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75 Cards in this Set
- Front
- Back
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define market value?
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the price at which buyers and sellers trade the item in an open marketplace
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define land cost:
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The amount someone is willing to pay for a piece of property is known as land value, and it ebbs and flows with the economy and current land market
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What is Title IX
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Title IX of the Educational Amendments of 1972 is the landmark legislation that bans sex discrimination in schools, whether it be in academics or athletics.
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What is the Three prong test under title IX?
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Prong one - Providing athletic participation opportunities that are substantially proportionate to the student enrollment, OR
Prong two - Demonstrate a continual expansion of athletic opportunities for the underrepresented sex, OR Prong three - Full and effective accommodation of the interest and ability of underrepresented sex. |
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What do critics usually argue when bringing up title IX?
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They argue that it discriminates against men
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What do defenders usually say when defending title IX?
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they state that opportunity drives interest
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What changed in 2005?
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In 2005 web surveys were allowed
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What are some expensive ways for a club to gain revenue?
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Luxury Seating
EX: 12K seats at dolphin stadium |
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List Other Revenue Sources:
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ADT Club
-5 Star food & beverage for equal event -VIP Parking -Executive Concierge Services -Private business service & lounge area -Private Restrooms |
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What is one of the largest ways for a stadium to gain money and why?
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Naming rights
for the company purchasing the naming rights it leads to exposure and sales |
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What are some key elements of naming rights agreements?
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1)Term or Length of Contract
2) Consideration (Annual & More) 3) Signage Rights & Limitations 4) Installation Costs 5) Marketing Rights 6) Termination upon Default 7) Reimbursement 8) Renewal Option |
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What are some of the advantages of PSL's?
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A Right to Purchase
-Discounts -Transferable |
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True or False: Individuals spend up to 7 billion a year on tkt sales?
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False: its 12 billion a year
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What is the importance of tkt sales in regards to the respective leagues?
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NHL & NBA = greatest source of income
NFL = less than 1/3 its overall revenues The lifeblood of minor league baseball |
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True or False: From 1991-200 prices decreased 4.3 percent annually?
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False: Prices increased 8.4 percent anually
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What does the terms by the seat of their pants refer to?
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-raise prices incrementally by some arbitrary percentage or flat rate
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Describe the psychology behind tkt pricing?
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it stems from the willingness to pay, and the tollerance fans have.
Bulls & Wizards $2,500 Lakers $2,200 Knicks $2,100 Pistons $1,950 |
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What does price discrimination refer to?
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-different consumers have different price elasticity
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Describe elements that are the importance of price
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-can be readily changed
-an effective tool of the mix -highly visible & impacts consumer perceptions -always top of mind for consumers |
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What are some core issues in regards to pricing?
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-satisfaction = Benefit – cost
-cost/valuable/objective |
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List some pricing factors:
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-production costs
-market conditions -competitor pricing -organizational objectives -product/event frequency |
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What are some approaches to pricing?
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Break Even Analysis
-fixed costs -variable costs -marginal costs Cost plus pricing Market pricing Capitation |
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name pricing/special factors
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Market Demand
Lead Time User Segmentation Time & place smoothing Responding to competitors |
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Price Skimming is appropriate when:
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-demand is price inelastic (price changes)
-there are different price-market segments -appeal 1st to buyers who have higher price tolerance -unique product or when protected by a patent or copy right -production or marketing costs are unknown -capacity constraints exist -looking for quick recoupment of investment -there’s a realistic high perceived value |
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Price Penetration is appropriate when:
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-demand is likely to be price elastic
-offering not unique or protected -competitors expected to enter the market quickly -there are no distinct & separate price-market segments -there’s a possibility for large savings in production & marketing costs if a large volume can be generated -objective is large market share |
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Tactics for improving ticket sales
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-differential pricing
-flexible ticket packaging -money back guarantees |
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What are different types of tkts:
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Full Season
Partial Season Complimentary Student |
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What are the attributes of a full season pass?
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Guaranteed Source of revenue before the season starts
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What are attributes of complimentary tkts
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-those given to individual or groups at no cost
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What are the attributes of student tkts?
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-college & universities generally allocate seats
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What are some methods of selling tkts?
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Direct Mail
Follow up phone calls Telemarketing Direct Sales Outlets E-Ticketing |
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What are some outlets that broadcast sports
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National Broadcast
Regional Cable Networks Syndicators Local Media Outlets (TV & Radio) |
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How do u manage what outlets will broadcast what sports
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-Direct Sales
-In house production -Revenue Sharing Cooperation Productions |
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What are the attributes of concessions?
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Relatively New Business
-Purpose Customer Service Profit Center |
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True or False: Among the 3 sources of revenue TkT, Advertising and concessions, 43 percent is concessions?
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False: 28 percent
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what is an impulse item?
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Something a customer buys that they didn't intend to purchase when they came into the store
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What percentage of concessions does alcohol make up?
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35% to 55% of all sales
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What are the industry standards of concessions?
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Operating Costs (40% to 50%)
-Product Food Costs = 15% to 25% Merchandise Costs = 25% to 40% |
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How are individuals payed in the concession business?
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Hourly
Salary |
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What is the general per capita sales?
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Per capita means for each person
$4.58 |
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When do customers generally purchase concessions?
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Offered high levels of service
Expectations are exceeded “Exclusive” offers |
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What kind of business is concessions?
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Its a nickel and dime business
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Contract vs Self Operate in concessions?
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Self Operate
-Maintain Control -Maximize Profits Contract -Fewer Headaches -Pro’s |
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Generally what do Agreements =?
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Agreements = Commissions vs. Management Fee
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Who runs Concessions?
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Aramark 32.7%
Levy Restaurants 21.2% |
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5 ways to cash in on retail sales (SBJ)
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Handling Retail OPS in house
Outsource Retail OPS Wide Distribution Channels Look like a retail Outlets Include Exclusive Offers |
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What is the sponsoship exchange theory?
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-2 or more parties exchange resources
-the resources must be of equal value |
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What are Growth factors in regards to sponsorship?
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Commercialization of sports
Cost of other forms of advertizing Increase media coverage Market Segmentation Creates “Product Pull” AD Clutter Means of advertising for tobacco & Liquor advertisement |
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what does the strength of a of sports sponsorship depend on?
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-positioning the image of the brand
-integrated promotion strategies -sales incentives for employees/distributors/customers -offers opportunities to establish a relationship with customers & customers |
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What are some types of sponsorship benefits?
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Financial
Media |
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What are in-kind sponsorships?
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-Product support
-Prizes (Merchandise) -Personnel Support -Website Exposure -Communication Resources |
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What are the costs of sponsorship?
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Loss of control
-the sponsor gains leverage over the event Perception of selling out |
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Why does a corporation become a sponsor?
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Increase product awareness
Image Enhancement Demonstration platform Hospitality opportunities Product Trail or Sales opportunities |
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What are some corporate concerns regarding sponsorship?
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-FIT
-Image compatibility |
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What does leverage sponsorship refer to?
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Media Involvement
Negotiation trade-outs Media buys access to resell Secure editorial coverage |
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define signage:
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signs collectively (especially commercial signs or posters)
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what are retail promotions?
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promo's that are ran in retail stores to help spurn sales
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what are nfl official sponsorhips?
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Gatorade (Energy Drink) Pepsi (Soft Drink)
Cools Light (Beer) GM (Car) None (Insurance) Sprint (Phone/Internet) None (Fast Food) FedEx (Delivery) Bank of America (Bank) None (Hotel) None (Airline) |
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In terms of licensing merchandise and time based, what are the length of commitments
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3-5yrs is optimum
< 3 yrs is not enough time to exploit the relationship |
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what is ambush marketing?
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A company intentional effort to weaken its competitor’s official sponsorship …
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What are keys to success in regards to sponsorship
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Lead – Time
Company Budget Contract Negotiations Market Planning Advertising |
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what are some attributes of developing a sponsorship package?
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-level sponsorship packages
-historic pricing |
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define historic pricing
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the establishment of the price of a share in a mutual fund on the basis of the most recent values of its holdings
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What are attributes of professional proposals?
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-preparation
-presentation -Handling Issues -Closing the Deal |
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What are some types of measures for measuring the impact of sponsorship ( media equivalencies?
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-Value of coverage
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What are some types of measures for measuring the impact of sponsorship awareness?
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-aided vs. unaided (don’t know type of sponsorship)
-degree of association |
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in terms of Sales, what are some types of measures?
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-Sales
-change in marketing mix -defined control area -Tie – INS |
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define fundraising?
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a systematic purpose set of activities
the process of soliciting and gathering contributions as money or other resources, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies |
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what are some different types of gifts generated by fundraising?
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annual ($50 - $1,000)
-smaller/ongoing/once a year -primary source is booster club -major ($5K - $1M) -larger/on-time contributions -Gifts = cash/securities/real estate/ -Gifts – in-kind/matching contributions |
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cause related marketing refers to
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refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit
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Business units usually need what to implement what
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Business units need sufficient funds to implement any new strategic plans
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New Strategies usually call for what?
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New Strategies usually call for significant budget reallocations
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what are some fundraising pitfalls?
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-too much = waste & poor financial performances
-too little = slows progress & impedes execution |
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in terms of reallocating funds; fine tuning the strategic plan= ?
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limited activity
-upgrading facilities for IX compliance |
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Products = ?
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big shifts
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