Olympic Costs China Builders broke ground in December for the stadium, whose latticework of girders, dubbed the "Bird Cage" The National Stadium, designed by Swiss architects Herzog and de Meuron, initially was budgeted at 3 billion yuan (US$360mil). China regards the Olympics as a matter of national prestige and say they plan to spend US$24.2bil on new subway lines and other improvements in Beijing. Olympic organizers are turning to private investors to cover much of the US$3.2bil cost of building facilities. They say sports venues and athlete housing are to be sold off as luxury apartments, sports clubs and other commercial facilities after the Games.

Olympic Costs London On 15 March 2007 Tessa Jowell announced to the House of Commons a budget of £3.1bn to cover building the venues and infrastructure for the Games,… On top of this, she announced various other costs … of £2.2bn, security and policing costs of £600m, VAT of £800m and elite sport and Paralympic funding of nearly £400m. According to these figures, the total is the most expensive ever for an Olympic Games: £9.345 billion.[7]

Marketing A broad term that influences four areas of your business: Product, Place, Price, and Promotion. Definition: The process of developing, promoting, and distributing products, or goods and services to satisfy costumers wants and needs.

Marketing Concept- All company policies and activities should be aimed at satisfying the customer.

These four areas are influenced by a Marketing Process, which also has four areas: Research & Strategy Target Marketing Mix.

A. Market Research 1. Product – Development of new products or discover improvements for existing products. Medtronic or Polaris 2. Pure – Research done without a specific product in mind. Mail-in surveys or questionnaires. 3. Applied – Studies on existing products. Crash tests, restaurant reply cards.

A. Market Research (cont) 4. Market-Studies that compare all activities involved in the exchange of goods and services between business and consumer.

B. Market Strategy – Tries to answer the questions “What is unique about my business?” “What will be our market?”

C. Target Market – This should answer: “Who you are going to serve?” “Where are my customers located?”

Market Concept uses both Target Market and Market Mix to answer these questions about wants needs and the customer

There are two (2) ways which you can research a market. Both fall under the study of DEMOGRAPHICS

1. Customer Segmentation – identifying and promoting to those groups of people most likely to buy your product. “ What are my customers’ age, income, likes and dislikes?”

Geographical Segmentation – Specializing in serving people in a particular geographical area. All People In Twin Cities Area. Northern Suburbs

D. Market Mix – combining the four P’s to satisfy the customer. Product Price Place Promotion

Product A company has to start with a product or service designed to satisfy the wants of that market. Any change in a physical feature creates a new product. (design, color, size, packaging)

“A wise firm sells product benefits rather than just products.”

Goods are symbols of status or personal attributes.

Three categories of a “New Product” Product which are unique “no existing substitute” Replacements – significantly different Imitative – not new to the market but a new company “me too”

Product planning Which products should be made and which ones bought? Should you have more or fewer products? Does it have any new uses? Brand name (family name) or package label for each product? How should it be styled? Quantities? Price?

Property Ownership Intellectual property rights are intangible and are protected by patents, copyrights and trademarks

Copyrights Legal protection of a creator’s intellectual property. Books, video games, music Life of the author plus 70 Need permission to use portions - royalty

Patents Products that are protected from others using, importing, selling, or offering them for sale. Granted for 20 years

Trademarks Words, names, symbols, sounds or color that distinguish a good or service Can be renewed over and over

Chapter 2 History of Sports and entertainment

Sports and entertainment marketers have always sold participation In the late 1800s only the wealthy had free time and discretionary income to participate. In the late 1890s the kinetoscope was invented

Bill Veeck Key figure in the development of sports marketing

Marketing Similarities Sports and Entertainment are not often physical products to be bought in a store Endorsements - approval by a “star” for other products Core products and ancillary products

Price similarites Pricing for sports and entertainment is radically different. Movie theaters - don’t lower prices Sporting events have gone up in price Problems - ticket scalpers, piracy

Promotion Similarities Product tie-in and cross-promotion Convergence - the overlapping of product promotion - expands the potential for profit Synergy - combined action that occurs when products owned by one source promote the growth of related products.

Marketing Differences Sport loyalty Entertainment not motivated by brand “what’s hot and what’s not” Individual artist may successfully maintain a loyal fan base, but production companies have difficulty creating that same kind of loyalty.

Revenue Streams Entertainment products can easily be developed into different areas of ancillary products. One sporting event doesn’t usually produce the same amount of revenue from merchandising and royalties.

Sponsorship Different than endorsement. Sponsoring company is not lending its name or image to a sports product - this is endorsing