Ch. 10

1. Ch. 10 Sports & Entertainment Promotion

2. 10.1 – Promoting Sports & Entertainment Goals • Describe the goals of promotion. • List and define four elements of promotion.

3. The Purpose of Promotion Promotion • the process of making customers aware of a product, service, or event

4. Promotional Goals • Main goal – get someone to buy your product • Increasing sales is the secondary goal of promotion. • Promotion must…. • Attract the attention of the consumer • Create and interest • Turn the interest into a desire • Emotional, rational, and patronage motives • Persuade the consumer to take action

5. 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.

6. 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?

7. Promotional Elements • Promotion 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) • Advertising • Publicity / Public Relations • Sales Promotion • Personal Selling

8. What is 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

9. Publicity • Publicity / 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

10. Sales Promotion • Sales promotions • additional incentives offered for a limited time to encourage consumers to buy a product • Examples include • Limited - time memberships • Giveaways • Coupons • Items with the company’s name on them • Free samples

11. Sales Promotion • $100 billion annually • Consumer-Oriented Promotions • Coupons • Deals • Premiums • Contests • Sweepstakes • Samples • Continuity programs • Point-of-purchase displays • Rebates • Product Placement

13. Personal Selling • personal 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

14. Pit-stop • What are 4 elements of promotion?

15. Quick Review • Promotion is • The process of making customers aware of a product, service, or event • The exchange of a product or service for another item of value • A deceptive practice • Part of product/service management • An example of publicity is • Giving a coupon for a free CD case with the purchase of a CD • Being featured on the evening news • Buying advertising space in a newspaper • Helping a customer find an item in a sporting goods store

16. 10.2 Advertising & Placement

17. 10.2 – Advertising & Placement Goals • List and describe the steps involved in developing effective advertising. • Describe the use of product placement.

18. Advertising • Advertising 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!

19. ?? • What “industries” do you think spend the most money on advertising?

20. Advertising • The advantages: • Reach • Make an emotional connection with the target through the use of actors, music, images, etc. • Why is this so important?

21. Advertising • The disadvantages: • Overall cost • A 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

22. Developing the Campaign • Identifying the Target Audience • Specifying Advertising Objectives • Setting the Advertising Budget • Designing the Advertisement • Types of appeals • Creating the Message

23. Developing the Campaign • Different media • Television • Radio • Magazines • 10.3% of global ad spending • Newspapers • Internet • 12.6% of global ad spending • Advergaming • Outdoor • Cell phones

24. 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

25. Developing the Campaign • Scheduling the Advertising • Three factors • Buyer turnover • Purchase frequency • Forgetting rate • Three approaches • Continuous • Flighting • Pulse

26. Advertising Goal? • Be SPECIFIC • Be Measurable

27. 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

28. 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.

29. What is Product Placement? • Product placement is a fast growing form of sales promotion used in • films • TV shows • live theater

30. The Basics • Product placement can be used to offset the need for traditional advertisements. • 24 on the Fox network • Ford vehicles used extensively

31. In Film • A few examples of product placement in film: • http://www.youtube.com/watch?v=KjB6r-HDDI0&feature=share&list=PLD806D12F8C69BB88 • http://youtu.be/8lgLYGBbDNs

32. 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.

33. 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.

34. 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

35. 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."

36. Testimonial Glittering Generality How advertising “appeals” to you

37. 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

38. Bandwagon Repetition How advertising “appeals” to you

39. 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.

40. Humor Sex appeal How advertising “appeals” to you

41. How advertising “appeals” to you • Fear • these advertisements show that by not purchasing the product some type of social or physical harm will come the customer’s way • Animation • these advertisements are created as cartoons or use claymation.

42. Fear Animation How advertising “appeals” to you

43. 10.3 Publicity & Sales Promotion

44. 10.3 - Goals • Define publicity and explain its role in creating a positive public image. • Describe various types of sales promotions.

45. What is Publicity? • Although publicity is free, the message is controlled by • the news media • others that are presenting the message

46. 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.

47. Publicity • 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.

48. Publicity • Public relations tools • New-product publicity • Consumer Education • Sponsorships • Company websites • Publicity tools • News Release • News Conference • Public Service Announcements

49. 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

50. Need for Profit • Guaranteed amount of exposure, recognition, or acknowledgement • Market research measures the results of its sponsorships • Return—the profit the sponsor earns from its support of an athlete or team