Sports and Entertainment Promotion
10.1 Promoting Sports and Entertainment 10.1 Promoting Sports and Entertainment
10.2 Advertising and Placement10.2 Advertising and Placement10.3 Publicity and Sales Promotions 10.3 Publicity and Sales Promotions
THE PURPOSE OF PROMOTION
• promotion• the process of making customers aware of a
product, service, or event• http://www.youtube.com/watch?v=R55e-uHQna0
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Promotional Goals• Increasing sales is the primary goal of
promotion.
• Related goals include• increasing customers’ usage• maintaining customer loyalty• building a fan base• educating potential customers• overcoming the hesitation of first-time buyers
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Gaining New Fans – An Example
• Soccer fans from all over the world were beginning to get mad over the faking of injuries and bad sportsmanship going on in the game.
• So, In 2006 Nike started a “Joga Bonito” campaign for the up coming world cup in Germany.
• http://www.youtube.com/watch?v=Bp1b4UrvMjA
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PROMOTIONAL ELEMENTS
• The four elements of promotion are• advertising• publicity• sales promotions• personal selling
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Advertising• advertising
• a paid form of communication delivered by a product maker or seller to consumers• Roughly $4 million dollars per 30 seconds in the 2013 super bowl,
$1.7 million dollars for the 2013 Oscars.• The Simpsons: It's not exactly the ratings powerhouse it once was,
but it's still a top ten most-expensive show for advertisers, pulling in around $254,000 per spot. Monday's most expensive series for advertisers is Two and a Half Men ($252,000), Tuesday's is Glee ($267,000), Wednesday's and Thursday's are both X Factor ($320,000 and $283,000), poor Friday's is Blue Bloods ($76,000), and Saturday's is college football ($85,000)
• product placement• a product integrated into the plot of a television show or a
movie• more discreet than advertising• http://www.youtube.com/watch?v=XVUipHYKKrU
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Publicity
• publicity• any unpaid media attention• either positive or negative
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Sales Promotions
• sales promotions• additional incentives offered for a limited time
to encourage consumers to buy a product
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Personal Selling
• personal selling• an in-person, face-to-face communication
between a seller and a customer• http://www.youtube.com/watch?v=y_yNq3EtX
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ADVERTISING
• Advertising informs consumers about new products and services and helps consumers make comparisons among alternatives.
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Step by Step
• Cost effective advertising requires:1. Set a measurable advertising goal.
2. Develop the advertising budget.
3. Create an advertising theme.
4. Choose the advertising media.
5. Create the message.
6. Develop an advertising schedule.
7. Measure the effectiveness of the advertising.
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• specific• measurable
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The Goal
• marginal analysis• setting the advertising budget by estimating the point at
which an additional dollar spent on advertising equals additional profit.• How much is advertising worth? Can your company get away
with limited advertising?
• Name some companies that do limited advertising, but make millions.
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The Budget
• 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
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percent of sales
• tagline (theme)• a slogan that conveys the main message of the ad
• Just do it. – Nike, M’m! M’m! Good! – Campbell Soup, Got Milk? – Milk
• The Media• print• broadcast/cable• Internet• out-of-home• in-home
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The Theme
• choosing the media that will bring the most effective advertising message to the targeted consumer• Which avenue is best utilized for your specific target
market??
• reach• the number of people in the target market
expected to receive the message through the chosen medium
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media strategy
• 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
• Can you think of any products or services that this is currently happening too?
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The Message
• frequency• the number of times the targeted customer is
exposed to the media
• concentration schedule• relying on a single medium
• dominance strategy• a firm buys the maximum reach and frequency in
one medium and purchases additional space in or time on other media
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The Schedule
• response rate• the number of customers who connect with and act
in relation to the ad
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The Effectiveness
Its Showtime
• primetime• when the largest viewing audiences are
watching TV• the most expensive time to advertise
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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.
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PRODUCT PLACEMENT
• Product placement is a fast growing form of sales promotion used in• films• TV shows• live theater
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The Basics
• Product placement can be used to offset the need for traditional advertisements.• 24 on the Fox network
• Ford vehicles used extensively
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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.
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• Assuming they appeal to the same market, both parties will gain from the connection.
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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.
PUBLICITY
• Although publicity is free, the message is controlled by• the news media• others that are presenting the message
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Goodwill
• goodwill• customers’ positive feelings about the
business
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Damage Control
• publicist• a person who is responsible for maintaining
relations with the public and news media
• damage control• an attempt to refute, justify, or downplay negative
stories• trying to focus attention on more positive stories
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Grass-Roots Publicity
• grass-roots effort• when an unknown person or event is propelled
into the spotlight by fans
• viral campaign• a promotion where a few online mentions turn
into a real buzz about a movie• propels the movie into a mega hit
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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.
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• Sports facilities and sports fans need to have a positive image to encourage visitors to attend games.
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Professional athletes feel the pressure of being public role models while meeting athletic performance standards.
SALES PROMOTIONS
• Sales promotions are marketing efforts that offer• customers an additional incentive to buy• a limited time to make the purchase
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Consumer Sales Promotions
• consumer sales promotion• directed at the final consumer
• temporary price reductions• price-pak deals• coupons• special gifts• contests• rebates
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THINK CRITICALLY1. How could a gift shop located in movie
theaters near the exits help increase sales?
2. What is the value of diversifying distributors of Disney merchandise?
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4. Can sales of related merchandise increase attendance at the Disney movies? Explain.
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3. How can Disney benefit from associating with other well-known and respected companies?
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