Transcript SEM_Chap 10_2015

Promotion Unit
Chapter 10
Sports & Entertainment Promotion
Chapter 11
Promotional Planning
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Chapter 10
Sports & Entertainment
Promotion
10.1 Promoting Sports & Entertainment
10.2 Advertising & Placement
10.3 Publicity & Sales Promotions
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Lesson 10.1
Promoting Sports and
Entertainment
Goals
 Describe the goals of promotion.
 List and define four elements of
promotion.
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THE PURPOSE OF
PROMOTION
 Promotion
 the process of making customers aware of a
product, service, or event
 Primary Goal = INCREASE SALES
 Winning new customers
 Persuading customers to be loyal
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Promotional Goals
 Related goals include:
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increasing customers’ usage
maintaining customer loyalty
building a fan base
educating potential customers
overcoming the hesitation of first-time buyers
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Promotional Examples
 Group pricing / Special pricing
 Buy 1 Adult ticket, get child ticket ½ price
 Increase attendance, builds fan base
 Long-time supporters
 Upgraded tickets, discount parking
 Secures loyalty with current customers
PROMOTIONAL
ELEMENTS
 The four elements of promotion are
 advertising
 publicity
 sales promotions
 personal selling
(next 4 slides…)
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#1 ~ Advertising
 advertising
 a paid form of communication delivered by a
product maker or seller to consumers
 Effective Advertising:
 Catch people’s attention
 Clearly explain benefits
 Inform customers of WHERE they can get it
 Advertising can: take many forms, appear in
almost any media and reach millions of people 8
#1 ~ Advertising
 product placement
 a product integrated into the
plot of a television show or a movie
 more discreet than advertising
 Truman Show – Commercials during show.
Movie Trailer - http://www.youtube.com/watch?v=c3gI9ms8Fdc
Fake Commercials http://youtu.be/frXlYeflkt4 (9:58-12:02)
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#2 ~ Publicity
 publicity
 any unpaid media attention
 either positive or negative
 focused on product, service or business
 Outside the Business:
 Newspaper Articles, TV News Stories
 Within the Business:
 Press Releases, Speeches, Community
Involvement through service & donations
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#3 ~ Sales Promotions
 sales promotions
 additional incentives offered for a limited time
to encourage consumers to buy a product
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Limited Time Memberships
48 Hour Sales
Giveaways
Coupons
Items with company’s name printed on it
Free Samples
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#4 ~ Personal Selling
 personal selling
 an in-person, face-to-face communication
between a seller and a customer
 Vendor to business buyer
 Sales rep to store manager
 Retail Clerk to Customer
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#4 ~ Personal Selling
 Advantage:
 Immediate attention to questions/hesitations
 Knowledgeable Salesperson:
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Offers information
Demonstrate product/service
Makes comparisons to similar products
Use personal experiences
Answer questions and close the deal
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 What are the four elements of promotion?
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Advertising
Publicity
Sales Promotion
Personal Selling
Lesson 10.2
Advertising and Placement
Goals
 List and describe the steps involved in
developing effective advertising.
 Describe the use of product placement.
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Opening Act ~ Page 261
 Determine how much it would cost to
watch 10 episodes of your top 6 shows at
a cost of $5 each.
 Brainstorm alternative ways production of
TV programming could be funded.
 What ways would be most appealing to
TV viewers?
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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
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(described more in next slides)
Cost effective advertising requires:
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Set a measurable advertising goal.
Develop the advertising budget.
Create an advertising theme.
Choose the advertising media.
Create the message.
Develop an advertising schedule.
Measure the effectiveness of the advertising.
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#1 ~ The Goal
 S.M.A.R.T.
 Specific, Measurable, Attainable, Realistic, Timely
 What do we want to accomplish??? With Detail...
#2 ~ The Budget
 marginal analysis
 setting the advertising budget by estimating the
point at which an additional dollar spent on
advertising equals additional profit
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#2 ~ The Budget (continued)
 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
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#3 ~ The Theme
 tagline (theme)
 a slogan that conveys the main message of the ad
#4 ~ The Media
 Print (newspaper, magazines, bags, billboards)
 broadcast/cable (radio, TV)
 Internet
 out-of-home (billboards, stadium signs, radio)
 in-home (TV, magazines)
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#4 ~ The Media (continued)
 Media Mix selected is primarily based on:
advertising budget and target audience
 media strategy
 choosing the media that will bring the most
effective advertising message to the targeted
consumer
 reach
 the number of people in the target market expected
to receive the message through the chosen
medium
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#5 ~ The Message
 copy
 the words to be spoken or printed in the
advertisement
 Artwork, Photos, Video added to enhance
viewers’ interest and grab their attention
 wear out
 when advertising loses its effectiveness due to
overexposure or poor message quality
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#6 ~ The Schedule
 frequency
 the number of times the targeted customer is
exposed to the media
 concentration schedule
 buying / 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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#7~ The Effectiveness
 Evaluation = Critical
 If ad doesn’t meet our goal, it’s cost & efforts were wasted!
 Helps shape and improve future advertising strategies.
 response rate
 the number of customers who connect with and act in
relation to the ad
 Collected, complied, examined…
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It’s Showtime
 New Fall TV shows are “pitched” to ad firms
before airing. (Spring meeting/presentation)
 Ad Firms buy time slots based on compatibility
of potential viewing audiences.
 primetime
 when the largest viewing audiences are
watching TV
 the most expensive time to advertise
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 priced based on expected audience ratings
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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Interactive Advertising
 Pontiac – contest to photograph new G6 with
phones to enter for a chance to win $1 Million.
 Encouraged people to look for G6 on the
street, visit the dealership, attend the car
show, etc.
 Created publicity & awareness
 Other Medias ran the story/article
 Text Messaging & Twitter Interactions
 Encourages watching LIVE TV rather than
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 List the steps involved in
developing effective advertising.
1.
2.
3.
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5.
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Set measurable goal
Develop budget
Create theme
Choose media
Create message
Develop schedule
Measure effectiveness (evaluation)
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PRODUCT PLACEMENT
 Product placement is a fast growing form
of sales promotion used in
 Films (Movies)
 TV shows
 Live theater
 Product placement can be used to offset the
need for traditional advertisements.
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Brainstorm
 Fox Network ~ Show “24”
 Commercial Free Episode included only
two 3-minute ads by Ford Motor Company
(At beginning and end of show)
 Main Character, Jack Bauer, drives a Ford
Expedition and other Fords are seen
throughout the show.
 What other products have you seen
perfectly placed in Movies, TV or Theater?
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Who Pays?
 Three common ways that product
placement deals might be constructed:
 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.
 agreement
 Company promotes movie in product
advertising in exchange for product placement.
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 Name three ways product placement
deals are constructed.
 Fee Basis
 Barter
 Agreement
(Previous Slide)
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Lesson 10.3
Publicity & Sales Promotions
Goals
 Define publicity and explain its role in
creating a positive public image.
 Describe various types of sales
promotions.
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PUBLICITY
 Although publicity is free,
the message is controlled by:
 the news media
 others that are presenting the message
 Can be a very positive promotional tool
OR
 Can have very negative side effects
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Goodwill
 goodwill
 customers’ positive feelings about the
business
 Charity Events, Marathons (Walks, 5K, etc.)
 Participants - Pledge Money
 Business Donations – for public acknowledgment
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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
 trys 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
 astroturfing
 creating a fake grass-roots effort (forced, fake)
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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
 Creating the Image
 Public relations focus on the future with the intent of
creating a positive image of the business.
 Spokesperson: must know the desired image and
represent the company message, professionally.
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 Athletes & Their Public Image
 Pro athletes feel the pressure of being public role
models while meeting athletic performance standards.
 Sub par performances = disappointing contracts
 Pressure can lead to immature, bad decisions
 What do they do to keep a positive public image?
 Community involvement, Charities, etc. (positive-caring, giving)
 Media Coverage leads people to believe they are
overpaid for their talents. (Negative – greedy, thoughtless)
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 Game Day Image
 Sports facilities need to maintain a positive reputation
 Excellent service, cleanliness, safe, etc.
 Sports facilities and sports fans need to have a positive
image to encourage visitors to attend games.
 Economically helps area and team.
 Bad reputation: keeps people away.
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 How is publicity different from
other types of promotion?
 Publicity is free exposure but not really
controlled by the business or person receiving.
(So it can be negative)
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SALES PROMOTIONS
 Sales promotions are marketing efforts
that offer
 customers an additional incentive to buy
 a limited time motivator to make a purchase
 Immediate positive influence:
changes reluctant potential
consumers into buyers.
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Consumer Sales Promotions
 consumer sales promotion
 directed at the final consumer:
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temporary price reductions
(1/2 price ticket)
price-pack deals
(4 tickets + 4 hot dogs)
coupons
( $ or % off)
special gifts
(posters, rally towels)
contests
(offer prizes)
rebates
(refund part of price)
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Trade Sales Promotions
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trade sales promotion
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directed at members of the distribution channel
1. trade allowances
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offer short-term discounts to distributors and
retailers for selling or participating in the
promotion of a product
2. trade contests
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Sell the most, get a reward
3. point-of-purchase displays
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Display materials provided to help sell product 46
Employee Sales
Promotions
 push money
 an extra commission paid to sales persons
who sell or push particular products
 For example, an appliance manufacturer
offers a bonus for selling a washer or dryer
from a line that has been discontinued.
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 List three consumer sales promotions.
 temporary price reductions
(1/2 price ticket)
 price-pack deals
(4 tickets + 4 hot dogs)
 coupons
( $ or % off)
 special gifts
(posters, rally towels)
 contests
(offer prizes)
 rebates
(refund part of price)
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