Transcript Chapter 8: Sports Promotion - Mrs. Ingram`s Class Website

Chapter 8:
Sports Promotion
Marketing Principles
Learning Targets:
I can….
● define event marketing.
● explain promotion and the promotional mix in sports marketing.
● identify the roles of advertising and sales promotion in sports
marketing.
● describe the use of technology in promotion.
● identify the roles of public relations and personal selling in sports
marketing.
● identify the types and steps of selling.
Section 8-1:
Planning the Promotion
Discussion Starter
What do you think of when you hear the word event?
I. Event Marketing
Event Marketing- all activities associated with the
sale, distribution, and promotion of a sports event.
Discussion Question: Think about the last event
you went to, what are some of the things that stood
out to you at the event that you feel was a part of
their marketing strategy.
II. Promotion in Sports Marketing
3 Functions of Promotion:
1. Generate Sales:
a. all sports events are business ventures and therefore must product
revenue to cover expenses.
2. Attract a targeted audience:
a. target the fans of the sport and the potential customers of the
products being promoted by the sponsors. (What are some events
you can think of that has sponsor/sport that targets a certain
audience?
3. Help create a positive image
a. Wheaties teams up with the American College of Sport Medicine.
“Breakfast of Champions"
III. Promotional Mix
Promotional Mix- any combination of advertising sales,
promotion, publicity, and personal selling.
Ex: Russell Athletics “Are you Russell Athletics material?”
IV. Promotional Budget
3 Ways to Determine a Promotional Budget
1. Percentage of Sales
a.
using a set percentage or portion of last year’s sales or the coming
year’s sales to decide on the funds for the promotional budget.
2. Competitive Parity
a.
Looking for industry trends on how much to spend. “Parity” means
having equality or similarity.
3. Objective-an-Task Method
a.
set objectives for promotion and decide what promotional activities
are necessary to reach those objectives.
Math Check
If Mario’s Collector Cards store made $80,000 in sales last
year and 5% of what will be spent on promotions next year,
what will the promotional budget be?
$80,000 x .05 = $4,000
Section 8-2:
Advertising and Sales Promotion
I.The Roles of Advertising
Advertising- any paid promotion of an idea, good, or service
by an identified sponsor.
Two Types of Advertising:
1. Promotional Advertising- advertising with a goal of
selling the item being promoted.
2. Institutional Advertising- advertising with a goal of
developing goodwill or a positive image.
I.The Roles of Advertising
Types of Media:
1. Print- newspapers, magazines, direct mail, outdoor
advertising (billboards), station posters (public
transportation site), and stadium signage.
2. Broadcast- radio & television.
3. Direct Marketing- using various media to communicate
directly with customers to make a sale.
I. The Roles of Advertising
Types of media continued….
4. Online Advertising- purchase banner ads on websites.
● Advantage: number of “hits”
● Disadvantage: not all members of the target market can
be reached.
II.Sales Promotion
Sales Promotion- a short-term incentive to get customers
interested in buying a product. (advertisement or personal
sales pitch)
Target Customers (get the customers excited and interested
in buying the product.)
II.Sales Promotion
● Coupons- offers some type of price reduction or free
merchandise, must be redeemed at the retail store.
o
Newspapers or magazines.
● Rebates- offer some type of price reduction or free
merchandise, must be sent to the manufacturer to be
redeemed.
o
Contact Lenses
● Samples- distributed through newspaper, mail, or in
person.
o
perfume/cologne samples in magazine. Chick-Fil-A chicken nugget
samples at the food court in a mall.
II. Sales Promotions
● Premiums- items given away with a purchase of
merchandise.
o
Clinique makeup- purchase a certain dollar amount of makeup and
receive the bonus makeup bag with samples.
● Contests- radio gives you a chance to win tickets in
trivia contest. Must participate to win.
● Sweepstakes- only need to sign up.
o
Free vacation giveaway (restaurant, hotel, store)
Promotional events at sports arenas/ballparks; contests,
reduced tick prices, other incentives.
Section 8-3:
Public Relations and Personal Selling
I. Public Relations
Public Relations- activities that promote image and
communications a company had with its employees,
customers, investors, and the public at large.
Publicity- the free mention of a product or company in the
media. (differs from advertising because a company does
not pay for the exposure it gets in the media.)
●
●
Advantage- how the public may view what they see and hear in the media. Must be objective and
believable.
Disadvantage- company’s lack of control over it. May not all be positive about the company. Bad
publicity gives bad image.
I.Public Relations
The Role of Media in Public Relations:
● Rely on media to get the news out.
● Up to media to decide what news will be used.
o
Example: something extraordinary occurs, such as an airplane crash,
the media will give coverage to that event as top priority over other
news originally scheduled for release that day.
I. Public Relations
Press Kit & Press Release
1. Press Kit- consists of promotional materials that can be
used by the media, such as fact sheets, background
information, press releases, and videotapes.
2. Press Release- newsworthy article that provides basic
information to answer questions about a subject, such
as who, what, where, when, and why.
a.
Example- when a baseball player gets traded, a press release is sent to
the media from the baseball franchise.
II. Personal Selling
Personal Selling- direct communication by a salesperson to
potential customers either in person or by telephone.
●
Inexpensive goods, may not be necessary because advertising and other forms of promotion may
have already sold customers on products.
●
Expensive goods, face-to-face contact might be needed to educate the customer on the product.
●
Face-to-face selling is important because it allows two way communication between the buyer
and the seller.
II. Personal Selling
Types of Selling:
1. Order Taking- does not involve much sales ability
because consumers generally know what they want and
simply ask for it. (salesperson working in a souvenir
shop at a sporting event.
2. Order Getting- professional sales person who knows
how to follow the steps of sale, then follows up after a
sale has been completed. (sports agent)
II. Personal Selling
Before selling begins, salesperson prepares with two
strategies:
1. Prospecting- looking at potential customers, or leads.
a.
trade shows and advertising.
2. Preapproach- learning about the products and the
potential customers.
a.
agents put together a sales presentation to highlight the features and
benefits of the athlete they are represnting.
II. Personal Selling
Steps in the Selling Process:
1. Approach
a.
face-to-face meeting with the potential customer.
2. Determine Needs
a.
b.
c.
looking, listening, and asking questions to determine needs.
determine the needs as soon as possible and throughout the sales
process.
learn to read facial expressions.
II. Personal Selling
3. Present the Product
a.
b.
developed around the customer’s needs
make the product presentation effective:
i.
ii.
iii.
involve the customer
demonstrate the product
use sale ads
4. Overcome Objections
a.
answer questions and eliminate doubts about the product
II. Personal Selling
5. Close the Sale
a.
getting commitment from the customer
6. Perform Suggestion Selling
a.
presenting ideas for additional merchandise to sell
7. Follow Up
a.
keep in contact with customers by phone, email, mail, or newsletters.