Lesson Plan
Course Title: Sports and Entertainment Marketing
Session Title: Sports and Entertainment Economics
Performance Objective:
After completing this lesson, the student will define the profit motive and describe types of
economic utility.
Specific Objectives:
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•
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The student will define profit.
The student will define the profit motive.
The student will describe cultural entertainment opportunities for profits.
The student will explain the economics of sports and entertainment marketing.
The student will define the different types of economic utility.
The student will describe the latest conveniences offered to customers of sports and
entertainment events.
TERMS
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•
•
•
•
•
•
•
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Profit-the amount of money remaining from revenues after all expenses are paid
Revenue-the money a business receives from the sale of goods and services
Profit motive-making decisions to use resources in ways that result in the greatest profit
Economic-study of how goods and services are produced, distributed, and consumed
Economic utility-amount of satisfaction a person receives from the consumption of a
particular product or service
Time utility-result of making the product or service available when the consumer wants it
Place utility-ensures that the product or service is available where the consumer wants it
Form utility-when the physical characteristics of a product or service are improved
Possession utility-results from making the product or service available at an affordable
price
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Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the
activities may result in the elimination of any or all of the TEKS listed.
130.346 (c)(1)(A)
…categorize business activities such as production, marketing, management, or finance…
130.346 (c)(1)(B)
…analyze the interdependence each business activity has with marketing…
130.346 (c)(1)(E)
…explain the impact of multiculturalism and multigenerationalism on sports and entertainment
marketing activities…
130.346 (c)(1)(C)
…explain the implications of business conduct using sports and entertainment examples;
130.346 (c)(1)(D)
…describe how international marketing has affected the sports and entertainment industry…
130.346 (c)(14)(B)
…distinguish among sports and entertainment marketing terms…
Interdisciplinary Correlations:
English:
110.31 (b)(21)(B)
… organize information gathered from multiple sources to create a variety of graphics and forms
(e.g., notes, learning logs)…
110.31 (b)(22)(B)
…evaluate the relevance of information to the topic and determine the reliability, validity, and
accuracy of sources (including Internet sources) by examining their authority and objectivity…
110.31 (b)(23)(C)
… uses graphics and illustrations to help explain concepts where appropriate
110.31 (b)(23)(D)
… uses a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert
evaluations) to examine the quality of the research…
Teacher Preparation:
Teacher will review the terms in the outline, power point and handouts to become familiar with
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lesson.
Teacher should locate and evaluate various resources and websites before the lesson.
Teacher will have assignments and website information ready to distribute to students.
References:
Sports Business Journal
Entertainment Industry Economics: A Guide for Financial Analysis
http://www.sportseconomics.com/
Instructional Aids:
1. Display for PowerPoint, websites for assignments and class discussion
2. Sports and Entertainment Marketing, 3rd edition, Kaser & Oelkers, South-Western
Cengage Learning: Sports and Entertainment Management, Kaser & Brooks, SouthWestern Cengage Learning.
3. People Magazine
4. USA Today
5. The Story of Nike (Built for Success) by Aaron Frisch
6. Nike (Corporations That Changed the World) by Tracy Carbasho
7. Swoosh: Inside Nike Starring Documentary
8. Hulu Videos (Undercover Boss-entertainment episodes)
Materials Needed:
1. Printer paper
2. Assignments and website information ready to distribute to students.
(Planning an Entertainment Event) Direction Sheet
2. Sports Business Journal and Entertainment Industry Economics: A Guide for Financial
Success
3. Internet access to Hulu videos
Student projects will be displayed to increase interest in Sports and Entertainment
Marketing.
Equipment Needed:
1. Computer with PowerPoint and Internet Access
2. Projector to Show Internet Sites Undercover Boss Episodes
3. Computers for Students to Conduct Research and Collect Data for Projects
Learner Preparation:
Call out the following items associated with attending a sporting event and ask students the
cost to consumers for each item.
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ticket to the game
parking
food
Then call out the following items associated with attending a movie and ask students the
cost that customers pay for each item.
movie ticket
soft drink
candy bar
popcorn
Explain how each entertainment venue has an initial cost to attend and some of largest
profit makers for the events are purchased at the concession stand.
Introduction
Introduction (LSI Quadrant I):
SHOW: Pictures of different sports and entertainment venues (football game, movie, concert,
carnival, etc.)
ASK: Ask students which events are good for family entertainment.
SAY: Entertainment events must be available at locations where the target markets are located.
This is called place utility.
ASK: Ask students to define “profit.”
SAY: Explain how sports and entertainment event planners have the goal to make a profit. The
entertainment organizers must determine the price that customers are willing to pay (possession
utility) and provide the entertainment when the demand exists (time utility).
ASK: Ask students what food items sell quickly at games when temperatures are hot and when
temperatures are cold.
SAY: Explain how form utility is affected by weather conditions at an outdoor game. Hot
chocolate sells quickly on a cold while ice-cold soft drinks are big hits for hot weather.
ASK: Ask students to describe a sports or entertainment event that they enjoy attending.
SAY: Explain to students that their level of satisfaction is called economic utility.
Outline
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Outline (LSI Quadrant II):
Instructors can use the PowerPoint presentation, slides, handouts, and note pages in
conjunction with the following outline.
MI
Outline
Notes to Instructor
I. Sports and Entertainment Economics
A. Profit Makers
1. profit
a. the amount of money remaining from
revenues after all expenses are paid
b. money a business receives from the sale of
goods and services
B. Movies
1. more than a decade-ticket sales in the U.S.
have increased in the U.S.
2. costs of production and marketing have
increased faster than ticket sales
3. movie studios are looking for ways to cut costs
and make more profit
a. joining forces with rival studios to split
production and marketing costs and share
box-office ticket sales and other income
sources
4. large movie studios are reducing economic risk
a. partnerships with rival studios to help
produce, promote, and distribute films
b. little money tied up in studio facilities or
ongoing personnel costs
Use PowerPoint and
current events as aids.
II. Profit Motive
A. Using Resources in Ways that Result in the
Greatest Profit
1. National Football League (NFL)-revenue in
excess of $5.5 billion shared among 32
members
2. players receive about 59.5 percent of the
revenue
3. about $150 million per season is transferred
from the top 15 high-revenue teams to the
low-revenue teams
B. Concerts
1. big time entertainers can charge $50,000 to
over $100,000 for a performance
2. expenses for concerts include security, ticket
sales and personnel, sound system, possible
porta-potties, etc.
The bottom line for the
sports and
entertainment
industries is profit.
Sports and
entertainment venues
are constantly looking
for ways to increase
profits. Sports
stadiums are used for
concerts and other
events to increase
profits. Movies are
distributed
internationally.
Use PowerPoint as
aid.
While concerts and
sporting events bring
in large amounts of
revenue, the expenses
associated with the
events are also large.
Management must
consider all expenses
to determine if an
event is worth the
effort.
Big-time college
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3. concert planners decide on ticket prices to
earn the desired profit
4. sponsorships help pay for concerts
C. College Sports
1. want to sell out venues
2. popular football teams have stadiums that
hold more than 100,000 people
3. colleges must pay for security, ticket sales
and personnel, utilities
4. universities earn money from televised
games
5. universities in conferences are required to
share some of their profits from bowl game
appearances with other members of the
conference
football teams have
added on to their
stadiums to seat
100,000+ audiences.
Luxury suites are
available in
professional and
college sports. Teams
strategically align with
conferences based
upon location and
revenue potential. For
example, Nebraska left
the Big 12 conference
to join the Big 10
conference. They will
earn higher revenues
with the Big 10
conference.
III. Cultural Opportunities for Profits
A. worldwide distribution revenue is critical for
movie profits
1. international release of a movie can increase
box-office take by 50 to 100 percent over
domestic ticket sales
2. China has 1.3 billion people-market for
movies is huge
a. pirated movies-movie tickets sales have
been shrinking in China
b. Chinese government tightly controls the
content, filming location, and distribution
of films released in China
c. Chinese films must avoid political and
religious topics
d. Chinese government seeks to limit the
distribution of non-Chinese films and
television programming to limit
competition and exposure to foreign
cultures
Use PowerPoint as
aid.
IV. Economics-study of how goods and services are
produced, distributed, and consumed
A. Macroeconomics
1. study of the economics of the entire society
(the big picture)
2. example: study of all sports and
Use PowerPoint as
aid.
Just because a
country is large like
China, does not mean
that sports and
entertainment from the
U.S. will make high
profits. Government
restrictions and the
lack of business ethics
greatly reduce the
potential for U.S.
sports and
entertainment to make
a profit in China.
Economics are based
on consumer
behaviors. When
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entertainment events
B. Microeconomics
1. study of the relationships between individual
consumers and producers
2. example: study of economic impact of
concerts in the United States
V. Sports and Entertainment Economics
A. People have limited time and money to spend
on sports and entertainment
B. They must decide how to spend their limited
resources
C. Decisions are based on the amount of
satisfaction that people believe they will receive
from the sports and entertainment producteconomic utility
D. Types of Utility
1. form utility-physical characteristics of a
product or service are improved to meet
consumer needs
2. place utility-ensures that the product or
service is available where the consumer
wants it
3. time utility-result of making the product or
service available when the consumer wants it
4. possession utility-making the product or
service available at an affordable price
consumers are
emotionally tied to a
sports team, they will
spend more money on
game tickets and
related sporting goods
after victory.
Budgets for major
university athletic
departments count
heavily on the revenue
generated by football
(microeconomics).
Other sports
(macroeconomics)
count on the revenue
produced by college
football.
The economic problem
(challenge) for
individuals is scarcity
(having limited
financial resources
and time).
Entertainment
decisions are directly
affected by scarcity.
Automobiles have
been improved to
include better fuel
efficiency and
improved service
agreements. This is an
example of form utility.
Having hotdogs ready
for hungry fans when
the game starts is an
example of place
utility.
Offering sleigh rides
for the winter holidays
is an example of time
utility.
Offering purchase and
lease options for new
automobiles is an
example of possession
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VI. Managing Sports and Entertainment Events
A. Management-the process of accomplishing the
goals of an organization through the effective
use of people and other resources
B. Functions of Management
1. Planning-analyzing information and deciding
what needs to be done, making sure that the
target market is large enough
2. Organizing-concerned with accomplishing
tasks most effectively and arranging
resources to complete all necessary work
3. Implementing-carrying out plans and making
sure that adequate personnel are available
to accomplish all the necessary tasks
4. controlling-involves evaluating results to
determine if objectives have been
accomplished as planned
utility.
Use PowerPoint as
aid.
Management involves
providing the
leadership to
accomplish a sports or
entertainment event.
Successful events
count on a plan of
action. During the
planning phase,
management must
decide if the target
market is large enough
to validate the event.
Organizing involves
using resources
efficiently to
accomplish tasks
effectively.
Carrying out the plans
and making sure that
adequate personnel
are available to work
the event is referred to
as implementing.
Controlling should be
used to evaluate the
results of an event to
make sure objectives
have been reached.
Controlling helps
planners make the
event better next time.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Naturalist
Existentialist
Application
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Guided Practice (LSI Quadrant III):
Show students an episode of “America’s Got Talent.” Then discuss why the program is popular
and why Americans like watching the show. Explain how reality shows allow viewers to
influence the results (winner).
Independent Practice (LSI Quadrant III):
Planning an Entertainment Event: Split the class into teams consisting of four students for a
brainstorming session. Students must plan a community event that shadows the television show
“America’s Got Talent.” The students must list/describe the management functions necessary to
have a talent show for their school. Each group will share their information about planning,
organizing, implementing, and controlling with the rest of the class and the information will be
listed on the board or overhead. Students will gain a better understanding of the complexity
associated with sports and entertainment events. Each group will prepare a PowerPoint
presentation to describe the four functions of management for the Talent event.
The teacher will navigate the classroom to make sure that all team members are participating
and to plant ideas to generate stronger participation by team members.
Summary
Review (LSI Quadrants I and IV):
Question: How is profit different than revenue?
Question: What is scarcity?
Question: What are the four forms of utility? Describe each type of utility for a sports or
entertainment event.
Question: What are the four functions of management?
Question: Why do entertainment venues look to international markets for additional revenue?
Question: How can the form utility for a stadium be improved?
Evaluation
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Informal Assessment (LSI Quadrant III):
Instructor should observe the work ethic of individuals involved in the brainstorming event.
Instructor should move around the classroom to make sure that students are participating in the
independent group project. All students are required to contribute to the independent practice
PowerPoint activity.
Formal Assessment (LSI Quadrant III, IV):
Students will be evaluated on their “Planning an Entertainment Event” PowerPoint by using
the assigned rubric.
Extension
Extension/Enrichment (LSI Quadrant IV):
Flash Card Review Game
Developing an Entertainment Guide for Your Community Assignment
1. Students first brainstorm to determine entertainment available in their community
(examples: movie theater, sporting events, bowling, miniature golf).
2. Students design an entertainment guide for the community. The guide should
include pictures, descriptions, and suggestions for enjoyable entertainment options
in the student’s community.
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Sports and Entertainment Marketing
Student Directions
Planning an Entertainment Event
Independent Practice (LSI Quadrant III
Your team has been asked plan a talent show based upon the television show “America’s Got
Talent.” Since you are managing the event you must develop the strategy for planning,
organizing, implementing, and controlling the event. You must explain all details for the
entertainment event (number of rounds, judges, schedule, number of auditions that will be
selected, etc.) You will write a report that describes all management functions for the event.
The project will be evaluated using the assigned rubric.
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Planning an Entertainment Event
CATEGORY
20
15
10
5
Organization
Information is
very organized
with wellconstructed
paragraphs and
subheadings.
Information is
organized with
wellconstructed
paragraphs.
Information is The information
organized, but appears to be
paragraphs are disorganized.
not wellconstructed.
Quality of
Information
Information
clearly relates
to the main
topic. It
includes
several
supporting
details and/or
examples.
Information
clearly relates
to the main
topic. It
provides 1-2
supporting
details and/or
examples.
Information
clearly relates
to the main
topic. No
details and/or
examples are
given.
Information has
little or nothing
to do with the
main topic.
4 Functions of 4 functions of
Management management
are thoroughly
covered
4 functions of
management
are covered
4 functions of
management
are mentioned
but not
described in
detail
Incomplete
definition of the
4 functions of
management
Paragraph
Construction
All paragraphs
include
introductory
sentence,
explanations or
details, and
concluding
sentence.
Most
paragraphs
include
introductory
sentence,
explanations or
details, and
concluding
sentence.
Paragraphs
included related
information but
were typically
not constructed
well.
Paragraphing
structure was
not clear and
sentences were
not typically
related within
the paragraphs.
Amount of
Information
All topics are
addressed and
all questions
answered with
at least 2
sentences
about each.
All topics are
addressed and
most questions
answered with
at least 2
sentences
about each.
All topics are
One or more
addressed, and topics were not
most questions addressed.
answered with
1 sentence
about each.
Total Points Earned ________
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