Sports and Entertainment Marketing Lesson Two: Marketing 201

Economic Basics Economics - study of choices and decisions that affect making, distributing, and using goods and services. These choices are made because of limited resources. IE: You have $100. The Seahawks are playing your favorite out of state football team. You can go for $25. But your favorite artist is coming into town for a one night only on the next night. Tickets for the concert go for $80. You must chose which option to go with.

Gross Domestic Product (GDP) Weigh the Unlimited needs of people with the Limited resources. In the US, GDP is the value of all the goods and services produced within the country. Agriculture 2%, Industry 18%, and Services 80% (the US GDP broken down). An increase in the GDP is a positive sign. By comparison, a decrease in the GDP is a bad thing. When consumers, businesses and the government invest, they help boost the GDP. IE: When you go see a movie at the Theatre, you help the economy.

Profit Profit - the money left after all costs and expenses of a business are paid. You want to make as much profit as possible to cover costs of operation, employee wages, and still have enough to spend on optional costs. High unemployment is bad for profit, which in turn negatively effects the GDP.

Risk Not all businesses are profitable. Sometimes you dont know if something will bring in extra cash (ie. a new product in the store). A movie producer takes a risk, they dont know if the movie will make decent enough sales to cover their initial investment.

Competition The struggle among companies for customers. (Safeway vs. QFC, Hairmasters vs. Great Clips, Taco Time vs. Taco Bell). Best products with best relative prices will survive.

Copy Rights Legal protection of a creators intellectual property or products. Books, films, video games, and music are copyrighted, or registered with the Library of Congress for the life of the author plus 70 years. You must pay royalty to use the copyrighted materials (iTunes fees).

Patents Granted for 20 years to protect owners of patented products. These products cannot be used without the inventors or owners permission. USPTO (U.S. Patent and Trademark Office). [top paragraph pg 15]

Trademarks words, names, symbols, sounds, or colors that distinguish goods and services are also registered with the USPTO. Trademarks can be renewed over and over. Coke, Nike, Disney, Reebok, and the MGM lion are trademarked.

Homework Define - Consumers; discretionary income; kinetoscope; vendors; product. Definitions MUST be related to business. Due next Monday. We will have another mini lesson later this week, and more homework so plan accordingly!