CHAPTER 1
Chapter 1
What is Sports and Entertainment Marketing?
Wahoo’s Fish Taco
This video features Wing Lam, Ed Lee, and Mingo Lee who are all part of a new wave of entrepreneurs. The men wanted to create a business that would allow them to continue enjoying their first love—surfing—while making a good living and contributing to the community. They thought that others would love it, too, and they were right. Now with twenty stores in Southern California and two in Denver, each generating more than $1 million in revenue, Wahoo’s Fish Taco has created a niche market all its own.
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1. How did giving food away help make Wahoo’s a successful business?
Student answers will vary but should include: Wahoo’s offered to provide free food for some community events with the mindset that giving away food allows people to sample the product. Once they see, taste, smell, and touch the food they will connect that positive experience to the company. Offering free samples is a much cheaper way to market a company.
2. Explain Wahoo’s ten-second rule and how it has helped the company become and remain successful.
Student answers will vary but should include: The 10-second rule is the maximum amount of time a plate of food will wait in the pass-through, the maximum amount of time a customer will stand in front of the register before somebody approaches them, and it is the maximum amount of time that the cook will look at a ticket that comes into the line and know exactly what needs to happen. This rule keeps operations running quickly and smoothly and helps Wahoo’s serves many people in a short amount of time.
3. Why does Wahoo’s promote managers from within the company?
Student answers will vary but should include: Wahoo’s management thought the company would be more successful if it groomed their managers from within the stores. Those employees who had earned respect from their crew would be good choices for management. Wahoo’s managers are promoted from the bottom up, and as managers they are more effective because they know all of the components and are able to bring the team together.
Chapter 2
College and Amateur Sports
The Grind King
This video features Donald Cassel, creator and marketer of The Grind King, a device that allows skateboarders to grind smoothly and easily without getting stuck. Cassel was working for architects and engineers when he had the idea for The Grind King. He did drawings, had a prototype made up, and tested it. When skateboarders liked it, he began taking his product to action sports trade shows. The Grind King now has more than a million dollars in sales. Donald attributes most of his success to his commitment and a loyal team of employees that put as much into the company as he does.
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1. What are the steps that Donald Cassel recommends when taking a new product into the marketplace?
Student answers will vary, but should include: Test the product extensively; don’t assume that it's good in the beginning; work to make sure it’s good. Don't go into high-volume production at first, because if you’ve overlooked any issues with the product or in marketing, you may get stuck with a lot of inventory. Do what you like to do because even if you're not successful, you're having fun. If you're persistent and you stick with it, you will succeed, and if you give it all you've got, it'll show in your product.
2. Why and how did Donald extend his sales season?
Student answers will vary but should include: By adding a line of snow boards Donald ensured that he would have incoming profit all year long.
3. How did Donald find his Japanese distributors? How did this distribution channel help his business grow?
Student answers will vary but should include: The Japanese distributors found The Grind King at a trade show and approached them for the rights to sell The Grind King in Japan. Afterwards Donald went to Japan to do promotional work for the distributors and he began to sell more of his product in Japan. Soon distributors from other countries also approached him.
Chapter 3
Professional Sports
The Bigger the Niche, the Bigger the Opportunity
This video features Medallion Financial, a company that has its origins in New York taxis. Medallion Financial began in 1936 when Leon Murstein started a taxi company with one taxi. His grandson Andy is the current CEO. Before 1979 Medallion only owned and managed cabs. Medallion began lending to the cab industry because banks thought that the typical purchaser of a cab—minorities from abroad with no U.S. financial history—was a poor risk. Medallion thought it was a great opportunity because no banks would lend to the taxi business.
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1. How did Medallion Financial expand the scope of its business at the same time making money for itself and its drivers?
Student answers will vary, but should include: Medallion Financial formed an advertising company called Taxi-Tops. Medallion forms contracts with advertisers, and then they pay the taxis a fee to drive their cab with the advertisement on top.
2. What did Andy Murstein say were the generational differences in the way he manages the business versus the way his grandfather and father managed it?
Student answers will vary but should include: Andy’s grandfather was a very stern disciplined man who was in the office at 5:30 a.m. every morning and wanted to do everything himself. In contrast, Andy’s father was good at delegating chores to other people, and he took the business to the next level by getting involved in financing and other lines of business. He was not as stern and disciplined as his father, and was more open to new ideas. Andy sees himself helping the company grow to a $1 billion dollar company.
3. When Hattie Bryant went back for a second interview with Andy Murstein, she discovered that Andy had increased his portfolio from $200 million to $600 million, and is rapidly working towards his goal of a $1 billion dollar company. What did Andy say were some of the most important qualities a business owner needed in order to be successful?
Student answers will vary but should include: You need people to understand and believe in your vision. You have to have a passion for what you do because people can tell if you are serious about it and whether you really have the heart to go out and grow your business.
Chapter 4
Marketing Products and Services Through Sports
Country Supply
This video features Country Supply, a mail-order catalog company launched by Scott Mooney in 1984 out of Ottumwa, Iowa. By 2003 Mooney had 450,000 customers who received his catalog at least six times a year. This effort generates more than $17 million in annual sales. His core customers are people who keep and care for horses on their own property.
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1. Getting the word out about your company is important. How did Country Supply build its first target customer list?
Student answers will vary but should include: In about 1984 the company had no one on its list to receive their catalog. They got out the Des Moines telephone book and looked for ads that they had run, classified ads in the Des Moines Register, and the local newspapers. They went to the library and looked at newspapers from all over the country. They harvested the names of people who were selling horses or saddles. With that list they got addresses. They also placed ads in horse magazines.
2. What does it take to build a company that has staying power?
Student answers will vary but should include: being successful means being willing to do what ever it takes, whenever it is required, to keep the company moving forward and successful.
3. Why did Mooney focus his catalog to the backyard horse owner versus the more glamorous racing and show industry?
Student answers will vary but should include: Country Supply markets mainly to the backyard horse owner because this group is the largest segment of horse owners in the United States. They own one to four horses. They keep the horses in their yards, and they ride western for pleasure.
4. Mooney decided to make the company a catalog/mail-order company instead of trying to bring people into a store in his hometown. What are the advantages of maintaining his hometown as his base of operations?
Student answers will vary but should include: Being rooted in a community allows Mooney to take advantage of long-time relationships like the printer who was a family friend and did not demand payment for Country Supply’s first catalog until Mooney could pay him.
Chapter 5
Public Images
Sundance Catalog
This video features the Sundance Catalog Company, which was started by actor Robert Redford to create revenue to support the Sundance Ranch, a 600-acre spread and lodge in Provo Canyon. He wanted to protect the area and create a place for artists to develop their crafts. He earned the majority of the money to buy the ranch from his role in Butch Cassidy and the Sundance Kid, but was unable to get a loan from bankers for the rest. Redford turned to investors to help him finance the Ranch.
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1. According to Harry Rosenthal, CEO of Sundance Catalog, what does Sundance stand for? What is the vision of Sundance?
Student answers will vary but should include: Sundance stands for a blend of environmental responsibility, creativity, and support of the arts and responsible business, and for all of these entities to support themselves, to support the arts, and to support the environment. Robert Redford is passionate about all those things and that’s the vision of the catalog.
2. How can the use of a spokesperson help or hinder any business?
Student answers will vary but should include: The use of a spokesperson could be perceived as an advertising gimmick and could bounce back to hurt the company after the initial stages. If the image of the spokesperson is perceived to have depth and reality, such as Robert Redford’s image, then having a spokesperson can be very beneficial. Rosenthal advises business owners that a spokesperson, especially a famous one, would entice people to use the product or service once. If the product or service is good, sold at a good price, and people are satisfied, they will come back—and most business can benefit from repeat customers.
3. How does Rosenthal explain Sundance Catalog’s segmentation strategy?
Student answers will vary but should include: Sundance is a general merchandise catalog. The downside to this is that jewelry and furniture is presented for sale next to each other. It is very difficult to target either jewelry buyers or furniture buyers and also target those who would buy either, both, or just rugs or lamps. All these people will receive the catalog, so essentially a lot of people who will not be interested in a great deal of the products will be receiving the catalog. Once the initial growth period of the company slows, it becomes an efficiency issue to split parts of the database and target customers who are, for instance, interested in jewelry, and send them targeted mail offerings.
Chapter 6
Advancing the Cause
On Target Supplies and Logistics
This video features Dallas Texas resident Albert Black who founded On Target Supplies and Logistics in 1982. On Target supplies its customers with copy and computer paper and is now selling virtual warehousing services. His customer list now includes many of the most economically important companies in Texas including EDS, Texas Instruments, Southwestern Bell, Texas Utilities, American Airlines and Verizon.
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1. How did Albert Black become an entrepreneur? Who inspired him?
Student answers will vary but should include: Black rented a push mower and went knocking on doors asking to cut lawns for 50 cents. His father, who inspired him, worked at a hotel as a doorman. That job put his father in contact with some of Dallas' business leaders. Later when he had retired, Black’s father would talk to him about what attributes were needed to be a businessman and a leader.
2. When did Black start his business, and how did being goal-oriented help him become successful? Explain the type of dedication from both Albert and his wife to make On Target a successful business?
Black started On Target soon after college graduation, but poor cash flow forced both he and his wife, Gwynith, to get jobs to support the business. Albert got a second job working at night, but he chose a job where he could learn skills that he could apply in his own company. He worked every night for Texas Utilities from 5 p.m. to 1 a.m. and still made it to work for his own company by 7 a.m. He did this for ten years. Being goal-oriented and making sacrifices helped Albert make his company a success.
3. What is Black’s policy about continuing education for his employees? Why does he advise other small-business owners to go back to school?
Student answers will vary but should include: There is no written policy at On Target Supplies and Logistics that states that employees must have a bachelor’s degree, but Black strongly encourages continued education and On Target is willing to pay for it. Black also feels that continued education for small-business owners is mandatory because of the contributions a better-educated manager can make to the company. Black thinks that managers have to continuously re-sharpen the saw, find new information, new strategies, new principles, and new foundations to employ in their businesses. The cost of not doing so is a loss of business.
Chapter 7
Sports Marketing
Zubi Advertising
This video features Theresa Zubizarreta who, in 1973 opened her own advertising agency in Miami with the help of friend who loaned her a typewriter. Today Theresa has satellite offices in Los Angeles, Chicago, Houston, Detroit, and New York. This year her agency will handle $80 million in billings for several blue-chip companies including American Airlines, Ford Motor Company, and SC Johnson. Theresa and her 70-member team work together to create specific advertising campaigns that will speak the language of its target market—America’s Hispanic population.
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1. Zubizarreta took a big risk in going after the Ford account. She was not qualified or properly staffed at the time, but she didn’t let that stop her. Write a brief paragraph outlining the steps, sacrifices made, and the risks Zubizarreta took in order to get the Ford Account.
Student answers will vary but should include: She did not let her company’s size get in the way of her ambition to nail the Ford account. She invested heavily in the creation of the presentation taking the risk of losing her investment should she not get the account. She and her team worked seven days a week and late into the night to develop a presentation so outstanding that it would win Zubi Advertising the Ford Motor Company account.
2. What niche has Zubi Advertising carved for itself, and what marketing ploy does it use to convince potential clients that Zubi Advertising can make a difference in how they approach the Hispanic Market?
Student answers will vary but should include: Zubi Advertising is offering an insight into the Hispanic market that its competitors, to a large degree, do not possess. Zubi has narrowed that insight down to erasing stereotypes. Zubi presents potential clients with an Erase Stereotypes kit that acts as a door opener. The kits include an agency video and a note that suggests to the potential client that for the price of five minutes of the client’s time, Zubi believes that it can make a difference in how the potential client may be approaching the Hispanic market.
3. Write a brief paragraph outlining the key marketing technique that Zubi Advertising used in the Ford marketing campaign.
Student answers will vary but should include: Zubi depends on marketing research. The company doesn’t do anything for a client unless it has been researched fully. In order to create a successful marketing campaign for Ford, Zubi needed to get into the consumer mind-set that was going to buy his or her first new car and use that mind-set in the creation of the ad or commercial.
Chapter 8
Entertainment Industry
Time Technology
This video features Rosemary and Nigel Skeffington of Time Technology, a Godalming, England, company that has created a niche in collaboration software. Time Technology’s product provides an online meeting place for its customers. You see demonstrated how employees work together no matter where they have a physical office.
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1. Time Technology began making money within a year of inception. Explain how the company was able to grow so quickly and what challenges their first two major clients needed to overcome that Time Technology was uniquely qualified to meet.
Student answers will vary but should include: Time Technology offered its clients very specific solutions to their communication issues and those clients bought into the concept of using these technologies to share information.
2. Even though all its clients have embraced Time Technology, what other marketing technique does Rosemary feel is very important and why?
Student answers will vary but should include: Rosemary thinks that a simple well-designed newsletter will always have a place in marketing. It is not expensive and puts the company in touch with the customer in a unique and personal way. She believes that although marketing is hard work, it works and is 99 percent about common sense.
3. How did Nigel explain Time Technology’s success?
Student answers will vary but should include: Nigel feels there is an element of luck involved in creating a successful company, however hard work, determination, commitment, and passion also play a role. Remaining focused on and delivering what the client wants is important; however exceeding what the client wants makes the difference between success and failure.
Chapter 9
Marketing Entertainment
eHarmony
This video features Dr. Neil Clark Warren who in 1993 wrote the book, Finding the Love of Your Life. In 1995, Greg Forgatch joined with Dr. Warren to launch a company that offered seminars based upon the principles in the book. In August of 2000 Forgatch and Warren opened , which is an online matchmaking service based on Dr. Warren’s relationship ideas.
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1. was organized to meet a unique, yet common, need. Write a brief paragraph outlining how eHarmony identified that need and then worked to fulfill it.
Finding a mate for life is something that most humans desire. But how to go about doing it well is one of the largest unmet consumer needs today. Last year 55 million American singles went to Internet dating sites. eHarmony understood that while others were also providing matchmaking, those companies were not doing it well. eHarmony knew that the most important key to success is to take a complex task and do it better. So, using the two principles that they believe are most important—emotional health and that people want to find someone else like themselves—eHarmony developed a compatibility model and asked clients to input their answers. The compatibility models are compared and matches are shared with clients.
2. What is the secret of successful marketing according to Dr. Warren?
Dr. Warren feels that the secret to being successful in marketing new ideas is to figure out how you can take that idea and reach a large number of people with it. Once you figure that out, you then begin to build your target market to the extent that you can afford it. Get some financing along the way if you have an idea that other people respond to, and then run with it.
3. What was the four-part formula to eHarmony’s winning ad campaign?
Students should answer: Happy customers, Dr. Warren’s credibility, repeating the business name, and a call to action.
Chapter 10
Recreation Marketing
Boston Duck Tours
This video features Andy Wilson, who founded Boston Duck Tours, a company that offers tourists an 80-minute sightseeing tour of Boston, Massachusetts. The “ducks” are twelve World War II landing craft originally used to transport supplies from ship to shore. They have been converted into amusingly decorated craft that take tourists on a land-and-water tour of the city’s famous landmarks.
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1. What did Wilson mean when he said, “Business is not a state of perpetual motion”?
Student answers will vary but should include: Wilson thought that at some point running his own business would get easier once he had a good customer base, stable staff, and was making a profit. He has discovered that a small-business owner can never sit back and think the business will run on its own; being successful requires constant attention.
2. What marketing technique does the Boston Duck Company employ to find out where their customers were coming from and why? What did the company do with that information?
Student answers will vary but should include: Boston Duck Company takes surveys to find out where their customers are coming from and if they are coming to Boston specifically to take the Boston Duck Company Tours. Once they gather the information, the company then tries to quantify the economic impact of their presence in the city.
3. Write a brief paragraph about Mary Dyer, including the reasons Wilson gave for calling her his hero.
Boston was originally settled by the Puritans who passed a law stating that if you did not practice their puritanical beliefs you could be put to death—even though they had come to the New World to gain the right to worship as they pleased. Mary Dyer, a practicing Quaker, said they were hypocrites and she tested them. They put her on trial, found her guilty of being a Quaker, and hung her on the Boston Common. Angered, her husband went back to the King of England and proposed an experiment called the Lively Experiment. The king signed a proclamation and, one hundred years before this country won its independence, made Rhode Island the first place on the face of the earth where people could freely practice their religion. Mary Dyer is Wilson’s hero because she ended her life to give the world the right to religious freedom, which was the first acceptance of diversity in the world—and nobody knows who she is.
Chapter 11
Marketing Plans
Rodgers Chevrolet
This video features Pamela Rodgers who is the owner of Rodgers Chevrolet in Detroit, Michigan. She is one of the few women in the world who owns a car dealership that she bought on her own. She took a failing location and turned it around. Now, with a team of 85 employees, Rodgers Chevrolet generates $73 million in revenue by selling nearly 200 cars per month and by servicing as many as 1,200 a month.
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1. Write a brief paragraph explaining why Pamela says her customers keep coming back.
New car and used-car sales represent nearly 75 percent of all revenue generated, and service represents the remainder. Pamela says a dealership needs a good service department. She considers service to be the backbone of her dealership, because she understands that service is where customer stability is going to come from. Providing good service to her customers will keep them coming back, and the referral business coming in.
2. What did marketing research tell Pamela about who is buying cars, and how does she utilize that information in her dealership
Women own or purchase 50 percent of all automobiles sold, and influence decisions made for about 85 to 90 percent of all automobiles that are purchased. To acknowledge her female customers, Pamela employs female salespeople, a woman parts manager, F&I manager, and controller.
3. How does dealership general manager Joe Posby use target marketing? How does he divide his marketing budget?
Student answers will vary but should include: Automobile dealerships know they will sell nearly all of their new and pre-owned cars within a 15-mile radius of the dealership. Some customers may come from further away, but most people will either buy from where they live or where they work. That’s where Joe puts the bulk of his advertising effort, within 15 miles. Joe looks at marketing like it is a bull’s eye on a target, and Rodgers Chevrolet is the center. As the dealership grows he may extend the reach of his advertising campaigns and look further into his marketplace. But predominately, he will remain near the center. Joe spends about 50 percent of his advertising budget in direct-mail marketing, and 20 percent on newspaper ads, and another 20 percent in other types of sponsorships.
Chapter 12
Legal Issues for Sports and Entertainment
NoUVIR
This video features the father and daughter team of Jack and Ruth Ellen Miller who launched their company, NoUVIR, in 1990. With nine employees and $1 million in sales, NoUVIR builds highly specialized lighting products specifically developed for museums. It has succeeded at establishing a new standard for lighting. The company’s specialty lighting has no damaging ultraviolet rays or infrared energy—thus the company's name, no UV and no IR. Today its lighting products protect from deterioration national treasures such as Thomas Jefferson's handwritten draft of the Declaration of Independence.
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1. What is a patent, and why is it advisable for inventors to have more than one patent?
Student answers will vary but should include: A patent is a monopoly that the government grants an inventory for a certain period of time. It gives the inventor the right to sue anyone who infringes on that patent. A large, aggressive company will, with its attorneys' advice, often intentionally infringe a patent. It may think it has a 50:50 chance of beating the patent by getting it declared invalid in court, or it may think the individual entrepreneur can't afford to fight the company in court. However, once the inventor has the second patent, then the lawyers must think twice before advising his clients to infringe. To warn potential infringers that an item is patented, NoUVIR makes sure to put its patent numbers on the items in all of their literature.
2. What are copyrights, and why does NoUVIR use them?
A copyright protect whatever is written in company literature, such as catalogs, instruction manuals, ads, or photographs of their products. NoUVIR uses copyrights to prevent competitors from stealing the words that describe their products
3. What is a trademark, and what is its function? What happens when a logo is added to a trademark?
A trademark is what a company is called, the one thing that identifies a company. The more the company uses a trademark, the more the market will identify it with the company and the product. If a company adds a logo to its trademark, and it is always the same, the stronger consumer identification becomes. The more a trademark is seen and used the more powerful it is. That’s why many companies put their company name and logo on items people see, like ball caps and t-shirts.
4. How does a company get an official trademark?
To register a trademark a company first has to apply for one with the U.S. patent and trademark office and send examples of the artwork and the way the company uses the trademark. The patent office will publish the trademark asking that anyone using it to contact the patent office. If no one claims the trademark, then the patent office will register it and the company can begin using it. It can take up to seven years for a trademark to become fully registered, but it will last for as long as the company continues to use it. The more they use it, the stronger it becomes.
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