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Sports and Entertainment Marketing
Lesson Two: Marketing 201
Economic Basics
•
Economics - study of choices and decisions that
affect making, distributing, and using goods and
services.
•
These choices are made because of limited
resources.
•
IE: You have $100. The Seahawks are playing
your favorite out of state football team. You can go
for $25. But your favorite artist is coming into town
for a one night only on the next night. Tickets for
the concert go for $80. You must chose which
option to go with.
Gross Domestic Product (GDP)
•
Weigh the Unlimited needs of people with the Limited
resources.
•
In the US, GDP is the value of all the goods and services
produced within the country.
•
Agriculture 2%, Industry 18%, and Services 80% (the US GDP
broken down).
•
An increase in the GDP is a positive sign. By comparison, a
decrease in the GDP is a bad thing.
•
When consumers, businesses and the government invest,
they help boost the GDP.
•
IE: When you go see a movie at the Theatre, you help the
economy.
Profit
• Profit - the money left after all costs and
expenses of a business are paid.
• You want to make as much profit as
possible to cover costs of operation,
employee wages, and still have enough
to spend on optional costs.
• High unemployment is bad for profit,
which in turn negatively effects the GDP.
Risk
• Not all businesses are profitable.
Sometimes you don’t know if something
will bring in extra cash (ie. a new
product in the store).
• A movie producer takes a risk, they
don’t know if the movie will make
decent enough sales to cover their
initial investment.
Competition
• The struggle among companies for
customers. (Safeway vs. QFC,
Hairmasters vs. Great Clips, Taco Time
vs. Taco Bell).
• Best products with best relative prices
will survive.
Copy Rights
• Legal protection of a creator’s
intellectual property or products. Books,
films, video games, and music are
copyrighted, or registered with the
Library of Congress for the life of the
author plus 70 years.
• You must pay royalty to use the
copyrighted materials (iTunes fees).
Patents
• Granted for 20 years to protect owners
of patented products.
• These products cannot be used without
the inventor’s or owner’s permission.
• USPTO (U.S. Patent and Trademark
Office).
• [top paragraph pg 15]
Trademarks
• words, names, symbols, sounds, or
colors that distinguish goods and
services are also registered with the
USPTO.
• Trademarks can be renewed over and
over.
• Coke, Nike, Disney, Reebok, and the
MGM lion are trademarked.
Homework
• Define - Consumers; discretionary
income; kinetoscope; vendors; product.
Definitions MUST be related to
business. Due next Monday.
• We will have another mini lesson later
this week, and more homework so plan
accordingly!