Transcript Economics & Sports & Entertainment Marketing

Economics & Sports &
Entertainment Marketing
What is economics?
• Study of the choices and decisions that affect
making, distributing and using goods and
services.
Basic Economic Problem:
• Wants and needs are
unlimited
• Limited Resources
(natural resources,
capital, and equipment.
land)
Unlimited Wants & needs
+ Limited Resources
____________________
Scarcity
Example
Unlimited Wants/Needs
Limited Resources
What is scarce?

Lower Arena Basketball
Tickets

Thousands of fans
wants lower arena
tickets

# of lower arena seats

Tickets to games

Six Flags

As a customer you want
to ride every ride in the
park

Time – On a Saturday,
you may wait 2+ hours
for a ride

Time

Cardinal Kroger
Shopping

You want 3 cookies,
coke and Munchies

You only have $1.00

Money

Fantasy Football Draft

You wanted to draft
many high salaried
players

Only $65,000,000

Money
• BECAUSE OF SCARCITY, PEOPLE MUST MAKE
CHOICES!!!
• Consumers, Businesses & Sports Franchises
make choices based on VALUE.
• Value – using resources toward the greatest
satisfaction of wants and needs.
• Demand:
The relationship
between how much a
consumer purchases of
a product and the price
of the product.
• Law of Demand: When
the price of a product is
increased, less will be
demanded.
• Supply: Relationship
between the quantity of
a product that
producers provide and
the price of the
product.
• Law of Supply: When
the price of a product is
increased, more will be
produced.