APSM 4372 Midterm Exam

Event Sport Tourism

Tourist is a passive spectator

Examples of Event Sport Tourism

College football game, FIFA World Cup, MLB World Series, NCAA Tournament, NFL Super Bowl, Olympic Games, Pan American Games, PGA Tournament

Active Sport Tourism

Tourist is an active participant

Examples of Active Sport Tourism

Golfing at a resort in Phoenix, Arizona, rock climbing in Utah, running a marathon in Boston, skiing in Vail, Colorado, surfing in Hawaii, Trekking in India

Nostalgia Sport Tourism

Tourist venerates sport attraction; memories of sport

Examples of Nostalgia Sport Tourism

Memories garnered from uniforms at old-timer's game, memories in traveling to a sporting place, touring Wrigley Field in Chicago, visiting a soccer museum in Brazil, visiting the Baseball Hall of Fame in Cooperstown, New York

Action and Extreme Sports

Sports that are traditionally outside the mainstream and where the athletes often assume considerable risk

Examples of Action and Extreme Sports

Red Bull Cliff Diving World Series, Dew Tour, Gatorade Free Flow Tour

Cross-cultural events

Sport events that involve interactions between members of different cultural groups (Olympic Games)

Events for people with disabilities

Sports that are adapted for people with physical disabilities, or sports created specifically for disabled participants

Examples of events for people with disabilities

Paralympic Games, Deaflympics, Extremity Games, Special Olympics, Goalball, Torball

Family events

Events that provide families with opportunities to gather and enjoy sport

Examples of family events

Fishing Derby, All-American Soap Box Derby

Fixed event

Events that occur each year in the same place

Examples of fixed events

Kentucky Derby, Masters Golf Tournament, Little League World Series

Non-fixed event

Annual sport events that take place at a different location each year

Examples of non-fixed events

AAU Basketball Tournament, NCAA Men's and Women's Final Four

International event

Sport events involving more than one country

Examples of international events

Olympic Games, Asian Games, Pan American Games, Commonwealth Games, Tour De France, British Open

Mega-events

Large short-term, high-profile events capable of having a significant impact on the host community or country

Examples of mega events

Olympic Games, FIFA World Cup

Multisport events

Sport events that feature competitions in a variety of sports in a host city or host region

Examples of multisport events

Olympic Games, Pan American Games, Maccabiah Games, World Police and Fire Games

Multiple-location events

Sport events where competition takes place in several different cities or in the same city but multiple venues

Examples of multiple-location events

FIFA World Cup, Olympic Games

Senior events

Sport events specifically targeting older adults

Examples of senior events

National Senior Games, Senior League Softball World Series

Small-scale events

Regular-season sport competitions that use existing infrastructure and need less public support for hosting

Examples of small-scale events

Salem Red Sox vs. Frederick Keys baseball game

Youth events

Sport events targeting children 18 and younger

Examples of youth events

Columbia Invitational Memorial Day soccer tournament, Little League World Series

Stages of event planning

Conceptual planning, operational planning, implementation, and assessment

Conceptual Planning

At the conceptual stage, event organizers envision an event and champion the intent to hold an event. Planning is focused on the feasibility of the event and decisions are made as to whether or not it is suitable to go forward. An event organization is established to facilitate the planning process at this stage.

Operational Planning

After a decision to proceed, detailed plans are developed in order to turn the planners' vision into reality. It is at this stage that activities are prioritized and budgeting, marketing, and logistical decisions are made.

Implementation

As the event approaches, tasks are shifted to resource allocation and staff training. Leadership, timing, and coordination become more important. Project status is constantly compared against plans to ensure tasks are on schedule. It is important at this stage to be flexible, because incidents may occur or situations may alter, necessitating changes to the plan. If mismanaged, great ideas can fail if event organizers do not understand what it takes to effectively implement the event.

Assessment

Throughout the event, results are matched with objectives to ensure the event is going as planned. Event organizers assess various activities during and after the event to make sure the desired results are being achieved. If things are not going as planned during the event, the plans may need to be readjusted. If at the end of the event the results do not match the objectives, organizers may need to amend, modify, or completely change the plans for the next event. Event planners should always be asking how they can make the event better. This is vital because customers will expect more, better, or different experiences from the next event.

Tasks of a Manager

Make decisions, assign tasks, allocate resources, solve problems

Tasks of a Leader

Motivate and inspire others to achieve the event's goals, provide a vision of how to achieve the event's outcome, and collaborate with others to achieve those outcomes

Hands on leadership style

Focused on every task and every decision, gives more specific direction to staff, exercises more control over processes, used with staff with little experience or volunteers

Democratic or Collaborative leadership style

Gives more staff more control to utilize their skills, engages staff in planning process, used with staff with more experience or qualifications (specific qualifications), typically larger events

Purposes for an event

Promoting an issue, raising funds for a cause, promoting an image for an organization, driving tourism and promoting economic impact, meeting sponsorship objectives, promoting a sport

Example of an event promoting an issue

Didi Hirsch Suicide Prevention 5K Walk

Example of an event raising funds for a cause

Fire Up a Cure- Chicago firefighter event raising money for pediatric cancer research

Example of an event promoting an image for an organization

U.S. Army All-American Bowl

Example of an event driving tourism and promoting economic impact

Rose Bowl Football Game- originally organized by members of Pasadena's Hunt Club to attract tourism by showcasing the region's great weather

Example of an event meeting sponsorship objectives

The Burton US Open Snowboarding Championship- originally organized by Burton to help legitimize snowboarding as a sport, which helped drive the sales of snowboards

Example of an event promoting a sport

MLB Little League Classic- St. Louis Cardinals vs. Pittsburgh Pirates in Williamsport, Pennsylvania, the home of the Little League World Series to promote youth baseball

Sponsor objectives

Sponsors seek multiple benefits, including increasing sales of their products, generating awareness of the brand, building an image for the brand, reaching target markets, and providing hospitality for key customers or employees

Broadcast partners objectives

Broadcast partners seek to maximize viewership in order to maximize value for advertisers or subscribers

The local community objectives

Community partners seek to generate impact, attract tourism, create opportunities for residents, and promote their community

Charitable causes objectives

Given that many events have charitable connections, it is important to understand the charity's needs, which may range from promoting its cause to raising funds for the organization

Sport governing bodies objectives

Governing bodies offer a regulatory function by providing oversight, setting rules, and sanctioning events. The mission of these organizations is to provide competitive opportunities or promote the sport.

Examples of sport governing bodies

National Federation of State High School Associations, USA Triathlon, the United States Equestrian Federation, and the United States Youth Soccer Association

Sources of internal information

Historical information, financial statements, and management/staff feedback

Historical Information (past events and similar activities)

Information from prior events can inform you about what to expect as you go forward

Financial Statements

Look at revenues and expenses from previous events; notice where estimates varied from actual charges, and identify potential reasons for those variations

Management and staff feedback

Often, your own staff can be you own resource. Each department probably has a good idea of what they need in order to accomplish their tasks

Sources of external information

Current and potential vendors, industry trends, professional associations and trade publications, and competing events

Current and potential vendors

Contacting vendors regarding goods and services needed for the event can generate initial cost estimates. Event organizers can also use online sources to investigate prices for various goods and services, and gather information on credit terms, payment processes, and available discounts in order to make more accurate estimates

Opportunities from examining industry trends

New customers, products, channels, and price increase, which could have a positive effect on sales

Threats from examining industry trends

Competitors and accompanying price wars, government regulations, and challenging economic conditions, which could have a negative effect on sales

Professional associations and trade publications

Professional associations often provide information to members related to operating costs, participation numbers, industry trends, and other topics that can help organizations make more accurate estimates

Competing events

Examining how competitors are running their events, the services they offer, and the prices they charge can help provide benchmarks for comparison. Learning from other competitors may also help event organizers avoid potential mishaps and account for previously unexpected occurrences

Techniques to break down income sources

Define your inventory, classify your inventory, and estimate sales at each price point

Define your inventory

For a spectator event, your inventory may be limited by the number of seats you have or the space available to hold customers. For a participant event, you may be limited by how many participants you can effectively accommodate. (Ex. 18-hole golf scramble limited to 144 players or play is slowed down)

Classify your inventory

Not all tickets have the same value, so you need to identify how much inventory you have available at each price point. For example, you may have 40 front row seats that sell for $100 each, 800 seats that sell for $50 each, and 400 seats that sell for $25 each. Similarly, participant events may break into price tiers with different benefits for each tier

Estimate sales at each price point

Use sound research to estimate how many sales you will make at each price point. Numerous factors such as the type of event, where it is located, the type of consumer it attracts, and when it is scheduled will affect event sales. Given the uncertainty of event sales, it is usually best to be conservative with your estimates to avoid overestimating revenues in this area

Examples of administrative expenses

Accounting, phone and internet service, office supplies, legal services, office space, postage, software, storage, etc.

Examples of staffing costs

Full-time staff salaries and benefits, part-time worker salaries and benefits, volunteer expenses, uniforms, training, travel, etc.

Examples of medical costs

First aid supplies, athletic trainers, physicians, emergency services, etc.

Examples of officials costs

Referees, timekeepers, and statisticians, etc.

Examples of competition equipment costs

Balls, goals, nets, specialized playing surfaces, whistlers, signage, etc.

Examples of competition services costs

Towels, laundry service, catering, water, ice, snacks, waste management, tents, tables, chairs, etc.

Three parties in sponsors' event triangle

Event, sponsors, fans

Event's motivation in triangle

Attract fans and provides exposure for potential sponsors

Sponsors' motivation in triangle

Exploit the opportunity to leverage fans through borrowed equity

Fans' motivation in triangle

Seek entertainment from the event and are exposed to the various promotional activities during the event

Stages of Hierarchy of Effects Model

Awareness, knowledge, liking, preference, and conviction

Awareness stage

Awareness can answer the question of whether or not a prospect knows of your firm; however, she may not know the context in which she heard your name and thus cannot accurately describe what you do or what you sell, nor can she determine whether or not she would ever do business with you. To test for knowledge, ask "Do you know what our company does for organizations like yours?"

Knowledge stage

Awareness can answer the question of whether or not a prospect knows of your firm; however, she may not know the context in which she heard your name and thus cannot accurately describe what you do or what you sell, nor can she determine whether or not she would ever do business with you. To test for knowledge, ask "Do you know what our company does for organizations like yours?"

Liking stage

When a prospect knows what your firm does and what you might do for him, he begins to form opinions about your firm. Perhaps, because of his heightened awareness, he now seems to notice you in the newspaper and in trade journals, and he now receives your newsletter. He's forming an opinion on whether or not he likes you. Perhaps you provide valuable thought-leading wisdom in the industry, and he likes you for that fact. To test for liking, ask "What is your overall perception of our firm?" His response might range from favorable to unfavorable.

Preference Stage

The preference stage is where we begin to see the real value of the hierarchy or effects. A prospect in the preference stage has a clear definition of why she would want to do business with your firm or purchase a product or service in the category you serve. To test for preference, ask "What criteria will you use to make your decision about XYZ?" Marketers also gauge interest through trials, surveys, and other means to better understand the customer at this stage of the buying cycle.

Conviction stage

Ultimately, the work to move your prospect through the hierarchy will result in her purchasing your offering. However, beware of the purchase or signal to purchase from a customer who has not gone through the various stages. Nor should you try to induce a customer purchase without recognizing the aforementioned stages. A customer purchase without the rigor or traversing the hierarchy or effects can lead to post purchase dissonance.

The first factor that makes marketing a sports event unique

Sport consumers tend to be highly identified with the sport or event and event participants may be highly identified with the sport in which they can participate

Example of the first factor that makes marketing a sports event unique

NCAA March Madness Basketball; college students may stay up all night for tickets, skip class, and spend a week's salary to see his team play in the NCAA basketball tournament

The second factor that makes marketing a sports event unique

Every sporting event is a unique experience for the spectator and the participant

Aspects of the second factor that makes marketing a sports event unique

Fans typically consume sporting events for the experience instead of some tangible factor, games are unique and perishable, marketers have to focus on the experiential nature of the event

The third factor that makes marketing a sports event unique

Sporting events may consist of the core offering as well as extensions

Aspects of the third factor that makes marketing a sports event unique

Core-game, tournament; extensions- tailgating, half time show, awards and presentation

Example of the third factor that makes marketing a sports event unique

Historically Black Colleges/ Universities Football Games (Fans attend the games for the entire experience, which includes a fan fest, a parade, and a postgame concert, in addition to a number of community activities that take place during game week.)

The fourth factor that makes marketing a sports event unique

The cost of attending a sports event is often more than the ticket price

Aspects of the fourth factor that makes marketing a sports event unique

Travel and lodging, food and beverage, souvenirs, entertainment surrounding the event

Example of the fourth factor that makes marketing a sports event unique

Super Bowl- average ticket cost to Super Bowl 51 in Houston was $4,652. Total cost was $6,820 from Atlanta and $7,467 from Boston

The fifth factor that makes marketing a sports event unique

Sporting events are social because most consumers prefer to attend or participate with other consumers (supporters section, road races- race and events around the race)

Motivations of a typical sports fan

Achievement and performance, affiliation, escape from daily life, excitement and drama, family togetherness, fun and entertainment, health and fitness, learning and discovery, national pride, and socialization

Constraints of a typical sports fan

Economic, environmental, lack of someone to attend with, lack of success or skill, lack of support, location and access, social restrictions, time, and weather

Demographic segmentation

Identifying groups based on population characteristics such as age, gender, ethnicity, geographic location, income, and education

Psychographic segmentation

Identifying groups based on psychological characteristics such as lifestyle, personality, opinions, and values

Product usage

Identifying groups based on how often or how much the consumers use the product

Product benefits

Identifying groups based on the benefits consumers seek from an event