WF SEM I

1.01

Acquire information

about the sport/event industry

TERMS TO KNOW• SPORT MEDIA: Any sporting event or sports

news broadcast through a media outlet– Baseball game broadcast on the radio

• SPORTING GOODS: Equipment and Apparel essential to the sport event itself

– Football– Baseballs

• NON-SPORT EVENT: Any event that does not incorporate sports

– Plays, concerts, festivals

Sport Industry Attracts what TYPE OF MARKETS

UNIQUE Market because:

INCLUDES BOTH SPECTATORS AND PARTICIPANTS Consumers of sports products can participate in

AND view a wide range of sports Example: Football

FANTASY Attend a Pro Game Flag Football

Major Characteristics of SEM

Provides PRODUCTS THAT ARE DIFFERENT FOR EACH CONSUMER Industry is UNIQUE because of the type of

products it producesIn most cases, the PRODUCTS ARE

PRODUCED AND CONSUMED AT THE SAME TIME because they are activities or gamesExample: Baseball game (losing team fans

vs. winning team fans)

CORE BENEFITS to Customers who Purchase Sports Products

• ENTERTAINMENT• HEALTH• ACHIEVEMENT

– Industry is UNIQUE: • Appeals to variety of people for many different

reasons– Example: Playing Sports

• Entertaining for what type of customer?• Healthy for what type of customer?• Provides achievement to what type of customer?

Variety of Sports Segments Available

• Professional Teams• Professional Individual Sports• Collegiate/Scholastic Teams• Sports Venues• Health Clubs• Recreation• Camps• Amateur Sports• Sporting Goods• Media

Professional Teams• Basketball: Charlotte Hornets• Football: Carolina Panthers• Hockey: Carolina Hurricanes• Baseball: Atlanta Braves

Professional Individual Sports• Running• Swimming• Golf (PGA, LPGA)• Bowling (PBA)• Tennis (WTA)

Collegiate and Scholastic Teams*Virginia Tech*Appalachian State*NC State

Venues: *Arenas*Stadiums*Coliseums*Speedways

Health Clubs• Gold’s Gym• YMCA• Triangle SportsPlex• Ladies Fitness and Wellness• The Rush Fitness Complex

Recreation

• Aerobics• Soccer• Basketball• Swimming• Area parks

Camps

•Tennis Camp•Basketball Camp•Soccer Camp•Raven Knob

Amateur SportsAAU-Amateur Athletic Union

WKA- World Karting Association

Sporting Goods

•Dicks Sporting Goods•Sports Authority•Champs Sports•Foot Locker

MediaESPN- Sportscenter, MNFNBC- Sunday Night Football

TBS/TNT-NBA

Variety of Entertainment/Events Available

• Music• Movies• Theme Parks• Radio• Film• Television

•Dramatic Arts•Video Games•Fine Arts and Science•Literacy•Casinos

Music Industry• Maverick Records• PSE Records• JMG Records• Quincy Jones

Movie Industry• Warner Brothers• Disney• MGM

(Metro Goldwyn Mayer)• Actors

Theme/Amusement Parks• Six Flags

• Disney Parks• Carowinds

Radio Industry

•FM•AM•Country•Rap•Hip-hop•Jazz•Sirius/XM satellite radio

Film Industry

• Sundance Film Festival• RiverRun Film Festival

Television Industry• Scripted shows• Reality shows• News• Sports

Dramatic Arts Industry• The Little Theatre • National Black Theater Festival• Belk Theatre

Video Game Industry• X-Box• Wii• PlayStation 3

Fine Arts and Science Industry

• Smithsonian Museum

• Sci Works

Literacy Industry•Library• Internet•Books

Casinos Industry•Las Vegas•Atlantic City•Harrah’s

Factors Contributing to the Growth of SEM

• Increase of participants in sports/entertainment

• Increase of followers of sports/entertainment

• Increase in attendance in sports/entertainment

• Increase of media coverage • Internationalization

Trends in Sports & Entertainment

• Sports:oNaming RightsoX-GamesoSport Specific Channels

•EntertainmentoInternet Web CastsoEvent marketingoSpecific Channels

Trends (CONT)

• Organizational Control of Athletes• Internationalization• Branding• Brand Extensions• New Media• Better Research• Nostalgia

• a wistful desire to return in thought or in fact to a former time in one's life, to one's home or homeland, or to one's family and friends; a sentimental yearning for the happiness of a former place or time.

FISCAL IMPACT: Government Revenue generated from hosting an event Sales Tax, Food-Service Tax, Parking Fees

DIRECT IMPACT: Expenditure * Number of visitors * Nights of event

INDIRECT IMPACT: Direct Expenditures PER INDUSTRY (Food, etc.)

Total Impact: Direct + Indirect

FINANCIAL/ECONOMIC IMPACT of SEM on Community

SEM Contributes to Economic Well-Being of Communities

• Increase in local business

•Contribute to tax base 

•Bring business to abandoned areas

• More job creation

• More tourism

• More consumer spending

• More money for local businesses

• Teams draw huge crowds of fansMany come from out of townStay in hotelsEat at local restaurants

Factors Contributing to the GROWTH of SEM

• Increase of participants in the SEM industries

• Increase of followers/spectators/attendance

• Increase of media coverage

• Internationalization/ Globalization

Negative Impacts of SEM on Community

•Questionable impact on tax revenue

•Divert resources from other priorities

(education, roads, public safety)

•Community can be "held hostage" by a

team

How Communities Can Minimize Negative Impact of Hosting an

Event

•Sign teams to long-term stadium leases

•Diversify-host more than one sport

•Host multiple events in stadium/arena

•Notify the community in advance

•Provide necessary security/traffic resources