Ch. 10

Ch. 10

Sports & EntertainmentPromotion

10.1 – Promoting Sports & Entertainment

GoalsDescribe the goals of promotion.List and define four elements of promotion.

The Purpose of Promotion

Promotionthe process of making customers aware of a

product, service, or event

Promotional GoalsMain goal – get someone to buy your

product Increasing sales is the secondary goal of

promotion.Promotion must….

Attract the attention of the consumerCreate and interestTurn the interest into a desire

Emotional, rational, and patronage motivesPersuade the consumer to take action

Gaining New Fans – Ex.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.

Pit-stop…..What is the goal of promotion?

Secondly, watch any of the videos on this page:http://twistedsifter.com/2009/08/bmw-films-the

-hire/Would any of these be considered

promotional tools?

Promotional ElementsPromotion cannot overcome the

drawbacks of a poor product that is priced too high, but can ensure that the target market of a good product know its benefits

Four elements (a.k.a. Promotional Mix)AdvertisingPublicity / Public RelationsSales PromotionPersonal Selling

What is Advertising?Advertising

a paid form of communication delivered by a product maker or seller to consumers

Product placementa product integrated into the plot of a

television show or a moviemore discreet than advertising

PublicityPublicity / Public Relations

any unpaid media attention either positive or negative A business can try to get publicity through

press releases, speeches, letters to the editor, and community involvement through volunteer work and donations

Sales PromotionSales promotions

additional incentives offered for a limited time to encourage consumers to buy a product

Examples includeLimited - time membershipsGiveawaysCouponsItems with the company’s name on themFree samples

Sales Promotion $100 billion annually Consumer-Oriented Promotions

Coupons Deals Premiums Contests Sweepstakes Samples Continuity programs Point-of-purchase displays Rebates Product Placement

Personal Sellingpersonal selling

an in-person, face-to-face communication between a seller and a customer

The advantage is that the seller can immediately address and concerns or questions

Pit-stopWhat are 4 elements of promotion?

Quick Review1. Promotion is

a. The process of making customers aware of a product, service, or event

b. The exchange of a product or service for another item of value

c. A deceptive practiced. Part of product/service management

2. An example of publicity isa. Giving a coupon for a free CD case with the

purchase of a CDb. Being featured on the evening newsc. Buying advertising space in a newspaperd. Helping a customer find an item in a sporting goods

store

10.2

Advertising&

Placement

10.2 – Advertising & Placement

GoalsList and describe the steps involved in

developing effective advertising.Describe the use of product placement.

AdvertisingAdvertising is intended to inform and

persuade an audience to take some kind of action.

The $$ budgeted for advertising by companies like Verizon, GM, & Procter & Gamble is well over $2.5 billion each!

??What “industries” do you think spend the

most money on advertising?

AdvertisingThe advantages:

ReachMake an emotional connection with the target

through the use of actors, music, images, etc.Why is this so important?

AdvertisingThe disadvantages:

Overall costA professionally produced tv commercial can cost

between $350,000 and $400,000 to produce.Running a 30-second advertisement can cost

between $500,000 and $3 mill. during the Super Bowl!

Running a 30-second advertisement can cost between $700,000 and $800,000 during some of the more popular primetime tv shows.

Ads get old and can’t be updated quickly

Developing the Campaign Identifying the Target AudienceSpecifying Advertising ObjectivesSetting the Advertising BudgetDesigning the Advertisement

Types of appealsCreating the Message

Developing the CampaignDifferent media

TelevisionRadioMagazines

10.3% of global ad spendingNewspapersInternet

12.6% of global ad spendingAdvergamingOutdoorCell phones

Developing the Campaign Media Strategy

choosing the media that will bring the most effective advertising message to the targeted consumer

Tagline (theme) a slogan that conveys the main message of the ad

Copy the words to be spoken or printed in the

advertisement Wear out

when advertising loses its effectiveness due to overexposure or poor message quality

Developing the CampaignScheduling the Advertising

Three factorsBuyer turnoverPurchase frequencyForgetting rate

Three approachesContinuousFlightingPulse

Advertising Goal?Be SPECIFICBe Measurable

The Budget marginal analysis

setting the advertising budget by estimating the point at which an additional dollar spent on advertising equals additional profit

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

Interactive AdvertisingEffective advertising will engage viewers

and motivate them to take specific action.Digital communications can be used to

create an interactive connection with potential customers.

What is Product Placement?Product placement is a fast growing form

of sales promotion used infilmsTV showslive theater

The BasicsProduct placement can be used to offset

the need for traditional advertisements.24 on the Fox network

Ford vehicles used extensively

In FilmA few examples of product placement in

film:http://www.youtube.com/watch?v=KjB6r-HDDI

0&feature=share&list=PLD806D12F8C69BB88

http://youtu.be/8lgLYGBbDNs

Who Pays?Three common ways that product

placement deals might be constructed includefee basis

A corporation will pay a fee to the film’s producers for prominent product placement.

barterIf 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.

Who Pays?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.

How advertising “appeals” to you

Snob Appeal High class, material goods are preferred.

Why own a Chevy when you can have a Lexus? The name brand is superior to others, and despite the products' relative similarity, the high class image inspires us to spend more

How advertising “appeals” to you

Testimonial The use of personalities (usually well-known) who

lend their good name and reputation to a product. Examples: Michael Jordan selling Gatorade.

Glittering Generality Highly general, abstract statements that can't really

be proven. Examples: "Secure, safe and stable. That's the advantage

of a Subaru. No other car on the road is as reliable."

How advertising “appeals” to you

Testimonial Glittering Generality

How advertising “appeals” to you

Bandwagon Everyone is using this product. The

advertiser may use words that say, "nine out of ten Americans choose..." Examples: "Millions of Americans use Bayer

aspirin." "Mitsubishi is the fastest growing car maker."

Repetition

How advertising “appeals” to you

Bandwagon Repetition

How advertising “appeals” to you

Humor One of the most effective and popular ways for a

consumer to remember a product/company. Does not always inspire trust. Effective for selling sodas and pizza (like Little

Caesar's). Sex

Using attractive models to convey the idea that a product will make you more appealing.

How advertising “appeals” to you

Humor Sex appeal

How advertising “appeals” to you

Fearthese advertisements show that by not

purchasing the product some type of social or physical harm will come the customer’s way

Animationthese advertisements are created as cartoons

or use claymation.

How advertising “appeals” to you

Fear Animation

10.3

Publicity&

Sales Promotion

10.3 - GoalsDefine publicity and explain its role in

creating a positive public image.Describe various types of sales

promotions.

What is Publicity?Although publicity is free, the message is

controlled bythe news mediaothers that are presenting the message

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.

PublicityProfessional 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.

Publicity Public relations tools

New-product publicity Consumer Education Sponsorships Company websites

Publicity tools News Release News Conference Public Service Announcements

Reasons for Sponsorships Increase sales Introduce a new product or service Compete where potential customers are in one place Identify an event with a target market Earn the goodwill of the audience Show community commitment Enter new markets Entertain clients, employees, or potential customers Enhance the companies’ image

Need for ProfitGuaranteed amount of exposure,

recognition, or acknowledgementMarket research measures the results of

its sponsorshipsReturn—the profit the sponsor earns from

its support of an athlete or team

Reliant StadiumHome of Houston Texans$300M/30 yearsAnnual Value: $10M

FedEx FieldHome of: Washington Redskins$207M/27 yearsAnnual Value: $7.7M

American Airlines ArenaHome of: Dallas Mavericks, Dallas Stars$195M/30 yearsAnnual Value: $6.5M

Phillips ArenaHome of: Atlanta Hawks, Atlanta

Thrashers$181.9M/20 yearsAnnual Value: $9.1M

Univ. of Phoenix StadiumHome of: Arizona Cardinals$154M/20 yearsAnnual Value: $7.7M

Bank of America StadiumHome of: Carolina Panthers$140M/20 yearsAnnual Value: $7M

Lincoln Financial FieldHome of: Philadelphia Eagles$139.6M/20 yearsAnnual value: $7M

Lucas Oil StadiumHome of: Indianapolis Colts$121.5M/20 yearsAnnual value: $6.1M

Citi FieldHome of: New York Mets$400M/20 yearsAnnual Value: $20M

Sponsorship in EntertainmentCan get you an entire movie

paid for without you spending anything!$1.5 mill

SponsorshipsNiche marketing — researching a target

market to determine the specific items or services a small group of people will buyExamples:

NASCARX – Games

Sales PromotionSales promotions are marketing efforts

that offercustomers an additional incentive to buya limited time to make the purchase

Consumer Sales PromotionConsumer sales promotion

directed at the final consumer temporary price reductions price-pak deals coupons special gifts contests rebates

Trade Sales PromotionTrade sales promotion

directed at members of the distribution channel

Trade allowancesoffer short-term discounts to distributors and

retailers for selling or participating in the promotion of a product

trade contestspoint-of-purchase displays

Employee Sales Promotionpush money

an extra commission paid to sales persons who sell or push particular products

Other types of PromotionEndorsements

A public expression or approval / support for a product / service

A.K.A. – testimonialsThere are some restrictions:

Endorser MUST state factual informationEndorser must have used the product

Other types of PromotionWord-of-Mouth

One of the most effective ways of spreading the news about products and services

Used a lot by new, small businessesMain setback = business has no control over

Other types of PromotionVisual Merchandising

The process of displaying products in a way that makes them appealing and enticing to customers

Window displaysInterior displaysSigns