Transcript Chapter 10
Chapter 10 Sports and Entertainment Promotion 10.1 Promoting Sports and Entertainment 10.2 Advertising and Placement 10.3 Publicity and Sales Promotions Sports and Entertainment Marketing © Thomson/South-Western Winning Strategies Velocity Sports and Entertainment Velocity Sports and Entertainment promotional agency that specializes in sponsorship and event marketing focuses on the cross-promotional opportunities offered by sports and entertainment events Chapter 10 Slide 2 Sports and Entertainment Marketing © Thomson/South-Western Lesson 10.1 Promoting Sports and Entertainment Goals Describe the goals of promotion. List and define four elements of promotion. Chapter 10 Slide 3 Sports and Entertainment Marketing © Thomson/South-Western Terms advertising product placement publicity sales promotions personal selling Chapter 10 Slide 4 Sports and Entertainment Marketing © Thomson/South-Western THE PURPOSE OF PROMOTION promotion the process of making customers aware of a product, service, or event Chapter 10 Slide 5 Sports and Entertainment Marketing © Thomson/South-Western Promotional Goals Increasing sales is the primary goal of promotion. Related goals include increasing customers’ usage maintaining customer loyalty building a fan base educating potential customers overcoming the hesitation of first-time buyers Chapter 10 Slide 6 Sports and Entertainment Marketing © Thomson/South-Western Gaining New Fans – An Example To combat the declining audiences of the early 1990s, the USTA and the TIA took a number of initiatives. The associations created the Tennis Welcome Center partnership. offered fun, friendly introductory lessons By 2005, there were about 5.8 million new tennis players. Chapter 10 Slide 7 Sports and Entertainment Marketing © Thomson/South-Western What is the goal of promotion? Chapter 10 Slide 8 Sports and Entertainment Marketing © Thomson/South-Western PROMOTIONAL ELEMENTS The four elements of promotion are advertising publicity sales promotions personal selling Chapter 10 Slide 9 Sports and Entertainment Marketing © Thomson/South-Western Advertising advertising a paid form of communication delivered by a product maker or seller to consumers product placement a product integrated into the plot of a television show or a movie more discreet than advertising Chapter 10 Slide 10 Sports and Entertainment Marketing © Thomson/South-Western Publicity publicity any unpaid media attention either positive or negative Chapter 10 Slide 11 Sports and Entertainment Marketing © Thomson/South-Western Sales Promotions sales promotions additional incentives offered for a limited time to encourage consumers to buy a product Chapter 10 Slide 12 Sports and Entertainment Marketing © Thomson/South-Western Personal Selling personal selling an in-person, face-to-face communication between a seller and a customer Advantage is seller can immediately address any concerns that may be causing hesitation by the consumer. Even if the sale is lost, customers are likely to return if they are treated right Chapter 10 Slide 13 Sports and Entertainment Marketing © Thomson/South-Western List four elements of promotion. Chapter 10 Slide 14 Sports and Entertainment Marketing © Thomson/South-Western Lesson 10.2 Advertising and Placement Goals List and describe the steps involved in developing effective advertising. Describe the use of product placement. Chapter 10 Slide 15 Sports and Entertainment Marketing © Thomson/South-Western Terms tagline media strategy reach wear out frequency Chapter 10 Slide 16 Sports and Entertainment Marketing © Thomson/South-Western ADVERTISING Advertising informs consumers about new products and services and helps consumers make comparisons among alternatives. Chapter 10 Slide 17 Sports and Entertainment Marketing © Thomson/South-Western Step by Step Cost effective advertising requires: 1. 2. 3. 4. 5. 6. 7. Chapter 10 Slide 18 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. Sports and Entertainment Marketing © Thomson/South-Western The Goal specific measurable Company must decide what it wants to accomplish by advertising and how it will know that the goal has been met. Ex. Increase sales or brand recognition by a specific percentage. Chapter 10 Slide 19 Sports and Entertainment Marketing © Thomson/South-Western The Budget marginal analysis setting the advertising budget by estimating the point at which an additional dollar spent on advertising equals additional profit Spending will continue until the marginal benefit is no longer greater than the marginal cost. Chapter 10 Slide 20 Sports and Entertainment Marketing © Thomson/South-Western 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 Chapter 10 Slide 21 Sports and Entertainment Marketing © Thomson/South-Western The Theme tagline (theme) a slogan that conveys the main message of the ad Goal of the ad and the product or service will drive the selection of theme. The Media Print (newspapers, magazines, billboards) broadcast/cable (radio, TV) Internet (Social media, pop up ads) out-of-home (billboards, stadium signs, radio) in-home (TV & Magazines) Chapter 10 Slide 22 Sports and Entertainment Marketing © Thomson/South-Western 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 Chapter 10 Slide 23 Sports and Entertainment Marketing © Thomson/South-Western The Message copy the words to be spoken or printed in the advertisement Must be carefully crafted to motivate the consumer to act. wear out when advertising loses its effectiveness due to overexposure or poor message quality Chapter 10 Slide 24 Sports and Entertainment Marketing © Thomson/South-Western The Schedule frequency the number of times the targeted customer is exposed to the media Try to provide the greatest reach and highest frequency at lowest cost per person. concentration schedule 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 Chapter 10 Slide 25 Sports and Entertainment Marketing © Thomson/South-Western The Effectiveness response rate the number of customers who connect with and act in relation to the ad Knowing the effectiveness of an advertising campaign can help to shape and improve a business’s future advertising strategies. Chapter 10 Slide 26 Sports and Entertainment Marketing © Thomson/South-Western It’s Showtime primetime when the largest viewing audiences are watching TV the most expensive time to advertise Chapter 10 Slide 27 Sports and Entertainment Marketing © Thomson/South-Western 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. Ex. Pontiac G6 $1 million for pics/ Text messaging results for Live TV Show Chapter 10 Slide 28 Sports and Entertainment Marketing © Thomson/South-Western List the steps involved in developing effective advertising. Chapter 10 Slide 29 Sports and Entertainment Marketing © Thomson/South-Western PRODUCT PLACEMENT Product placement is a fast growing form of sales promotion used in films TV shows live theater Chapter 10 Slide 30 Sports and Entertainment Marketing © Thomson/South-Western The Basics Product placement can be used to offset the need for traditional advertisements. 24 on the Fox network Ford vehicles used extensively Chapter 10 Slide 31 Sports and Entertainment Marketing © Thomson/South-Western Who Pays? Three common ways that product placement deals might be constructed include 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. Chapter 10 Slide 32 Sports and Entertainment Marketing © Thomson/South-Western A corporation may make an agreement with a film producer to include movie promotion in its product advertising in exchange for placement of the product in the movie. Assuming they appeal to the same market, both parties will gain from the connection. Chapter 10 Slide 33 Sports and Entertainment Marketing © Thomson/South-Western Name three ways product placement deals are constructed. Chapter 10 Slide 34 Sports and Entertainment Marketing © Thomson/South-Western Lesson 10.3 Publicity and Sales Promotions Goals Define publicity and explain its role in creating a positive public image. Describe various types of sales promotions. Chapter 10 Slide 35 Sports and Entertainment Marketing © Thomson/South-Western Terms goodwill publicist grass-roots effort viral campaign public relations (PR) trade allowances Chapter 10 Slide 36 Sports and Entertainment Marketing © Thomson/South-Western PUBLICITY Although publicity is free, the message is controlled by the news media others that are presenting the message Chapter 10 Slide 37 Sports and Entertainment Marketing © Thomson/South-Western Goodwill goodwill customers’ positive feelings about the business Chapter 10 Slide 38 Sports and Entertainment Marketing © Thomson/South-Western 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 trying to focus attention on more positive stories Chapter 10 Slide 39 Sports and Entertainment Marketing © Thomson/South-Western 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 Chapter 10 Slide 40 Sports and Entertainment Marketing © Thomson/South-Western astroturfing creating a fake grass-roots effort Chapter 10 Slide 41 Sports and Entertainment Marketing © Thomson/South-Western Image is Everything public relations (PR) the arm of promotion that tries to create a favorable public opinion for an individual or organization Public relations focus on the future with the intent of creating a positive image of the business. Chapter 10 Slide 42 Sports and Entertainment Marketing © Thomson/South-Western Professional athletes feel the pressure of being public role models while meeting athletic performance standards. Sports facilities and sports fans need to have a positive image to encourage visitors to attend games. Chapter 10 Slide 43 Sports and Entertainment Marketing © Thomson/South-Western How is publicity different from other types of promotion? Chapter 10 Slide 44 Sports and Entertainment Marketing © Thomson/South-Western SALES PROMOTIONS Sales promotions are marketing efforts that offer customers an additional incentive to buy a limited time to make the purchase Chapter 10 Slide 45 Sports and Entertainment Marketing © Thomson/South-Western Consumer Sales Promotions consumer sales promotion directed at the final consumer Chapter 10 Slide 46 temporary price reductions price-pak deals coupons special gifts contests rebates Sports and Entertainment Marketing © Thomson/South-Western Trade Sales Promotions trade sales promotion directed at members of the distribution channel trade allowances offer short-term discounts to distributors and retailers for selling or participating in the promotion of a product trade contests point-of-purchase displays Chapter 10 Slide 47 Sports and Entertainment Marketing © Thomson/South-Western Employee Sales Promotions push money an extra commission paid to sales persons who sell or push particular products Chapter 10 Slide 48 Sports and Entertainment Marketing © Thomson/South-Western List three consumer sales promotions. Chapter 10 Slide 49 Sports and Entertainment Marketing © Thomson/South-Western PERFORMANCE INDICATORS EVALUATED Define the target market. Explain the marketing strategy to increase sales of Disney merchandise. Communicate promotional ideas clearly to the judge. Chapter 10 Slide 50 Sports and Entertainment Marketing © Thomson/South-Western Explain the value of the relationship with retailers who sell to target markets that watch Disney movies. Describe cooperative sponsorships and promotional strategies with other companies to increase sales of Disney merchandise. Chapter 10 Slide 51 Sports and Entertainment Marketing © Thomson/South-Western THINK CRITICALLY 1. How could a gift shop located in movie theaters near the exits help increase sales? 2. What is the value of diversifying distributors of Disney merchandise? Chapter 10 Slide 52 Sports and Entertainment Marketing © Thomson/South-Western 3. How can Disney benefit from associating with other well-known and respected companies? 4. Can sales of related merchandise increase attendance at the Disney movies? Explain. Chapter 10 Slide 53 Sports and Entertainment Marketing © Thomson/South-Western