slide 2 © Thomson/South-Western
Lesson 6.1

The Game Plan

Goals
 Explain the difference between
marketing tactics and strategies.
 Discuss the importance of planning to
stay ahead of the competition.

Chapter 6 Sports and Entertainment Marketing

Slide 3 © Thomson/South-Western
Terms
 tactic
 strategies
 marketing intelligence
 trade shows

Chapter 6 Sports and Entertainment Marketing

Slide 4 © Thomson/South-Western
MARKETING TACTICS
 Nike wants to be number one in their
market.
 Nike needs to differentiate itself from
Adidas, the market leader.

Chapter 6 Sports and Entertainment Marketing

Slide 5 © Thomson/South-Western
Tactics First
 tactic
 the way a product or service is
differentiated in the minds of customers
from other competing products or services
 the most effective tactics are developed
by salespeople
 tactics can work their way from salespeople
to upper management
Chapter 6 Sports and Entertainment Marketing
Slide 6 © Thomson/South-Western
Strategies
 strategies
 the process by which tactics are
implemented

Chapter 6 Sports and Entertainment Marketing

Slide 7 © Thomson/South-Western
 What is the difference between a tactic
and a strategy?

Chapter 6 Sports and Entertainment Marketing

Slide 8 © Thomson/South-Western
BEATING THE COMPETITION
 “Winning the game” in business means
gaining market share over competitors
and making a profit.
 requires depth of competitive knowledge

Chapter 6 Sports and Entertainment Marketing

Slide 9 © Thomson/South-Western
What Information is Needed?

 marketing intelligence
 information gathered about competitors

Chapter 6 Sports and Entertainment Marketing

Slide 10 © Thomson/South-Western
 Pricing
 pricing is very important to customers
 the prices of competitors can influence
buying decisions

Chapter 6 Sports and Entertainment Marketing

Slide 11 © Thomson/South-Western
 Distribution
 marketers need to make the product
purchase convenient for customers

Chapter 6 Sports and Entertainment Marketing

Slide 12 © Thomson/South-Western
 Product/Service Management
 knowing the product and service offerings
of competitors can help a business
determine how to differentiate its products

Chapter 6 Sports and Entertainment Marketing

Slide 13 © Thomson/South-Western
 Promotional Efforts
 promotional competitive analysis reveals:
 the product characteristics emphasized by
competitors
 target customers
 promotional budgets

Chapter 6 Sports and Entertainment Marketing

Slide 14 © Thomson/South-Western
Finding the Information
 Marketing information is critical to help
anticipate future moves of the
competition.

Chapter 6 Sports and Entertainment Marketing

Slide 15 © Thomson/South-Western
 internet
 efficient searching leads to effective results
 company name
 keywords

Chapter 6 Sports and Entertainment Marketing

Slide 16 © Thomson/South-Western
 observations
 combining the insights of a variety of
salespeople can provide valuable
competitive information

Chapter 6 Sports and Entertainment Marketing

Slide 17 © Thomson/South-Western
 trade shows
 major events where people in a related
industry meet to
 show their products
 exchange ideas
 learn about the latest trends
 valuable source of competitive information

Chapter 6 Sports and Entertainment Marketing

Slide 18 © Thomson/South-Western
 customers
 customer feedback is critical for fine tuning
marketing plans
 can provide competitive information

Chapter 6 Sports and Entertainment Marketing

Slide 19 © Thomson/South-Western
 Give three examples of marketing
intelligence information that might be
collected by a movie theater.

Chapter 6 Sports and Entertainment Marketing

Slide 20 © Thomson/South-Western
Lesson 6.2

Entertainment and Sports

Strategies
Goals
 Explain the importance of learning from
customers.
 Discuss sports marketing strategies.
 Discuss entertainment marketing
strategies.

Chapter 6 Sports and Entertainment Marketing

Slide 21 © Thomson/South-Western
Terms
 marketing plan
 interpretation
 applied research
 touchpoints

Chapter 6 Sports and Entertainment Marketing

Slide 22 © Thomson/South-Western
DATA-DRIVEN DECISIONS
 marketing plan
 a document that describes the tactics and
strategies that will be used to market the
product or service

Chapter 6 Sports and Entertainment Marketing

Slide 23 © Thomson/South-Western
 raw data
 the facts and recorded measures that have
been gathered

Chapter 6 Sports and Entertainment Marketing

Slide 24 © Thomson/South-Western
Interpretation
 interpretation
 explaining the information so that it has
meaning
 drawing conclusions that relate to the
defined marketing research problem

Chapter 6 Sports and Entertainment Marketing

Slide 25 © Thomson/South-Western
Applied Research
 applied research
 conducted to solve specific problems
 touchpoints
 the points at which the business makes contact
with the customers
 web site visits
 e-mails
 phone calls
 advertisements
 one-on-one sales pitches

Chapter 6 Sports and Entertainment Marketing

Slide 26 © Thomson/South-Western
 Explain what Peter Drucker’s definition of
marketing means.

Chapter 6 Sports and Entertainment Marketing

Slide 27 © Thomson/South-Western
SPORTS MARKETING
STRATEGIES
 Fans are necessary for the longevity of
a team.
 Using research to form the right tactics to
attract fans is a challenge for teams.

Chapter 6 Sports and Entertainment Marketing

Slide 28 © Thomson/South-Western
Fans Rule
 Competition for fans is fierce.
 Adidas and Nike have different tactics and
strategies to compete for soccer fans.
 Adidas provides soccer balls for the World Cup
and promotes customizable soccer cleats.
 Nike is filling a niche for street-ready soccer
merchandise and is sponsoring a number of major
international soccer teams.

Chapter 6 Sports and Entertainment Marketing

Slide 29 © Thomson/South-Western
 What drives professional sports teams’
marketing plans? Explain why.

Chapter 6 Sports and Entertainment Marketing

Slide 30 © Thomson/South-Western
ENTERTAINMENT MARKETING
STRATEGIES
 The movie and music industries use
many of the same strategies used in
sports marketing to attract customers.
 Determining the new tactic first and
then figuring the strategies that will
drive sales is the key.

Chapter 6 Sports and Entertainment Marketing

Slide 31 © Thomson/South-Western
Capitalizing on Controversy
 Sony carefully developed a tactic and a
strategy for promoting The DaVinci Code.
 provided a website for religious dialogue
 avoided overexposure prior to the movie’s
release

Chapter 6 Sports and Entertainment Marketing

Slide 32 © Thomson/South-Western
Concert Pricing Strategies
 Indoor concerts are more economical to
produce than outdoor concerts.
 A smaller indoor concert may be more
profitable than a larger outdoor concert.

Chapter 6 Sports and Entertainment Marketing

Slide 33 © Thomson/South-Western
 Industry consolidation has lead to decreased competition.

 Declining profits are prompting concert

promoters to re-evaluate pricing strategies.

Chapter 6 Sports and Entertainment Marketing

Slide 34 © Thomson/South-Western
A Little Music with Your
Coffee?
 Starbuck’s Entertainment
 connects Starbuck’s brand with
entertainment
 By 2005, Starbucks sold 3.5 million CDs.

Chapter 6 Sports and Entertainment Marketing

Slide 35 © Thomson/South-Western
 Why would a coffee shop add
entertainment items to its menu?

Chapter 6 Sports and Entertainment Marketing

Slide 36 © Thomson/South-Western
Lesson 6.3

Mapping the Plan

Goals
 Explain how marketers determine
direction and focus for a marketing
plan.
 List and describe the components of a
marketing plan.

Chapter 6 Sports and Entertainment Marketing

Slide 37 © Thomson/South-Western
Terms
 mission statement
 mass market
 product portfolio
 test marketing

Chapter 6 Sports and Entertainment Marketing

Slide 38 © Thomson/South-Western
KNOW WHERE YOU ARE
HEADED
 mission statement
 identifies the nature of the business and
the reason it exists
 All tactics and strategies should be built
around the mission statement.

Chapter 6 Sports and Entertainment Marketing

Slide 39 © Thomson/South-Western
A Sense of Direction
 mass market
 a broad group of customers

Chapter 6 Sports and Entertainment Marketing

Slide 40 © Thomson/South-Western
 product portfolio
 all the products a company has available at
any one time
 test marketing
 where the sales potential for a new product is
tried in a small market prior to its final
release

Chapter 6 Sports and Entertainment Marketing

Slide 41 © Thomson/South-Western
 Explain the importance of a company’s
mission statement to the marketing plan.

Chapter 6 Sports and Entertainment Marketing

Slide 42 © Thomson/South-Western
THE PLAN
 The marketing plan is a detailed
document that further provides a
detailed description of how the tactics
and strategies will be implemented.

Chapter 6 Sports and Entertainment Marketing

Slide 43 © Thomson/South-Western
Components of a Marketing
Plan
 A marketing plan should be guided by
the current and future needs of
customers.

Chapter 6 Sports and Entertainment Marketing

Slide 44 © Thomson/South-Western
 Analysis
 The Mission Statement
 The marketing plan must be in agreement with
the mission statement.
 Marketing Information
 Information is gathered, analyzed, interpreted and
used to make business decisions.

Chapter 6 Sports and Entertainment Marketing

Slide 45 © Thomson/South-Western
  The Tactic
 describes product or service differentiation
 should pinpoint a gap that is not be filled by
another product or service

Chapter 6 Sports and Entertainment Marketing

Slide 46 © Thomson/South-Western
 Strategy
 describes the marketing mix
 Product/Service
 the identified need is the basis for the
development of the product or service

Chapter 6 Sports and Entertainment Marketing

Slide 47 © Thomson/South-Western
  The Distribution System
 describes how the product or service will be made
available to customers

Chapter 6 Sports and Entertainment Marketing

Slide 48 © Thomson/South-Western
  Pricing
 The price must be set where revenues will be
maximized to cover all costs and provide a profit.

Chapter 6 Sports and Entertainment Marketing

Slide 49 © Thomson/South-Western
  Promotional Strategies
 how the product will be positioned in the minds of
customers
 advertising
 publicity
 sales promotion
 personal selling

Chapter 6 Sports and Entertainment Marketing

Slide 50 © Thomson/South-Western
  Financing
 disclosure of all expected costs and revenues
 might indicate need for additional funding
 Risk Management
 outlines possible risks and strategies for
minimizing the risks

Chapter 6 Sports and Entertainment Marketing

Slide 51 © Thomson/South-Western
 Implementation
 Timeline
 start with completion date and plan backwards
 specify event sequencing
 Assignments of Responsibility
 specify who is responsible for each component of
the plan
 Internal Communication System
 define how all key organizational members will be
kept informed of the plan
 provide a feedback mechanism

Chapter 6 Sports and Entertainment Marketing

Slide 52 © Thomson/South-Western
  Selling
 defines how direct sales will be handled
 Review and Evaluation
 define mileposts for progress checks of the plan

Chapter 6 Sports and Entertainment Marketing

Slide 53 © Thomson/South-Western
Look to the Future
 Organizations should have future
products planned while current
products are still experiencing strong
sales.
 Marketing plans require periodic
revisions.

Chapter 6 Sports and Entertainment Marketing

Slide 54 © Thomson/South-Western
 Why must the marketing plan include
intervals for review and evaluation?

Chapter 6 Sports and Entertainment Marketing

Slide 55 © Thomson/South-Western
PERFORMANCE INDICATORS
EVALUATED
 Develop a written business plan for a start-
up business.
 Identify the customer base and
demographics for the target market.
 Demonstrate knowledge and understanding
of entrepreneurship.

Chapter 6 Sports and Entertainment Marketing

Slide 56 © Thomson/South-Western
 Communicate research in a clear and
concise manner both orally and in writing.
 Demonstrate effective persuasive and
informative communication and
presentation skills.
 Identify customer relations and promotion
related to successful businesses.
 Analyze financial data and determine
appropriate pricing strategies.
Chapter 6 Sports and Entertainment Marketing
Slide 57 © Thomson/South-Western
THINK CRITICALLY
1. Why is a detailed business plan so
important when starting a business that
offers a new product or service?
2. Why is the Executive Summary the
most important part of the business
plan?

Chapter 6 Sports and Entertainment Marketing

Slide 58 © Thomson/South-Western
 3. Why is it important to look at the
competition when preparing a business
plan?
4. What is the value of surveying the
target market when preparing a
business plan?

Chapter 6 Sports and Entertainment Marketing

Slide 59 © Thomson/South-Western