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.

Bell Ringer Answer

$4,042 + $3,972, + $1,071 = $9.085

I would expect to pay over $9,085 for one year at WKU.

Agenda

Bell Ringer – 5 min.Notebook ReviewEconomic Utility Left-Page Activity – 15 min.

Table of Contents

Topic Page #

Marketing Basics Vocabulary (1.1) 5

Marketing Basics Notes (1.1) 74 P’s of Marketing 6

Extreme Sports 10Entertainment Mkt Notes and Vocab (1.3) 11

Concert Poster 8Sports Mkt Notes and Vocab (1.2) 9

Pg. 1

Economic Utilities 12Economics in Spts and Mkt Notes and Vocab (2.1) 13Chapter 2.1 Encore (4 Questions) 14

Risk Management Vocab & Notes (2.2) 15

WHAT GOES IN MY

NOTEBOOK?Risk Management (2.2) 16

Vocabulary

ProfitProfit MotiveEconomicsEconomic Utility

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.

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.

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.

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.

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.

Economics

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

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.

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.

Economic UtilityWhat is it?

Adds value to goods and servicesIncreases customer benefits from their

purchases of goods and servicesMakes goods and services more useful

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”

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.

Forms of Economic Utility

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

Form Utility in S&E Marketing

What is form utility in S&E 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

S&E?

Place Utility in S&E Marketing What is place utility in S&E 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 S&E?

Time Utility in S&E Marketing

What is time utility in S&E 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 S&E?

Information Utility in S&E Marketing

What is information utility in S&E 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 S&E?

Possession Utility in S&E Marketing

What is possession utility in S&E 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 S&E?

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.

Left – Page ActivityBrainstorm 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.

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