1. Sports and Entertainment Marketing
Chapter 2

2. Sports and Entertainment Means Business!

3. Section 2.1 Sports and Entertainment Economics

4. Section 2.1 Sports and Entertainment Economics Vocabulary
Profit
Revenue
Costs
Profit Motive
Decision-making
Economics
Macroeconomics
Microeconomics
Economic Utility
Form
Time
Place
Possession

5. Section 2.1 Economic 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
Location, location, location!
User friendly
Convenient times
Good $ value

6. Section st Quarter
Question / Prompt:
Answer / Response:
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)

7. Intermission – Page 34
In addition to U.S. ticket sales, name two other large sources of revenue for U.S. film studios.

8. Other Large Sources of Revenue for Film Companies:

9. Form Place Time Possession
Intermission – Page 35
Form
List four types of economic utility:
Place
Time
Possession

10. Overtime Encore – Page 36 Macroeconomics is:
The study of sports and entertainment marketing
The study of the economics of the entire society
The study of the relationship between individual consumers and producers
None of the above
Having a profit motive means:
Charging high prices
Increasing the number of products offered
Producing what consumers want
Making decisions to use resources in ways that result in the greatest profit

11. Encore – Page 36 Answer Macroeconomics is:
The study of sports and entertainment marketing
The study of the economics of the entire society
The study of the relationship between individual consumers and producers
None of the above

12. Having a profit motive means:
Encore – Page 36 Answer
Having a profit motive means:
Charging high prices
Increasing the number of products offered
Producing what consumers want
Making decisions to use resources in ways that result in the greatest profit

13. Overtime Think Critically – Page 36
Think of a sports or entertainment event you have attended. How could the form utility been improved?
Examples of form utility:
Jumbo-trons
Improved seating
Sound system
Climate controls
Convenient concessions
Upgraded concessions
Convenient parking
Form

14. Overtime Think Critically – Page 36
Possession
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 travel
Package deals
Payment options
Back

15. Section 2.2 Risk Management

16. Section 2.2 Risk Management Vocabulary
Gain / Loss
Personal Injury
Risk Mgmt
Preventing Risk
Reducing Risk
Liable
Legal responsibility
Payment of damages

17. Categories of Risk Natural Risk Gain or Loss Risk Controllable Risk
Insurable Risk

18. Categories of Risk
Human Risk
Gain or Loss
Controllable
Insurable

19. Categories of Risk Economic Risk Back Gain or Loss Controllable
Insurable
Back

20. LIABLE ! Security Exits Safety laws Managing Risk
If you do not take care of
Risk Avoidance
Security
You may be held…
Exits
LIABLE !
Safety
laws

21. Risk Insurance Insurance pays for predictable losses Property
Fire
Flood
Liability
Theft
Employee
Customers

22. Risk Transfer
Sign Here

23. 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)

24. Intermission – pg 39 What is meant by Controllable Risk?
A controllable risk can be prevented or the likelihood of its occurrence reduced.

25. Intermission – pg 40
Briefly describe four strategies for managing risk:
Avoidance (taking precautions)
Insurance (buying insurance)
Transfer (passing risk on to others)
Retention (assuming risk – putting money aside)

26. Overtime understanding marketing concepts – Page 41
All of the following are examples of human risk except:
Employee dishonesty
Thunderstorms
Check written on bank account with insufficient funds
Unskilled labor
The three classification of risk are:
Gain or loss risks, insurable risks, and controllable risks
Financial loss, personal injury, and property loss
Risk transfer, risk retention, and risk avoidance
Fire, theft and floods

27. Overtime understanding marketing concepts – Page 41 - ANSWER
All of the following are examples of human risk except:
Employee dishonesty
Thunderstorms
Check written on bank account with insufficient funds
Unskilled labor

28. Overtime understanding marketing concepts – Page 41 - ANSWER
The three classification of risk are:
Gain or loss risks, insurable risks, and controllable risks
Financial loss, personal injury, and property loss
Risk transfer, risk retention, and risk avoidance
Fire, theft and floods

29. Overtime Think Critically – Page 41
List four steps a sports venue could take to avoid risk of injury to fans attending games.
Adequate lighting
Security Personnel
Emergency Training

30. Overtime Think 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).

31. Section 2.3
Business Ethics

32. Section 2.3 Business Ethics - Vocabulary
Deciding between right and wrong
Reasoned / impartial
Principles
Standards and guidelines
Direct personal and business decisions

33. 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?

34. 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?

35. 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

36. 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?

37. Intermission – pg 44 How does a person’s character develop?
Behavior based on reward and punishment.
Behavior based on expectations of others.
Behavior based on principles.

38. Intermission – pg 45
How can the bad behavior of celebrities be controlled?
Losing sponsors
Losing fan support
Losing job

39. Overtime Understanding Marketing Concepts – Page 46
Ethical behavior requires:
Making tough decisions
Using self-restraint
Acting in a mature, responsible manner
All of the above
Principles
Are applied to only certain people
Are high standards of rules and guidelines
Have no affect on businesses
None of the above

40. Overtime Understanding Marketing Concepts – Page 46
Ethical behavior requires:
Making tough decisions
Using self-restraint
Acting in a mature, responsible manner
All of the above
Back

41. Overtime Understanding Marketing Concepts – Page 46
Principles
Are applied to only certain people
Are high standards of rules and guidelines
Have no affect on businesses
None of the above

42. Overtime Think Critically – Page 46
Explain why it is worthwhile to encourage business people to act ethically.
Summary :
Everyone benefits!

43. Overtime Think 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!