1. Economics and Marketing
Section 4.2

2. Economic Effects
Each part of a consumer’s experience has an economic impact
Money spent at sporting events is divided among all of the groups involved in the sporting event
As a result, the local economy also improves

3. Economic Effects
Opportunity Cost: The loss of opportunity that is passed up in order to receive something in exchange
Watch TV instead of studying
Bad Grade
Stay out late instead of sleeping
Grumpy, Tired

4. Economics and Marketing
Infrastructure: the physical development of an area, including the major public systems, services, and facilities of a country or region needed to make a location function
Power and water
Public transportation
Telecommunications
Roads

5. Infrastructure
The infrastructure of a community/region needs to support the events that take place

6. Economics and FLORIDA Known as the “Sunshine State”
30 million tourists per year
Number one tourist destination in the world
Because of the growth of tourism industry in Florida professional sports have become part of economy

7. Sports Economy of Florida
Orlando Magic
Sports Franchise
An agreement or contract for a sports organization to sell a parent companiy’s good or service within a given area
In this case, the parent company was a national sports league

8. Orlando Magic
By selling merchandise the investors of the franchise were able to convince people to make $100 deposits on season ticket reservations
Drafted star center Shaquille O’Neal
Became another attraction in Florida
Brings millions of dollars to the Florida economy

9. Marketing Challenges Big Teams vs Small Teams Los Angeles Sparks
Los Angeles Lakers

10. Los Angeles Sparks
Won the Women’s National Basketball Association National Championship two years in a row
Announced results after the results of a fishing tournament
Low profile exposure through media

11. Los Angeles Lakers vs Sparks
Both professional basketball teams
Both play in the same arena
Target market is EXTREMELY different
Therefore, marketing these two teams is VERY different

12. Grassroots Marketing Efforts
Refers to the marketing activity on a local community level
Sports teams must appeal to the local level
Build relationship between sports team and community

13. Grassroots Marketing If a team does good, the community benefits
Businesses
Hotels
Restaurants
Services