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. promotion. • B. independence. • C. achievement• D. 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. demand mostly tangible products. • B. have consumers with artistic talent• C. include spectators and participants. • D. 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. total • B. indirect• C. fiscal• D. 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. total • B. indirect• C. fiscal• D. 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.