ࡱ> jlghi'` }bjbjLULU 7V.?.?\u>    d d d  "8Vv.,&(%%%%%%%$'hD*8%d l""%  n%WWWB 8d %W%WWFL d  rPߵT_L %0,&Kt|*T|*|*d "ҳW%%5",&v.v.v.DGud7v.v.v.ux , r        Warm-Up: Will review results of Grammy Awards and see how the class how successful the class was when submitting their ballots on Friday. Activity 1: Student will view notes and powerpoint slides on 3.01 to obtain information to complete the matching exercise below. Govt answers 3 basic economic questions____Command economy (Govt is in charge - in command)Ex. Of a communist economy____CubaTrying to meet customers' demand with ltd. Supply of goods - study of:____economics Degree to which demand for a product is affected by its price____elasticityLauren needs mouthpiece, softball glove, etc to play softball____ex. Of economic goods (someone made $$'s by producing)Conversion of wood into a bat so that it can be sold____formEx. Of a socialist economy____GermanyWhen a product is a necessity (gasoline, baby's formula) demand is____inelasticEconomic principle stating that supply increases when demand is great____Law of Supply & DemandWhat type of economy is the U.S.____Market (buyers control production increases/decreases)Having a product located where someone can buy it____placeExchanging a product for monetary value____PossessionAll materials used to produce goods/services____resourcesVendor does not have enough videos to satisfy customers____scarcityFamily going to see Lion King at DPAC - ex. Of____service (you cannot touch a play or a ballgame)H.S. student earns money painting faces at Bulls Stadium____Student is an entrepreneurAn economic system based on the way things have always been____traditional (Amish)would prefer to buy DVD____when prices are low Activity 2: The Heatwave of 2003 During the summer of 2003, the UK experienced record temperatures as a heatwave swept across the country. The hot weather encouraged people to visit coastal regions for the weekend, to take short break holidays in the UK rather than abroad and to get outside to enjoy the sunny weather. Such a scenario is likely to have an impact on the demand and supply of a number of different items. Look at the items below: Ice creams Beer Wheat Hotel rooms Lettuce Explain what you think is likely to happen to the demand and the supply of these items. What would you expect to happen to the price of these items? Explain your answer fully. Pg 1 Activity 3: Valentine's Day and the demand for roses Fill in the blanks below with the group of words supplied. A day of love, romance, and of course, the market process. On 2/14 romantics across the U.S.and Canada, Mexico, Australia, New Zealand and much of Europewill buy bought roses for their sweethearts. A beautiful gift, roses are. Pricey too, especially on Valentine's Day. Nationwide, rose prices are often 1. _________ on Valentine's Day from what they are on most other days of the year. Why are rose prices so high on Valentine's Day? Ask the loversthe consumersand they'll say it's the florists. Ask the florists, and they'll say it's the wholesalers. Ask the wholesalers, and they'll say it's the growers. Ask the growers, and they'll say it's the costs. The real reason? It's the 2. _____________. The growers make a case that sounds convincing. They point out that consumers have some rather exacting preferences when it comes to roses. More than 60 percent of the roses Americans buy during the year are for three days: Valentine's Day, 3. ____________ and Christmas. Valentine's Day is the most popular rose day of all. It typically accounts for 25 to 30 percent of a rose grower's annual sales. Just how many roses do Americans buy on Valentine's Day? On Valentine's Day 2002, they bought 4. _____________. Getting 130 million roses to the market for one day is neither easy nor cheap, say the growers. Roses can't be cranked out like 5.__________ or oil changes. Roses require time, care, 6.________ and sunlight. Most of the roses on the market are grown in 7.___________. According to Roses Incorporated, a rose growers trade association, commercial rose growers in the U.S. operate nearly 900 acres of greenhouse area at a capital investment of about $1 million per acre. In summer, a greenhouse can grow a rose in about 8.________ days. But in the cold, dark months of December, January, and February it takes between 50 and 9.________ days to grow a rose. Keeping the Valentine's Day rose crop warm while it grows requires a lot of heat. So much that the winter heating bills of large, California greenhouses typically exceed $ 10. __________ a month. And the production logistics are daunting. At the same time growers are filling the Christmas season demand, they must gear up to produce a huge Valentine's Day crop. The distribution logistics are no less daunting. The timing must be 11. ___________. Growers and wholesalers must get the rose crop to 26,000 florists and 23,000 supermarkets within 12. _________ days of Valentine's Day. Any sooner is too early, for the roses may perish. Any later is too late. Not many people buy roses the day after Valentine's Day. No question about it, the obstacles that rose growers must surmount to get more than one hundred million roses to the market for one day are 13.___________. But let's get cause and effect straight. On Valentine's Day, rose prices are high not because 14. __________ costs are high. Rather, production costs are high because rose prices are high, and rose prices are high because romantic consumers have a gigantic demand for roses on Valentine's Day. The gigantic demand for roses creates a gigantic demand for the land, labor and capital that are used to grow roses. Rose prices rise, and the cost of growing roses follows suit. Producers can only pay these costs so long as 15. _____________ are willing to pay the price. Consumers are sovereign on Valentine's Day. Just as they are on every other day. WORDS: Consumers Consumers Double Five Greenhouses Hamburgers Mother's Day 130 million Perfect Production Seventy Substantial Thirty Warmth 200,000 DISCUSSION Show students what a supply and demand chart looks like for roses on Valentines Day. Pg. 2 DAY TWO 2-14-12 Warm-Up You are in charge of the entertainment at a wedding reception. During the 2 hour event - there will be 10 romantic songs the performer(s) will sing that should include the top 10 romantic songs of all time as you will have grandparents attending down to small children. Remember - most grandparents are not that into hip-hop and rapping. You can save that until they leave. List your 10 songs and artist if known: Notes: Factors that affect the elasticity of demand Availability of substitutes. If a substitute is easily obtainable, demand becomes more elastic. For example, Walt Disney World, SeaWorld Orlando, Universal Studios Orlando, and Busch Gardens Tampa. Brand loyalty. Many customers will only purchase a certain brand of products. In general, they will accept no substitutes. In this situation, demand becomes inelastic. For example, fans of the Terry Labonte #5 Kelloggs Chevrolet Monte Carlo may be more likely to purchase Kelloggs brand breakfast cereals over any other brand. Price relative to income. When an increase in the price of a good or service does not have a major impact on a customers budget, the demand is usually inelastic. When an increase in the price of a good or service has a major impact on a customers budget, the customer most likely will no longer buy a product. In this case, the demand is elastic. For example, luxury suites versus general admission. Luxury vs. necessity (want vs. need). When a product is a necessity, demand is usually inelastic. When a product is a luxury, demand is most likely to be elastic. For example, season tickets to N.C. State football versus gas for your vehicle. Urgency of purchase. If a purchase must be made immediately, demand tends to be inelastic. For example, front row tickets to Jimmy Buffetts last concert. Activity 1: Student will use the notes above to complete the following exercise. Elasticity is a noun. The adjective form, "elastic," means something is highly responsive to changes in something else. For example, elastic demand means that the quantity demanded changes a lot when the price changes. Inelastic demand means that the quantity demanded does not change much when the price changes Read the examples below and determine if you think the demand is inelastic or elastic. 1. An unconscious bleeding man is brought to an emergency room: 2. A family has a high-deductible health insurance policy. The effect is that the family pays for primary care office visits out of pocket. Now, one of their children has an earache. What would their demand be like for an office visit to get this checked out? 3. In general, if the decision-maker has an incentive to spend less on some product and if there is an adequate substitute for that product, then demand is more ... 4. John lives in NYC and as is typical does not own a car. He rides the subway back and forth to work. The city of NYC has announced a 10% increase in subway fares - is his demand elastic or inelastic? 5. Mary has a six-month-old baby who requires a special brand of formula due to the baby's life-threatening allergies. Is the demand for the formula elastic or inelastic? Pg. 3 Activity 2: Visit dpac.com and view the calendar of the upcoming events. It is your job to find a performance to recommend to the following groups of people. Why do you think some groups are sell-outs and others not? How does that effect what you should expect to pay to attend the performance? Provide Name of show/performer(s) - Date - Time - price range of tickets - and why you chose this particular performance. Group 1 - Family of 4 - youngest child is 10. Group 2 - Retired couple. Group 3 - Young married couple - no children. Group 4 - Reunion of Class of 2002 NC Central Law School - 50 people have signed up for this event. Group 5 - 20 Members of a Red Hat Society Group attending an event. DISCUSSION DAY THREE 2-15-12 Warm-Up Guess who you think are the 5 highest paid athletes (don't cheat and look it up!!!) Guess who you think are the 5 highest paid entertainers. Activity 1: Student will use 3.01 notes and ppt. slides to complete the matching activity below: AEconomic slowdownDepressionBProduction of concert mdse. decreasesDepressionCHighest period of economic growthProsperityDIncreased consumer spendingProsperityEPoverty can resultProsperityFReduced unemploymentProsperityGGradual increase in leisure time activitiesProsperityHLowest point of attendance in leisure activitiesRecessionIRise in unemploymentRecessionJBeach Boys schedule come-back tourRecessionKRolling Stones take year off from touringRecessionLRed Box rentals increaseRecessionMDuke Blue Devils msde. Sells at an all-time highRecoveryNDPAC has season of most sell-outs everRecoveryOLow employmentRecovery Activity 2: Students take a closer look at the music of the Great Depression. Ms. Herman will divide the students into four groups. Students will read and analyze the lyrics of one of 4 songs assigned to their group. Next, students will compose their own lyrics that reflect today's important issues. The four songs: Brother Can You Spare a Dime; White House Blues; The Rich Man and the Poor Man; and No Depression in Heaven The group is to answer the following questions: Pg. 4 1. What is the author of this song writing about? 2. What feelings and/or opinions is the singer describing? 3. Does this song seem to resemble progress or decline? 4. What are some examples of songs we hear today that express political and/ or social feelings? 5. When you finish, on a separate sheet of paper, work with your group to write lyrics about an issue affecting you personally or your country today. Group to agree on one topic. GROUP TO SHARE LYRICS - CAN SING, RECITE, ETC. Notes on 3.01: A.. Explain economics and identify basic economic resources. Economics is the study of how to meet unlimited wants and needs of a society with its limited resources. Resources include all things used in producing goods and services. Economic resources are land, labor, and capital resources that can be used to produce the goods and services that people consume. Land, also known as a natural resource, includes everything contained in the earth and found in the sea. Labor, also known as human resources, includes all workers in the economy, including full- and part-time workers, managers, public employees, and professional people. Capital includes the money needed to start and operate a business, as well as goods used in the production of other goods. Capital resources can be limited because they deteriorate through use or are of poor quality. For example, machinery such as an oven at a pizza restaurant. Scarcity is a condition in which more goods and services are desired than are available. Scarcity forces people, businesses and nations to make choices. Unlimited wants with limited resources results in scarcity. Economic goods are tangible items. For example, a television or baseball bat. Economic services are intangible. For example, going to a play or attending a baseball game. Entrepreneurship incorporates the skills of people who are willing to take the risk of starting their own business. Entrepreneurs organize economic resources in order to create goods and/or services needed and desired in an economy. B. Describe the five economic utilities. Utility refers to the added value or usefulness of a product. Five types of economic utility. Form utility is the value added by changing raw materials or putting parts together to make them more useful. For example, wood for a baseball bat. Place utility is the value added by having a product where customers can buy it. For example, selling movie tickets at the movie theatre. Time utility is the value added by having a product at a certain time of year or a convenient time of day. For example, selling lemonade at the Verizon Amphitheatre for a concert in the summer. Possession utility is the value added by exchanging a product for some monetary value. For example, a consumer pays $25 for a t-shirt at a concert. Information utility is the value added by communicating with the consumer. For example, visiting the Meymandi Concert Hall website ( HYPERLINK "http://www.meymandi.org" www.meymandi.org) to find out information about upcoming events. Discuss the three basic economic questions and the role of the government of each system. The three basic economic questions are: What goods and services should be produced? How should the goods and services be produced? For whom should the goods and services be produced? In a market economy, there is little government involvement in answering the three basic economic questions; the market answers them. Consumers decide what should be produced. Businesses decide how products will be produced. The people who have the money to purchase products determine who will receive them. In a command economy, the government answers the three basic economic questions. The government officials or leaders decide what should be produced. The government runs the businesses and employs the workers. The government also decides who will receive products. Pg. 5 In a traditional economy, the system is based on the ways things have always been done. For example, the Amish community and Indian Reservations. Mixed economies are not pure market systems, nor are they completely controlled by the government. They are a mix, or blend, of the two. All economies presently are mixed economies. Capitalism. The people elect the government officials who represent their constituents interests. For example, the United States and Japan. Socialism. Although most socialist countries are democratic, the socialist economy has increased government involvement. The government tries to reduce the differences between the rich and the poor. The socialist model is based on the welfare of the people. For example, France, Germany, and Great Britain. Communism. Communist countries have a government that is run by one political party and that party controls everything. People are assigned jobs. Students are told what type of schooling they will receive. For example, Cuba and North Korea. D. Explain supply and demand. Supply is the amount of goods producers are willing and able to produce and sell at a given price during a certain period of time. Producers prefer to supply when the price is high; this is known as a sellers market. Demand is a consumers willingness and ability to buy products at a given price during a certain period of time. Consumers prefer to buy when the price is low; this is known as a buyers market. The Law of Supply and Demand is an economic principle that states the supply of a good or service will increase when demand is great and decrease when demand is low. Elasticity is the degree to which demand for a product is affected by its price. For example, when the price of a Tampa Bay Buccaneers authentic jersey rises by 10% the quantity demanded falls by 26%. Demand is price sensitive. Elastic demand refers to how changes in the price of a product affect demand for that product. For example, when the price of a CD is reduced, demand may increase. Inelastic demand refers to a condition in the market where changes in the price of a product have very little affect on the demand for that product. For example, some people might be willing to pay any price for Super Bowl tickets. Luxury vs. necessity (want vs. need). When a product is a necessity, demand is usually inelastic. When a product is a luxury, demand is most likely to be elastic. For example, season tickets to N.C. State football versus gas for your vehicle. Urgency of purchase. If a purchase must be made immediately, demand tends to be inelastic. Identify the phases of a business cycle and the impact of each on the sports and entertainment industry. The business cycle is the movement of an economy through four recurring phases prosperity, recession, depression, and recovery. Explain the phases of a business cycle. Prosperity (Peak) Highest period of economic growth Low unemployment High output of goods and services High consumer spending Increased attendance and purchasing of related merchandise Recession Economic slowdown Rise in unemployment Production slows down Decrease in consumer spending Decrease in attendance and purchasing of related merchandise Depression (Trough) Prolonged recession Extremely low consumer spending High unemployment Drastic decrease in production of products Poverty can result Lowest point of attendance and few related items are purchased Pg. 6 Recovery Renewed economic growth and an increase in output of goods and services Reduced unemployment Increased consumer spending Moderate business expansion Gradual increase in leisure time activities and purchase of related merchandise DAY FOUR 2-16-12 Warm-Up Use Quia exercises activities related to 3.01 to warm-up with. Notes: OBJECTIVE: 3.02 Explain the role of competition Explain the role of competition. Competition is a rivalry between two or more businesses to gain as much of the total market sales or customer acceptance as possible. Competition helps to maintain reasonable prices, and to provide consumers with new and improved products. Competition results in a wide selection of products from which to choose. Competition forces businesses to operate efficiently. Identify the differences between direct and indirect competition, price and non-price competition, and monopolies. Direct competition involves two or more companies that utilize the same type of business format. For example, JaRule versus JayZ and Coke versus Pepsi. Indirect competition is between two or more retailers that employ different types of business formats to sell the same type of goods. For example, playing Putt-Putt versus an 18 hole golf course. Price competition focuses on the selling price of a product. Consumers prefer to buy the products that are lowest in price. For example, buying athletic shoes at Foot Locker versus purchasing from Eastbay catalog. Non-price competition is based on factors that are not related to price. Non-price competition includes the quality of products, customer services, business location, business reputation, and the qualifications of the salespeople. For example, the price of tickets for the Super Bowl versus purchasing tickets for a losing team. Monopolies exist when one company has exclusive control over a product or the means of producing it. Monopolies are prohibited under the free enterprise system, the United States Government allows an exception if it is wasteful to have more than one company. For example, there is only one NFL team per area. Discuss profit and loss as they relate to the sports and entertainment marketing industry. Profit is the money earned from conducting business after all costs and expenses have been paid. Profit for many businesses is 1-5% of sales. Ninety-five to ninety-nine percent of the selling price goes to pay costs, expenses and business taxes. Loss is a decrease in a potential profit. Risk is the potential for loss or failure. Risk management discusses how to effectively manage losses due to risk. Identify sources of revenue and expenditures of sports and entertainment marketing. Sources of revenue Admissions Food & beverage sales Parking Merchandise sales Sponsorships Naming rights Sources of expenditures Performer fees Rental or leasing of facilities Advertising Incentives or in-game promotions Food & beverage services Pg. 7 Security staff Students will use notes and ppt slides on 3.02 to complete the following exercise Activity 1: What is competition in the marketplace? Competition among buyers can happen when there is more than one business selling the same or similar item. They are competing for customers. Competition can also happen when there is one business, but many customers competing to get limited goods. In this lesson, we will learn about competition among businesses. These businesses have to convince customers to buy their items. Customers get to make a choice about where to spend their money. That is competition in the marketplace. STUDENTS WILL Understand that competition takes place when there are many buyers and sellers of similar products. Identify competing businesses in their community. Understand that competition among sellers results in lower prices, higher product quality, and better customer service. Explain how the opening of a second pizza shop in a small community affects prices, profits, service, and quality. What are some competing businesses in your community? Can you name four types of businesses in your community? Can you name a competitor for each business? Fill in the first three columns of the chart NAME OF BUSINESSTYPE OF BUSINESSCOMPETITOR Pg. 8 Different ways businesses compete: Lowering Prices (Pricing) Joe sells T-shirts for $5.00 each. Mo sells T-shirts. Maybe Mo will compete by selling his for $4.00. Joe might lower his T-shirt price to match the $4.00 price, or he might go lower. Businesses can compete by lowering prices. But businesses cannot lower them so much that they no longer make enough money to make the shirts, pay their workers, and pay for their store. Better Products (Quality) Making products that work better, look better, last longer, or do more is one way to compete with other businesses. Prices for an item can be the same or sometimes even higher than the price offered by a competing company, provided that the item is so good that customers will really want it. Businesses can offer a better quality product to get customers to choose them. Better Customer Service Businesses can offer better service to their customers. That means hiring and training people who know about the products and know how to be helpful and friendly. A computer store with good customer service hires and trains people who know a lot about computers. A computer store with bad customer service hires anyone and does not train him or her. Then the customers get frustrated when they ask a question and maybe they will shop for a computer somewhere else. Good customer service is one way a business competes and encourages customers to choose them. Economic Incentives (Premiums) Offering incentives is another way to compete. Freebies like toys in happy meals or free soda when you buy a slice of pizza are types of incentives. Offering coupons used to save money and having sales are two more ways to bring in customers. Sometimes businesses have special promotions with refreshments and music encouraging you to come and shop. Some businesses reward customers who shop again and again. Each time a customer shops at a business, the clerk marks a little card for the customer, and when the card is filled up the customer receives a free item. Incentives are another way businesses use to compete and encourage customers to choose them. Advertising Businesses advertise by putting signs up, having TV and radio commercials, and running newspaper ads telling customers about their products. Advertising is used to say how wonderful the products are, to tell about any incentives, sales, lower prices, and to tell customers where the business is located. Advertising is another way in which businesses try to get customers to choose them. How Does Competition Affect the Customer? Customers are usually better off when there is competition. After all, businesses are trying to get them to choose their products. With competition, customers get to choose how to spend their money. They can look at prices, product quality, customer service, and other incentives before they buy anything. However, in some cases, with too much competition, maybe companies will only compete by lowering prices and end up lowering them so much that they go out of business or can only offer products of lower quality. This would not be good for the consumer. It would end up giving customers fewer choices when spending their money. Smalltown's Pizza! Now that you have learned how businesses compete, let's see if you can help these businesses. Smalltown is a tiny community. Many people in Smalltown love to eat pizza. Until today, Tony's Pizzeria has been the only pizza shop in town. But there's big news in Smalltown! Today another pizza restaurant is opening. Answer the following questions: 1. How will this affect Tony's Pizzeria? 2. How will this affect Pizza lovers in Smalltown? 3. What will happen to pizza prices? 4. How will the two shops compete? 5. Research the internet to learn more about two Italian restaurants who operate in Durham using indirect competition. Pick two similar menu items and provide the different prices - - is there a major difference in price? What type of customer do you think prefers to go to each of the named businesses. Answer the following Questions about competition: What does competition in the marketplace mean? How do businesses compete with each other? Does competition help the consumer? How? Is there ever a time when competition does not help the consumer? When? How? What are the possible effects of the second pizza shop opening? What do you predict will happen if a third or fourth pizza shop opens in Smalltown? DAY FIVE 2-17-12 Warm-Up In the table below - identify if the competition is direct or indirect; based on pricing; based on customer service; based on quality 1. Harris-Teeter & Aldi's2.McDonalds and Hardees3.Ceci's Pizza & Olive Garden4.Disneyworld & Universal Studios Park5.Mercedes and BMW6.Wal-Mart & Belk7.Sam's and Costco8.Marshall's and TJ Maxx9.Advance Auto Parts & Southern States VW10.Dick's Sporting Goods and Jim's Nike Store Activity 1: In the table below identify the item to be either a source of revenue or an expenditure (use notes and ppt slides): APerformers FeeBAdmissionsCSecurity OfficersDFood and Beverage SalesEAdvertisingFParkingGIn-game promotionsHMerchandise salesIFood and Beverage ServicesJNaming rightsKRental/Leasing of FacilitiesLSponsorships Activity 2: Profit and loss research Have students research the profitability/worth of various professional sports teams, sports figures, celebrities, etc. ( HYPERLINK "http://www.businessweek.com" www.businessweek.com is a good site to begin). Determine which NBA has the highest value and least value. Which NFL team has the highest value and least value. Which MLB team has the highest and least value. See if you can determine if any professional teams are operating at a loss - - if so - name the team - type of team and the amt. of loss. NFL Highest$NFL Lowest$NBA Highest$NBA Lowest$MLB Highest$MLB Lowest$Teams Operating at a Loss:DISCUSSION: Pg. 11     LESSON PLANS SEM I COMPETENCY: 3.00 Explain economic foundations relevant to the sports and entertainment marketing industry SPH Lesson Plan for 2/13 thru 2/17/12. SEM I OBJECTIVE: 3.01 Explain the concept of economics. EQ? What is the study of economics? EQ? What is the meaning of elasticity? EQ? What are the 4 phases of the business cycle? EQ? What is the difference between direct and indirect competition? EQ? What is the definition of risk?  Barley Barbeque charcoal Beef burgers Maize Garden swings   m n   e f ! 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