Sports

False

T or F: Sports is recognized as it's own industry.

8/20

Sport-related activities are scattered over how many of the sectors of the economy.

Twice ($200+B) & Seven

The US sports business industry is \______ as large as the automotive industry, \______ times larger than the movie industry

True

T or F: US sports business industry is one of the fastest growing industries in the US

Lifestyle sports

Fastest growing segment of sport spending in the 21st century

-Sports facility construction boom

-Proliferation of professional sports leagues and teams

What happened during the '90s boom

Corporate

The '90s boom increased \_____ investment in sports

$75 billion

During the '90s boom annual sporting goods sales neared \_______ dollars

2000

By \_____, college athletics was a $40+B enterprise.

True

T or F: Most sports and most programs lose money

1. Total cost of attendance

2. Comfort of watching games at home

3. Player's behavior during games

Top 3 reasons fans stay home

Saturated market, and taking advantage of emerging technologies

Challenges ahead for the sports industries

70%

\____% of jobs are from a previous relationship

Number attached (budgets, compensation)

Any meetings that has a \____ \____ to it is a major league meeting and you better be in it.

-Psychological

-Social and cultural influence

-Perfect mix of superstars, drama, and entertainment

Why do we love sports in the USA?

Behavior

Sports offers a unique setting to impact \_____

American marketing association

The dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives.

Sport consumer behavior

Seeks to answer the following questions:

-Which fans will buy/attend/watch?

-Why?

-When?

-How can marketing and promotions affect this decision

Consumer behavior

Encompasses marketing, social factors, psychology and action of the individual consumer.

Psychological factors

Personality, attitudes, motivations, perceptions, knowledge, beliefs, lifestyle

Identity

Being a fan may be part of their \_____ (I'm a longhorn)

Needs

Sports may fulfill \____ (Self-worth, associated with a winner, popularity)

Happiness, enjoyment

Sports may provide \______ or \_____ (watching the drama, emotional buzz)

Distraction

Provides \_____ from mundane life, job, family, stress release

Social factors

Race, class, gender, culture, friends, peers, family

Decision making and actions

Product selection, purchase decision, post-purchase actions, repeat intentions

Marketing effects

Product, price, promotion, place, brand management

Brand image

The perception of your product or your brand by the consumer

Brand identity

The perception you want consumers to have

Brand loyalty

Repeat purchases by the customers despite alternatives

Sponsorships

Building image through \______

Image

Sponsors build \____ through sports

NASCAR

Sport with the highest brand awareness and loyalty

Marketing strategy

Sport organization can improve there \________.

-Better understanding consumer behavior and psychology

-Recognizing the effects of the social and sport environment

-Providing the right message

Sport organization can improve their marketing strategy by:

Effective

The more you know about your fans and the marketplace you compete in, the more \______ your message can be.

Financial growth

Civic leaders hope for \____ in the community.

High profile

Sports is a \________ project.

-Politicians

-Business community

Often used to 'prove' a project will be successful

What is the mischievous application of economic impact analysis used for?

Sponsored by developers, teams , or city groups who desire a team or stadium

Who sponsors the mischievous application of economic impact analysis?

-They don't exclude local residents

-They don't exclude "time-switchers"

-Economic multipliers too large

-Over-inflate employment aspect

How are the numbers wrong?

-Increased community visibility

-Enhanced community image

--A place marketing

-A "Major League" city

-Stimulate other business development

Who do sports benefit a community?

-Potential to damage image if a team leaves

Potential dangers of sports in a community?

-Employment numbers

-Spending for goods and services

-Tax revenues

Direct economic impact

-Direct impact X economic multiplier

-Medium and long term impact

Indirect impact

Opportunity cost

What is sometimes not considered in economic impact?

What profits could be realized from the best alternative (New Orleans Superdome: ND v. So. Miss)

Opportunity cost

-El Paso, TX

-$24 M dollar economic impact

Sun Bowl

-San Antonio, TX

-$45 M dollar impact

Alamo Bowl

Less

Voters approving tax increases \_____ often than in the past

Tourist development taxes

New approach to taxation to support sports teams and stadium

-Hotel tax (bed tax, used by 20 US cities)

-Car rental tax

-Player tax (jock tax, tax on money earned by pro athletes while in the local jurisdiction)

Tourist development taxes

Tax on alcohol and cigarettes

Sin tax

Rise (Escalating player salaries, maintenance and construction costs)

Revenue demands continue to \_____.

Naming rights

\______ is a long term revenue source

Expected (Sea hawk stadium)

Services are now \____. (Restaurants, entertainments areas special seating options)

TV revenues

Difficult to maintain a financially viable national league without \____.

-Overcommercialized?

-How do we find money without alienating fans/viewers?

Ethical dilemmas

Licensing

Selling the right to print logos/names/images of the team to manufacturers for sale

Total revenues

Often teams get a cut of the \______ from concession companies

Coke or Pepsi may have rights to all soft drinks in the stadium or on campus

Pouring rights

Pepsi is the official drink of Irving Stadium while Coke is the official soft drink of the NFL

Pepsi & Dallas Cowboys

-Televison

-Radio

-Internet

-Mobile phones

Broadcast rights

-Field level

-Concourse

-Print (programs, giveaways)

Signage

-Title

-Presenting

-Official