TOP QUESTIONS MISSED IN SPORTS AND ENTERTAINMENT …



SPORTS AND ENTERTAINMENT MARKETING INFO AND HINTS

Objective 1.00 HISTORICAL FIGURES

NASCAR Bill France

ANHEISER BUSCH Max Muhlman

SLAPSTICK COMEDY

Charlie Chaplin

JAZZ - Louis Armstrong

FEMALE HAS SAME ATHLETIC RIGHTS AS MALE

INVENTED SPORTS ENTERTAINMENT TERM

Vince McMahon

GREAT SLUGGER (Yankee Stadium is the house that Ruth built)

Babe Ruth

OBJECTIVE 2.00 CONCEPT OF MARKING

Importance of Customer in Buying Decision

ALL MKTG. MUST BE DESIGNED TO GET CUSTOMER'S ATTENTION =

Mktg. Concept

Product decision = Packaging, Warranties, Quality GOGURT

Determining Value to Charge & Offering Discounts PRICING

4 P's = product, price, promotion, place = marketing mix

Sports Illustrated potential subscribers = MARKET

Customers are already subscribers

Demographic Segmentation = Demographic segmentation divides the market based on personal characteristics such as age, gender, income, ethnic background, education

and occupation.

Geographic Segmentation = Geographic segmentation divides a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets. For example, a new stadium will target a 100-mile radius of the potential location.

(Geo = Geography)

Psychographic Segmentation = Psychographic segmentation divides the market

based on values, attitudes and lifestyles. For example, segmenting the market

based on people who are marathon runners/race car drivers. (get psyched up)

Behavioral Segmentation divides the market into groups based

on what they are looking for in a product and why they buy the product.

For example, purchasing Nike shoes because Michael Jordan wears them.

Use whitening strips and get white teeth - mouthwash and have fresh breath.

PROMOTION = what message will be delivered.

inform/persuade/remind

Have ads on TV - give away free sodas

Country Music TV Sierra Mist

PLACE = what stores will carry product/service (Distribution) - having product available for purchase

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MASS MARKETING - market to everyone!!!

FINANCING Borrowing $$$'s to start a business OR offering Credit to customers.

Objective 3.00 Economics

Communist economy = Cuba (C & C)

Socialist economy - Germany

Market economy = USA (people decide what is going to be produced by what they are willing to buy.

Traditional economy = always doing the same thing - such as Amish & Cherokees

Command economy = Govt. planning dominates the direction of economic activity, and market forces are not allowed to do so to any considerable degree. Socialist and communist economies are planned whereas capitalist economies are much less so. Command economy = Nazi's & former Soviet Union

Economics = trying to meet the demand of customers with a ltd. # of products.

Economic PRINCIPAL stating that supply increases when demand is great = Law of Supply & Demand

Not having enough goods to meet demands = scarcity (scarce - means insufficient or hard to find)

Government System that encourages people to own/operate businesses w/o little Govt. say-so = FREE ENTERPRISE SYSTEM (set own hours - choose type of business, etc.)

CD = Good Play/baseball game = service (cannot touch it)

Degree to which demand for a product is affected by its price = ELASTICITY

Two guys go to Golden Corral to eat at the buffet. One wears tight jeans and the other warm-up pants with elastic in the waist. Guy in warm-ups can keep going back for seconds because of the elastic in his waistband will give. The guy in jeans cannot - his jeans will not give (inelastic)

Things you have to have such as baby's formula, gas for the car, kerosene for a heater in cold weather are necessities - - no matter how high the price gets you may need them to survive - the price or need will not give = INELASTIC

Things you do not have to have so you can avoid if the price gets too high - such as going out to eat,

going to the movies, getting a second pair of new shoes, etc. The need/price = elastic - it will give - you don't need for survival. ELASTIC

Exchanging a product for monetary value ($$$$'s) = possession - you buy it

All US citizens have basic economic freedom of ownership - if you have enough $$$'s you can buy it

BUSINESS CYCLES

Business Cycles are like a wave

When times are bad = no jobs, no $$$'s etc. it is like where the

Wave bottoms out (DEPRESSION).

After a period of time, things start to get better, there will be more jobs available, a little more money being spent, more goods being produced = RECOVERY - just like getting over the flu.

Things continue to improve until they reach a peak (PROSPERITY) - - at that time more goods are bought - people are employed - money is being spent - people willing to pay high prices and then things reach a peak and the economy starts to decline again. Less jobs are available, less goods are being bought, less goods are being produced (RECESSION). Then the wave will bottom out again (depression).

You will spend the most $$'s at Prosperity - - go on trips, to the movies, eat out a lot.

During recession you will spend less. You will take advantage of buying goods when prices start to drop - buy when prices are lower.

COMPETITION Competition forces businesses to operate efficiently. Helps to maintain reasonable prices.

Direct competition = basically offering same foods at same prices just using a different brand name (Disney World/Universal Studios in Orlando)

MCDONALDS DIRECT COMPETITION BURGER KING

Indirect competiton - McDonalds and Olive Garden - offering different grade of food at different prices

MCDONALDS INDIRECT COMPETITION OLIVE GARDEN

PRICE COMPETITION = Trying to find a bargain and save $$$$$'s Buying locally rather than pay shipping costs on the internet is ex. Of price competition.

NON-PRICE COMETITION = Based on such things as convenience (BoJangles is just around the corner) or on customer service or quality of goods available. (will to pay a higher price for better quality and service).

NO COMPETITION = Monopoly

RESOURCES = All materials used to produce goods/services

ECONOMIC GOODS = something that can be bought and sold and provides a person a way to make a living. An athlete would have to buy protective pads, mouthpiece, etc.

Natural resources can be shaped into a good that can be sold - for example a piece of wood can be shaped into a bat (FORM) and then be sold - to provide a person a way to make a living

FORM

WOOD SHAPED INTO A BAT (Can be sold)

BUSINESS OWNERSHIP:

Entrepreneur - work for yourself - student can paint faces at baseball park. Advantage = ease of start-up - rent brother-n-law's building to start a garage/ Disadvantage = long hours - you have to mop, take out trash, etc. in the beginning

Partnership - similar to a marriage - two people will pool theirs resources and knowledge to start a business.

Limited Partnership. The partner is responsible for debt up to the amt. he/she invested.

Corporation - business owned by stockholders - Board of Directors typically manage the daily operations

Private = do not offer to sell to the general public

Public = offers shares of stock for sale to the general public

Subchapter S - are taxed like a sole proprietorship (S&S) and limited to less than 35 shareholdders

Franchise = business with the right to use an established name and sell trademarked products - granted to a retailer or wholesales for a fee. Advantage = name recognition Disadvantage - freedom to make business decisions is usually limited. Must purchase all products/supplies from the franchisor.

PROFIT = money earned after all costs (such as cost of merchandise sold) and expenses have been paid.

RISK = potential for loss or failure (loss = decrease in potential profit)

RISK MANAGEMENT - tries to effectively manage losses due to risk

SOURCES OF REVENUE IN SEM: Admissions, food & beverage sales, parking, merchandise sales, sponsorships, and naming rights

SOURCES OF EXENDITURES IN SEM: Performer fees, rental/leasing of facilities, advertising, incentives or in-game promotions, food & beverage services, and security staff

Objective 4.00 Selling = Exchange of goods & services from producers to consumers for a price. Sponsors pay a rights fee for media time to a sports & entertainment organization for the opportunity to provide broadcasts.

Data-based mktg. involves the collection of info about past, current & potential customers. One way to generate leads is through telemarketing (telephone sales) For example, sales representatives from Nike call customers who recently purchased the new Jordan shoes to offer them a second pair at a 25% discount. In some cases, consumers will call in response to a promotional campaign.

Personal selling - is a two-way communication between buyer & seller face-to-face. Buy a jersey in a company store - or method typically used to sell shoes.

B2B Business to business - sales between two business owners - GoodYear Tire making a sales presention to a Nascar team.

BUSINESS (GOOD YEAR) TO BUSINESS (NASCAR TEAM)

Direct Mail - personal and received in the U.S. P.O. mail box.

www/Internet - executed over the internet. Buying stuffed toys from

Customer - buys the product or service and the CONSUMER uses the product or service. Kennedy gave tickets to the Durham Bulls for his birthday. He took a friend with him. Kennedy is the and Brandon is the consumer.

NEED = anything necessary required to live = food = go grocery shopping

WANT = unfilled desire - Tickets to a Carolina Panthers football game

SELLING - helps customers make informed buying decisions - results in customer satisfaction and repeat business

FULL-MENU MKTG. - having products/services that virtually meet any customer's needs/wants (at Wal-mart gets new tires, eat lunch, get hair done, get nails done, etc.)

FEATURE BENEFIT SELLING - Exercise equipment will fold flat and store under the bed in an apt.

BUYING MOTIVES:

Rational - based on logical thinking - lawn seats at a concert instead of front row seats (price) or buying a pair of jeans when you can only buy one pair of pants (durability)

Emotional - based on feelings, social approval, power, love and prestige. Buying Final 4 tickets or Super Bowl tickets. It will be more than just a game - it will be an event!!!

Patronage - based on loyalty - low prices, high quality, friendly staff, great customer service, and convenience of location. (BoJangles is just around the corner or I like to shop at Dick's because the staff is so friendly - I don't care if Footlocker's is having a sale.)

Decision-making process in order to determine what to buy

A. Extensive - occurs when there is a high level of risk is perceived such as a school system evaluating what company to buy a fleet of school buses from.

B. Limited - occurs when a customer buys products he/she has before but not regularly. Carolina Little League Team decides whether to advertise in a local newspaper or rent a billboard. Also a Team Owner may be deciding whether to add another network to his/her broadcast plan.

C. Routine - Mountainview H.S. baseball coach always purchases the teams chewing gum from the local wholesale store.

Preapproach - Obtaining Product Information

Production Information: Direct experience, written publications, other people and formal training. Sales associate at Footlocker would attend Adidas clinic on the proper way to fit athletic shoes.

Informal way of gathering information is through family and friends.

Sales person could obtain product information by reading TRADE PERIODICALS.

Prospect = potential customer. Employer leads, telephone directories, trade and professional directories, commercial lists, customer referrals, and cold canvassing are examples of prospects. For ex. The Miami Heat purchases the mailing list of the top 50 Fortune 500 companies.

APPROACH = 1st encounter with the customer (like trying to get up the nerve to ask someone out for a date)

Least effective approach = Service (May I help you sir?)

Greeting Approach = Welcome to Wal-Mart

Merchandise Approach = best approach - the customer can touch the merchandise (such as selling golf shirts or CD's)

Determining the needs of customers = observing, listening, questioning

Product Demonstration

Involve the customer - can test grip of putter

Show and tell - pick the product you know the most about to demo so you don't look goofy

Make demonstration come alive - show potential season ticket holders where they would actually be sitting

Start with MEDIUM PRICED goods first. Can go up or down based on customer's reaction.

OVERCOME OBJECTIONS

Objection is a reason, concern or hesitation a customer has for not making a purchase. For example, “I really want both the sweatshirt and short sleeve shirt, but I can’t afford both.”

To handle objections, listen, acknowledge, restate, and answer the objection.

Methods of handling objections:

Boomerang. The objection comes back to the customer as a selling point. For example, if a customer states, “I can’t believe this concert ticket is so expensive", the salesperson’s response might be, “I understand this may be the performer's last tour. If customer states they are afraid shirt will shrink, sales rep states it is preshrunk.

Question The customer is questioned in an attempt to learn more about the objections raised. For example, “WHY don’t you want to buy running shoes, especially if you are starting to get more involved in 5k events?”

Superior point. The salesperson acknowledges the objections as valid, but offsets them with other features and benefits. For example, if a customer states, “I went to a Charlotte Checkers game last week and the tickets were $10 cheaper than the Hurricanes tickets.” The salesperson’s response might be, “Yes, that would be true as the Hurricanes typically advance to the play-offs and the Checkers do not.

Denial. Provide proof and accurate information when answering objections. Best used when customer has wrong information or when the objection is in the form of a question. For example, if a customer states, “I really don’t want to pay a $150 joining fee in advance.” The salesperson’s response might be, “You don’t have to pay in advance, we can spread the joining fee over a six month period if you like.”

Demonstration. Answers objection by showing one or more features. It demonstrates the saying “Seeing is believing.” For example, customer is afraid they won't know how to use exercise equipment once they get it home. Salesman shows the customer how to operate equipment in store.

Third Party Uses a previous customer or another neutral person who can give a testimonial about the product. Salesman might say Roy Williams bought that same set of golf clubs in here last week. (If it is good enough for Roy Williams, it is good enough for me.)

CLOSING THE SALE: Obtaining a positive agreement from the customer to buy.

Customer readiness in closing = buying signals - asking questions - reaching for wallet - body language

General Rules:

1. If the customer is ready to make a buying decision, stop talking about the product.

2. When a customer is having difficulty making a buying decision, stop showing additional merchandise

3. Help a customer decide by summarizing the major features and benefits of a product(s).

4. Do not rush a customer into making a buying decision.

5. Use words that indicate ownership, such as you and your (your new shoes, your new car, etc.)

6. Use major objections that have been resolved to close the sale.

7. Use effective product demonstrations to close the sale.

8. Look for minor agreements from the customer on selling points that lead up to the close.

Specialized methods of closing the sale: On WHICH treadmill did you feel more comfortable

Standing Room Only - Next month there will be a 10% increase - best to purchase today

Direct Close - Basically salesman asks for the sale - I would be happy to write up the CATERING order for you.

Service Close - Let's talk about when you would want the new AC system installed.

SUGGESTION SELLING = Takes place after the customer has committed to original purchase. "Would you like a box of golf Balls to go with the clubs?"

RELATIONSHIP MARKETING:

Involves the strategies businesses use to stay close to their customers. Building a relationship is crucial to keeping them as a repeat customer. Ex. E-mailing a newsletter or survey - sending birthday cards in the mail. (He is such a nice guy - he remembers my birthday.)

BENEFIT SELLING - informs customers of benefits of being a season ticket holder - will receive restaurant coupons in the mail.

After-Sale activities are used to develop and nurture customer relationships and loyalty in developing on-going dialog in preparation for possible future sales. Like sending flowers after the 1st date in hopes of a second date.

CASH DRAWER: opening drawer contains the coins/currency for the day's business. If there is more $$$ in the drawer than planned, it is over. If less $$'s, it is short.

COMPLETING A SALES TRANSACTION: Multiply the # of units by the cost per unit - add item amounts, calculate sales tax and total.

TYPES OF RETAIL SALES: Cash sales = cash or checks

Debit cards look like credit cards, but the $$$'s are immediately withdrawn from your checking acct.

Credit card sales such as MasterCard and Visa. You will either pay off the account when you receive the statement or make monthly payments.

COST OF MERCHANDISE SOLD = Amt. a retailer actually pays for merchandise.

Items you may be able to negotiate on to lower the price: Cost, discounts and allowances.

Allowance - a manufacturer gives free merchandise for large orders as a means of goodwill and to encourage future purchases (buy 70 shirts - get 10 free with the order - a kid gets an allowance for free)

Gross profit = business's income minus the cost of goods sold

Net profit - what is left after all expenses have been paid by the business

Markdowns are expressed as a % of net sales and cannot be calculated until merchandise is sold.

Buying Errors = a reason for markdowns - wrong styles, colors, sizes, materials, etc. purchased

OBJECTIVE 5.00 PROMOTION

Promotion is any form of communication used to encourage customers to purchase products and improve public image. For example, Harris Teeter sponsors a little league baseball team by purchasing new uniforms and equipment.

SEM organizations use promotion to inform a target market of a product, persuade the target market to purchase the product, and remind them continuously of the product. For example, web sites, autograph sessions, fan festivals, and t-shirt give-aways.

Stadium event promotions are designed to facilitate fan participation and create a cheerful atmosphere at sports and entertainment events. The two most common types of event promotions include:

a. In-stadium promotions occur inside stadiums or arenas. For example, lucky seat giveaways, mascot races, football tosses, and backstage access at concerts.

b. Walk-in promotions are received as fans walk inside stadiums and arenas through gates. For example, T-shirts, hats, foam hands, can holders, visors and pennants.

INSTITUTIONAL PROMOTION: is designed to create a positive image, establish and maintain goodwill, and increase consumer loyalty for the business, organization, or celebrity. As a result, there may be an increase in sales of the good or service. For example, the NBA Read to Achieve Program, Camp Mariah (Mariah Carey), and Daddy’s House (P. Diddy). (WHAT A NICE GUY)

PRODUCT PROMOTION: is also referred to as product advertising, is designed to stimulate sales of a business, organization, or celebrity’s good or service. Product promotion is also used to launch new products. For example, pre-album release listening parties, a musician promoting release of new single, or Coca-Cola setting up pre-concert promotion booths to promote Diet Vanilla Coke. (FREE SAMPLES)

PROMOTIONAL MIX:

1. Advertising - paid, non-personal form of communication (magazine ads - Carowinds) (newspaper ads for the local market - such as want ads)

2. Sales promotions = giveaways, award shows (Grammy - voted on by the NARAS Committee) (Tony is given for a theatrical production such as the Phantom of the Opera) Oscar or Academy Award give for a movie)

Sweepstakes is just a drawing - no skill involved - just luck. Half Court Shoot-out is a contest and requires ability to win.

3. Personal selling (face-to-face) Ex. A new performer is trying to sell her abilities as a performer to a record exec.

4. Public or community relations are activities used to gain and maintain a positive relationship between a company and the community. Internal community - Coke will have a picnic for its employees. External community - Pepsi will donate circus tickets to Big Brothers/Big Sisters so they can take needy children to circus. Pepsi does not know the children.

5. Sponsorship is the financing of a sports/entertainment athlete, league, team, concert or event by a business in retur4n for recognition or affiliation. Library sponsoring a Jazz Concert.

TYPES IF MEDIA USED IN ADVERTISING

Print media is any written form of communication used to inform, persuade, or remind consumers about products or services offered. The forms of print media include:

a. Newspapers are the most common and the most cost effective type of print media. Newspapers are most effective for local businesses that are trying to reach a specific geographical market.

b. Magazines are likely to be used by advertisers to segment the market based on demographic and behavioral segmentation. For example, men are more likely to subscribe to Field & Stream, so this would be cost-effective for a brand of men’s razors.

c. Direct mail is sent directly to customers, or potential customers of a particular store. For example, all Blockbuster Video members would receive a flyer announcing a special sales event.

d. Outdoor advertising includes any outdoor signs and billboards. Outdoor advertising provides 24-hour advertising.

e. Transit advertising uses public transportation, such as buses, taxicabs, and subways to post advertising messages.

Broadcast media is any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered. Two types of broadcast media are Radio and TV TV is the most expensive. McDonald's would use broadcast media.

Online media is the placement of advertising messages on the Internet and World Wide Web. The different forms of online advertising include: banner ads (low cost ads on the internet), pop-ups which interrupt internet surfing, and SPAM (e-mail ads)

Specialty Media = everyday items with a company name written on them - calendars, mugs, key chains

Creative Media - blimps, hot air balloons, supermarket carts and in-theater advertisements.

PUBLICITY - free advertising. The Raleigh News and Observer will provide a review on A performer's concert at DPAC. Performer has to pay nothing for the exposure.

FORMS OF SALES PROMOTIONS

Annual Awards Shows for Sports & Entertainment

1. Academy Awards or Oscars for motion picture industry.

2. Grammy Awards - National Recording Artists

3. Emmy Awards - TV

4. Tony - Broadway (theatrical) - Phantom of the Opera

5. ESPY Awards - awarded by ESPN for excellence in sports performance.

TRADE SHOWS/CONVENTIONS - promotional opportunities for manufacturers, retailers and movie producers to learn about and support new products (Steven Spielberg may attend) - producer of E.T. (Reeses Pieces ad)

INCENTIVES - used to generate awareness, interest, and increase sales.

Incentives include contests (skill); sweepstakes (chance or luck), and rebates (discounts offered on a purchase during a specific period of time such as two for one offer.

PREMIUMS - low cost items given away with the sponsor's product as part of a sales promotion. Ex. Powerade gives away a cooler with purchase of a case of powdered drink mix.

Ex. Of Premium - COUPONS - offer reductions in price and are found in print advertisements, inserted inside product packaging, or received in the mail. SALES PROMOTION - WENDY's coupons on back of N.H.S. football tickets

Ex. Of Premium - TRAFFIC builders are low cost items given to customers for attending a grand opening event - Sweatbands given at the grand opening of Dick's Sporting Goods (customers DROVE TO DICK'S = Traffic

SAMPLING - refers to giving consumers a "taste" for what it feels like to perform at a concert. Faith Hill will call a lucky member of the audience to join her on stage.

OUTLINE THE STEPS OF PROMOTIONAL PLANNIING -

ID target market by using one of two strategies:

1. Push strategies are used by a manufacturer to convince or push retailers to carry or promote products in their retail establishments.

2. Pull strategies are directed toward customers to increase their interest and demand for products. Customers will "pull" or convince retailers to carry sports or entertainment products. Relies heavily on advertising.

Develop a promotional mix. The specific mix chosen should take into consideration the target market, the promotional goals, and the promotional budget. Care should be given to aligning national and local promotional efforts.

SPONSORSHIP - Financing of a sports or entertainment entity by a business in return for recognition affiliation.

SPONSOR - can be a business, person, or organization that finances a sports or entertainment entity. This financing can be in the form of money, products, equipment, services, or any combination of the four.

Reasons for sponsorships.

1. Increase a company’s sales and profits through affiliation with sports or entertainment entity.

2. Increase market share for existing products or services.

3. Introduce new products or services.

4. Increase brand awareness and company image.

5. Enter and reach new target markets.

6. Build and maintain relationships with consumers.

7. Build and maintain goodwill within the community.

8. Entertain existing customers, potential customers, or employees and their families.

Barter sponsorship is a form of sponsorship whereby the company does not finance a sports or entertainment entity with money only. A company will provide products, equipment, or services in return for their affiliation with the sports or entertainment entity. Barter sponsorship is also referred to as in-kind or trade. Companies might choose to combine money and barter sponsorship. For example, a company decides to sponsor a little league baseball team. The company (sponsor) pays for the team’s uniforms and equipment. In return, the sponsor gets to place their name and logo on the team’s uniforms. KEY WORD IS EXCHANGE IT IS A TRADE.

Endorsements, also called testimonials, are a personal recommendation regarding the use or quality of a good or service. Consumers are more likely to purchase a good or service if a celebrity endorses it. For example, Dennis Franz uses Nextel telephones in a commercial. George Foreman uses Goodyear Tires (testimonial).

MJ recommends drinking Gatorade (endorsement)..

Naming rights are contractual agreements between a sponsor and a venue or event. A company or organization will sponsor a sports or entertainment facility or an event. In return, the company or organization’s logo will appear in affiliation with the facility or event. For example, Continental Tire Bowl, or The Coca-Cola 600 at Lowe’s Motor Speedway in Charlotte, North Carolina. BOA Stadium in Charlotte, NC

Personal services agreements are contracts between a company and a sports figure or entertainer for the endorsement of a product or service. The contract includes details of the duties and responsibilities for each party involved. LeBron and Nike. LeBron is a person.

WORLD WIDE WEB AND E-COMMERCE - collection of internet sites that are available to users with an internet connection. E-Commerce is electronic exchange of products/services (E-Bay) LACKS PERSONAL CONTACT

HTML - written words coded in HTML that tells the browser how to view each page. Photos are GRAPHICS. HYPERLINKS allow connection to a separate page or another website.

TYPES OF E-COMMERCE SITES: Product info site describes products for sale. CUSTOMER INTERACTION SITE provides customers with opportunities to place and track orders. Disadvantage - customers may research online but buy locally. Customer service can be a challenge if a problem exists with the order. Advantage: allows a small business to reach the global marketplace with lower start-up and operating costs. LACK OF PERSONAL CONTACT

Objective 6.00 BRANDING AND LICENSING.

A brand is a design, name, symbol, term, or word that distinguishes and identifies a company and/or its products or services. For example, McDonalds makes the customer think about quick food, low prices, and consistent service.

A corporate brand represents the entire company or organization. For example, Coca-Cola, McDonald’s, Kraft, or Microsoft.

A product brand represents a specific product of a company or organization. For example, Diet Vanilla Coke, Big Mac, or Windows XP.

A private distributor brand is also called a STORE brand. These products are branded under the private distributor’s label. For example, the Radio Shack brand of batteries.

BRAND IDENTITY consists of a spoken name and the corresponding design, logo, or symbol. For example, Nike and the Nike

“swoosh.”

BRAND IMAGE is the consumers’ beliefs about the company and/or its goods or services. Quality, price, and value may affect a

brand’s image.

BRAND EQUITY is the perception of added value a product has as a result of its brand name. A highly recognizable brand has a

high level of brand equity (Coke never lets me down). Brand equity is an intangible perception or memory. Benefits = brand

name recognition and strong emotional/mental associations. Coca-cola has $69 billion in perceived value of brand

equity.

TRADEMARK - is a word, phrase, SYMBOL, or design that ID's the company from others. Has legal protection thru USPTO (Trade/Patent) Once the United States Patent and Trademark Office registers a trademark or service mark, the company may use the ( symbol.

TRADE CHARACTER - a personified symbol that represents the brand name. For example, Mickey Mouse for Disney, Tony the Tiger, for Kellogg's, Wendy for Wendys, etc.

Discuss the elements that make a brand successful = EASY TO PRONOUNCE, free from negative comments, distinctive enough to not infringe on any other trademarks.

LICENSING is the permission to copy the name, logo, or trademark of a league, athlete, sports team, entertainer, film, television show, or character for a fee, also called a royalty.

LICENSOR is the rights-holder of the name, logo, or trademark. Collects ROYALTIES (DMV) (Coca-Cola) (UNC)

LICENSEE is the company paying for the permission to use the name, logo, or trademark.

Licensed products are manufactured by licensees under an agreement with the licensor. Companies typically pay between 5 & 10% of wholesale sales in the form of royalties.

Licensing provides a greater profit, promotion and legal protection for the licensor. Provides for enhanced company image and publicity. Provides increased profits from royalties. Increases opportunities for penetrating new markets. Results in increased revenues from sales as a result of brandwareness and expansion into new markets. There is limited manufacturing costs or risks.

ADVANTAGES FOR THE LICENSEE (Manufacturer) - existing brand awareness or recognition (PEOPLE BUY NIKE BECAUSE THEY LIKE MJ) - lower advertising/promotional costs, increased possibility of success and profitability and connection with an athlete, sports team, entertainer or corporation.

DISADVANTAGES FOR THE LICENSEE - Athlete, entertainer, or corporation may become involved in a scandal or lose popularity, sports teams may suffer losing season(s), change in styles, trends, and consumer preferences, royalties and licensing fees can be expensive, manufacturing costs and risks, competition can drive up costs associated with licensing fees and royalties and competition can cause a negative impact on market share.

IMPACT OF LICENSING ON CONSUMERS - Increased opportunity to associate with an athlete, sports team, entertainer, or corporation. Increased supply of available products. Competition can result in lower prices, new products, and better quality.

BOOTLEGGING - unauthorized use oa a name, logo, or trademark of a league, athlete, sports team, entertainer, film, television show or character.

BOOTLEGGING - reduces the profits of licensors and legitimate licensee. JAY-Z WILL LOSE OUT ON ROYALTIES WHEN FANS BURN CD'S VERSUS BUYING ORIGINALS.

BOOTLEGGING - can result in poor quality products for consumers which will decrease brand loyalty. Can result in higher mfg. costs to the licensee which will result in higher prices to the consumers.

Objective 7.00 FOOD AND BEVERAGES.

SEGMENTS OF THE FOOD AND BEVERAGE INDUSTRY: FANS CAN EAT DINNER AT BALLPARK

Concessions = Mobile carts or vendors who sell to attendees in the seating areas.

Counter-service - similar to food courts

Full-service restaurants - sit-down public eating places with services provided by wait-staff

Suites - rooms with a view of the event which have full-service wait staff

Specialty services - includes services such as combination of meal and a movie - such as Cinema Grill in Atlanta offers.

HISTORY:

Harry M. Stevens - H.M. Stevens Concessions Company - considered the father of ballpark concessions.

1st sold programs - next sold scorecards - initialized the selling of hotdogs and soft drinks at sporting events. Becamse one of the 7 largest concessionaires in the US

CRETORS & COMPANY - patented the process of popping corn. (C&C)

NATIONAL ASSOCIATION OF CONCESSIONAIRES - Founded in 1944 as an association for the recreation and leisure-time food & beverage services industry. Provides members and services who seek to increase the standards of excellence in the food & beverage services industry with information. Included are owners and operators from the following facilities: Movie theaters, Stadiums and arenas, Zoos and aquariums, Colleges and universities, Foodservice contractors, Park and recreation departments, Amusement parks and family entertainment centers, Ice skating rinks, Roller skating rinks, Racetracks, Bowling centers, Outdoor facilities and Convention centers.

CONTRACTING AND SELF-OPERATING FOOD AND BEVERAGE SERVICES

Contracting is an agreement between a venue and an external company that provides food & beverage services.

a. Advantages include = Less time consuming, Responsibility of training and staffing food & beverage employees is assumed by the contractor, Financial liability for waste, spoilage, or other losses is transferred to the contractor and responsibility of day-to-day operations is assumed by the contractor.

b. Disadvantages include: Venue gives up managerial control. For example, staffing, inventory, and merchandising and less profits due contractor fees.

Self-operating is owning and operating ones own food & beverage services. This is also referred to as in-house operations.

c. Advantages include: Owners control the decision-making process and profits are increased by cutting out the middle-man.

d. Disadvantages include: Owner assumes all financial liability for waste, spoilage, or other losses, owner is responsible for all training and staffing of the food & beverage services employees and owner must have in-depth knowledge of the complete operation. CAROLINA PANTHERS ARE SELF-OPERATORS. DEPENDENT UON HIGH SCHOOLS WANTING TO USE CONCESSIONS FOR FUND RAISERS.

COSTS: Start-up costs are associated with the initial venture of owning a business. For example, equipment, signage, utilities. (DEEP FAT FRYER FOR CORN DOGS)

Cost of goods sold include all costs associated with manufacturing products or purchasing goods for resale. For example, food, wrappers, condiments, paper products, and containers

Operating expenses include costs associated with the day-to-day operations of the business.

e. Fixed operating expenses do not vary over a specified period of time. For example, insurance, rent or leases, depreciation on equipment, and employee salaries.

f. Variable costs vary on a monthly basis. For example, supplies, utilities, advertising, and security HOT DOG WRAPPERS.

FACTORS AFFECTING REVENUES FROM FOOD AND BEVERAGE SALES = attendance, type of event (FINAL FOUR), Weather, Team standing winning or losing??, expense for start-up and operating, per capita spending (average spent by each spectator. For example, for a family of four to attend a movie, the per capita spending is $12. If the same family of four attends a college football game, the per capita spending is $45.

COMPONENTS OF ON-SITE MERCHANDISING PLAN.

Primary purpose is to maximize income for a sports or entertainment event.

Companies maximize income thru the sale of food & beverages and merchandise

FOUR COMPONENTS of on-site merchandise plan: Location of vending station (location of food and beverages), design (physical layout), operations, and merchandise.

APROPRIATE VENDING LOCATIONS: May be permanent or mobile. Located near entrances, RESTROOMS, concessions, exits or any other high traffic area. Major purchases of merchandise take place when people are ENTERING the Facility and EXITING. Should be located near a restocking area.

DISLAY SIGNS = should be eye-level, three dimensional, lighted and colorful. Close range = red and white Farther range = black and yellow

SIGNS UP CLOSE SIGNS FARTHER AWAY

Objective 8.00 RISK MANAGEMENT

Risk is the possibility of a financial loss or failure. Individuals or companies are willing to take a risk because of the opportunity for success or financial gain.

3 MOST COMMON RISKS = ECONOMIC = $$$$$'s (best not to offer soccer camp the same week as NBA CAM - not enough time and $$$'s for kids to attend both) An economic recession will cause business to show less profit - no spare money for entertainment.

NATURAL RISK = natural causes such as fires, floods, hurricanes, lightning, etc. (power outage due to storm forced cancellation of Britney Spears concert after only two songs)

HUMAN RISK = risk associated with possible loss due to human factors (human mistakes, errors, dishonesty, accidents, illness, fraud, theft, etc. - CASH DRAWER was short due to employee not being properly trained) (Lowe's Motor Speedway removed 1st 2 rows of seats on the front stretch of track to protect fans from debris that might harm fans due to a wreck on the track) (NASCAR beginnings traced to bootleggers in NC mtns trying to outrun law enforcement = human risk)

RISK MANAGEMENT = mgmt, control and prevention of exposure to internal/external risks. Risk management plan outlines procedures for handling all forms of business risks. ID the potential risk, MEASURE the risk, DETERMINE how to handle risk, IMPLEMENT the plan. (Great plan is no good unless implemented)

RISK PREVENTION = Dealing with risks before they occur - SCREEN potential employees, TRAIN new employees, Provide SAFE WORKING CONDITIONS for employees. Safety is responsibility of ALL employees. Prevent EXTERNAL THEFT (robbery/shoplifting). Prevent INTERNAL THEFT - Embezzlement (stealing $$$'s) - employees stealing merchandise, etc.

RISK TRANSFER = passing risk. (purchasing property/liability insurance - risk transfers to Allstate) Warranties - risk transfers to FORD - first 70,000 miles or so on new auto Business ownership - sole proprietorship - owners has all risk - partnership - risk shared between two partners (Professional teams may be owned by partnership) - corporation - transfers risk to shareholders

RISK RETENTION = acknowledging a business risk and the outcome. Some risks are uncontrollable and cannot be insured, transferred, or avoided. (such as 9/11)

RISK AVOIDANCE = Anticipating a business risk and preparing for the risk in advance (avoid investments that involve high risk - might choose an option that involves less risk (might still invest in stock market, but put money in a proven product - such as McDonalds

SAFETY = Providing proper precautions to protect against harm, failure, breakage or accident (add hand railing to stairs - remove seats closest to track at race, etc.)

SECURITY = any measure taken to guard against crime or attack (security officers at sporting events)

TYPES OF SECURITY:

GUARDS are hired to protect a venue and maintain order at an event

METAL DETECTORS are devices that detect presence of metal such as guns/knives - device is HAND-HELD or a GATELIKE structure

SEARCHES = used to examine a person in order to find a concealed item

SECURITY BADGES = plastic cards, metal tags, devices or tokens - examples = wristbands, PHOTO ID badges

SECURITY CARDS = Magnetic strip cards - reads by passing the card thru an electronic device. - SMART CARDS = contain a computer chip which allows access - BAR CODE CARDS - PROXIMITY CARDS - plastic card with magnetic strip id passed within a certain DISTANCE of an electronic card reader.

FACIAL RECOGNITION TECHNOLOGY - computer program that takes images filmed from a camera and compares them to a known database of criminal pictures. Crowds of people can be scanned instantly using a single camera alleviating the needs for long security lines.

SURVEILLANCE CAMERAS - used to observe attendees at an event - such as a theme park - Carowinds.

LIABILITY INSURANCES:

General provides broad coverage against claims of negligence or inappropriate action resulting in bodily harm or damage to personal property (bowler slips and is injured in bowling alley)

Automobile liability insurance provides compensation to individuals injured by autos used in an event. For example, if an event organizer is driving a golf cart and hits a spectator, the organization is covered.

BOARD OF DIRECTORS INSURANCE protects volunteer board members from personal liability. For example, if an event goes bankrupt, the event managers or the board cannot be held personally liable or be directly sued.

COMPREHENSIVE GENERAL LIABILITY INSURANCE is a package policy that includes fire, theft and injury. There are exclusions to this type of coverage. Examples of common exclusions are pyrotechnics (fireworks), aerial activities, participant activities, and other activities which might be deemed as high-risk (Fan at Panthers game consumes too much alcohol and injures other fans - Panthers covered by comprehensive insurance) Fans injured by goal post falling on football field at end of game.

MISCELLANEOUS INSURANCES:

EVENT CANCELLATION: provides coverage for the cancellation of an event due to circumstances beyond the event

coordinator's control - such as power outage.

INCLEMENT WEATHER INSURANCE - provides coverage for cancellation of event due to hurricane, tornado, etc

BROADCAST TRANSMISSION INSURANCE - provides coverage due to an interruption of radio/TV broadcast of an event -

PAY FOR VIEW TRANSMISSION FAILURE INTERRUPTED BOXING MATCH VIEWING

NON-APPEARANCE or "NO-SHOW" INSURANCE - provides coverage if an athlete or entertainer fails to appear due to accident/illness (consumed too much alcohol or drugs).

PRIZE INDEMNITY - provides coverage when a participant wins a promotional contest such as Hole-in-One Golf Tournament Prizes or Half-Court Shoot-Out. Coverage also provided with it is discovered marathon winner took short-cuts - collected the prize money and then left the country.

ACCIDENTAL DEATH AND DISMEMBERMENT - provides coverage if an event participant suffers loss of life or limb. Person is accidentally killed when horse at race crashes through barrier.

TEMORARY DISABILITY INSURANCE - provides coverage for an athlete/entertainer in

the event he/she suffers an injury/illness/surgery that temporarily keeps him/her from working. Person having hip/knee replacement would be temporarily disabled.

PERMANENT DISABILITY = provides coverage if athlete/entertainer suffers injury/illness that PERMANENTLY prevents them from working such as becoming paralyzed.

IMAGE PROTECTION INSURANCE - provides coverage for a sponsor in the event an athlete's or entertainer's actions result in negative publicity for the company (TIGER WOODS)

PROPERTY INSURANCE - provides coverage to buildings and production sets. Will also provide coverage for theft or damage to personal property and props.

PRODUCER'S ERRORS/OMISSIONS LIABILITY INSURANCE - provides coverage for copyright infringement, libel, and PLAGIARISM

WORKMAN's COMPENSATION - provides reimbursement of medical expenses for workers injured on the job - such as camerman in studio was injured when light fixture fell and hit him in the head.

Objective 9.00 CAREER SUSTAINING OPPORTUNITES in SEM

HUMAN RELATIONS = Getting along with others

TEAMWORK = People working together to achieve a common goal

Personal Traits necessary to enhance interpersonal relations:

Friendliness - getting along well with others

Courtesy - having good manners and a polite demeanor

Ethical behavior - demonstrating honesty, integrity & fairness

Creativity - using one's imagination to be original and inventive

Initiative is being self-motivated to start a task without being asked.

Responsibility is being accountable for ones own actions and the resulting consequences.

Attitude is the disposition towards people and situations.

Self-control is the ability to slow anger and behave in a disciplined way, not impulsive.

Self-awareness is knowing ones strengths and weaknesses.

Willingness to change is adjusting to criticism or changes in the environment.

Self-esteem is self-respect or valuing ones personal worth.

Empathy is understanding another person’s situation or feelings.

Assertiveness is having the confidence to stand up for beliefs, ideas, or rights.

Time management is budgeting time and respecting important deadlines.

Goal-setting is planning for the future.

Factors that facilitate successful teamwork:

1. Train employees - continuous education and training to improve knowledge and skills

2. Establish goals - plan how to accomplish gols - all team members should be committed to reaching goals/objectives.

3. Delegate responsibility - assign roles and duties - make agreements for commitment to quality of work

4. Evaluate performance - evaluate individual employee performance - evaluate whether or not the company's goals are obtained.

5. Communicate - management/boss has open-door policy- listening to customers may result in new products or better customer service and satisfaction.

IDENTIFY SOURCES OF JOB LEADS: company personnel offices, cooperative education experiences, employment agencies (charge for their services), family and friends, former employers, internet, internships, job fairs, newspaper ads, placement centers, school personnel (guidance counselors), temporary employment agencies

PREPARE A RESUME - brief summaries of an individual's personal info., education, skills, work experience, activities, and interests. A growing trend is for employers to use on-line resumes.

Parts of a resume: Contact info = name, address, tel. # and e-mail address

Objective = id's the position or type of job in which the applicant is interested - describes the skills or qualifications an applicant has acquired

Experience & employment history - list of related job experience, including volunteer work - dates, names and location of former employers, description of duties and responsibilities - traditionally listed in reverse chronological order - for example - 2012, 2011, 2010, etc. If applicant has little work experience, best to focus on skills

Education: list of schools attended and degrees earned, including dates attended and related coursework - list of certificates, training and/or licenses obtained.

Activities and Awards: List of affiliations with personal or professional organizations, including volunteer or charitable organizations - Personal or professional awards or recognition

References: List of people prospective employers may contact for more info. regarding an applicant - include name, title, position held - name of business - location of business - tel. #, FAX # and e-mail address - PORTFOLIO (list/examples of accomplishments) of relevant work in addition to references, if necessary. For example - a graphic artist would bring a portfolio to an interview. AVOID USING FAMILY & FRIENDS AS REFERENCES.

PROPER INTERVIEWING TECHNIQUES:

Prior to interview: know info about the company and its products (don't ask in interview what products they produce or sell) DRESS appropriately - one step above what one should expect to wear on the actual job.

Bring copy of resume and list of references to the interview. ARRIVE EARLY (5 to 15 minutes early). Be prepared to answer appropriate job-related questions. Also be prepared to ask appropriate job-related questions to show interest.

During interview: Use a firm handshake - be enthusiastic - wait until offered a seat before sitting - SIT UP STRAIGHT - MAKE EYE CONTACT - Listen to interviewer and act interested at all times. SPEAK CLEARLY using proper grammar. Thank the iinterviewer for his/her time. Shake hands before leaving.

AFTER INTERVIEW: Reflect on the interview - what went well - what needs improvement - send interviewer a thank you note - follow up with phone call ONE WEEK after the interview

ETHICS = moral decisions of what is right or wrong

Ethical behavior - is knowing the difference between right and wrong and choosing to do the right thing

Ethical conduct of an organization is determined by actions of employees.

Code of Ethics is a written statement of responsibility an agent has toward a client.

ETHICAL RESPONSIBILITIES TO CUSTOMERS:

Full Disclosure - telling the good & the bad about products - must be informed of features, conditions, price and any possible negative outcome from using the product (PSL owners are informed about seating license at professional game - exercise equipment found to have potential of causing injury.)

TRUTH IN ADVERTISING = false advertising is unethical and illegal. (Ad stated child admitted free with an adult, but when arriving at the rodeo, the child was charged admittance) Gym stated facility had sized pool, but when arriving at the facility, potential customer saw a standard pool at the location

"BAIT AND SWITCH" practices lure customers with a low-price product, but the company has no intent to sell that product to the customer. The company then attempts to persuade the customer to purchase a higher priced product.

PRICE FIXING - an illegal agreement between a manufacturer and a company to set prices for a product. Such as convenience stores agreeing to set prices on gasoline. Wholesale beverage companies agreeing to set prices.

UNSAFE PRODUCTS = are manufactured with low-quality or potentially harmful materials that could present a hazard to the consumer. Unsafe products can result in lawsuits and a negative company or brand image.

THE CONSUMERS UNION is an independent, non-profit testing and information organization that evaluates products for the benefit of consumers. (NOT A GOVT. AGENCY)

FEDERAL TRADE COMMISSION (FTC) enforces federal antitrust and consumer protection laws, such as advertised prices. Investigates false advertising complaints. In charge of consumer protection.

The Consumer Product Safety Commission is an independent federal regulatory agency. The CPSC attempts to reduce the risk of injuries and deaths associated with consumer products by developing product standards, conducting research, and educating consumers about potential product hazards. (ISSUES RECALLS OF UNSAFE PRODUCTS - GO KART)

ETHICAL RESPONSIBILITIES OF EMPLOYEES

Work Habits = be on time - work hard - be truthful/honest - be reliable & dependable - use initiative (do things without being asked) - give proper notice if leaving a job

LOYALTY = keep confidential info classified - avoid gossip - practice good work habits (HR mgr. in charge of a lot of confidential info)

BUSINESS IMAGE = make good FIRST IMPRESSION with customers - one's conduct reflects upon the business.

CHARACTER TRAITS:

Courage = strength to follow ones conscience rather than the crowd - attempting difficult things that are worthwhile ex. Going to college at night while working full-time during the day.

Good Judgment = choosing worthy goals and setting proper priorities - thinking through the consequences of ones actions. Basing decisions on practical wisdom and good sense. Setting REALISTIC goals. (Wise as an OWL)

Integrity - having INNER strength to be truthful, trustworthy and honest in all things. Acting justly and honorably. Being responsible for handling lots of $$$$$'s.

Kindness = being considerate, courteous, helpful and understanding of others. Showing compassion. Following the GOLDEN RULE.

Perseverance = being persistent in the pursuit of worth objectives in spite of difficulty, opposition or discouragement. Exhibiting patience and having the fortitude to try again when confronted with delays. KEEP TRYING TO LEARN HOW TO PLAY NEW SPORT.

Respect = Showing high regard for authority, for other people, for self, for property, and for country. Understanding that all people have value as human beings.

Responsibility = Being dependable in carrying out obligations and duties. Showing reliability and consistency in words and conduct. Being accountable for ones own actions. Being committed to active involvement in ones community.

Self-Discipline = Demonstrating hard work and commitment to purpose. Regulating oneself for improvement and restraining from inappropriate behaviors. Being in proper control of your words, actions, impulses, and desires. Doing ones best in all situations.

IMPORTANCE OF ETHICS = Employees have a social responsibility to the companies for which they work. These responsibilities include being truthful, fair and honest in the production, management, or selling of a product.

Athletes and entertainers hire agents to represent them. Agents may also be accountants or attorneys. Responsibilities include negotiating personal service agreements, contracts, and endorsements. Agents are usually paid a percentage of the PSA, contract, or endorsement.

Handlers are individuals paid by athletes, entertainers, companies, or teams. Handlers are hired to assist with the public image of an athlete or entertainers by regulating their behavior. Companies, including teams, require employees, including athletes or entertainers, to act ethically. Athletes or entertainers who are incapable or reluctant to act ethically require handlers because of the opportunities to make money. Many times, the investment of hiring a handler is worth the cost.

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