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 = $57,750this 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?