sports and entertainment marketing chapter 2. sports and entertainment means business!

Sports and Entertainment MarketingChapter 2

Sports and Entertainment Means Business!

SECTION 2.1

SPORTS AND ENTERTAINMENT ECONOMICS

SECTION 2.1SPORTS AND ENTERTAINMENT ECONOMICSVOCABULARY

Profit•Rev

enue

•Costs

Profit Motive

•Decision-making

Economics

•Macroeconomics

•Microeconomics

EconomicUtility

•Form•Time•Place•Posses

sion

SECTION 2.1ECONOMIC UTILITY

Form Utility

Physical Characteristics

Film vs. DVD

Time Utility

Available WHEN

consumer wants it

Movies shown at different

times

Place Utility

Available WHERE

consumer wants it

Theater vs. home

Possession Utility

Affordable price

Form of payment

User friendly

Convenient times

Location, location, location!

Good $ value

SECTION 2.1 - 1ST QUARTER

List reasons why people operate businesses…including sports teams and concerts in your analysis.

Make money Enjoy work Be your own boss Love sport (sports) Love music / theater

(concerts / productions)

Question / Prompt: Answer / Response:

INTERMISSION – PAGE 34

In addition to U.S. ticket sales, name two other large sources of revenue for U.S. film studios.

OTHER LARGE SOURCES OF REVENUE FOR FILM COMPANIES:

INTERMISSION – PAGE 35

List four types of economic utility:

PlaceFORM

Time

Possession

OVERTIMEENCORE – PAGE 36

Macroeconomics is:a. The study of sports and entertainment marketingb. The study of the economics of the entire societyc. The study of the relationship between individual

consumers and producersd. None of the above

Having a profit motive means:a. Charging high prices

b. Increasing the number of products offered

c. Producing what consumers want

d. Making decisions to use resources in ways that result in the greatest profit

ENCORE – PAGE 36ANSWER

Macroeconomics is:a. The study of sports and

entertainment marketingb. The study of the economics of

the entire societyc. The study of the relationship

between individual consumers and producers

d. None of the above

ENCORE – PAGE 36ANSWER

Having a profit motive means:a. Charging high pricesb. Increasing the number of products

offeredc. Producing what consumers wantd. Making decisions to use

resources in ways that result in the greatest profit

OVERTIMETHINK CRITICALLY – PAGE 36

Think of a sports or entertainment event you have attended. How could the form utility been improved?

FORM

Examples of form utility:

Jumbo-trons Improved seating Sound system Climate controls Convenient

concessions Upgraded concessions Convenient parking

OVERTIMETHINK CRITICALLY – PAGE 36

Select a county other than the United States in which you could attend a sports event. Name the country, the sport, the location of the event, and how you could get tickets. State how the possession utility could be improved for you.

Country?? Event??

Examples of possession utility:Low cost travelPackage dealsPayment options

Possession

Back

SECTION 2.2RISK MANAGEMENT

SECTION 2.2RISK MANAGEMENTVOCABULARY

Risk

•Gain / Loss

•Personal Injury

Risk

Mgmt

•Preventing Risk

•Reducing Risk

Liable

•Legal responsibility

•Payment of damages

CATEGORIES OF RISK Natural Risk

Gain or Loss Risk

Controllable Risk

Insurable Risk

CATEGORIES OF RISK Human Risk

Gain or Loss

Controllable

Insurable

CATEGORIES OF RISK Economic Risk

Gain or Loss

Controllable

Insurable

Back

MANAGING RISK

Risk Avoidance If you do not

take care of

You may be held…

LIABLE !

RISK INSURANCE Insurance pays for predictable losses

PropertyFireFlood

Liability Theft

EmployeeCustomers

RISK TRANSFER

Sign Here

SECTION 2.2 – 2ND QUARTER Explain the meaning of taking a risk in business:

•Risk of making or losing money (Speculative risk)•Risk of accidents / liability•Risk of downturns in the economy (Economic risk)•Risk of theft (Human risk)

INTERMISSION – PG 39 What is meant by Controllable Risk?

A controllable risk can be prevented or the likelihood of its occurrence reduced.

INTERMISSION – PG 40 Briefly describe four strategies

for managing risk:

1. Avoidance (taking precautions)2. Insurance (buying insurance)3. Transfer (passing risk on to others)4. Retention (assuming risk – putting

money aside)

OVERTIMEUNDERSTANDING MARKETING CONCEPTS – PAGE 41 All of the following are examples of human

risk except:a) Employee dishonesty

b) Thunderstorms

c) Check written on bank account with insufficient funds

d) Unskilled labor

The three classification of risk are:a) Gain or loss risks, insurable risks, and

controllable risks

b) Financial loss, personal injury, and property loss

c) Risk transfer, risk retention, and risk avoidance

d) Fire, theft and floods

OVERTIMEUNDERSTANDING MARKETING CONCEPTS – PAGE 41 - ANSWER

All of the following are examples of human risk except:

a. Employee dishonestyb. Thunderstormsc. Check written on bank account

with insufficient fundsd. Unskilled labor

OVERTIMEUNDERSTANDING MARKETING CONCEPTS – PAGE 41 - ANSWER

The three classification of risk are:a. Gain or loss risks, insurable

risks, and controllable risksb. Financial loss, personal

injury, and property lossc. Risk transfer, risk retention,

and risk avoidanced. Fire, theft and floods

OVERTIMETHINK CRITICALLY – PAGE 41 List four steps a sports venue could take

to avoid risk of injury to fans attending games.

Adequate lighting

Emergency Training

Security Personnel

OVERTIMETHINK CRITICALLY – PAGE 41

Who should regulate amusement parks?

Amusement park standards are set by the American Society for Testing and Materials (ASTM) International.

ASTMI is comprised of consumer advocates, government officials, amusement park operators, and ride manufacturers.

Amusement parks are subject to state and local governmental codes and safety inspections, and must pass rigorous inspections by insurance companies.

44 state governments regulate amusement parks (Alabama, Mississippi, Nevada, South Dakota, Wyoming, and Utah).

Section 2.3Business Ethics

Section 2.3Business Ethics - Vocabulary

Ethics

•Deciding between right and wrong

•Reasoned / impartial

Principles

•Standards and guidelines

•Direct personal and business decisions

Ethics in the Business World - Discussion

•Will consumers continue to deal with businesses they feel are unethical?

•Will businesses continue to work with people who prove to be untrustworthy?

Ethics in the Media - Discussion

•How does the media affect ethical behavior in society?

•Are morals declining or does unethical behavior simply receive more attention?

•Does the media influence behavior or simply reflect what is happening in the real world?

Ethics in the Media - Assignment•Research two examples each of ethical

and unethical behavior professional athletes and/or celebrities.

•Present your findings in a well-written research paper (MLA format).

•Be sure to compare and contrast the impact of the behavior on the athletes’ / celebrities’ lives.

•Cite all sources.•Due: __________________ Back

Principles guide personal and business decisions - Discussion

• Difference between greed and the need to earn a profit?

• Athletes and coaches often feel pressure to excel and may find ways to achieve an unfair advantage over competition. Personal / organizational impact?

• Leagues assess fines on players for undesirable behavior. Impact on player behavior?

• Who is in the best position to influence behaviorally / ethically challenged athletes?

Intermission – pg 44•How does a person’s character develop?

1) Behavior based on reward and punishment.

2) Behavior based on expectations of others.

3) Behavior based on principles.

Intermission – pg 45

•How can the bad behavior of celebrities be controlled?

1) Losing sponsors

2) Losing fan support

3) Losing job

OvertimeUnderstanding Marketing Concepts – Page 46

Ethical behavior requires:a. Making tough decisionsb. Using self-restraintc. Acting in a mature, responsible mannerd. All of the above

Principlesa. Are applied to only certain peopleb. Are high standards of rules and guidelinesc. Have no affect on businessesd. None of the above

OvertimeUnderstanding Marketing Concepts – Page 46

Ethical behavior requires:a. Making tough decisionsb. Using self-restraintc. Acting in a mature, responsible mannerd. All of the above

Back

OvertimeUnderstanding Marketing Concepts – Page 46

Principlesa. Are applied to only certain peopleb. Are high standards of rules and

guidelinesc. Have no affect on businessesd. None of the above

OvertimeThink Critically – Page 46

•Explain why it is worthwhile to encourage business people to act ethically.

Summary :Everyone benefits!

OvertimeThink Critically – Page 46

•How can unethical behavior impact the promotion of a product (the “product” can be a person, team, service, event, etc)?

Summary:Consumers will not want

to buy the product!