Ch. 10
Sports & EntertainmentPromotion
10.1 – Promoting Sports & Entertainment
GoalsDescribe the goals of promotion.List and define four elements of promotion.
The Purpose of Promotion
Promotionthe process of making customers aware of a
product, service, or event
Promotional GoalsMain goal – get someone to buy your
product Increasing sales is the secondary goal of
promotion.Promotion must….
Attract the attention of the consumerCreate and interestTurn the interest into a desire
Emotional, rational, and patronage motivesPersuade 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-films-the
-hire/Would any of these be considered
promotional tools?
Promotional ElementsPromotion 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)AdvertisingPublicity / Public RelationsSales PromotionPersonal Selling
What is Advertising?Advertising
a paid form of communication delivered by a product maker or seller to consumers
Product placementa product integrated into the plot of a
television show or a moviemore discreet than advertising
PublicityPublicity / 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 PromotionSales promotions
additional incentives offered for a limited time to encourage consumers to buy a product
Examples includeLimited - time membershipsGiveawaysCouponsItems with the company’s name on themFree 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 Sellingpersonal 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-stopWhat are 4 elements of promotion?
Quick Review1. Promotion is
a. The process of making customers aware of a product, service, or event
b. The exchange of a product or service for another item of value
c. A deceptive practiced. Part of product/service management
2. An example of publicity isa. Giving a coupon for a free CD case with the
purchase of a CDb. Being featured on the evening newsc. Buying advertising space in a newspaperd. Helping a customer find an item in a sporting goods
store
10.2
Advertising&
Placement
10.2 – Advertising & Placement
GoalsList and describe the steps involved in
developing effective advertising.Describe the use of product placement.
AdvertisingAdvertising 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?
AdvertisingThe advantages:
ReachMake an emotional connection with the target
through the use of actors, music, images, etc.Why is this so important?
AdvertisingThe disadvantages:
Overall costA 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 AudienceSpecifying Advertising ObjectivesSetting the Advertising BudgetDesigning the Advertisement
Types of appealsCreating the Message
Developing the CampaignDifferent media
TelevisionRadioMagazines
10.3% of global ad spendingNewspapersInternet
12.6% of global ad spendingAdvergamingOutdoorCell phones
Developing the Campaign Media Strategy
choosing the media that will bring the most effective advertising message to the targeted consumer
Tagline (theme) a slogan that conveys the main message of the ad
Copy 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 CampaignScheduling the Advertising
Three factorsBuyer turnoverPurchase frequencyForgetting rate
Three approachesContinuousFlightingPulse
Advertising Goal?Be SPECIFICBe Measurable
The Budget marginal analysis
setting the advertising budget by estimating the point at which an additional dollar spent on advertising equals additional profit
Percent of sales directs a percentage of expected sales revenues to the
advertising budget fixed sum per unit
an advertising budget based on the expected number of units to be sold
competitive parity 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 AdvertisingEffective 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 infilmsTV showslive theater
The BasicsProduct placement can be used to offset
the need for traditional advertisements.24 on the Fox network
Ford vehicles used extensively
In FilmA few examples of product placement in
film:http://www.youtube.com/watch?v=KjB6r-HDDI
0&feature=share&list=PLD806D12F8C69BB88
http://youtu.be/8lgLYGBbDNs
Who Pays?Three common ways that product
placement deals might be constructed includefee basis
A corporation will pay a fee to the film’s producers for prominent product placement.
barterIf 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
Fearthese advertisements show that by not
purchasing the product some type of social or physical harm will come the customer’s way
Animationthese advertisements are created as cartoons
or use claymation.
How advertising “appeals” to you
Fear Animation
10.3
Publicity&
Sales Promotion
10.3 - GoalsDefine 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 bythe news mediaothers 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.
PublicityProfessional 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 ProfitGuaranteed amount of exposure,
recognition, or acknowledgementMarket research measures the results of
its sponsorshipsReturn—the profit the sponsor earns from
its support of an athlete or team
Reliant StadiumHome of Houston Texans$300M/30 yearsAnnual Value: $10M
FedEx FieldHome of: Washington Redskins$207M/27 yearsAnnual Value: $7.7M
American Airlines ArenaHome of: Dallas Mavericks, Dallas Stars$195M/30 yearsAnnual Value: $6.5M
Phillips ArenaHome of: Atlanta Hawks, Atlanta
Thrashers$181.9M/20 yearsAnnual Value: $9.1M
Univ. of Phoenix StadiumHome of: Arizona Cardinals$154M/20 yearsAnnual Value: $7.7M
Bank of America StadiumHome of: Carolina Panthers$140M/20 yearsAnnual Value: $7M
Lincoln Financial FieldHome of: Philadelphia Eagles$139.6M/20 yearsAnnual value: $7M
Lucas Oil StadiumHome of: Indianapolis Colts$121.5M/20 yearsAnnual value: $6.1M
Citi FieldHome of: New York Mets$400M/20 yearsAnnual Value: $20M
Sponsorship in EntertainmentCan get you an entire movie
paid for without you spending anything!$1.5 mill
SponsorshipsNiche marketing — researching a target
market to determine the specific items or services a small group of people will buyExamples:
NASCARX – Games
Sales PromotionSales promotions are marketing efforts
that offercustomers an additional incentive to buya limited time to make the purchase
Consumer Sales PromotionConsumer sales promotion
directed at the final consumer temporary price reductions price-pak deals coupons special gifts contests rebates
Trade Sales PromotionTrade sales promotion
directed at members of the distribution channel
Trade allowancesoffer short-term discounts to distributors and
retailers for selling or participating in the promotion of a product
trade contestspoint-of-purchase displays
Employee Sales Promotionpush money
an extra commission paid to sales persons who sell or push particular products
Other types of PromotionEndorsements
A public expression or approval / support for a product / service
A.K.A. – testimonialsThere are some restrictions:
Endorser MUST state factual informationEndorser must have used the product
Other types of PromotionWord-of-Mouth
One of the most effective ways of spreading the news about products and services
Used a lot by new, small businessesMain setback = business has no control over
Other types of PromotionVisual Merchandising
The process of displaying products in a way that makes them appealing and enticing to customers
Window displaysInterior displaysSigns
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