SPTM Exam 2

Types of equity financing: Sale of stock

-Packers -when this happens, the stakeholder becomes a part owner of the organization -each stockholder has specific rights, including rights to dividends that are paid by the organization and the ability to vote on organizational issues -commonly used by corporations to generate funds, with limitations -issues arise for some franchises with this (the NFL, NBA, MLB and NHL currently have policies in place to discourage or prohibit this; this requires disclosure of a company's business practices to stockholders; sport stock is more a souvenir than an investment) -non-professional sport facilities also use of this -revenue from this can be used for capital projects

PSL's

-Personal Seat Licenses -traced back to 1871 in London's Royal Albert Hall (builders offered 999-year leases for 1200 of the 5500 seats to help finance construction, seat leases are now worth as much as 1.2 million pounds) -give the holder the ability to purchase a specific seat tin a stadium as long as the individual holds those rights (a paid license that affords the buyer the right to buy season tickets for a specific seat in a stadium, the license is transferable and seat rights may be sold to another person once the owner decides not to purchase season tickets) -go by various names, depending on the team or organization (charter seat licenses (Seahawks), charter ownership agreements (Bengals) -most popularity used by NFL teams (Cowboys have one worth $150000 JUST for the license to buy season tickets in this seat) -produce a significant amount of revenue to pay for stadium constriction costs

Feasibility studies for event marketing

-SWOT analysis (considering internal and external strengths and weaknesses of the event; allows the marketer to capitalize on strengths and opportunities while minimizing weaknesses and threats) -Breakeven analysis (what point the event needs to get to cover expenses and begin to be profitable)

Involvement

-a blend of the individual's interest in sport and the degree of importance that sport has on his or her life -high fan consumer involvement means sport consumes a person's life (season ticket holders, some fan groups, tattoos) -similarities to athletes with high involvement

Mastery factors

-a factor relating to the skill, learning, and personal challenge of participating in sport -more individual and autonomous motivation to skill development

Ticket sale strategies. Money-back guarantees

-agreements between the ticket seller and buyer that the buyer will receive a full refund if the event doest not meet their expectations or satisfactions -win-loss guarantee - if team loses, fans get a free ticket to the next game

Zero-based budgeting

-alternative -requires each line item be reviewed and approved, starts from a zero -managers must evaluate all spending decisions -allows managers to identify objectives, evaluate alternatives, evaluate alternative funding levels, evaluate workload, and establish priorities -forces managers to be involved

Event revenue

-alternative uses for sport-specific stadiums (outdoor vs indoor capacity, sports not traditionally hosted in these venues, cold months: ice rinks or hockey competitions) -hosting championships (renting facilities to high schools, other colleges, semi-pro, pro) -hospitality events (academic conferences, meetings, trade shows, birthday parties, weddings, etc, pricing packages)

Unique general admissions seating/standing room

-Cleveland's right field district -Standing room only sections -first come, first serve spaces

Tangibles

-easy to recognize -stadiums, sport facilities

Environmental impact analysis

-it is important to remember there is no such thing as zero impact -how is transportation handled? (greenhouse gas emissions) -how is trash handled? -renewable energy sources? -overuse? -recyclables/limiting plastics?

Social media marketing and branding for facilities and events

-provide helpful tips and tricks -having exclusive promos -host social media contest -if you're not comfortable doing this on your own, hire someone

Great KPIs

-social media engagement -attendee satisfaction -press and media coverage -actual attendance -monetary returns

Socialization

-the processes whereby individuals learn skills, traits, values, attitudes, norms, and knowledge associated with the performance of present or anticipated social roles

True or False. Sport Tourism is falling

False. Rising

True or False. ALL types of sport facilities CANNOT be profitable by providing the right services that make events viable and valuable revenue producers

False. They can be profitable

Post-consumption evaluation

experience, issues, challenges, or problems

Program budget

funds are allocated for specific programs or projects, making sure programs meet the organization's strategic goals

High identification =

less price sensitivity, less success sensitivity, loyalty

Motivating factors

organizational factors are elements that differentiate one event from another and influences a participant's motivation to attend an event

Loan interest rates

percentage of principle as interest...the higher the risk of the loan, the higher the interest rate

What are performance measurements used for?

performance measurements, or outcomes describing how well the organization is using inputs both internal and external to produce the desired output, can serve to evaluate the facility or event function

Purchase

the act of making a final selection

Loan maturity

the date the loan is paid in full, including both principle and interest

Commerce

the exchange of goods and services. Fans are exchanging their resources for the sport experience

Sponsorship

the exchange of something of value other than cash currency

How can this influence participation choices?

word of mouth

Environmental and destination factors

-an event is hosted can impact an individuals motivation to attend or participate in the event -destination attributes could be utilized to created consumer segments to enhance the effectiveness of destination marketing -accessibility is key -environmental needs must be met -spectator ease of transportation -topography - easy or difficult course? -timing of the event

How can you measure a legacy?

-benchmark approach -top-down approach -control-case approach -bottom-up approach

Benchmark approach

-benchmarking evaluates an event's legacy in which an event in one city is compared with another city to determine the impact -the same city can, instead, host the same event over time and compare -the same city can host different events and compare

Special tax bonds

-bonds secured by local taxes (bed, car, rental, sin) -constituents are not legally obligated to participate in these services or activities -burden falls primarily on tourists, not local people -Cuyahoga county, Cleveland, OH - $14 million/year in sin tax

General obligation bonds

-bonds that are secured by state and local governmental authority to levy income, property, or sales tax -backed by faith and credit of the government -frequently require voter approval of proposed tax increases -frequently used for public sport and recreation projects -government uses tax revenue to pay for bonds (income, property, sales)

The event marketing industry...and demand

-booming, and the reason for the surge is simple...Americans love events -from a sport perspective, Americans LOVE sports -Americans + Sports + Events = $$$

Customer Service is...

-boring -not exciting -often overlooked -easy to disregard -very important

Municipal bonds

-can only be issued by state or local government -issued for the purpose of financing capital projects -tax-exempt on interest received - why? They benefit the public -rates are lower than other bond rates -low taxes, in turn, reduces the cost of the project -pay interest to investors, usually twice a year. Repay the principle on the bond's maturity date. 1 to 3 years of short-term bonds and 10 years or more of long-term bonds. Considered low risk. Most individual bondholders do not sell during the life of the bond but those that do find that the price of the bond itself changes based on supply and demand in the open market -general obligation bonds make up 60% of this type of bond. Borrower must repay them using current tax revenue -remaining 40% are revenue bonds. The municipality repays those with proceeds from a specific source. These bonds pay for revenue-generating projects. That includes toll highways, sports arenas, or city-sponsored development. IF the revenue sources dry up, the municipality doesn't have to pay -third type of bonds are special tax bonds

Is hosting a large-scale sporting event a good move?

-community leaders often regard hosting a sporting event to be a spark needed for urban development -politicians have pursued hosting sport events as a platform to attract investors and tourists to "benefit" residents -the resulting impact of development and marketing of a large-scale sporting event could lead to sustainability and increased sport tourism, improved infrastructure, and the progression of a legacy...or it could not

Anciliary revenue

-concessions and food operations (gone are the days where stadiums can just have hot dogs and sodas; the stadium experience; venues have added chain restaurants and "famous" items; projected average gross food and beverage revenue at an NFL game is over $5 million; alcohol sales - worth the hassle) -parking (operate in-house or contract out

Pre-purchase evaluation

-considering alternatives -set criteria for rules to judge alternatives

Pricing

-consumers can be very price sensitive, or susceptible to variations in price. Marketers should be cautious when setting a pricing strategy -4 Cs of pricing (customer, competitor, company, climate)

The Customer Service Plan

-create a customer service vision -assess customer needs -recruit the right employees -set customer service goals -train, train, train, and train -hold people accountable -reward and recognize good service

Choreography

-customer service teams can get good at all the elements required to make their work look effortless, especially if they use data not only to react to troubleshooting and difficult questions but to identify trends and patterns that allow them to stay one step ahead of those issues. When that happens, customers tend to be shocked at how well-oiled their vendor's customer service machine is running

Coordination

-customer service teams may not have historically been known for an uncanny ability to know where their teammates are at just the right moment to set up just the right situation, but things are changing. With the right data and technology, cases are easily routed to the most knowledgeable agent or team member who can help get problems solved quickly. Manage that, and it'll be your customers erupting into a rousing cheer at the end

Types of Debt Financing: Bonds

-debt securities in which issuer owes the bondholder a designated amount. Payment, interest, and maturity date details are provided -funds from this issuance comes from a range of investors active in this market -it's a promise to pay back the amount borrowed, aka principle, plus interest -the investor holds this until maturity, or when the principle is due

Non-profit

-decision making is complicated by public -public sector organizations include governmental agencies that serve the public good. They do not have shareholders, but rather, are accountable to their stakeholders and must consider financial feasibility of the projects

Customer retention

-develop a brand that will stick with the consumer -create awareness about the products offered -generate consumer perceptions of identity and loyalty to the brand -differentiate the products and services from competitors -integrate marketing communications across platforms to ensure consumers receive the message of the brand

Sustainable tourism

-development of the infrastructure in the host community to generate a continual flow of tourist activity -each repeating event, then, requires less investments from the public and therefore reduces negative impacts -smaller events can bring about a sense of civic pride--residents often claim ownership of the event and are more likely to volunteer for events that are perceived to bring the community together -ex. Ironman

Types of equity financing: Gifts

-donations provided to an organization to finance a project that is tax deductible -under the US Federal tax code, individual who make gifts to nonprofit organizations receive a tax deduction equal to their donations (eligible nonprofit organization reduces the donor's adjusted gross income, therefore reducing the amount of federal income tax the donor pays)

Public-private partnership advantages

-each party contributes to the construction costs and additional resources -government-issued municipal bonds bring the cost down with lower interest rates and tax exemptions -the sports team, going forward, is able to maximize new revenue streams in a new facility and captured by team owners -common justifications for these subsides by the government are economic and noneconomic benefits (jobs created through construction and operations of the facility; economic benefits due to the presence of the facility; economic benefits of sport stadiums and events are often vastly overestimated)

Losing good employees

-external issues with customer service can lead to internal issues with employee retention -good employees often have to pick up the slack of poor employees -it is important to establish a strong culture of prioritizing effective customer service -sometimes that means terminating poor performing employees

Developing the marketing strategy and plan

-follow the mission and vision statements -sport events often include product extensions around the event...how can you develop effective product extensions?

The Meaning of Sport

-how an individual is introduced to sport has a lot to do with how sport impacts their commitment to being a consumer -often attached to an early age -building on motivations and factors that drive consumer decision-making prompts effective marketing, communication, and an enhanced consumer experience

Managing external operations

-impacting the host community (economically, environmentally, socially) -economic impact analysis (event management organizations use these studies to Gian public support) -listening to the people most affected and incorporating ideas/concerns

Flexibility in the industry

-increased costs, heightened expectations for quality and performance -even the most successful organizations cannot rest on your brand's identity and equity -customer interaction should lead to satisfaction, loyalty, and positive word of mouth, which leads to re-patronage

Budgeting approaches

-incremental budgeting -zero-based budgeting

Search for information

-internal vs external searches -informal communication with friends/family -formal communication with event/facility

National-level sponsorship

-involving interest of at least one, or possibly two countries -national TV coverage, traveling spectators, and not focused solely on the host city -companies sponsoring national events can reach more consumers than a regional or local sponsorship -high price -NBA finals, NCAA final four

Revenue bonds

-issued for a specific project and are secured through the project's revenues -no voter approval needed -those who derive the benefit from a project should bear the burden of tax payments...so taxes are paid on revenue bonds -difficult to forecast a project's revenue streams, so difficult to quantify, organizations can default if they do not meet estimated revenues off which they are borrowing -riskier than GO

Re-direction

-keep your eyes on the target -"sweeping" together is sometimes the only way that a certain defeat is avoided -customer service reps can get instantly notified about questions or complaints coming through non-traditional channels like social media, but still act in a way that's as timely as if someone phoned a contact center or walked in through the front door

Sources of revenue

-large-scale facilities, for instance, are not used every day for sporting events -it is necessary to understand the assets of the facility -thinking outside the box/considering multiple ways to utilize the space beyond the primary intended use

Regional-level sponsorship

-less reach and attention than a national event -still often very popular in their geographical region -sponsorships will likely be less expensive than a national-level sponsorship, but will still be relatively costly -professional teams, some DI college teams

The LAST method

-listen -apologize -solve -thank

Capital projects

-long-term investment project that increases the organization's assets -capital refers to the funds needed to finance the organization's assets -upfront costs like land acquisition, construction, and infrastructure development face sport organizations that want to build or renovate a facility -require large up-front cash availability to begin -over their lifetime this should generate value for an organization (estimating this value prior to beginning a capital project is key, managers can estimate present value of expected revenues, or cash inflows, as well as present value of expenses expected to be incurred (cash outflow))

Venue revenue. Ticket sales

-most common and direct way to ensure revenue from visitors -the gate receipt, or the sum of money received from ticket sales for an event, can be increased by offering visitors options when it comes to ticket sales (season tickets, or other ticket subscriptions, often costs less than individual or separate tickets and can be guarantee revenue) -ticket prices can be considerable investments, not just for professional sports (offering season tickets, or season passes, can serve as a way to discount the single-game face value of a seat and ensure a large portion of seats are sold)

Incremental budgeting

-most popular and traditional -based on previous year's allocation for line items -adjustments are made accordingly -changes are often scrutinized -easy, quick, and remains stable year to year -does not examine what you're spending on, not flexible, no incentive to cut costs

For-profit

-much more straightforward than non-profit structures to determine the value of a capital project -if present value of cash inflow is greater than present value of cash outflow, the project will increase the value of the firm

Lakepoint center

-multi-purpose fields -baseball fields -sand volleyball -wake park (cable wake facility) -station -filed for bankruptcy in June 2018 -$500k in assets but $50 million in liabilities -exited bankruptcy in December 2018

Decision-making process

-need recognition -search for information -pre-purchase evaluation -purchase -consumption -post-consumption evaluation -divestment

Need recognition

-needs: states of felt deprivation -wants: the form taken by human needs and shaped by culture and personality

Sports sponsorship is booming

-never before has more money been put into marketing with athletes, sports teams, or sporting events -in times of advertising message overloads, sport offers something extremely valuable: real emotions -in connections with the digital possibilities, enormous opportunities arise - for global players as well as small start-ups

Intangibles

-nonmaterial and more of a challenge to identify and measure -sociocultural development, goodwill

Managing internal operations

-obviously, financial measurement comes into play in this stage...it is unavoidable --outcomes used to determine how well the organization is contributing to the bottom line --ROI, debut vs equity ratio, gross profit --revenue growth and mix measurements: outcomes used to denote how well the organization is performing toward organizational objectives such as market share, increased markets, or expanding its revenue sources -Human Resources measurements: outcomes that allow the organization to better develop and understanding of an employee's perception of the organization

How to budget for facilities and events

-operating budgets -organization of financial information in operating budgets (line-item budget, program budget) -revenues and expense statement

Sponsorships and storytelling

-opportunity to run storytelling and content marketing - in times of information and advertising overload, this is especially attractive for brands -sport fans love good stories. If sponsors want to generate more than just attention for their brand, they must have exciting stories to tell -creativity is needed - but so is authenticity -even small events and organizations can utilize storytelling to reach their target market

Motivating factors for sport participants

-organization -user-friendly -challenging (but not too challenging - depends on the marketing) -scenic route/visibly pleasing space -easy to read signage -participants want to be treated as serious athletes -prize money -reputation

Equity financing

-ownership interest in an organization -sport facilities may pursue several forms of equity financing for capital projects (sale of stock, retained earnings, gifts, etc)

The ugly of PSLs

-owning one puts you first in line to purchase a ticket for any public event at the stadium in your particular seat - including NFL season tickets. By inventing an additional cost hoop for season ticket-holders to jump through, PSLs effectively shift the financial burden of stadium-building from the team onto the fans

Ticket sale strategies. Flexible ticket pricing

-partial season ticket plans (10-game, 5-game, etc.), priority to purchase postseason, include most popular games with least popular -holiday packages -voucher programs (10 tickets and pick from a list of home games) -family ticket plans: parking, food, bulk tickets, etc.

Escapism

-participating in an event or traveling to a facility to get away from routines and stresses of everyday life, but not necessarily away from others -stringer among older sport participants, particularly in endurance sports like running, cycling, and triathlon

15 qualities of effective customer service

-patience -attentiveness -effective communication -product knowledge -positive language -acting skills -time management -ability to read customers -calming presence -goal-oriented focus -ability to handle surprises -persuasion skills -tenacity -closing ability -willingness to learn

Loyalty programs

-popular for marketers to develop patrons who exhibit brand loyalty -almost every company has this -12th man team rewards (Texas A&M) - fans get gifts from the athletics department if they attend a certain number of games -Sooner rewards: When Oklahoma scans a basketball ticket at a home game this season, data from that ticket holder will be added to the fan's rewards points. Certain behavior, such as showing up an hour before tipoff, merits bonus points. Points can be turned in for rewards that include experiences, such as being on the football field when the team runs out, dinner with a coach, or concession credits

Differentiation

-positioning a product in the minds of the consumer by highlighting the important attributes and benefits -contrasting key features of the product -grabbing the unoccupied (filling a gap that competition has not yet secured) -repositioning the product to enhance perception -creating exclusivity -ex. Spartan race

KPIs

-provide a yardstick by which to measure your event's success after everything is over -having the right event metrics can help you fine-tune marketing, improve sales and increase attendance turnout -registrations (how to sign up) -attendance (how many attend) -attendee feedback (always send a feedback survey) -brand impressions (social media monitoring) -new customers (how many of those leads generated translated into new customers)

Emotions

-psychological, emotional components to hosting an event can add to civic pride and identification -networks, or local organizations, need to war together and support one another for a successful event -culture includes the creation, development, enhancement, promotion of local ideas, identity, and products

Ticket sale strategies. Differential pricing

-quality: reputation, strength, and draw of the opponent -time: the day of the week, time of day, part of the season -place: location of the seat

Common types of bonds

-reimbursable revenue bonds -municipal bonds (general obligation, revenue, private)

Customer satisfaction

-reliability (the ability to perform the promised service dependably and accurately) -tangibles (the appearance of physical facilities, equipment, personnel, and communications materials) -responsiveness (the willingness to help customers and to provide prompt service) -assurance (the knowledge and courtesy of employees and their ability to convey trust and confidence) -empathy (the provision of caring, individualized attention to customers)

Types of equity financing: Retained earnings

-revenues generated by a sport organization that are reinvested to finance improvements and additions -quite simply, they are earnings that are retained by the sport organization instead of being paid as dividends to stockholders -sport organizations use this to fund capital projects -nonprofit organizations do not distribute earnings through dividend payments, and therefore, all excess earnings are retained and reinvested into the organization to expand -the organization does maintain control of how the funds are used

Ticket sale strategies. Web-based tickets/electronic ticket delivery

-secondary ticket markets (if you can't beat them, join them), stub hub is the official secondary ticket sales market of the MLB, just added NFL in 2019; ticketmasker is the official secondary ticket market for NBA, NHL -ticket exchanges for season ticket holders -FlashSeats - no tickets to forget, all based on a credit card, phone, QR code, etc.

Multipurpose sport facilities

-seek to draw local, regional, and national events -spooky nook (food court, hotel, rock climbing, party spaces, video games, etc) -participatory events (many appeal to athletes or individuals motivated by health, participants are looking to win money, individual vs team participatory events (dynamic pricing strategies 0 the earlier the registration, the cheaper the registration), not just from athletes/competitors...events make money from trade shows, the public, and more -niche events, like tough mudder -crossfit games (gate fees)

Social factors

-sense of belonging, or membership, to a wider social group -traditional demographic groups -sport has to power to break those walls -social world of the sport overpowers other social roles -community promotion at events can drive social acceptance -social interaction is an intrinsic factor that drives a person to an event

Measuring the consumer experience

-service quality refers to the consumer's overall impression of the relative inferiority/superiority of the organization and its services -the scale of service quality in recreational sports (SSQRS) --program quality --interaction quality --outcome quality --physical environment --measurement of overall customer satisfaction -develop stronger customer segmentations -differentiate through strong customer relationships

Image

-sport events can produce symbolic meaning, lead change, or establish an image -positive imagery is obviously preferred; often, however, people remember the bad over the good -Montreal Olympic Games -- image a debt and incomplete arenas -sometimes, however, positive images can serve as a way to change the city's image overall if executed correctly

Types of Debt Financing: Loans

-sport organizations commonly borrow money through loans, and any organization can pursue loan financing (loan interest rates, loan maturity, prepayment provisions) -professional sport leagues have this options that are often better/have lower interest rates than an individual team could secure...benefits stability of the leagues (the NFL has a "stadium construction support" fund allowing teams to borrow up to $250 million, teams can borrow for as low a rate as 1.5%; the NBA offers up to $325 million in debt financing to teams

Building relationships

-take the time to understand consumers and learn how to attract them -social media (create content that is easily shared by others, people are attracted to videos and photos, promote your social media platforms) -relationship marketing -data-based marketing (DBM) -purchase transitions (what was purchased, how much was purchased, how often) -key relationships (fam, friends) -frequency of attendance (key dates attended, popular reasons for attending, etc) -notes on previous interactions -personal info - favorite teams or sports, birthday, etc -results of any customer surveys -info on marketing materials (address, email, calls, etc)

Relationship building

-takes time and effort -some cases, not business is discussed -build as organically as possible to understand how to better serve customers

Components of a legacy

-tangible vs intangible -London 2012 --economic (new jobs and skills, encouraging trade, inward investment and tourism) --sporting (continuing elite success, development of more sports facilities and encouraging participation in schools sports and wider) --social and volunteering (inspiring others to volunteer and encouraging social change) --regeneration (reuse of venues, new homes, improved transportation, in East London and at other sites across the UK

Socialization via sport

-the acquisition of attitudes, values, and knowledge as a consequence of sport involvement -the prevalent attitudes and values of teams, coaches, and clubs -ex. you were coached by a coach who is strict and autocratic, you may think this is the best way

Cognitive involvement

-the acquisition of information/knowledge about a sport -seeking information through media as well as attending seminars or trade shows -researching statistics of your favorite team

Behavioral involvement

-the action one takes in sport, whether as a participant or spectator -highly involved individuals tend to feel more deeply about sport and are more likely to devote more time and money -following your favorite team to a bowl game

Segmentation

-the breaking of consumers into smaller clusters, or groups, identified by certain characteristics rather than attempting to sell to everyone -consumers are heterogeneous. everyone is different -the target market is the consumer most likely to purchase the product or service

Leanring factors

-the desire to learn about or explore a facility or destination -enhance learning and exploring -fans/consumers are also driven by a sense to acquire knowledge and information about organizations or charities

Emotional involvement

-the effect a sport event produces in the individual -attitudes, feelings, and emotions an individual associates to the sport -a baseball fan breaking down after their team loses

Emotional factors

-the excitement, enjoyment, and self-fulfillment individuals gain from participating in sport -escapism -traveling for sport can drive nostalgia -thrill seekers

Competitive factors

-the factors that motivate a person to enter into a rivalry or event in order to measure ability in relation to another person or standard -motivation is linked to ability to challenge one's self -facility owners, in turn, have had to enhance courses, slopes, and courts to provide consumers quality and challenge -mastery factors

Event legacy

-the focus of events is on the impact of the community within which it exists -investments toward hosting an event have become important to the community -event organizers are responsible for utilizing sport events for the long-term development of a host community

Socialization out of sport

-the influences that contribute to an individual discontinuing his or her sport participation -the prevalent attitudes and values of family, peers, and sport -ex. friends or family do not value sport and influence an athlete to leave the sport

Commitment

-the more an individual is involved in sport, the greater the commitment of the individual -commitment is the frequency, duration, and intensity of attachment to sport -willingness to spend time, money and energy

Identification

-the more highly identified the person, the more central that identity becomes to that individual -sport identification -team identification -high identification

Local-level sponsorship

-the narrowest geographic focus for a sponsorship -usually appeal to a specific segment in the area -media coverage, if any, is confined to local sources -a sponsor may wish to invest in the event to make a more visible local impact -recreational and leisure can be considered local

Sport Event Sizes

-the size of the sporting event impacts the host community, spectators, and participants -do events with larger attendance numbers have the greatest legacies? Not always, but often -debt?

Socialization into sport

-the social and psychological influences that shape an individual's initial attraction to sport -the prevalent attitudes and values within the family or peer group -ex. raised to think you should only play sport to win, and it is highly competitive

Infrastructure

-the sport facilities and subsequent surrounding areas needed for training and competition -depending on the size of the event, this may include improvements and developments to transportation (airports, roads, etc) as well asl housing, media, and other facilities (entertainment, parks, etc) -plans are necessary for infrastructure after the event

Why are measurement and evaluation important?

-to identify and solve problems -to fins ways to improve management -to determine the value of the facility or event -to measure success or failure -to identify and measure impact -to satisfy sponsors and other stakeholders -to gain acceptance, credibility, and support

IOC 3 reasons for generating a positive legacy

-to prevent the host community from criticizing the organizers of the event for any potential shortcomings -to substantiate the use of public resources for the potential sport-event-related infrastructures -to stimulate interest for the community and/or surrounding communities to host future events, helping to ensure they continuity of the event

Economic impact analysis

-used to measure the effect of a facility or event on the local community -measure the organization's ability to generate new revenue for the host city, increase impact on the individual level income within he city, or produce new jobs within the city -visitor surveys

How to accurately measure performance

-vary data sources --illustrations --communications --measure various stakeholders' opinions --vary data collection techniques ----qualitative ----quantitative

Debt financing

-when an organization increases its liabilities -this means borrowing money in order to acquire an asset. Financing with debt is referred to as financial leverage -using debt financing allows the existing stockholders to maintain their percentage of ownership, since no new stock is being issued. But...additional debt adds risk -this often comes with Stricklands conditions regarding interest and principle payments, maintaining certain financial ratios, etc -failure to meet conditions can result in severe consequences

Capital campaigns

-when gifts are solicited specifically for facility development, they are part of the organization's capital campaign -this can support different types of organizations with different missions, different aims, and different levels of capital needed -they're focused on acquisition, development, and renovation of facilities

Damaged reputation

-you will never satisfy 100% of your customers -control what you can control, prepare for what you cannot -customers rely on reviews -customers can be forgiving if the organization works to fix the issue

True or False. Public parks, fields, and roads aren't able to provide venues for physical activity events

False. They can provide venues

True or False. Arenas, stadiums, convention centers, multipurpose facilities, event-specific venues, and others can produce locations for sporting events

True

True or False. Customer service reps jump through hoops, put out fires, and sprint their way to overcoming major problems that come into call centers, via email, through social media, etc.

True

True or False. Sport facilities and events provide owners, operators, managers, and others connected (aka - stakeholders!) the opportunity to generate revenue through many forms

True

Data-based marketing (DBM)

a comprehensive system that captures critical demographics, psychographics, media use, and purchase behavior on customers and potential customers to enable direct marketing strategies

Customer Service

a series of activities designed to enhance the level of customer satisfaction, or the feeling that a product or service has met the customer expectation

Reimbursable revenue bonds

a tax-exempting bond that proceeds of which are allocated to prior expenditures originally paid from sources other than bond proceeds. This results in the proceeds being treated as spend for the government purpose of the original expenditures even though the actual moneys are used to replenish the funds originally used to pay the expenditures

Consumption

active use of the product or service

Operating budgets

activities that are ongoing and necessary to maintain the current capabilities of the organization to produce, sell, and service its core products and service provided to the customer base. This authorize the funds that are necessary for day-to-day operations of the facility. Many items vary based on the event

Competitor

analyze how the consumer perceives the value of the product

Customer

analyze the customer profile characteristics to determine pricing strategies

Climate

analyze the external factors that can impact cost

Company

analyze the production costs (breakeven)

Demographics

based on age, gender, ethnicity, education, income, socioeconomic status, profession location, religion, etc.

Psychographics

based on interests, beliefs, and attitudes

Revenues and expense statement

commonly used by governments and can be used to create an income statement

Going above and beyond

customers will look at an organization that bends over backwards to ensure they have a great experience. This not only includes after-sale support, but the entire process - from discovering a product to the sale and beyond. Not every company does it, but when they do, customers are quick to applaud

Divestment

disposal and removal of the items associated with consuming

Prepayment provisions

establish if/what penalties are and if they'll be charged if the recipient of the loan pays off the amount earlier than the date of maturity

Bottom-up approach

evaluation legacy by gauging relevant changes to infrastructures and in host city by considering potential, long-term developments

Control-case approach

evaluation the event's legacy by comparing infrastructure developments that a city incurs as a result of hosting to the potential alternatives without the event

Top-down approach

isolating and evaluating an event's legacy that compares the economic indicators of the event with the same indicators of the host city if the event had not taken place

Levels of Sponsorship

national, regional, local

How are factors perceived by the attendee?

reputation

Line-item budget

revenues and expenses are broken down into specific categories, with revenues and expenses limits listed for each category

How well can the organization stage the event?

reviews of former participants/consumers

Relationship marketing

seeing to develop and maintain relationships with customers while using information gathered from them to attract new customers. The relationship emphasized over the traction

Consumption Factors

socialization, involvement, commitment

What are legacies?

the lasting direct and/or indirect effects, both material and non-material, generated from hosting an event that may positively or negatively impact the community

Flexibility

when you empower customers to solve their own problems through self-service portals and chatbots, instead of falling back on the same old answers to FAQs and workarounds, customers may wind up discovering entirely new ways to get over obstacles - and they'll feel more empowered as they do so

Threats. Bad weather will derail your music festival

you've found a "rain or shine" venue where the show can go until lightning strikes. And if that happens, your PR teams knows how to handle the fallout

Threats. Another event will provide competition

you've got a rockstar marketing plan in place and will lock in your majority audience with early bird ticket sales

Threats. You won't find enough sponsors to cover the cost

your budget has some "optional" line items you can drop if the expense isn't covered. But you also have an aggressive plan to approach impressive sponsors