Lesson Plan Course Title: Sports and Entertainment Marketing Session Title: Business Ethics in Sports and Entertainment Marketing Performance Objective: After completing this lesson, the student will define ethics, explain the profit motive, explain effective and ethical decisions, and describe the role of the FTC. Specific Objectives: • • • • • • • • The student will define ethics. The student will explain how ethical behavior is based on solid principles. The student will explain that the profit motive is not associated with acting unethically out of greed. The student will explain effective and ethical decisions. The student will define sponsors and sponsorships. The student will describe the role of the Federal Trade Commission regarding business promotion. The student will list legal restrictions on endorsements. The student will describe the advantages associated with celebrity endorsements. TERMS • • • • • • Ethics-a system of deciding what is right or wrong in a reasoned and impartial manner Principles-the high standards of rules and guidelines in both business and personal life Sponsorship-underwriting an event for the purpose of gaining positive association for a brand with the event Sponsor-a person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition Federal Trade Commission (FTC)-a U.S. governmental agency whose principal mission is the promotion of consumer protection and competitive business practices Endorsement-a person’s public expression of approval or support for a product or service Preparation Copyright © Texas Education Agency, 2011. All rights reserved. 1 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)(C) …explain the implications of business conduct using sports and entertainment examples… 130.346 (c)(17)(D) …examine characteristics of good leaders… 130.346 (c)(17)(E) …identify employers’ expectations and appropriate work habits… 130.346 (c)(24)(A) …identify components of endorsement contracts… 130.346 (c)(24)(B) …discuss issues related to celebrity behavior on endorsements… 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, PowerPoint slides and handouts to become familiar with lesson. Teacher should locate and evaluate various resources and websites before the lesson. Copyright © Texas Education Agency, 2011. All rights reserved. 2 Teacher will have assignments and website information ready to distribute to students. References: Sports Business Journal Sports Illustrated Advertising Age 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. Advertising Age 4. USA Today 5. Sports Illustrated Materials Needed: 1. Printer paper 2. Assignments and website information ready to distribute to students. (Insuring the 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: Give students the definition of “ethics.” Then ask students to write down five situations they know about where individuals do not use good ethical judgment. Discuss the situations in class. Ask students to watch television commercials and list the name of celebrities who are endorsing products. Then have a class discussion about why the celebrities were selected to be endorsers and why those individuals must demonstrate good behavior. Introduction Copyright © Texas Education Agency, 2011. All rights reserved. 3 Introduction (LSI Quadrant I): SHOW: Commercials featuring celebrities endorsing products. ASK: Ask students why celebrities are used in advertisements and promotions. SAY: Endorsements by celebrities gain the attention of consumers. ASK: Ask students what is the risk of associating celebrities with a product or brand. SAY: Celebrities who have a lapse of judgment or negative publicity from their actions will be a detriment to the product/business that they are endorsing. ASK: Ask students to give examples of celebrities and business people in the news for negative reasons or lapse of showing ethical judgment. SAY: Ethics involves doing what is right even when it is more tempting to do what is wrong. ASK: Ask students to describe bad business behavior. SAY: Describe examples of successful people who lost fame and wealth due to bad ethical decisions. Outline 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. Ethics A. System of Deciding What is Right or Wrong in a Reasoned and Impartial Manner 1. important part of sound business decisions 2. business should be conducted with integrity, trust, and fairness (core standards of ethics) 3. should a professional sports team go on strike when athletes are earning multi-million-dollar contracts? Use PowerPoint and current events as aids. Behavior is based upon an individual’s ethics. People who have a high level of integrity have clear line of distinction between what is right and what is wrong. Money and greed can sometimes cloud the Copyright © Texas Education Agency, 2011. All rights reserved. 4 ethical issue. II. Ethics and Character Matter A. Principles 1. high standards of rules and guidelines in business and personal life 2. character development a. early stages-child learns that exhibiting bad behavior will result in punishment b. good behavior will result in rewards c. child matures-influence of others’ expectations of him or her grows d. maturity-individual acts on the basis of a set of principles e. youth need good ethical role models Use PowerPoint as aid. III. Business Behavior A. Profit motive for a business is sometimes mistakenly confused with acting unethically out of greed. 1. seeking an advantage (unethically) a. athletes take illegal drugs (steroids) in hopes of improving performance b. bad behavior is rewarded B. Effective and Ethical Behavior 1. good decisions for the long term 2. the strong desire for success should not result in the use of unethical tactics Use PowerPoint as aid. IV. Sponsorship A. Underwriting an Event 1. to gain positive association for a brand with Use PowerPoint as aid. Young children must learn the consequences of unsatisfactory behavior. Youth are influenced by the expectations of others. Adults are expected to act in an ethical manner. Ethics involve doing what is right even when it is more tempting to do what is wrong. Profit is the ultimate goal for all businesses. Sound businesses are not willing to cross the ethical line to make a larger profit. Examples of unethical business behavior include bribery, price gauging, ticket scalping, and preferential treatment for financial gain. Copyright © Texas Education Agency, 2011. All rights reserved. 5 the event, the participants, and/or attendees 2. to provide financing for an event B. Supporting Collegiate Sports 1. corporate advertising in exchange for sponsorship 2. financing or generating revenue for the college programs 3. media corporations buy the rights to televise the collegiate sports events (ABC/ESPN) 4. some universities have their own television networks Sports and entertainment events and venues count on corporate sponsorships for finances. College Bowl games, the Super Bowl, concerts, car racing, golf tournaments, etc. all count on corporate sponsorships for the finances needed to run the events. V. Sponsorships A. Sponsor-a person, organization, or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition B. Reasons for Sponsorships 1. to increase sales and profits 2. to introduce a new product or service to a large audience 3. to be identified with an event 4. to earn the goodwill of the audience by showing a commitment to the community 5. to entertain clients, employees, or potential customers 6. to enhance the company’s image 7. to enter new markets or a niche market Use PowerPoint as aid. VI. Endorsements A. Federal Trade Commission (FTC) 1. government agency with the mission to promote consumer protection and competitive business practices 2. offers clarifying examples of what is and is not an endorsement 3. Endorsement-a person’s public expression of approval or support for a product or service B. Legal Restrictions on Endorsements 1. truthful opinions and beliefs of the endorser must be expressed in the endorsement 2. endorser must have real experience with the product 3. may not contain any deceptive or misleading statements/statements must be able to be Use PowerPoint as aid. Companies will sponsor an event when they benefit from favorable exposure. The sponsorship allows the company to increase sales, introduce new products, and earn the goodwill of the audience. When celebrities endorse a product or company, they must actually use the product or the services provided by the company. Endorsements must be based upon true information and not contain deceptive statements. Copyright © Texas Education Agency, 2011. All rights reserved. 6 substantiated by the advertiser 4. may not be presented out of context or reworded so as to distort in any way the endorser’s opinion 5. endorser must use, continue to use, and believe in the product for as long as the endorser is featured in the advertisements 6. if the product changes in any way, the company must notify the endorser and the endorser must continue to use and believe in the product in its new or revised state VII. Celebrity Endorsements A. Businesses pay more than $1 billion to athletes for endorsements B. Over 2,000 athletes make endorsements C. Advantages 1. consumers will buy products endorsed by celebrities more often than products that are not endorsed 2. people want to be associated with winners 3. viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character 4. consumers tend to believe celebrities, especially those who are chosen for their good public image D. Disadvantages 1. very expensive to the sponsoring company 2. some celebrities are endorsing too many products at the same time 3. negative publicity if the endorser commits a crime or a serious social blunder in the future Use PowerPoint as aid. VIII. What Businesses Seek in an Endorser A. someone with a positive, charismatic, trustworthy image B. celebrity most consumers know C. celebrity whose career is in process (rather than retired) D. someone who presents few risks E. someone who has a believable relationship with the product Use PowerPoint as aid. Popular athletes with ethical reputations can make more money from endorsements than actually playing the sport. Consumers like to be associated with winners who use the same product, drive the same car, or eat at the same restaurant. Poor behavior by the celebrity can jeopardize the endorsement. The ideal endorser is a role model for leadership. A believable relationship must exist between the endorser and the product that they are endorsing. Copyright © Texas Education Agency, 2011. All rights reserved. 7 Verbal Linguistic Logical Mathematical Visual Spatial Musical Rhythmic Bodily Kinesthetic Intrapersonal Interpersonal Naturalist Existentialist Application Guided Practice (LSI Quadrant III): Ask students to give examples of unethical behavior. Then ask students what causes people to act unethically. Ask students to list examples of celebrities who advertise products and businesses. Then ask students to list the names of celebrities who they would like to endorse products. Students should give reasons why their celebrities are good endorsement choices. Independent Practice (LSI Quadrant III): Endorsement Assignment (2 students per team) 1. Companies match characteristics of their product or business to characteristics of a famous athlete, musician, or entertainer. 2. Students will select a famous person to endorse each of the following items and give reasons for their selection: sports car, deodorant soap, famous restaurant. 3. Students will select a product and a celebrity to endorse the product. Students will write several paragraphs to explain their selection. Then students will design an advertisement with their celebrity endorsing the product. 4. This project will be evaluated using the associated rubric. Summary Review (LSI Quadrants I and IV): Question: What are ethics? Question: How does a person’s character develop? Question: How can the bad behavior of celebrities be controlled? Copyright © Texas Education Agency, 2011. All rights reserved. 8 Question: What do sponsors expect in return for their investments? Question: What are the advantages and disadvantages of using celebrity endorsers? Question: What is the role of the Federal Trade Commission? Evaluation Informal Assessment (LSI Quadrant III): Instructor should observe the work ethic of individuals involved in the endorsement activity. All students are required to contribute to the three-part independent practice activity. Formal Assessment (LSI Quadrant III, IV): Students will be evaluated on their “Insuring the Event” PowerPoint by using the assigned rubric. Extension Extension/Enrichment (LSI Quadrant IV): Sports Agents and Ethics Student Directions 1. Discuss the role of sports agents. Talk about the reputation frequently associated with sports agents 2. Use the Internet to research “sports agents.” 3. Prepare a PowerPoint presentation that explains the role of sports agents and compares ethical/unethical behavior of sports agents. The PowerPoint should also explain what types of degrees are best suited for sports agents. This project will be evaluated using the associated rubric. Copyright © Texas Education Agency, 2011. All rights reserved. 9 Sports and Entertainment Marketing Student Directions Endorsement Assignment Independent Practice (LSI Quadrant III) Endorsement Assignment • • • Companies match characteristics of their product or business to characteristics of a famous athlete, musician, or entertainer. Select a famous person to endorse each of the following items and give reasons for their selection: sports car, deodorant soap, famous restaurant. Select a product and a celebrity to endorse the product. Then write several paragraphs to explain your selection. Finally, design an advertisement with their celebrity endorsing the product. Copyright © Texas Education Agency, 2011. All rights reserved. 10 Endorsement Assignment Rubric (Celebrity Selected, Explanation for Your Selection, Advertisement Description) 10 5 Quality of Work Provides work of the Provides high highest quality. quality work. Provides work that occasionally needs to be checked/redone by other group members to ensure quality. Provides work that usually needs to be checked/redone by others to ensure quality. Focus on the task Consistently stays focused on the task and what needs to be done. Very selfdirected. Focuses on the task and what needs to be done most of the time. Other group members can count on this person. Focuses on the task and what needs to be done some of the time. Other group members must sometimes nag, prod, and remind to keep this person ontask. Rarely focuses on the task and what needs to be done. Lets others do the work. Contributions Routinely provides useful ideas when participating in the group and in classroom discussion. A definite leader who contributes a lot of effort. Usually provides useful ideas when participating in the group and in classroom discussion. A strong group member who tries hard! Sometimes provides useful ideas when participating in the group and in classroom discussion. A satisfactory group member who does what is required. Rarely provides useful ideas when participating in the group and in classroom discussion. May refuse to participate. Preparedness Brings needed materials to class and is always ready to work. Almost always brings needed materials to class and is ready to work. Almost always brings Often forgets needed needed materials but materials or is rarely sometimes needs to ready to get to work. settle down and get to work Pride Work reflects this student's best efforts. Work reflects a strong effort from this student. Work reflects some effort from this student. CATEGORY 20 15 Work reflects very little effort on the part of this student. Total Points Earned Copyright © Texas Education Agency, 2011. All rights reserved. 11 Extension/Enrichment (LSI Quadrant IV): Sports Agents and Ethics Rubric 20 15 10 Presentation Well-rehearsed with smooth delivery that holds audience attention. Rehearsed with fairly smooth delivery that holds audience attention most of the time. Delivery not smooth, Delivery not smooth but able to maintain and audience interest of the attention often lost. audience most of the time. Attractiveness Makes excellent use of font, color, graphics, effects, etc. to enhance the presentation. Makes good use of font, color, graphics, effects, etc. to enhance to presentation. Makes use of font, color, graphics, effects, etc. but occasionally these detract from the presentation content. Use of font, color, graphics, effects etc. but these often distract from the presentation content. Content Covers topic indepth with details and examples. Subject knowledge is excellent. Includes essential knowledge about the topic. Subject knowledge appears to be good. Includes essential information about the topic but there are 1-2 factual errors. Content is minimal OR there are several factual errors. Organization Content is well organized using headings or bulleted lists to group related material. Uses headings or bulleted lists to organize, but the overall organization of topics appears flawed. Content is logically organized for the most part. There was no clear or logical organizational structure, just lots of facts. Sources Source information collected for all graphics, facts and quotes. All documented in desired format. Source information collected for all graphics, facts and quotes. Most documented in desired format. Source information collected for graphics, facts and quotes, but not documented in desired format. Very little or no source information was collected CATEGORY 5 Total Points Earned ________ Copyright © Texas Education Agency, 2011. All rights reserved. 12