Transcript Sports Promotion

Planning the Promotion
Advertising and Sales Promotion
Public Relations and Personal Selling
2
Section 8.1 – Planning the
Promotion – Objectives
Identify the roles of
advertising and sales
promotion in sports
marketing
Explain the promotional
mix
Describe the use of
technology in promotion
3
Section 8.1 – Planning the
Promotion – Event Marketing
Events can be associated with a sanctioned sports league or a one-time
promotional event
– Ex. Regular seasons game or Super Bowl
Event marketing is all activities associated with the sale, distribution, and
promotion of a sports event
Managing Organizations
Sanctioned league events are presented by sports franchises
– Events promoted by franchise administrative support and marketing department
Revenue is generated through broadcast media contracts, tickets sales,
licensing agreements, and sponsorships
League, run by a commissioner, determines the rules and schedules for
competitions
– Commissioner makes final decisions regarding disputes and rulings
Licensing, sponsorships, and special promotions are governed by
league policies
Section 8.1 – Planning the Promotion –
Promotion in Sports Marketing
Managing Organizations – cont.
Internationally, various organizations govern worldwide sports
– Each governing body at the global, national, and local levels runs
competitions to comply with worldwide governing body
One-time promotions are usually organized by a committee that
is responsible for the sporting event.
Planning committee gets selected city ready for the competitive
events, as well as for the hospitality, needs of the athletes and
patrons
Planning committee also sells sponsorships to financially
support the event
Section 8.1 – Planning the Promotion –
Promotion in Sports Marketing
Promotion for sports is like promotion for any product
Function of sport promotion is to:
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Generate sales
Attract a targeted audience
Help create a positive image
ALL sports events are business ventures and must produce
revenue to cover expenses
Promotion of the event helps to create interest and ticket sales
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Draws an audiences for radio listeners, television viewers, and online
audience
Increased audience will increase advertising rates and sponsorships
• EX. Super Bowl XLIV charged $2.6 million for 30-second commercial
Section 8.1 – Planning the Promotion –
Promotion in Sports Marketing
Sporting events target:
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Fans of the sport
Potential customers of the products being promoted by the sponsors
ALL marketing efforts needs to attract those fans to the stadium
or their television sets
Loyal fans are needed for repeat ticket sales and regular
viewing
Images that sporting events, organizations, leagues, teams, and
players project are the direct result of marketing efforts
Association with positive images helps to build the company’s
name and product brands in the minds of fans and the general
public
Section 8.1 – Planning the Promotion –
Promotional Mix
Companies involved in sports marketing of products must
decide what types of promotion will best suit their needs
Different forms of promotion can be combined into a
company’s promotional mix
–
Promotional mix is any combination of advertising, sales,
promotion, publicity, and personal selling
Each company must decide on its own promotional mix
It must decide which combination of media will provide the best
return for the money spent on promotion for the particular
product
Section 8.1 – Planning the Promotion –
Promotional Budget
Promotional budget can be
a determining factor in
deciding the promotional
mix
Three ways to determining
a promotional budget:
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Percentage of sales
Competitive parity
Objective-and-task method
Section 8.1 – Planning the Promotion –
Promotional Budget
Percentage of Sales
A set percentage of previous
year’s sales or the coming year’s
sales are used to decide on the
funds for the promotional budget
Problem is direct connection to
sales
–
Sales low previous year, then there
may not be enough funds for new
promotional budget
Benefit is that it is easy to
calculate
Section 8.1 – Planning the Promotion –
Promotional Mix
Competitive Parity
Industry trends are used to determine promotional budget
– Parity is having equality or similarity
Company studies its competitors’ promotions to see if it needs
to spend the same amount of money to be competitive
Problem is that each company’s objectives may not be same
Section 8.1 – Planning the Promotion –
Promotional Budget
Objective-and-Task Method
Companies set objectives for their promotions and decide what
promotional activities are necessary to reach those objectives
Also takes Percentage of Sales and Competitive Parity
Deciding on objectives of the promotion takes into account
what competitors are doing
– If cost of promotion is more than what company can afford,
their objectives will be reviewed to make the plan more in
line with what they can spend
Section 8.2 – Advertising and
Sales Promotion – Objectives
Identify the roles of
advertising and sales
promotion in sports
marketing
Identify the major
types of advertising
media
Describe the use of
technology in
promotion
13
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Advertising is one of the four elements of the promotional mix
Advertising offers many possibilities when companies are
deciding on what promotion method to use
Companies have control over the message they want to deliver
since they pay for the advertising
There is flexibility in delivering the message since there is a
variety of media options
Advertising
Sales
Promotion
Publicity
Personal
Selling
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Advertising Defined
Any paid promotion of an idea, good, or service by an identified
sponsor
– Examples:
• Idea = concept of getting physically fit
• Good = tangible products such as baseball hat
• Service = tickets to sporting events
Unpaid promotion is considered free publicity
Advertising rates depend on size of audience exposed to ad
Identified sponsor is the advertiser who pays for the ad
Promotional and Institutional advertising are the two types of
advertising
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Advertising Defined
Promotional Advertising
– Advertising with a goal of
selling the item being
promoted
Institutional Advertising
– Advertising with a goal of
developing goodwill or a
positive image
– Used to simply remind
consumers about a company
or industry and to build public
confidence
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Types of Media - Print
Newspapers
– A local medium which allows advertisers to target customers in its home
town
– Geographically sensitive and inexpensive
– Effective in reaching fans and audiences
Magazines
– Regional and national in scope
– Manufacturers advertise in magazines because of large number of
subscribers that they reach who are potential customers
– Manufacturers benefit from selecting a specific audience
– Can be sports-related magazines or specific to a single sport
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Types of Media - Print
Direct Mail
– Offers the benefit of a personalized
message for the recipient
– Technological tools, such as databases,
will select qualified customers to receive
direct mail pieces
– Up-to-date and categorized mailing list
gives advertisers the ability to reach a
select group of potential customers who
meet their target-market qualifications
– Consumers considering this to be “junkmail” will prevent many recipients from
reading mail
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Types of Media - Print
Outdoor Advertising
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Billboards found on roadways
Offers the ability to geographically select your audience
Must be short because motorists may be driving past it
Act as a reminder that helps build brand recognition
Station Posters
– Signs found at public transportation stations
– Offers the ability to geographically select your audience
Stadium Signage
– Signs found inside stadiums and sports arenas
– Technology has allowed these signs to be digitally designed and viewed
during broadcasts by live and television audience
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Types of Media – Broadcast
Radio and television are broadcast media used for advertising
Radio
Television
– Allows advertisers to reach a
segmented audience based on
the radio station or network and
the geographic area
– Benefits of radio include ability
to communicate in many
settings
• Ex. Car, home, beach
– Disadvantage is that radio does
not broadcast a visual image
– Advantage is in its sight, sound, and
motion, which create dynamic
communication
– Advertisers can also target an
audience by selecting a specific TV
program
– Infomercials are usually 30 minute
commercials and teach viewers
how to use a particular product
– Disadvantage is the price of
running and producing commercial
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Types of Media – Direct Marketing
Various media methods are used to communicate directly with
consumers to make a sale
– Examples:
• Mail – letters, flyers, or postcards to potential customers listed in
database
• Telephone – telephone solicitations
• Computer – e-mail to reach online customers who are listed in
database
Database of people to contact is used
Advertiser can customize a message for the person being
contacted
Section 8.2 – Advertising and Sales Promotion –
The Role of Advertising
Types of Media – Online Advertising
Banner ads on Web sites special advertising messages directly to
consumers through personal e-mail addresses
Use of own Web sites to:
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Promote products
Sell products directly to customers
Post information
Special sale promotions
Can also get exposure on portal site (yahoo, msn)
Advantage is being able to count the number of visits to site
Disadvantage is that not all members of a target market can be
reached
Section 8.2 – Advertising and Sales Promotion –
Sales Promotions
Sales Promotion is a short-term incentive to get consumers
interested in buying a product
– Usually part of a advertisement or personal sales pitch
– Promotions that can be used in order to get consumers excited and
interested enough to become customers and buy a product include:
• Coupons, rebates, samples, premiums, contests, and sweepstakes
– Promotional events at sports arenas or stadiums can include:
• Special events, giveaway items, contests, reduced ticket prices
– Promotions that target businesses often involve:
• Sampling products, price incentives, free shipping, and/or free
merchandise
Section 8.2 – Advertising and Sales Promotion –
Sales Promotions
Coupons and Rebates
Offer some type of price reduction or free merchandise
Difference in two is that coupons are usually redeemed at store
or on location, while rebates must be sent to manufacturer for
redemption and reimbursement
Benefits of coupons and rebates is methods of distribution and
flexibility of use
– Can be part of print advertisement, downloaded from internet, part of
product package, distributed in person at store, or through direct mail
Advantage to company is that they have an expiration date
Disadvantage is that they are easily copied by competitors
Section 8.2 – Advertising and Sales Promotion –
Sales Promotions
Samples and Premiums
Sampling is a common way to promote
a new product
– Samples are given away to potential
customers
– Can be distributed with a local newspaper,
through the mail, or in person
– New product booths are set up at sporting
events in order to distribute samples
– Coupons are distributed with sample to
encourage future purchases
Premiums are items that are given
away free with the purchase of
merchandise
Section 8.2 – Advertising and Sales Promotion –
Sales Promotions
Contests and Sweepstakes
Contests participation requires completion of some task in order
to win a prize
Sweepstakes participants need only to sign up to be included in
competition
Both contests and sweepstakes are presented by a variety of
media as they are part of an advertising campaign or sponsorship
deal
Coordination of Sales Promotions
For sales promotions to be effective, they must be coordinated
with the other media used in the ad campaign, as well as with
the retail businesses involved
Section 8.3 – Public Relations
and Personal Selling - Objectives
Identify the roles of
public relations and
personal selling in
sports marketing
Identify the role of
the media in public
relations
Explain the types and
steps of selling
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Section 8.3 – Public Relations and
Personal Selling – Public Relations
Public Relations are activities that promote the image and
communications a company has with its employees, customers,
investors, and the public at large
Publicity is the free mention of a product or company in the media
– Different from advertising in that a company doesn’t pay for the publicity
it receives in the media
– Advantage: the public may view information as news and therefore
objective and believable
– Disadvantage: company’s lack of control over it
Bad publicity give a company a bad image that must be handled by
public relations department
Public relations departments create positive publicity and sends it to
the media in hopes that the media will publish it
Section 8.3 – Public Relations and
Personal Selling – Public Relations
The Role of Media in Public Relations
Magazines, newspapers, televisions, radio, and internet provide
outlets for public relations to function
Media outlets decide on what news will be used on a given day
Press Kits and Press Releases
Press kits and press releases are used to alert the media in hopes of
getting media coverage
– Press kits consist of promotional materials that can be used by the media
• Fact sheets, background information, press releases, videotapes
– Press release is a newsworthy article that provides basic information to
answer questions about a subject, such as who, what, where, when, and
why
• Sent out when a company does something that they believe is news
worthy
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Personal selling is direct
communications by a salesperson to
potential customers either in person or
by phone
– Inexpensive items may not need
personal selling because advertising and
other forms of promotion may have
already sold customers on the product
– Expensive items may need face-to-face
contact in order to educate a consumer
about features and benefits of product
Important part of the promotional mix
because it allows for two-way
communication between buyer and seller
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Types of Selling
Two types of selling:
– Order taking – consumers know what
they want and simply ask for it
– Order getting – professional
salesperson who knows how to follow
the steps of a sale, then follows up
after a sale has been completed
• Sports agents, Advertisement
Sales
– Salesperson must be knowledgeable
about the features and benefits of the
advertising medium and the audience
that he or she would be reaching
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Steps in the Selling Process
Professional selling consists of the following seven steps:
– Approach, determine needs, present the product, overcome objections,
close the sale, perform suggestion selling, follow up
Salespersons prepare for sale process through prospecting and preapproach strategies
Prospecting
– Looking for potential customers, or leads
• Can be generated by salesperson, or salespersons company;
tradeshows; advertising
Pre-approach
– Learning about the products and the potential customers
– Studying a potential customer requires research and sometimes a phone
call or email
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Steps in the Selling Process
1. Approach
– The first face-to-face meeting
with the potential customer
– Initial conversation may be
friendly and based on a prior
phone conversation during the
pre-approach, or it may center
directly on the purpose of the
visit or the product
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Steps in the Selling Process
2. Determine Needs
– Looking, listening, and asking
questions
– Determine needs as early as
possible and keep determining
needs throughout the sales process
– Reading body language will help
determine if statements made
were well received and which ones
were not
– Do more listening than talking
during meetings
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Steps in the Selling Process
3. Present the Product
– Product presentations should be
developed around the customer’s
needs and wants
– Most important features and benefits
should be presented first to generate
interest
– Suggestions to make product
presentation successful:
1. Involve the customer
2. Demonstrate the product
3. Use sales aids
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Steps in the Selling Process
4. Overcome Objections
– Answering questions or eliminating
doubts about a product
– Objections provide necessary
feedback and help keep
communication flowing
– Objections can become selling
points because the buyer may have
misconceptions or misinformation
that need to be corrected or
clarified
Section 8.3 – Public Relations and
Personal Selling – Personal Selling
Steps in the Selling Process
5. Close the Sale
– Getting a commitment from the
customer to purchase the product
– Should occur naturally as the
customer’s excitement about the
product may become obvious
6. Perform Suggestion Selling
– Presenting ideas for additional
merchandise sales
7. Follow Up
– Keep in contact with customers by
phone, e-mail, mail or newsletters
– Developing a relationship with
customer can lead to repeat sales
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