As I was enjoying the first couple rounds of this year’s NCAA Tournament and thinking up a great blog topic using basketball as a metaphor for business, Monday’s issue of The Vantage Weekly came to my inbox. My good friend John Stewart gave me special permission to repost the Management Impact from this week. Thanks John!
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The Economic Impact Of “March Madness”
The Madness in March extends well beyond the court action of the NCAA Basketball Tournament. We chuckle after hearing reports on the losses in worker productivity from time spent on all things “tourney”. In fact, Challenger, Gray & Christmas estimates the losses in productivity to be between $1.8B and $4.0B, but it’s nearly impossible to confirm and weigh against generated revenue.
One offset to lost productivity is the revenue from added consumption. The economic impact to the hosting cities for first weekend games is estimated at $4M to $6M each. The Final Four weekend is worth an estimated $13 million to it’s host city, though there is variation depending on the city and the contestants.
In their 2003 study, “An Economic Slam Dunk or March Madness?”, Matheson and Baade did the math and found that the men’s NCAA Division I tournaments since 1970 actually provided only a slight economic gain to host cities in opening rounds while the final four lost money. However, this seemed counterintuitive so we took a quick glance for ourselves. Estimates from the Indiana Department of Revenue show that 2006 Final Four host Indianapolis (Marion County data) had average annual tax revenue growth of 45% in March and April of 2006, which slowed to about 10% in 2007 and was -1% in 2005. They also hosted in 2010, but it’s very hard to control for economic conditions. In other words there was a clear and significant direct economic impact from spending. Also, indirectly more people would be hired temporarily and revenues would be raised by local government on local projects in preparation, which would also boost local economic activity. Of course this is much more difficult to measure but does help.
It’s not just the basketball that’s competitive. One estimate states that 70 cities bid for the 39 spots to host the 2011, 2012, and 2013 tournaments. Being competitive requires cities to invest 100’s of millions for facilities and other NCAA standards for hosting. Amortizing these expenses and accounting for the losses in productivity shows a quick offset to the aforementioned gains. We may never actually know with any precision the real economic impact, but we do know it’s arguably one of the greatest annual sporting events. And, although productivity might fall briefly, the happiness it brings may just be better in the long run! Enjoy.
Thanks John for a great post! I forgive you for kicking my butt in our bracket competition.
If you missed this year’s MAPS Meet the Media Event – “You Met the Media, Now What?”, here is a little taste of the great information and people that passed you by:
The Keynote Address
Matt Brock, Public Relations for Washington Center Hospital
Matt brought a ton of public relations experience to the table as the Keynote Speaker. Sharing over 15 years of experience as a reporter for WJLA-TV Channel 7 and NewsChannel 8, including local coverage of the 9/11 attack on the Pentagon and the Washington Metro Sniper Attacks. Now Matt is using his expertise from a different perspective in his new position with Washington Center Hospital.
Relationships – a critical link to knowing what is newsworthy and addressing your audience is to build relationships with your press contacts and be able to respond to their needs as a media professional. Matt related a great story about how he used our own PR professional Asha Brouta and one of her clients in a story topic that he thought was especially newsworthy for his audience. Another benefit of building those relationships is that it will help you be in the right place at the right time. And if you don’t have the relationships, this event was a great place to start building them or to find someone who already has them!
What is Newsworthy: Who Cares and What is Your Audience?
Asha Bruot, ASHA Public Relations
A local public relations professional and recently featured on the cover of Piedmont Business Journal as one of “20 Women to Watch” in the Piedmont region, Asha shared a wealth of experience in public relations for local businesses. One key point was that public relations is not advertising. Making this realization will help set the strategy and direction for your activities with the press. With advertising you can pay to say what you want, but in PR you must position your story in a positive way within the context of what your media contacts are writing about. Facing this reality is a big first step to developing the right story and writing a press release that they care about for their audience.
How to Write a Press Release
Sherri Arnaiz, MDA Technologies Group and Barbara Reese, BR Associates
Keep the News Up Top – Hank Silverberg of WTOP Radio receives press releases by email and on his Blackberry, so the subject line is VERY important: Don’t bury the lead! Keep the “news” up top. Chanda Washington, Community Editor of Prince William Local Living in the Washington Post is also focused on getting to the “news” in a story, so write accordingly.
Pictures Sell, Especially for Newspapers – Bill Walsh, Editor of the Fauquier Times Democrat recommended including a relevant professional photograph with your press release. An official portrait of the CEO, some shots of your facility, or a picture of the event with the names of those in the picture are a welcome addition to any press release.
Local Papers Love Local News – Randi Reid, Publisher of the Observer Newspapers, stressed the importance of local press releases to her local paper. Although larger media may not use them as much anymore, local papers are hungry for your stories to keep the community informed.
Be Available – Make sure the contact information provided is current and that the number is normally “manned” with someone who is knowledgeable and an authorized spokesperson.
Know Your Audience and Build Relationships – Our Media VIPs all agreed that you should be familiar with the stories a media source uses before sending the release. Sending a national story to a news source focused on local news can reduce your credibility with that source. Building a good relationship with a reporter starts with some research into what they like to write about!
What Does a PR Plan Look Like
Me, Jamie Gorman, Sigma College of Small Business
A good public relations plan, like other good marketing plans starts with the basics of identifying the audience, objectives and message. I have been doing a lot of social media plans and really wanted to make the point that regardless of the media being used, having a good foundation will help answer a lot of questions. After that we discussed the importance of developing a public relations calendar that schedules the activities necessary for success with public relations. And sometimes it takes some creative partnerships to build a story. An example we used was a partnership between your business and a non-profit that supports a common industry, cause or audience. Having your business name mentioned as a sponsor for one of our great local non-profits can go a long way in building local credibility.
This event is one of those “must attend” events of the year. Along with all the great information and networking, attendees received a local media guide with key press contacts for the local media. Look for it again next year and thanks to the Prince William Chamber of Commerce and the MAPS Committee for pulling it all together.
Recently, I had the opportunity to present a Career Building event at Strayer University in Manassas, VA. My friend Amelia Stansell, a VP with BB&T, joined me in presenting a topic on professional networking and using social media to leverage your network. My next few posts will work through that presentation, highlighting Amelia’s principles for networking and then relating those principles to techniques for social media marketing.
The Enigma We Call “Networking”
Amelia begins her presentation by defining the enigma we call networking as “person to person relationship marketing. She emphasizes that it is taking the time with each individual to know them as a person and build a relationship. It’s these relationships that can help lead to either closing a sale with that person or getting a referral from them.
Social Media is a new technology that leverages proven networking techniques. The resulting value is that you can grow and manage a much larger network. Use tools like Facebook and LinkedIn to follow the lives and careers of your network, interact with them through posts and comments, and refer them through sharing and recommendations. These methods make it easier to interact with each person in your network between the meetings and phone calls. Try it and notice how your face-to-face conversations change from “how have you been” to “did your son get off to college ok?”. It’s a much deeper start to what will be a more productive conversation.
It’s About Getting More Referrals
Professional networkers will tell you that it’s all about the referral because it is more likely that you will get new business from a referral by your network than directly with someone in your network. Therefore, it’s important that your network trusts you, sees you as an expert and understands your business enough to recognize situations where they can make the referral. In traditional networking the process begins with the “elevator pitch” and initial meeting, then continues with follow-up meetings, networking groups, phone calls and promotional materials.
Social Media leverages these techniques by enabling you to post your basic information in online “profiles” and “info” pages. These provide the base background information about you and your business. Build trust and credibility online is a continual process of listening to your network by reading their posts, interacting with comments and questions, and consistently posting valuable and informative content for your audience.
Relationship Selling, Not Broadcast Advertising
Many business people approach their social media marketing as a broadcast advertising channel, a free way to reach more people with their message. For some businesses that have a huge fan base, it can certainly be used in that way. However, for most of us who count on sales through personal relationships and word-of-mouth, the approach needs to mirror solid networking techniques more than basic advertising principles.
Sigma College of Small Business Social Media Services help customers use Facebook, LinkedIn, Twitter and Blogging to promote their business and themselves.
What are some tips and recommendations that you have for how to leverage social media to build your professional network?