2.09 SEM II
ROI
 ROI is short for “Return On
Investment”
 There are many ways to do so,
such as:
 Developing a promo budget
 Developing a promo calendar
 Planning a strong
promotional mix
 Hiring a promoter to do all of
the above for you
Event Promoters
 An Event promoter will handle activities such as:
 projecting attendance and revenues
 visiting and selecting venues
 creating a budget
 selling sponsorships
 overseeing marketing
 handling on site logistics
 dealing with all of the business activities related to running
an event.
 May hire an event promoter if large event is scheduled in
many cities over time.
Coordinate the Promotional Mix
 Marketers should be sure to coordinate the
promotional mix, which includes:
 Advertising
 Sales Promotions
 Public Relations
 Personal Selling
 Direct Marketing
 It is important that all elements of the promo mix
work together towards a common goal and reinforce
each other.
Well-Coordinated Promotional Mix
 Many
businesses coordinate a wide variety of
promotional activities such as advertising, special
events, and displays in order to reach a large audience.
 If running a tv ad about a new product, you could also:
 Mail free samples to customers
 Ensure that salespeople are well-informed about the
product
 Set up promotional visual merchandise in the store
 Strong Promotional Mixes will attract a large audience
and increase sales, which increases ROI
Setting a Promotional Budget
 While some businesses set promotional budgets
as a fixed number, most are based on estimated
sales projections
 Because the budget is based on a forecast, it
needs to be flexible.
 Promotional budgets also may be increased in an
attempt to match competition
Sample Budget Planning
 Last year’s sales were $500,000
 Company expects a 5% growth in sales
 They want to spend 11% of sales on promotion
 $500,000 x .05 = $25,000 this year’s estimated sales growth
 $525,000 x 0.11 = $57,750this year’s promotional budget
Promotional Calendar
 A promotional calendar is a
document that outlines the major
promotional events that are planned
at the beginning of the year
 Marketers use a promotional
calendar as an advertising tool.
 Sports teams and performers will
publicize the calendar as a
promotional tool
 Get people excited about upcoming
events
 Causes people to keep them in mind
all year
 Increase advance ticket sales
Historical Promotions
Minor vs.
Major League
Baseball
Promotions
 Look up a promotional calendar for a sports team of your
choice.
 What sponsors do you see featured?
 How might this promotional calendar effect sales?
 Pick one of the promotional events that is listed.
 Describe the event in detail. You may have to find additional
info on other websites.
 Who do you think the event is targeting?
 Will it increase ticket sales?
 Do you think that the event will give a good ROI? Why or why
not?