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1.01
Marketing & Operations of the Sport
& Event Industries
DIFFERENT PRODUCTS
The sport/event industry is unique because of the type
of products it produces. Typically they are produced
and consumed at the same time because they are
activities or games. As a result, the product is different
for each consumer.
For example, a baseball game is a product each
spectator experiences differently. Some spectators may
enjoy the game while others do not. The sport/event
industry communicates with a vast audience. It often
works with worldwide media to make products
available.
UNIQUE EXPERIENCE
• The sport industry is unique because it appeals to a
variety of people for many reasons. The core benefits
to customers who purchase sport products include
entertainment, health, and achievement.
• For example, athletes perform in games to achieve
wins and entertain fans. Some leisure athletes play
certain sports for fun (entertainment), while others
play sports to maintain or achieve good health. And
some athletes play professional sports to earn an
income.
ACHIEVEMENT
• Fans watch sports for entertainment and to
see their favorite players and teams achieve
wins. Because different sports appeal to many
people in a variety of ways, the sport/event
industry develops a wide variety of products
that satisfy the customers' various needs and
wants—whether it's an experience, such as
the Super Bowl, or manufacturing footballs for
little league teams.
SPECTATORS/PARTICIPANTS
• Consumers of sport products can both participate in
and view a wide array of sports. For example, a
consumer may attend a professional golf tournament,
participate in an online fantasy golf league, and
actually play golf for fitness and relaxation.
• Sport products are both tangible and intangible.
Although some consumers of sport products have
artistic talent, and some may be concerned with
environmental issues, all sport enthusiasts participate
in sport activities for fitness purposes and view sport
activities for entertainment.
JOB CREATION/CONSUMER SPENDING
•
When a sport/event organization comes to town, it needs
employees to conduct the tasks that keep the business going. For
example, the organization needs sales personnel to sell the venue
to fans, and facility maintenance personnel to keep the building in
proper working condition. Therefore, job creation usually
increases.
•
When more people are employed, they tend to spend more
money. A new sport/event venue often impacts the sales of
businesses (e.g., restaurants) located near the facility. Therefore,
increases in consumer spending often occur.
• In addition, tourism often increases because more visitors are likely
to come to the area as sport/event spectators.
FISCAL IMPACT
• This refers to the government revenue ($$$s)
generated by an event.
• Direct impact is based on expenditure figures
multiplied by the number of visitors and nights
spent in the area.
• Indirect impact refers to the direct expenditures
per industry applied to the multiplier for that
specific industry. Total impact is made up of
direct and indirect impact.
TOURIST DOLLARS
• Pro sports teams draw huge crowds of fans.
Many of those fans come from out-of-town,
stay at nearby hotels, and eat at local
restaurants.
• Seat licenses are beneficial to season ticket
holders ONLY because they provide a specific
place to sit at home games, but they do NOT
benefit the surrounding community as a
whole.
REVIEW
48. Which of the following usually is a
characteristic of the sport/event industry:
• A. Manages a worldwide media network
• B. Communicates with a limited audience
• C. Provides products that are different for
each consumer
• D. Employs only those people who have
athletic ability
48. Which of the following usually is a
characteristic of the sport/event industry:
• C. Provides products that are different for
each consumer
49. The core benefits to customers who
purchase sport products include entertainment,
health, and
•
•
•
•
A.
B.
C.
D.
promotion.
independence.
achievement
adaptability
49. The core benefits to customers who purchase
sport products include entertainment, health, and
• C. achievement
50. A unique characteristic of the sport
industry is that it seeks to attract markets that
•
•
•
•
A.
B.
C.
D.
demand mostly tangible products.
have consumers with artistic talent
include spectators and participants.
are concerned with environmental issues.
50. A unique characteristic of the sport
industry is that it seeks to attract markets that
• C. include spectators and participants.
51. When a professional football expansion
team is established in a community, the
economic impact might result in
• A. business closures, job layoffs, and high
inflation rates.
• B. more tourism, lower tax rates, and high
interest rates.
• C. increased job creation and more consumer
spending.
• D. higher tax rates and fewer financial
investment opportunities.
51. When a professional football expansion
team is established in a community, the
economic impact might result in
• A. business closures, job layoffs, and high
inflation rates.
• B. more tourism, lower tax rates, and high
interest rates.
• C. increased job creation and more
consumer spending.
• D. higher tax rates and fewer financial
investment opportunities.
52. The Chamber of Commerce for a large city
estimates the income for the city generated by the
sales tax, parking fees, food-service tax, and
amusement tax collected as a result of a rock concert.
This is an example of __________ impact.
•
•
•
•
A.
B.
C.
D.
total
indirect
fiscal
direct
52. The Chamber of Commerce for a large city
estimates the income for the city generated by the
sales tax, parking fees, food-service tax, and
amusement tax collected as a result of a rock concert.
This is an example of __________ impact.
•
•
•
•
A.
B.
C.
D.
total
indirect
fiscal
direct
53. Professional sports teams benefit
their surrounding community by
• A. endorsing local political candidates.
• B. attracting tourist dollars.
• C. hiring handlers to make sure athletes
behave.
• D. making seat licenses available to season
ticket holders.
53. Professional sports teams benefit
their surrounding community by
• A. endorsing local political candidates.
• B. attracting tourist dollars.
• C. hiring handlers to make sure athletes
behave.
• D. making seat licenses available to season
ticket holders.