Industry Segments Chapter 3

SPORTS & ENTERTAINMENT INDUSTRY Industry – a group of organizations involved in producing or handling the same product or type of services. Industries may be further defined by subdivisions. Example: Division = Music Subdivisions = Country, rock, R&B, jazz, rap

Industries Hotel Industry Subdivisions Full service, limited service, economy, extended stay College Sports Industry Subdivisions Football, wrestling, lacrosse, tennis, etc. Racing Car Industry Stock car NASCAR Television Industry ???

Industry Standards & Trends Industry standards – the guidelines and goals set for different entertainment industries Research is done to determine an industry norm, or the average expectation within the industry. Hotel Industry standards Clean, nicely furnished room Swimming pool Fitness center Room service Internet connectivity

Industry Standards & Trends cont.- Industry norms – provide examples of what to expect for attendance, revenue, length of events and other important factors for sports and entertainment planners Examples of Industry Norms the average attendance at state fair or home college football game the average cost for a 3-day sports camp the average salary for a professional athlete

Industry trends show… the latest demand for sports/entertainment. consumer response to sports/entertainment. their relative growth or decline over time. Examples Collected data over time may show an trend of growing attendance at NASCAR events. Pro and collegiate sports industries are concerned with the trend of young children showing less interest in organized sports than children of previous generations. (Marketing plans are often based on trends.)

Marketing Decisions for an Industry Decisions are based on upon industry standards, norms, and trends. Entrepreneurs planning a basketball camp would check… industry standards to determine what should be taught at the camp and the amount of liability insurance to cover possible injuries. industry norms might include # of days, price charged, maximum enrollment, average revenue from related sponsors. Sports camp trends could include popularity of a particular camp, best time of year, and most effective advertising for the camp.

Television Industry Constantly searches for programming that will produce higher viewer ratings. Reality TV, makeover shows, and talent search programs have replaced more expensive sitcoms and traditional programs. Ordinary people don’t demand the millions of dollars required for celebrities. Networks are constantly trying new methods to reach viewers through the Internet, video iPods, and on demand services.