Chapter 3

Industry SegmentsChapter 3SPORTS & ENTERTAINMENT INDUSTRYIndustry a group of organizations involved in producing or handling the same product or type of services.Industries may be further defined by subdivisions. Example: Division = MusicSubdivisions = Country, rock, R&B, jazz, rapIndustriesHotel Industry Subdivisions Full service, limited service, economy, extended stay

College Sports IndustrySubdivisionsFootball, wrestling, lacrosse, tennis, etc.

Racing Car IndustryStock carNASCAR

Television Industry?????????Industry Standards & TrendsIndustry standards the guidelines and goals set for different entertainment industriesResearch is done to determine an industry norm, or the average expectation within the industry.Hotel Industry standardsClean, nicely furnished room Swimming poolFitness centerRoom serviceInternet connectivity

Industry Standards & Trends cont.-Industry norms provide examples of what to expect for attendance, revenue, length of events and other important factors for sports and entertainment plannersExamples of Industry Norms the average attendance at state fair or home college football gamethe average cost for a 3-day sports campthe average salary for a professional athlete

Industry trends showthe latest demand for sports/entertainment.consumer response to sports/entertainment.their relative growth or decline over time.ExamplesCollected data over time may show an trend of growing attendance at NASCAR events.Pro and collegiate sports industries are concerned with the trend of young children showing less interest in organized sports than children of previous generations.(Marketing plans are often based on trends.)

Marketing Decisions for an IndustryDecisions are based on upon industry standards, norms, and trends.Entrepreneurs planning a basketball camp would checkindustry standards to determine what should be taught at the camp and the amount of liability insurance to cover possible injuries.

industry norms might include # of days, price charged, maximum enrollment, average revenue from related sponsors.

Sports camp trends could include popularity of a particular camp, best time of year, and most effective advertising for the camp.Television IndustryConstantly searches for programming that will produce higher viewer ratings.

Reality TV, makeover shows, and talent search programs have replaced more expensive sitcoms and traditional programs.Ordinary people dont demand the millions of dollars required for celebrities.

Networks are constantly trying new methods to reach viewers through the Internet, video iPods, and on demand services.