Sports and Entertainment Marketing Chapter 2

Sports and Entertainment Means Business!

Section 2.1 Sports and Entertainment Economics

Section 2.1 Sports and Entertainment Economics Vocabulary Profit Revenue Costs Profit Motive Decision-making Economics Macroeconomics Microeconomics Economic Utility Form Time Place Possession

Section 2.1 Economic 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 Location, location, location! User friendly Convenient times Good $ value

Section 2.1 - 1st Quarter Question / Prompt: Answer / Response: 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)

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:

Form Place Time Possession Intermission – Page 35 Form List four types of economic utility: Place Time Possession

Overtime Encore – Page 36 Macroeconomics is: The study of sports and entertainment marketing The study of the economics of the entire society The study of the relationship between individual consumers and producers None of the above Having a profit motive means: Charging high prices Increasing the number of products offered Producing what consumers want Making decisions to use resources in ways that result in the greatest profit

Encore – Page 36 Answer Macroeconomics is: The study of sports and entertainment marketing The study of the economics of the entire society The study of the relationship between individual consumers and producers None of the above

Having a profit motive means: Encore – Page 36 Answer Having a profit motive means: Charging high prices Increasing the number of products offered Producing what consumers want Making decisions to use resources in ways that result in the greatest profit

Overtime Think Critically – Page 36 Think of a sports or entertainment event you have attended. How could the form utility been improved? Examples of form utility: Jumbo-trons Improved seating Sound system Climate controls Convenient concessions Upgraded concessions Convenient parking Form

Overtime Think Critically – Page 36 Possession 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 travel Package deals Payment options Back

Section 2.2 Risk Management

Section 2.2 Risk Management Vocabulary 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 Back Gain or Loss Controllable Insurable Back

LIABLE ! Security Exits Safety laws Managing Risk If you do not take care of Risk Avoidance Security You may be held… Exits LIABLE ! Safety laws

Risk Insurance Insurance pays for predictable losses Property Fire Flood Liability Theft Employee Customers

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: Avoidance (taking precautions) Insurance (buying insurance) Transfer (passing risk on to others) Retention (assuming risk – putting money aside)

Overtime understanding marketing concepts – Page 41 All of the following are examples of human risk except: Employee dishonesty Thunderstorms Check written on bank account with insufficient funds Unskilled labor The three classification of risk are: Gain or loss risks, insurable risks, and controllable risks Financial loss, personal injury, and property loss Risk transfer, risk retention, and risk avoidance Fire, theft and floods

Overtime understanding marketing concepts – Page 41 - ANSWER All of the following are examples of human risk except: Employee dishonesty Thunderstorms Check written on bank account with insufficient funds Unskilled labor

Overtime understanding marketing concepts – Page 41 - ANSWER The three classification of risk are: Gain or loss risks, insurable risks, and controllable risks Financial loss, personal injury, and property loss Risk transfer, risk retention, and risk avoidance Fire, theft and floods

Overtime Think Critically – Page 41 List four steps a sports venue could take to avoid risk of injury to fans attending games. Adequate lighting Security Personnel Emergency Training

Overtime Think 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 2.3 Business Ethics

Section 2.3 Business Ethics - Vocabulary 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? Behavior based on reward and punishment. Behavior based on expectations of others. Behavior based on principles.

Intermission – pg 45 How can the bad behavior of celebrities be controlled? Losing sponsors Losing fan support Losing job

Overtime Understanding Marketing Concepts – Page 46 Ethical behavior requires: Making tough decisions Using self-restraint Acting in a mature, responsible manner All of the above Principles Are applied to only certain people Are high standards of rules and guidelines Have no affect on businesses None of the above

Overtime Understanding Marketing Concepts – Page 46 Ethical behavior requires: Making tough decisions Using self-restraint Acting in a mature, responsible manner All of the above Back

Overtime Understanding Marketing Concepts – Page 46 Principles Are applied to only certain people Are high standards of rules and guidelines Have no affect on businesses None of the above

Overtime Think Critically – Page 46 Explain why it is worthwhile to encourage business people to act ethically. Summary : Everyone benefits!

Overtime Think 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!