Ch. 10
Sports & Entertainment
Promotion
10.1 – Promoting Sports &
Entertainment
Goals
Describe the goals of promotion.
 List and define four elements of promotion.

The Purpose of Promotion
Promotion

the process of making customers aware of a
product, service, or event
Promotional Goals
Main goal – get someone to buy your
product
 Increasing sales is the secondary goal of
promotion.
 Promotion must….

Attract the attention of the consumer
 Create and interest
 Turn the interest into a desire

 Emotional,

rational, and patronage motives
Persuade the consumer to take action
Gaining New Fans – Ex.
To combat the declining audiences of the
early 1990s, the USTA and the TIA took a
number of initiatives.
 The associations created the Tennis
Welcome Center partnership.



offered fun, friendly introductory lessons
By 2005, there were about 5.8 million new
tennis players.
Pit-stop…..

What is the goal of promotion?

Secondly, watch any of the videos on this
page:
http://twistedsifter.com/2009/08/bmw-filmsthe-hire/
 Would any of these be considered
promotional tools?

Promotional Elements
Promotion cannot overcome the
drawbacks of a poor product that is priced
too high, but can ensure that the target
market of a good product know its benefits
 Four elements (a.k.a. Promotional Mix)

Advertising
 Publicity / Public Relations
 Sales Promotion
 Personal Selling

What is Advertising?

Advertising


a paid form of communication delivered by a
product maker or seller to consumers
Product placement
a product integrated into the plot of a
television show or a movie
 more discreet than advertising

Publicity

Publicity / Public Relations
any unpaid media attention
 either positive or negative
 A business can try to get publicity through
press releases, speeches, letters to the editor,
and community involvement through volunteer
work and donations

Sales Promotion

Sales promotions
additional incentives offered for a limited time
to encourage consumers to buy a product
 Examples include

 Limited
- time memberships
 Giveaways
 Coupons
 Items with the company’s name on them
 Free samples
Sales Promotion


$100 billion annually
Consumer-Oriented Promotions










Coupons
Deals
Premiums
Contests
Sweepstakes
Samples
Continuity programs
Point-of-purchase displays
Rebates
Product Placement
Personal Selling

personal selling
an in-person, face-to-face communication
between a seller and a customer
 The advantage is that the seller can
immediately address and concerns or
questions

Pit-stop

What are 4 elements of promotion?
Quick Review
1.
Promotion is
a.
b.
c.
d.
2.
The process of making customers aware of a
product, service, or event
The exchange of a product or service for another
item of value
A deceptive practice
Part of product/service management
An example of publicity is
a.
b.
c.
d.
Giving a coupon for a free CD case with the
purchase of a CD
Being featured on the evening news
Buying advertising space in a newspaper
Helping a customer find an item in a sporting goods
store
10.2
Advertising
&
Placement
10.2 – Advertising & Placement
Goals
List and describe the steps involved in
developing effective advertising.
 Describe the use of product placement.

Advertising
Advertising is intended to inform and
persuade an audience to take some kind
of action.
 The $$ budgeted for advertising by
companies like Verizon, GM, & Procter &
Gamble is well over $2.5 billion each!

??

What “industries” do you think spend the
most money on advertising?
Advertising

The advantages:
Reach
 Make an emotional connection with the target
through the use of actors, music, images, etc.

 Why
is this so important?
Advertising

The disadvantages:

Overall cost
 A professionally
produced tv commercial can cost
between $350,000 and $400,000 to produce.
 Running a 30-second advertisement can cost
between $500,000 and $3 mill. during the Super
Bowl!
 Running a 30-second advertisement can cost
between $700,000 and $800,000 during some of
the more popular primetime tv shows.

Ads get old and can’t be updated quickly
Developing the Campaign
Identifying the Target Audience
 Specifying Advertising Objectives
 Setting the Advertising Budget
 Designing the Advertisement



Types of appeals
Creating the Message
Developing the Campaign

Different media
 Television
 Radio
 Magazines

10.3% of global ad spending
 Newspapers
 Internet

12.6% of global ad spending
 Advergaming
 Outdoor
 Cell
phones
Developing the Campaign

Media Strategy


choosing the media that will bring the most effective
advertising message to the targeted consumer
Tagline (theme)


Copy


a slogan that conveys the main message of the ad
the words to be spoken or printed in the
advertisement
Wear out

when advertising loses its effectiveness due to
overexposure or poor message quality
Developing the Campaign

Scheduling the Advertising

Three factors
 Buyer
turnover
 Purchase frequency
 Forgetting rate

Three approaches
 Continuous
 Flighting
 Pulse
Advertising Goal?
Be SPECIFIC
 Be Measurable

The Budget

marginal analysis


Percent of sales


an advertising budget based on the expected number of units to
be sold
competitive parity


directs a percentage of expected sales revenues to the
advertising budget
fixed sum per unit


setting the advertising budget by estimating the point at which an
additional dollar spent on advertising equals additional profit
designed to maintain the current share of voice
share of voice

maintaining a similar dollar amount or frequency of advertising
as that of competitors
Interactive Advertising
Effective advertising will engage viewers
and motivate them to take specific action.
 Digital communications can be used to
create an interactive connection with
potential customers.

What is Product Placement?

Product placement is a fast growing form
of sales promotion used in
films
 TV shows
 live theater

The Basics

Product placement can be used to offset
the need for traditional advertisements.

24 on the Fox network
 Ford
vehicles used extensively
In Film

A few examples of product placement in
film:
http://www.youtube.com/watch?v=KjB6rHDDI0&feature=share&list=PLD806D12F8C6
9BB88
 http://youtu.be/8lgLYGBbDNs

Who Pays?

Three common ways that product
placement deals might be constructed
include

fee basis
 A corporation
will pay a fee to the film’s producers
for prominent product placement.

barter
 If
a very expensive product is needed, it may be
provided for use in the film in exchange for the
prominent display of the brand name.
Who Pays?

A corporation may make an agreement with a
film producer to include movie promotion in its
product advertising in exchange for placement
of the product in the movie.
 Assuming
they appeal to the same market, both
parties will gain from the connection.
How advertising “appeals” to you

Snob Appeal

High class, material goods are preferred.

Why own a Chevy when you can have a Lexus?
The name brand is superior to others, and
despite the products' relative similarity, the high
class image inspires us to spend more
How advertising “appeals” to you

Testimonial

The use of personalities (usually well-known) who
lend their good name and reputation to a product.


Examples: Michael Jordan selling Gatorade.
Glittering Generality

Highly general, abstract statements that can't really
be proven.

Examples: "Secure, safe and stable. That's the advantage
of a Subaru. No other car on the road is as reliable."
How advertising “appeals” to you

Testimonial

Glittering Generality
How advertising “appeals” to you

Bandwagon

Everyone is using this product. The
advertiser may use words that say, "nine out
of ten Americans choose..."


Examples: "Millions of Americans use Bayer
aspirin." "Mitsubishi is the fastest growing car
maker."
Repetition
How advertising “appeals” to you

Bandwagon

Repetition
How advertising “appeals” to you

Humor




One of the most effective and popular ways for a
consumer to remember a product/company.
Does not always inspire trust.
Effective for selling sodas and pizza (like Little
Caesar's).
Sex

Using attractive models to convey the idea that a
product will make you more appealing.
How advertising “appeals” to you

Humor

Sex appeal
How advertising “appeals” to you

Fear


these advertisements show that by not
purchasing the product some type of social or
physical harm will come the customer’s way
Animation

these advertisements are created as cartoons
or use claymation.
How advertising “appeals” to you

Fear

Animation
10.3
Publicity
&
Sales Promotion
10.3 - Goals
Define publicity and explain its role in
creating a positive public image.
 Describe various types of sales
promotions.

What is Publicity?

Although publicity is free, the message is
controlled by
the news media
 others that are presenting the message

Image is EVERYTHING!

Public relations (PR)


the arm of promotion that tries to create a
favorable public opinion for an individual or
organization
Public relations focus on the future with
the intent of creating a positive image of
the business.
Publicity
Professional athletes feel the pressure of
being public role models while meeting
athletic performance standards.
 Sports facilities and sports fans need to
have a positive image to encourage
visitors to attend games.

Publicity

Public relations tools





New-product publicity
Consumer Education
Sponsorships
Company websites
Publicity tools



News Release
News Conference
Public Service Announcements
Reasons for Sponsorships









Increase sales
Introduce a new product or service
Compete where potential customers are in one place
Identify an event with a target market
Earn the goodwill of the audience
Show community commitment
Enter new markets
Entertain clients, employees, or potential customers
Enhance the companies’ image
Need for Profit
Guaranteed amount of exposure,
recognition, or acknowledgement
 Market research measures the results of
its sponsorships
 Return—the profit the sponsor earns from
its support of an athlete or team

Reliant Stadium
Home of Houston Texans
 $300M/30 years
 Annual Value: $10M

FedEx Field
Home of: Washington Redskins
 $207M/27 years
 Annual Value: $7.7M

American Airlines Arena
Home of: Dallas Mavericks, Dallas Stars
 $195M/30 years
 Annual Value: $6.5M

Phillips Arena
Home of: Atlanta Hawks, Atlanta
Thrashers
 $181.9M/20 years
 Annual Value: $9.1M

Univ. of Phoenix Stadium
Home of: Arizona Cardinals
 $154M/20 years
 Annual Value: $7.7M

Bank of America Stadium
Home of: Carolina Panthers
 $140M/20 years
 Annual Value: $7M

Lincoln Financial Field
Home of: Philadelphia Eagles
 $139.6M/20 years
 Annual value: $7M

Lucas Oil Stadium
Home of: Indianapolis Colts
 $121.5M/20 years
 Annual value: $6.1M

Citi Field
Home of: New York Mets
 $400M/20 years
 Annual Value: $20M

Sponsorship in Entertainment

Can get you an entire movie
paid for without you spending
anything!

$1.5 mill
Sponsorships

Niche marketing — researching a target
market to determine the specific items or
services a small group of people will buy

Examples:
 NASCAR
X
– Games
Sales Promotion

Sales promotions are marketing efforts
that offer
customers an additional incentive to buy
 a limited time to make the purchase

Consumer Sales Promotion

Consumer sales promotion

directed at the final consumer






temporary price reductions
price-pak deals
coupons
special gifts
contests
rebates
Trade Sales Promotion

Trade sales promotion
directed at members of the distribution
channel
 Trade allowances

 offer
short-term discounts to distributors and
retailers for selling or participating in the promotion
of a product
trade contests
 point-of-purchase displays

Employee Sales Promotion

push money

an extra commission paid to sales persons
who sell or push particular products
Other types of Promotion

Endorsements
A public expression or approval / support for a
product / service
 A.K.A. – testimonials
 There are some restrictions:

 Endorser
MUST state factual information
 Endorser must have used the product
Other types of Promotion

Word-of-Mouth
One of the most effective ways of spreading
the news about products and services
 Used a lot by new, small businesses
 Main setback = business has no control over

Other types of Promotion

Visual Merchandising

The process of displaying products in a way
that makes them appealing and enticing to
customers
 Window
displays
 Interior displays
 Signs