Sports and Entertainment Marketing Chapter 2. Sports and Entertainment Means Business!
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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!
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