Economics and Marketing Section 4.2

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

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

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

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

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

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

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

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

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

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

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

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