SRM 3147 Sport Event Management Midterm 2 Exam 2025

Purpose of budgeting - Correct Ans-Allows SEM to maximize revenue and spend wisely Three Budget Categories - Correct Ans-- Revenues (money generated into organization) - Expenses (money that flows out of sport event) - Net Income (difference between expenses and revenues) Types of Budgets - Correct Ans-- Preliminary (used as foundation, decide if event is financially viable) - Working (SEM collect revenues/spend, collect net income value) - Capital (separate for larger events with greater expenses) financial philosophies of a budget - Correct Ans-- Generate Profit - Break Even - Minimize Loss Budgeting Process Stages - Correct Ans-1. Gather Information 2. Forecast Sales 3. Project Profits and Losses 4. Compare Industry Norms 5. Determine Capital Needs Budgeting Process: Stage 1 (Gathering Information) - Correct Ans-Collection of Internal and External Information Budgeting Process: Stage 2 (Forecast Sales) - Correct Ans-- Examine internal documents to evaluate past performance - Examine external documents for opportunities and threats Budgeting Process: Stage 3 (Project Profits and Losses) - Correct Ans-- Formulate a budget - Utilize a scenario analysis Budgeting Process: Stage 4 (Compare Industry Norms) - Correct Ans-Comparison between internal estimates and industry data helps to determine where event stands in reference to competition Budgeting Process: Stage 5 (Determine Capital Needs) - Correct Ans-Large Capital Investment - General Obligation Bonds - Revenue Bonds Private Funding Options - Business or Private Donations - Sponsorships - Sports Commissions Budgeting Consideration- Contingency Fund - Correct Ans-Additional funds to cover unforeseen expenses Tips for developing a good budget - Correct Ans-- Research - Maximize revenue, control costs - Prepare for the unexpected - Conservative revenue estimates - Liberal cost estimates Financial Controls (ways SEM can take to be modest with revenue projections) - Correct Ans-- Outline who makes spending decisions - Utilize cost procurement procedures - Cost centers and reimbursements - Annual reports, budget revisions, and cash flow analysis - Value/Gift in kind - Scrip/Meal tickets (event currency) - Inventory Controls - Petty cash fund policy Types of Revenue - Correct Ans-- Tickets, registrations, and processing fees - Corporate hospitalities - Sponsorships - Merchandising and licensing - Concession sales - Souvenir program sales - Media rights (tv, radio, internet) - Transportation - Ancillary events - Grants - Private gifts Corporate Hospitality - Correct Ans-Events offer additional amenities not available to individual ticket holders Media Rights Revenues - Correct Ans-- Rights Fee - Time Buy - Barter - Syndication - Pay-per-view Types of Expenses - Correct Ans-- It takes money to make money - Venue/rental costs - Housing, accommodations, transportation and meals - Ceremonies/Expo - Event Operations - Marketing and creative - Insurance - Capital - Sponsor Fulfillment - Contingency fund Event Operations expenses include... - Correct Ans-- Production - Staff - Officials - Equipment Marketing Expenses include... - Correct Ans-- Advertising - Print - Photography - Website and Apps Marketing Definition - Correct Ans-The creation and maintenance of satisfying exchange relationships Marketing Strategy - Correct Ans-- Marketing activities that are planned and coordinated to help event reach goals - Identify population, target specific groups Marketing Plan - Correct Ans-Written plan of strategies outlining the way the business will operate to accomplish these strategies (identify action plan, outline evaluation) Unique Characteristics of Sport Event - Correct Ans-◦Intangible & Subjective ◦Inconsistent & Unpredictable ◦Simultaneously Produced & Consumed ◦Perishable, Must Be Pre-Sold ◦Consumer & Industrial Product ◦Incomparable in Emotional Attachment & Personal Identification ◦Often Enjoy Universal Appeal Promotional Mix - Correct Ans-◦Advertising ◦Public Relations ◦Publicity (Word-of-Mouth, Social Media) ◦Personal Selling / Direct Sales ◦Sales Promotions (Incentives) ◦Other (Sponsor Activation Programs, Licensing, Atmospherics) Marketing Price - Correct Ans-- Linked to the marketing concepts of value and exchange. ◦Value = perceived benefits of sport product / price of sports product - Arguably the most often and easily manipulated of the mix. - Linked with economic concepts such as supply, demand, elasticity, and fixed & variable costs. Mullin et al (2000) Eight Components of Place - Correct Ans-◦Accessibility ◦Amenities ◦Design / Layout ◦Parking ◦Drawing Radius ◦Personnel ◦Security ◦Surrounding Areas Consumer (Burrow, 2016) - Correct Ans-individuals who purchase products and services to satisfy needs. Consumer Personality and Motivation - Correct Ans-- Utilitarian: Functional, objective, tangible - Hedonic: Subjective emotions, belonging, action Consumer Decision Making Process - Correct Ans-Funk's (2008) sport consumer decision-making sequence Consumer Outcomes (can and will have impact on one another) - Correct Ans-Event managers hope for all of these consumer outcomes: ◦Purchase Intent (Event Attendance/Participation) ◦Return Intent ◦Consumer Satisfaction ◦Sponsorship Success ◦Event Brand Creation/ Awareness/ Modification What do spectators want from event? - Correct Ans-Fan Motivation ◦Internal drive that leads to behavior Funk & Colleagues (2009) Core Motivations ◦Socialization ◦Performance ◦Excitement ◦Esteem ◦Diversion Attracting Participants - Correct Ans-Solomon (2002) Suggests: ◦Events should be participant friendly. ◦Designed with the athlete in mind. Sport Event Brand Definition - Correct Ans-Aaker (1991) definition of a brand: ◦The combination of names, symbols, slogans, or logos that identifies a product and distinguishes it from other products. Levels of Brand Recognition - Correct Ans-◦Non-recognition (Consumer unaware of brand) ◦Recognition (Consumer can recall brand name) ◦Preference (Consumer values brand) ◦Insistence (Consumer picks this brand over others) Brand Creation - Correct Ans-- Understand Target Market / Consumer - Reflect Image of Sport & Governing Body - Appropriately Integrate Sponsors - Tell a Story Internal Environmental Analysis: 3 Cs - Correct Ans-◦Consumer ◦Company ◦Competition External Environmental Analysis: PEST - Correct Ans-◦Political ◦Economic ◦Social ◦Technological Market Segmentation - Correct Ans-How an event should be placed in relation to the competition based on environmental analysis Step 1: Segmentation - Correct Ans-the process of dividing a larger market into smaller pieces based on meaningful, shared characteristics (EX: demographic, community, age, product usage, etc) Bouchet et al.'s (2011) Four Sport Event Segment Behaviors: - Correct Ans-◦Opportunist (hope of receiving awards) ◦Aesthete (pleasure in aesthetic of sport) ◦Supporter (have a part in producing event) ◦Interactive (like being in a social environment) Step 2: Targeting - Correct Ans-Targeting evaluation criteria may include: ◦Profitability ◦Size ◦Reach ◦Behavioral Variation