Chapter 16
Developing a
Promotional Strategy
for the Marketing of
Sports Products
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
16-1
Promotion
• The Third Variable of the Traditional
Marketing Mix
• An Effort to Communicate with One or
More of the Organization’s Target Markets
16-2
Promotional Mix
• Has Historically Incorporated Four
Promotional Tools
– Advertising
– Personal Selling
– Sales Promotion
– Public Relations (Publicity)
16-3
Additions to the Promotional Mix
• Though Not Everyone Agrees: Two Tools
Have Been Associated with Those of the
Traditional Promotional Mix:
– Sponsorship
– Direct Response Marketing (DRM)
16-4
Integrated Marketing Communications
(IMC) Plan
• New Terminology
• Encompasses All Promotional Tools
• Stresses That All Promotional Tools Used
in the Development of the Organization’s
Promotional Efforts Must Work in Harmony
16-5
The IMC Plan
• Consistency
• Synergy
• Must Support the Product, Distribution,
and Pricing Strategies
• Must be Appropriate for the Target Market
16-6
The Communications Process
• Drop in Figure 16.2 Here
16-7
The AIDA Model
for Effective Promotion
• Attention
• Interest
• Desire
• Action
16-8
Advertising
• Paid, Nonpersonal Form of Communication that
is Generally Disseminated via One or More of
the Mass Media
• Mass Media Include:
–
–
–
–
–
TV
Radio
Magazines
Newspapers
Others
16-9
Advertising Media and Vehicles
• A Medium Is the Broad Mechanism for
Conveyance of the Message
• Once a Medium Is Selected, the Marketer
Must Still Select Specific Vehicles
• A Vehicle Is a Specific Option within Each
Medium
16-10
Advertising Media and Vehicles
• Medium:
– Magazines
• Vehicles:
– Cosmopolitan
– TV Guide
– People
16-11
Personal Selling
• Paid Form of Direct Interaction between a
Selling Entity and a Prospective Buyer
• Interactive One-to-One Marketing
• Message Can be Adapted as Needed
• Persuasive Process Designed to Encourage
Action on the Part of the Prospective Buyer
16-12
Sales Promotion
• Tools Often Used as Direct Inducements to
Encourage a Particular Response on the
Part of the Prospective Buyer
• Examples:
– Free Samples
– Discount Coupons
– Specialty Advertising
– Contests
16-13
Public Relations (PR)
• Nonpersonal Form of Communication
Designed to Influence Attitudes and
Opinions of Various Groups of Stakeholders
– Designed to Generate Positive Publicity
– Often Used to Counter Negative Publicity
16-14
Sponsorship
• Relationship between a Marketer and a
Property that Allows the Marketer Access
to the Exploitable Commercial Potential
Associated with the Sponsored Property
– In These Cases, the Sports Property is the
Sponsor, Not the Sponsee
16-15
Sponsorship by Sports Marketers
• Causes – Charities, Disaster Relief, Health
• Grass Roots Events – Museum Exhibits,
Fairs, Local Festivals
• Special Cases of Sponsorship
– Venue Naming Rights
– Endorsements
– Licensing
16-16
Direct Response Marketing (DRM)
• Paid Form of Mass Communications
• Effort to Communicate with the Target
Audience in a Manner Such That the
Receivers Can Immediately Initiate Action
Upon Receiving the Message
– Internet, Infomercials, Direct Mail
16-17
Advertising Applications
• Spectator Sports – TV Ad for Next Home
Game for Local Minor League Team
• Participation Sport – Newspaper Ad
Seeking Members for a New Bowling
League
• SASS – Magazine Ad for Nike Golf Balls
16-18
Personal Selling Applications
• Spectator Sports – Sell Luxury Suites at
Major Sports Venue
• Participation Sports – Convert Trial Member
of a Health Club into a Regular Member
• SASS – Fitting of Custom Golf Clubs
16-19
Sales Promotion Applications
• Spectator Sports – 2 for 1 Discount
Coupon for the local MLB Team
• Participation Sports – Free Trial
Membership at a Tennis Club
• SASS – PGA Merchandise Show
16-20
Public Relations Applications
• Spectator Sports – Press Release
Announcing Signing of New Star Player
• Participation Sports – Press Release
Seeking Runners for a Charity Event
• SASS – Nike Press Release Explaining
Often Criticized Labor Practices Abroad
16-21
Sales Promotion
Drop in Figure 16.3 Here
16-22
Sponsorship Applications
• Spectator Sports – NFL’s Sponsorship of
“Tackling Men’s Health” CRM Program
• Participation Sports – NHL Licensed Ice
Skating Rinks
• SASS – Reebok Stadium (Soccer Venue);
Tiger Woods’ Endorsement of Nike
16-23
Sponsorship by a Sports Entity
• Drop Figure 16.4 in Here
16-24
Direct Response Marketing
(DRM) Applications
• Spectator Sports – DVD Sent to Known
Buyers of Tickets to a NASCAR Event
• Participation Sports – Direct Mail Piece for
Entry into Hoinke Bowling Tournament
• SASS – Infomercial Reaching Prospective
Purchasers of the Total Gym Exercise
Equipment (Order by Phone or WWW)
16-25
DRM – New York Yankees
• Drop in Figure 16.5 Here
16-26
Emerging Tool:
Product Placement
• Drop in Table 16.2 Here
16-27
Brand Equity
• Value Associated with a Specific Brand
• High Levels of Brand Recognition
• Consumers Associate Quality with Brand
• Provides Differential Advantage that
Creates Brand Preference or Insistence
16-28
Brand Equity
• Opportunities for Brand Extension
Involving Other Sports Products:
– NBA – WNBA
– NFL – NFL Europe
– ESPN – ESPN Golf School
– Fox Sports – Fox Soccer Channel
– NHL – NHL Ice Skating Rinks
16-29
Brand Equity
• Opportunities for Brand Extension
Involving Nonsports Products:
– Fox Sports – Sky Box Fun Food & Spirits
– ESPN – ESPN SportsZone
16-30
Brand Extension
Based on Brand Equity
• Drop Figure 16.6 in Here
16-31
Cross-Promotion
• Joint (Collaborative) Marketing Effort of
Two or More Marketing Entities
• May Be Common Ownership or Control
– Pittsburgh Steelers & Kenny Chesney Concert
• May Be Separate Entities
– ESPN Golf School Involves Golf Magazine
16-32
Effective Promotions – the NBA
• Drop in Table 16.4 Here
16-33
Closing Capsule
• Drop in Box 16.1 Here
16-34
Closing Capsule
• Sports Marketers Must Coordinate the
Components of Their IMC Plan in a
Manner that the Components Are
Consistent and Support Each Other
• An Effective IMC Plan Does Not Require
Initiatives in Each of the Six Categories
16-35
Closing Capsule
• Effective Promotion Helps Develop a
Higher Level of Brand Equity
• Brand Equity Creates Opportunities to
Collaborate in Effective Cross-Promotions
• Not Only Must Components of IMC be
Consistent, the IMC Must Support the
Remainder of the Marketing Mix
16-36
Closing Capsule
• Examination of the Basic Elements of
Marketing Strategy Is Almost Complete
• Target Market
• Marketing Mix
– Product
– Distribution (Place)
– Promotion (IMC Plan)
– Price
16-37