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!