Bell Ringer

1
Bell Ringer

• Tuition for one year at WKU is 4,042. Housing is
  an additional 3,972, while the meal plan is an
  additional 1,071. How much can you expect to pay
  for one year at WKU, not including personal
  expenses.

2
Bell Ringer Answer

• 4,042 3,972, 1,071 9.085
• I would expect to pay over 9,085 for one year at
  WKU.

3
Agenda

• Bell Ringer 5 min.
• Notebook Review
• Economic Utility Left-Page Activity 15 min.

4

• WHAT GOES
• IN MY
• NOTEBOOK?

Economic Utilities 12
Economics in Spts and Mkt Notes and Vocab (2.1)
13
Chapter 2.1 Encore (4 Questions)
14
Risk Management Vocab Notes (2.2)
15
Risk Management (2.2)
16
5
Vocabulary

• Profit
• Profit Motive
• Economics
• Economic Utility

6
The Profit Makers

• PROFIT ? the amount of money remaining from
  revenues after all expenses are paid.
• Revenue is the money a business receives from the
  sale of goods and services.
• PROFIT MOTIVE ? making decisions to use resources
  in ways that result in the greatest profit.

7
The National Football League

• The NFL has a total revenue in excess of 5.5
  billion.
• The teams operate under an agreement that the
  total revenue will be shared among the 32 teams,
  even though the teams are privately owned and
  operated.
• The financial resources that teams share is
  called the total football revenue and includes
  the majority of the income sources for each team,
  including revenues from local and national
  television broadcasts, ticket sales, and sales of
  concessions and merchandise.
• Players receive 59.5 of the TFL.

8
Cultural Opportunities of Profits

• Worldwide distribution revenue is critical for
  movie profits.
• The income from an international release of a
  movie can increase the box-office take by 50 to
  100 over the domestic ticket sales.

9
Cultural Opportunities

• Most films generate less than 25 of their final
  income from US sales.
• The biggest ticket seller in the last 100 years
  has remained Titanic with 600.8 in US tickets
  and 1.234.6 million in overseas tickets.
• With 1.3 billion people in China, the market for
  movies is tremendous.
• Sales have been shrinking because of pirated
  movies shown.

10
Chinese Movie Sales

• The Chinese government tightly controls the
  content, filming location, and distribution of
  films released in China.
• Chinese films must avoid political and religious
  topics.
• Marketers must understand the markets in which
  they are trying to sell.

11
Economics

• The study of how goods and services are produced,
  distributed, and consumed.

12
Economics

• There are two levels of economics.
• Macroeconomics ? the study of the economics of an
  entire society.
• Microeconomics ? the study of the relationships
  between individual consumers and producers.
• Sports and Entertainment markets focus on
  microeconomics.
• Markets want to persuade consumers to use their
  resources on the products and services the
  marketers offer.

13
Sports and Entertainment Economics

• Economic Utility ? The amount of satisfaction a
  person receives from the consumption of a
  particular product or service.
• Consumers are more likely to purchase a product
  or service if it provides higher utility than
  another product or service.

14
Economic Utility

• What is it?
• Adds value to goods and services
• Increases customer benefits from their purchases
  of goods and services
• Makes goods and services more useful

15
Economic Utility and Sports Entertainment
Marketing

• How do we add value to sports entertainment
  marketing?
• Make the event an experience
• Do more than just play the game or put on the
  show - have contests, have activities for fans to
  be involved in, give them more than just the
  show

16
Why Should We Add Value?

• Increase Sales to Increase Profit
• Why increase profit?
• The purpose of business is give the owners a
  profit.
• How does adding value increase profit?
• What is the motive to increase value?
• To increase profit.
• The profit motive is what drives our economy.

17
Forms of Economic Utility

• Form Utility (Production)
• Place Utility (Marketing)
• Time Utility (Marketing)
• Information Utility (Marketing)
• Possession Utility (Marketing)

18
Form Utility in SE Marketing

• What is form utility in SE Marketing?
• The production
• The sports event (the game)
• The entertainment event (the show)
• Production process of the memorabilia
• Production process of the clothing lines
  (t-shirt, jersey, hat, costume, etc.)
• Can you think of any other form utilities in SE?

19
Place Utility in SE Marketing

• What is place utility in SE Marketing?
• Having the event at a convenient location for
  customers to attend
• Having the event at a cool location for
  customers to attend
• Having the event in a location that is large
  enough
• Having the event in a location that is
  comfortable
• Can you think of any other place utilities in
  SE?

20
Time Utility in SE Marketing

• What is time utility in SE Marketing?
• Having the event available at a convenient time
• Having the event at the right time of year for
  the type of event
• Promoting the event during the right time of year
  for the event (ex. light display during the
  holidays, haunted house during October, baseball
  games during the spring summer)
• Can you think of any other time utilities in SE?

21
Information Utility in SE Marketing

• What is information utility in SE Marketing?
• Getting information to the customers about the
  product or service by advertising and promotions
• During events give information about upcoming
  events
• Make each event so much fun for the customers
  that they want to come back
• Can you think of any other information utilities
  in SE?

22
Possession Utility in SE Marketing

• What is possession utility in SE marketing?
• Adding value by making it easy for the customer
  to possess the product
• Allowing the customer to pay with various types
  of payment ( PayPal, Credit Cards, Debit Cards,
  etc.)
• Running promotional packages that make it easier
  to purchase
• Making tickets available a long time in advance
  so customers can raise the money
• Can you think of any other possession utilities
  in SE?

23
Improving Utilities

• Form ? Offering a movie in DVD or Blu-Ray format.
  
• Time ? Schedule several different showings of a
  movie throughout the day.
• Place ? Watch a movie at home and then the movie
  must be made available for purchase or rental at
  conveniently located retail outlets.
• Possession ? Rent a movie instead of purchasing
  the movie.
• Information ? Sending out emails to fans
  regarding upcoming events.

24
Left Page Activity

• Brainstorm 5 ways your favorite sports team or
  entertainer (entertainment venue) can or do use
  each of the utilities.
• Write 5 for each utility on a left-hand side
  page.
• Be prepared to share at least one utility.

25
Left-Page ActivityLouisville Bats Game
Form Utility Time Utility Place Utility Possession Utility Information Utility
Bats baseball game 4 home games in a row for series Tickets sold at Front and Back gates Purchase with CC Promotions advertised on website