Transcript Sales Promotion, Events, and Sponsorships

Sales Promotion, Events,
and Sponsorships
Remark: Parts of the slides come from textbook publishers' presentation;
There is no mean of violating or claiming as a writer of content.
MKT3627 Sales Promotion
Sponsorship
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An investment in an activity in return for
access to the exploitable commercial
potential associated with this activity.
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When companies support an event like
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sport event, concert, or charity
ex. Olympics
Financially or donate product/service
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Sponsorship (Cont.)
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Mute non-verbal medium
Messages are created using visuals, vocals,
and context
Sponsorship may be less effective in
gaining attention
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Sponsorship (Cont.)
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Objectives:
1) Generation of awareness
2) Promotion of positive message about
the product or company
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4 Types of SPONSORSHIP:
1. Event-related sponsorship
2. Broadcast/Program sponsorship
3. Cause-related sponsorship
4. Ambush Marketing
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4 Types of Sponsorship
1. Event-related sponsorship
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Best Known Type
i.e. sponsoring soccer competition or activity
Increase awareness or improve image
2. Broadcast/Program sponsorship
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A brand can sponsor a sports program, weather
forecast or a soap
Billboarding: mentioning the name of a sponsor
Product placement: sponsor's product being used
during the program to show to the audience
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i.e. series/ James Bond
Increase brand salience (via liking and attention to)
MKT3627 Sales Promotion
4 Types of Sponsorship (Cont.)
3. Cause-related sponsorship
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The oldest form
A combination of PR, Sales Promo, and corporate
philanthropy (charity), based on profit-motivated
giving to good causes
Not just Charity, but Charity + integration of
company's communication strategy
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4 Types of Sponsorship (Cont.)
3. Cause-related sponsorship (Cont.)
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Transaction-based sponsorship
(Cause-related marketing or point-of-purchase politics)
A type of sponsorship in which the company
invests a pre-specified amount of money in a
good cause every time a consumer buys one
of the company's product.
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i.e. a cause program to stop childhood hunger
4 Types of Sponsorship (Cont.)
4. Ambush Marketing
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Promotional stunts used at events by
companies that are not official sponsors.
Typically occurs when one big brand is trying
to dilute the presence of a rival that is
sponsoring an event, thus diminishing the
return on the official sponsor's investment.
For example,
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Nike ran its own soccer competition against the
World Cup whose official sponsor was Adidas.
Because of the publicity, many consumers
assumed Nike was the official World cup sponsor.
Event Marketing
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A type of Public Relation (PR) activity
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Using a number of elements of the
promotion mix to create an event for the
purpose of reaching strategic marketing
objectives
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Building a product's marketing program
around a sponsored event
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i.e. a golf tournament
MKT3627 Sales Promotion
Event Marketing (Cont.)
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Can use to project right image for the brand
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Objectives:
Very Costly
1. To build brand associations
2. To increase the perceived value of the
brand in the consumer's mind
MKT3627 Sales Promotion
Other Promotional Supports
• Blimps, balloons, inflatable
• Skywriting plane
• Huge in size
• 3D Shape
• Interactive and Internet Promotions
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Loyalty Program
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Also known as
= Continuity or Frequency program
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I.e.
Frequent flier programs (Thai Airways Int'l)
Membership programs (Carrefour I Wish Card)
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Objective: To increase customer retention
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Loyalty Program (Cont.)
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Make use of databases
Mandates of Loyalty Programs:
1. Identify your best customers
2. Connect with those best customers
3. Retain the best customers, usually by
rewarding them for their patronage
4. Cultivate new "best customers"
MKT3627 Sales Promotion
Partnership Programs
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Co-marketing
Co-branding
Licensing
Tie-ins
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Co-marketing
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When manufacturers develop marketing
communication programs with their main
retail accounts, instead of for them.
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Advertising and sales promotion build
brand equity for both manufacturer and
retailer.
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i.e. Tesco-Unilever November Theme
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Co-branding
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When two companies come together to
offer a product
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i.e. King Power Duty Free logo on SCB
credit card
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Licensing
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When an established brand "rents" that
brand to other companies, allowing
them to use its logo on their product
and in advertising or events
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i.e. Disney cartoons on ice cream
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Tie-ins
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Associations between complementary
brands to create synergy (1+1=3)
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i.e. cross promotion and merchandising
of Doritos chips and Salsa
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To spur impulse purchase
Leverage similar strength
Bigger impact in the marketplace
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