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Business Administration LAP 8 Objectives Explain the nature of the sports industry. Explain the concept of sports marketing and its effect on society.

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Presentation on theme: "Business Administration LAP 8 Objectives Explain the nature of the sports industry. Explain the concept of sports marketing and its effect on society."— Presentation transcript:

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2 Business Administration LAP 8

3 Objectives Explain the nature of the sports industry. Explain the concept of sports marketing and its effect on society.

4 Objective A Explain the nature of the sports industry.

5 Sports industry affects your life even if youre not athletic.Sports industry affects your life even if youre not athletic. Theres almost nowhere on Earth that isnt touched by the sports industry.Theres almost nowhere on Earth that isnt touched by the sports industry. Marketing of this vast industry affects you.Marketing of this vast industry affects you.

6 Sports industry includes a lot more than professionals or amateurs playing a game. It includes… …the facility where the games are played. …the equipment used to play the game. …the agencies that regulate the games. …the media that broadcast the games. …the fans who watch the games.

7 Sport Product Includes: The sporting event Sporting goods Personal training Sports information

8 Sporting event is the first thing that comes to mind when you think of the sport product. An intangible, perishable experience Example: The badminton game you played with your friends Saturday. You will never again play that same game. Athletes are another part of the sporting event. They make the game or activity happen. Without the players, there would be no event. Third part of the sporting event is the facility or location where the event takes place.

9 Sporting goods make the games possible. These are the tangible, manufactured products sold and used within the sports industry. Equipment and clothing Accessory products Licensed merchandise Collectibles or memorabilia

10 Personal training is available to professionals and amateurs. Professionals attend pre-season training camps. Amateurs might go to a gym or health club. Children attend sports camps in the summer. Adults might take golf lessons before teeing off each season.

11 Sports Information Provides news about teams, events, schedules, statistics Local newspapers, TV, and radio stations Specialized sports channels Sports magazines Internet

12 Consumers of Sports Include: Unorganized participantsUnorganized participants Organized participantsOrganized participants SpectatorsSpectators SponsorsSponsors

13 Unorganized Participants Do not follow rules of an organization or groupDo not follow rules of an organization or group Free to participate whenever they want, for as long as they want, and in any way they want.Free to participate whenever they want, for as long as they want, and in any way they want. Have freedom that organized participants do not haveHave freedom that organized participants do not have

14 Organized Participants Play sports that have rules and are controlled by groups or sanctioning bodiesPlay sports that have rules and are controlled by groups or sanctioning bodies Cannot play any way they want or at any timeCannot play any way they want or at any time Usually play in amateur or professional eventsUsually play in amateur or professional events Amateur athletes are: Not paid to playNot paid to play Regulated on the local, state, or national levelRegulated on the local, state, or national level Professional athletes are: PaidPlaying the game is often their occupation.PaidPlaying the game is often their occupation. Regulated by governing bodies and must follow strict rulesRegulated by governing bodies and must follow strict rules Many amateur games are played only for the enjoyment of the participants. In contrast, most professional games are played before a large audience of paying customers.

15 Spectators Spectators These participants are the observers of the sporting event. They include: FansFans Corporate consumersCorporate consumers The mediaThe media

16 $ponsors Businesses or organizations that pay to associate their names with a sporting event. A business that sponsors the Olympics can reach millions worldwide. Businesses sponsor: Athletes Teams Arenas Stadiums

17 Objective B Explain the concept of sports marketing and its effect on society.

18 Sports marketing makes you aware of all the goods and services that are part of the industry… …through the marketing of sports products as well as other products through the use of sports.

19 The sports marketing industry is divided into the following segments: Marketing of the actual sport eventMarketing of the actual sport event Marketing of sports goods/services to consumers of the sportMarketing of sports goods/services to consumers of the sport Marketing of other consumer and individual goods/services through sportsMarketing of other consumer and individual goods/services through sports Marketing of products to sporting eventsMarketing of products to sporting events

20 Marketing the Sport Event What made you decide to join a particular fitness center or exercise facility? New member discount? Free visit? New location? Cheaper than competitors? Effectively pricing, promoting, and distributing a product encourages you to buy.

21 Marketing the Sport Event Marketing gets you to tune in to events, buy tickets, participate in all types of sporting events.

22 Marketing of Sports Goods and Services Participants in sporting events buy a variety of products.Participants in sporting events buy a variety of products. Marketing helps you to decide where to shop, how much to spend, and which brand to buy.Marketing helps you to decide where to shop, how much to spend, and which brand to buy. Involves a retail focus because it is directed towards consumers of sportInvolves a retail focus because it is directed towards consumers of sport Purpose is to encourage fans and participants to buy certain sport goods and servicesPurpose is to encourage fans and participants to buy certain sport goods and services Manufacturers and retailers involved in marketingManufacturers and retailers involved in marketing

23 Marketing Other Goods or Services Through the Use of Sports Businesses use sport to market their product. A football scoreboard featuring the names of local businesses The businesses and their products are not related to football. Businesses use a sport specifically to market a certain good or service. Example: A 5k race to raise money for a charity attracts a lot of people and increases awareness of the good or service.

24 Marketing of Products to Sports The sport itself needs goods and services in order to operate. NIKE Uniforms for players Networks/channels to broadcast sport Soft drinks for arena or stadium Businesses that provide these products spend a lot of time and energy on marketing. These companies might offer lower prices, better service, faster delivery, and promotional assistance to get the business.

25 Marketing of Products to Sports Businesses market their products to local sports such as: Race tracks Bowling alleys Marinas Ski areas Many goods sold by these sports businesses are provided by other businesses.

26 The growth and marketing of the sports industry go hand in hand. They actually feed off one another. Product growth Marketing opportunities Sports product becomes more popular because of marketing, and marketing opportunities increase as the product grows. Some sport products would exist without marketing, but not on the same scale.

27 Sports marketing affects millions of people throughout the world from young children to senior citizens. Attendance at sporting events has increased dramatically in the last decade. Media coverage of these games has also increased. Almost any time of day or night television or radio stations broadcast some type of sporting event. Everything from traditional sports to windsurfing.

28 Sports marketing is good for you. Opportunity for employment increases as attendance and media coverage grows. Trainers Commentators Stadium workers Doctors/ Therapists Athletes Sports law

29 Sports marketing is good for you. Sports benefits those who participate either by playing or watching. Health benefits are an important part of participating. Recreation is another benefit. Sports provides a chance to play, have fun, and relax. Being entertained is a benefit that sports provides. Enjoying the excitement of competition and cheering for your favorite team makes you feel like part of the game.

30 Sports marketing is good for the local community. Major events have a significant impact on the local economy. People who travel to watch the game will stay in hotels, eat in restaurants, buy souvenirs, and visit other attractions. The money they spend benefits the local economy. People are attracted to a city for sports-related activities other than major league teams. These attract visitors at different times of the year, and those visitors spend money at local stores, hotels, and restaurants.

31 Sports has an impact on a citys image. When you think of Green Bay, Wisconsin you think of the Packers. They have a good reputation, have won three Super Bowls, and have had great coaches like Vince Lombardi. It can create a good image. It can also create a negative image. SPORTS Luckville Loses 24th Straight Game If a team is not doing well or has an image problem, that often carries over to the city. Even small cities and towns benefit from the image of local sports activity. The Village of Islamorada in the Florida Keys is known for being the sportfishing capital of the world. Its also known for scuba diving and snorkeling.

32 Sports marketing is good for society. A major industry that generates billions of dollars of revenue each year JobsRevenue It grows, it creates more jobs that generate more revenue that helps industry growth, which causes the cycle to continue. Industry Growth Growth increases opportunities within the industry and in related industries. Equipment/ clothing Larger stadiums/arenas Training facilities

33 Sports marketing is good for society. Snowballing effect trickles down to almost everybody.

34 Involvement in sports is good for everyone. Can bring economic prosperity to even the sleepiest of communitiesCan bring economic prosperity to even the sleepiest of communities Can unite people from around the world in support of an event or teamCan unite people from around the world in support of an event or team Can keep you active and entertainedCan keep you active and entertained

35 Marketing is an enormous industry that might be hard to put into perspective. Identify and talk with a sports marketer in your community. Find out what sports product the person provides. Determine how much the product costs. Follow a process to see sports marketing in action:

36 Now, find out how to obtain the product. Think of how you learned about the product. Find out who the primary product users are. Put together all these pieces to obtain the overall picture of sports marketing.

37 Sponsorships are an important part of sports marketing. Money from sponsorships often helps sports organizations that are struggling to make ends meet. Think of what it means to a high school athletic department to: -Receive free uniforms -Have its stadium renovated and expanded All these companies want in exchange is to put their names on the scoreboard, program, or stadium.

38 Whats the problem, or is it a problem? What if the local company is a -beer or wine distributor? -nearby gambling casino? -a clothing manufacturer using child labor in foreign countries? Do any of these situations have an effect on sponsorships?

39 MarkED Acknowledgements Original Developer Christopher C. Burke, MarkED Version 1.0 Copyright 2004 MarkED Resource Center

40 Digital-based photography sources: CORBIS CORP. Womens Life Obj. A: #082 Photos copyright Corbis Corp. 750 Second Street, Encinitas, CA COREL CORPORATION Amateur Sports Obj. A: # Obj. B: # Photos copyright 1993 Corel Corp. Carling Ave., Ottawa, Ontario, Canada K1Z 8R7 DIAMAR People & Lifestyles Vol. 7 Obj. B: #PEO_51 Photos copyright Diamar Interactive Corp. 600 University Street 1701 One Union Square, Seattle, WA

41 Digital-based photography sources: HEMERA PHOTO OBJECTS Obj. A: #badmin10, #radio6 Obj. B: #camerpe4, #mantv8 Photos copyright Hemera technologies Inc., P.O. Box Hull, Quebec, Canada J8Y 6V2 PHOTODISC, INC. Sports and Recreation Vol 10 Obj. A: #10038, #10099, #10322, #10143, #10101, #10117, #10115, #10055 Obj. B: #10026, #10025, #10015, #10076, #10092, #10224, #10088 Family and Lifestyles Vol 15 Obj. A: #070 Meetings and Groups Vol 69 Obj. B: #69098 Photos copyright PhotoDisc, Inc Fourth Ave., Seattle, WA 98121

42 Digital-based photography sources: PHOTO ESSENTIALS Lifestyles & Recreation Obj. B: #84 Photos copyright Canon Information Systems Research Australia. 1 Thomas Holt Drive, North Ryde NSW 2113, Australia T/Maker Company ClickArt Obj. A: #SPOBA004, #SPORN008, #SPOOT006, #SPORA010 Obj. B: #SPORA001, #SPOBA010, #ANMWI025 Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright by T/Maker Company. All rights reserved.

43 Copyright: All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.

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