Differences in Marketing of Sports and Entertainment

Question 1

List the 3 areas where sports and entertainment are different

Answer 1

1. Consumer loyalty
2. Product
3. Revenue

Question 2

Define consumer loyalty

Answer 2

Consumers attitude that occurs when they are happy with a company and become repeat customers
Sports fans are more loyal than entertainment fans

Question 3

How is the sports product different from the entertainment product?

Answer 3

The sports product is consistent or stable
The entertainment product is variable or changeable

Question 4

Describe how sports revenue is different from entertainment revenue

Answer 4

1. Sales of ancillary products/merchandise
2. Licensing and royalties

In general, entertainment makes more revenue from the above
Sporting events do not usually produce the same amount of revenue from merchandising and royalties as entertainment events

Question 5

Define sponsorship and give an example

Answer 5

The promotion of a company in association with a property
Sports franchise earn revenue from sponsorship
Ex. Tide being promoted on a racecar