Transcript File - Kecoughtan Marketing

Sports and Entertainment
Promotion
Chapter 10
Winning Strategies Velocity Sports and
Entertainment
Velocity sports
and entertainment is a
promotional agency that specializes in
sponsorship and event marketing. Velocity
works with its clients to seek sponsorships that
focus on the cross-promotional opportunities
offered by sports and entertainment events.
In its third year of existence, Velocity ranked
99 on PROMO magazine’s list of top 100
promotional agencies. By the following year,
Velocity had jumped to 19 on the list. In 2004,
Velocity had climbed to the number 2 spot and
has continued to make headlines ever since.
Velocity’s clients include Golf Digest,
FedEx, Cirque Du Soleil, and Universal
Parks and Resorts. Toyota Motor Sales,
USA, chose Veloctiy to activate its
sponsorship of the NASCAR Nextel Cup
Series. The series was viewed as a next
stop for Toyota to expand its role with
NASCAR and promote is Camry brand.
Velocity had previously helped Toyota
become the “official vehicle, car, and
truck” of Lowe’s Motor Speedway, home
to NASCAR’s All-Star Challenge.
When the FedEx Orange Bowl hosted the
Bowl Championship Series, FedEx asked
Velocity to help develop first-class, VIP
hosting events during the days before
the game. The events were for the best
customers, potential customers, and
their spouses. Velocity planned and
executed four days and three nights of
events for the customers at the Miami
Marriott Doral Golf Resport and Spa.
FedEx strengthened its customer
relations based on Velocity’s strategies
and plans.
Think Critically
1. Why would a promotion firm want
to move up on the list of top
firms?
2. Look at PROMO Magazine’s web
site and determine three of the
criteria for making its top-100
list.
Promoting Sports and
Entertainment
Chapter 10 Lesson 1
Opening Act
Newspapers are under pressure to
increase revenue while more and more
consumers are turning to electronic
media as sources of information. The
Wall Street Journal made a decision to
give up editorial space on its front page
to make room for advertisements. The
120-year-old newspaper has been a
standard for information about financial
and business news around the world.
Judy Barry, Senior VP - Advertising
Sales, was quoted as saying, “Our new
front-page advertising opportunity
enables our clients to make a powerful
statement to the journal’s unique
readership.”
What kind of people read the Wall
Street Journal? What kind of
advertisements would be appropriate
for the front page? How could the
Journal attract young readers?
The Purpose of Promotion
Promotion
the process of making customers aware
of a product, service, or event
Primary Goal
to increase sales
Promotion Includes
Advertising and publicity to draw
attention to a product or service
Promotional Goals
Main Goal
Increase Sales
Related Goals
Increasing customers’ usage,
maintaining customer loyalty, building
a fan base, educating potential
customers, and overcoming the
resistance of hesitant first-time
buyers
Considerations
Before spending money the company must
know:
Exactly what it wants to accomplish
The market it wants to target
A company must research the various types
of market segmentation
Geographic - Where the people live
Demographic - Age, income, gender, occupation,
education, ethnic background
Psychographic - Buying habits, trends, interests
Gaining New Fans - An
Example
Professional Tennis began losing
fan in the early 1990s
The US Tennis Association (USTA)
and the Tennis Industry
Association (TIA) wanted to keep
their strong audience of 21-35
year olds and generate a love of
tennis in the younger generation.
Promotional Strategies
Tennis Welcome Center
partnership
Tennis facilities set up across the
United States to offer friendly
introductory lessons to help make the
experience fun for beginners.
Tennis representatives were hired to
attract new players to tennis facilities
Outcome
The Taylor Research & Consulting
Group and Sports Marketing Surveys
conducted market research to
determine the success of the program
With 25,500 Americans surveyed - the
results showed that participation in tennis
dramatically increased in 2005
The number of frequent tennis players
increased by 8.8 percent
Player retention improved by 6 percent
over the previous year
Intermission
What is the goal of promotion?
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
Advertising
Publicity
Sales Promotion
Personal Selling
Advertising
Advertising
A paid form of communication delivered by a
product maker or seller to consumers
Should catch the audience’s attention
Can take many forms and reach millions of
people
Product Placement
A product is integrated into the plot of a movie
or television show
Sometimes a character will use the product and
then place it in plain view for the audience
Publicity
Any UNPAID media attention, both negative
and positive, about a business and its
products, services, or events
Includes newspaper articles and television
news stories
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
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
Personal Selling
In-person, face-to-face
communication between a seller
and a customer
Can be between a vendor and a
business buyer or a retail associate
and a customer
The advantage is that the seller can
immediately address and concerns
or questions
Successful Selling
A knowledgeable seller can
Offer information
Demonstrate the product
Tell stories about personal
experiences with the product
Answer any questions that may arise
Intermission
List four elements of promotion.
Encore
1. 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 practice
d. Part of product/service management
2. An example of publicity is
a. Giving a coupon for a free CD case with the
purchase of a CD
b. Being featured on the evening news
c. Buying advertising space in a newspaper
d. Helping a customer find an item in a sporting
goods store
3. Think about a sales promotion that
you have been offered. Did it influence
you to buy? How could the experience
have been improved without costing
the company more money?
4. Think about the last time you
experienced personal selling. Describe
your experience. Include details about
how you were treated, whether you
were given good information, and
whether you bought or intend to buy
the product. How could the experience
have been better?
Assignment
Use the Internet to research how
technology is being used in
advertising to help match
advertisers with consumers who
are interested in their product.
Write one-page explaining your
findings and how you feel about
these practices.