16-1 Chapter 16 Developing a Promotional Strategy for the Marketing of Sports Products Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

16-1

Chapter 16Chapter 16

Developing a Developing a Promotional Strategy Promotional Strategy

for the Marketing of for the Marketing of Sports ProductsSports Products

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

16-2

PromotionPromotion

• The Third Variable of the Traditional Marketing Mix

• An Effort to Communicate with One or More of the Organization’s Target Markets

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Promotional MixPromotional Mix

• Has Historically Incorporated Four Promotional Tools

– Advertising– Personal Selling– Sales Promotion– Public Relations (Publicity)

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Additions to the Promotional MixAdditions to the Promotional Mix

• Though Not Everyone Agrees: Two Tools Have Been Associated with Those of the Traditional Promotional Mix:

– Sponsorship

– Direct Response Marketing (DRM)

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Integrated Marketing Communications Integrated Marketing Communications (IMC) Plan(IMC) Plan

• New Terminology

• Encompasses All Promotional Tools

• Stresses That All Promotional Tools Used in the Development of the Organization’s Promotional Efforts Must Work in Harmony

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The IMC PlanThe IMC Plan

• Consistency

• Synergy

• Must Support the Product, Distribution, and Pricing Strategies

• Must be Appropriate for the Target Market

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The Communications ProcessThe Communications Process

• Drop in Figure 16.2 Here

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The AIDA ModelThe AIDA Modelfor Effective Promotionfor Effective Promotion

• Attention

• Interest

• Desire

• Action

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AdvertisingAdvertising

• Paid, Nonpersonal Form of Communication that is Generally Disseminated via One or More of the Mass Media

• Mass Media Include:– TV– Radio– Magazines– Newspapers– Others

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Advertising Media and VehiclesAdvertising Media and Vehicles

• A Medium Is the Broad Mechanism for Conveyance of the Message

• Once a Medium Is Selected, the Marketer Must Still Select Specific Vehicles

• A Vehicle Is a Specific Option within Each Medium

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Advertising Media and VehiclesAdvertising Media and Vehicles

• Medium: – Magazines

• Vehicles:– Cosmopolitan– TV Guide– People

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Personal SellingPersonal Selling

• Paid Form of Direct Interaction between a Selling Entity and a Prospective Buyer

• Interactive One-to-One Marketing

• Message Can be Adapted as Needed

• Persuasive Process Designed to Encourage Action on the Part of the Prospective Buyer

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Sales PromotionSales Promotion

• Tools Often Used as Direct Inducements to Encourage a Particular Response on the Part of the Prospective Buyer

• Examples:– Free Samples– Discount Coupons– Specialty Advertising– Contests

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Public Relations (PR)Public Relations (PR)

• Nonpersonal Form of Communication Designed to Influence Attitudes and Opinions of Various Groups of Stakeholders

– Designed to Generate Positive Publicity

– Often Used to Counter Negative Publicity

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SponsorshipSponsorship

• Relationship between a Marketer and a Property that Allows the Marketer Access to the Exploitable Commercial Potential Associated with the Sponsored Property

– In These Cases, the Sports Property is the Sponsor, Not the Sponsee

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Sponsorship by Sports MarketersSponsorship by Sports Marketers

• Causes – Charities, Disaster Relief, Health

• Grass Roots Events – Museum Exhibits, Fairs, Local Festivals

• Special Cases of Sponsorship– Venue Naming Rights – Endorsements– Licensing

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Direct Response Marketing (DRM)Direct Response Marketing (DRM)

• Paid Form of Mass Communications

• Effort to Communicate with the Target Audience in a Manner Such That the Receivers Can Immediately Initiate Action Upon Receiving the Message

– Internet, Infomercials, Direct Mail

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Advertising ApplicationsAdvertising Applications

• Spectator Sports – TV Ad for Next Home Game for Local Minor League Team

• Participation Sport – Newspaper Ad Seeking Members for a New Bowling League

• SASS – Magazine Ad for Nike Golf Balls

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Personal Selling ApplicationsPersonal Selling Applications

• Spectator Sports – Sell Luxury Suites at Major Sports Venue

• Participation Sports – Convert Trial Member of a Health Club into a Regular Member

• SASS – Fitting of Custom Golf Clubs

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Sales Promotion ApplicationsSales Promotion Applications

• Spectator Sports – 2 for 1 Discount Coupon for the local MLB Team

• Participation Sports – Free Trial Membership at a Tennis Club

• SASS – PGA Merchandise Show

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Public Relations ApplicationsPublic Relations Applications

• Spectator Sports – Press Release Announcing Signing of New Star Player

• Participation Sports – Press Release Seeking Runners for a Charity Event

• SASS – Nike Press Release Explaining Often Criticized Labor Practices Abroad

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Sales PromotionSales Promotion

Drop in Figure 16.3 Here

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Sponsorship ApplicationsSponsorship Applications

• Spectator Sports – NFL’s Sponsorship of “Tackling Men’s Health” CRM Program

• Participation Sports – NHL Licensed Ice Skating Rinks

• SASS – Reebok Stadium (Soccer Venue); Tiger Woods’ Endorsement of Nike

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Sponsorship by a Sports EntitySponsorship by a Sports Entity

• Drop Figure 16.4 in Here

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Direct Response Marketing Direct Response Marketing (DRM) Applications(DRM) Applications

• Spectator Sports – DVD Sent to Known Buyers of Tickets to a NASCAR Event

• Participation Sports – Direct Mail Piece for Entry into Hoinke Bowling Tournament

• SASS – Infomercial Reaching Prospective Purchasers of the Total Gym Exercise Equipment (Order by Phone or WWW)

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DRM – New York YankeesDRM – New York Yankees

• Drop in Figure 16.5 Here

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Emerging Tool: Emerging Tool: Product PlacementProduct Placement

• Drop in Table 16.2 Here

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Brand EquityBrand Equity

• Value Associated with a Specific Brand

• High Levels of Brand Recognition

• Consumers Associate Quality with Brand

• Provides Differential Advantage that Creates Brand Preference or Insistence

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Brand EquityBrand Equity

• Opportunities for Brand Extension Involving Other Sports Products:

– NBA – WNBA– NFL – NFL Europe– ESPN – ESPN Golf School– Fox Sports – Fox Soccer Channel– NHL – NHL Ice Skating Rinks

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Brand EquityBrand Equity

• Opportunities for Brand Extension Involving Nonsports Products:

– Fox Sports – Sky Box Fun Food & Spirits– ESPN – ESPN SportsZone

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Brand Extension Brand Extension Based on Brand EquityBased on Brand Equity

• Drop Figure 16.6 in Here

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Cross-PromotionCross-Promotion

• Joint (Collaborative) Marketing Effort of Two or More Marketing Entities

• May Be Common Ownership or Control– Pittsburgh Steelers & Kenny Chesney Concert

• May Be Separate Entities– ESPN Golf School Involves Golf Magazine

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Effective Promotions – the NBAEffective Promotions – the NBA

• Drop in Table 16.4 Here

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Closing CapsuleClosing Capsule

• Drop in Box 16.1 Here

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Closing CapsuleClosing Capsule

• Sports Marketers Must Coordinate the Components of Their IMC Plan in a Manner that the Components Are Consistent and Support Each Other

• An Effective IMC Plan Does Not Require Initiatives in Each of the Six Categories

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Closing CapsuleClosing Capsule

• Effective Promotion Helps Develop a Higher Level of Brand Equity

• Brand Equity Creates Opportunities to Collaborate in Effective Cross-Promotions

• Not Only Must Components of IMC be Consistent, the IMC Must Support the Remainder of the Marketing Mix

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Closing Capsule Closing Capsule

• Examination of the Basic Elements of Marketing Strategy Is Almost Complete

• Target Market• Marketing Mix

– Product– Distribution (Place)– Promotion (IMC Plan)– Price