The Wide World of Sports and Entertainment
Industry Segments
What is an industry? An industry is a group of organizations
involved in producing or handling the same type of product or services.
There are several major industries and new industries have started to emerge.
Industries are further defined by sub-divisions.
Example – country, rock, top-40, and hip-hop are all sub-divisions of the music industry.
Industry Standards These are guidelines and goals set for
different entertainment industries. Research is conducted to determine “industry norms”, or the average expectation within an industry.
Example – the standard expectations travelers have when they stay at a 3 star hotel (pool, fitness center, room service, internet access, etc.)
Marketing Decisions for an Industry Marketing decisions are based on industry
standards, norms, and trends.
Example – Organizers of a basketball camp would check industry standards to determine the following:
what will be taught at the camp the amount of insurance to carry to cover possible
injuries the number of days it would run the overall cost basic organization etc. . .
College Sports
There are a variety of industry trends in college sports:
Paying players Football Team Rankings (BCS) Concussions / Other injuries No Pass No Play Rules Athletics Conferences (Big 12, SEC, etc.) Recruting
Professional Sports
There are a variety of industry trends in professional sports:
Large Player Salaries Free Agency vs. Player/Team Loyalty Athletes in Entertainment (movies, commercials, etc. Concussions/Other Injuries Steroids/Other Performance Enhancing Drugs Personal Conduct Rules
The Television Industry TV networks are constantly searching
for programs that produce high ratings. American Idol Contracts with Professional Sports Leagues Award Shows (Grammys, Emmys, etc.) New primetime shows (Lost, Two and a Half
Men, CSI, etc.) By accomplishing this, TV networks are
able to bring in more money from advertisers and other sponsors.
The Music/Concert Industry The concert industry may be facing a crisis when it comes
to marketing its superstars. Few musicians of today have to universal appeal that previous musicians did. The Beatles, Elvis, The Rolling Stones, Selena,
etc. Paul McCartney (Beatles) 2001-2004 concerts
brought in more than $100 million each Ticket prices averaged between $300-$400
Top Artists Now Various Artists whose concerts may sell out, but
their average ticket prices are less than $100 Also experiencing a trend of combination concerts
where the multiple groups split the profits
The Music/Concert Industry cont. . . The industry is much more segmented
than ever before: Hip-Hop, country, rock, top-40, contemporary,
etc. With a more segmented audience, it will
be harder for modern day musicians to earn the money and the status that previous musicians did.
The concert industry must be aware of these trends and be prepared to make adjustments.
State and County Fairs A specialized industry that has made
dramatic changes to remain relevant. This industry is turning to a younger
marketing group for fresh ideas on how to reach younger audiences.
Successful state fairs have utilized technology to increase awareness:
Online advertising Online ticket sales Special-topic news releases Updated times and locations
Thinking Critically
Answer the following: Using the internet, list 5 current
industry trends for your favorite sport or other form of entertainment:
Based on your research from the above question, write a 3 step plan for how you would react to one of the trends listed above: