Planning the Promotion

2. Planning the Promotion Advertising and Sales Promotion Public Relations and Personal Selling 2

3. Section 8.1 – Planning the Promotion – Objectives • Identify the roles of advertising and sales promotion in sports marketing • Explain the promotional mix • Describe the use of technology in promotion 3

4. Section 8.1 – Planning the Promotion – Event Marketing • Events can be associated with a sanctioned sports league or a one-time promotional event • Ex. Regular seasons game or Super Bowl • Event marketing is all activities associated with the sale, distribution, and promotion of a sports event Managing Organizations • Sanctioned league events are presented by sports franchises • Events promoted by franchise administrative support and marketing department • Revenue is generated through broadcast media contracts, tickets sales, licensing agreements, and sponsorships • League, run by a commissioner, determines the rules and schedules for competitions • Commissioner makes final decisions regarding disputes and rulings • Licensing, sponsorships, and special promotions are governed by league policies

5. Section 8.1 – Planning the Promotion – Promotion in Sports Marketing Managing Organizations – cont. • Internationally, various organizations govern worldwide sports • Each governing body at the global, national, and local levels runs competitions to comply with worldwide governing body • One-time promotions are usually organized by a committee that is responsible for the sporting event. • Planning committee gets selected city ready for the competitive events, as well as for the hospitality, needs of the athletes and patrons • Planning committee also sells sponsorships to financially support the event

6. Section 8.1 – Planning the Promotion – Promotion in Sports Marketing • Promotion for sports is like promotion for any product • Function of sport promotion is to: • Generate sales • Attract a targeted audience • Help create a positive image • ALL sports events are business ventures and must produce revenue to cover expenses • Promotion of the event helps to create interest and ticket sales • Draws an audiences for radio listeners, television viewers, and online audience • Increased audience will increase advertising rates and sponsorships • EX. Super Bowl XLIV charged $2.6 million for 30-second commercial

7. Section 8.1 – Planning the Promotion – Promotion in Sports Marketing • Sporting events target: • Fans of the sport • Potential customers of the products being promoted by the sponsors • ALL marketing efforts needs to attract those fans to the stadium or their television sets • Loyal fans are needed for repeat ticket sales and regular viewing • Images that sporting events, organizations, leagues, teams, and players project are the direct result of marketing efforts • Association with positive images helps to build the company’s name and product brands in the minds of fans and the general public

8. Section 8.1 – Planning the Promotion – Promotional Mix • Companies involved in sports marketing of products must decide what types of promotion will best suit their needs • Different forms of promotion can be combined into a company’s promotional mix • Promotional mix is any combination of advertising, sales, promotion, publicity, and personal selling • Each company must decide on its own promotional mix • It must decide which combination of media will provide the best return for the money spent on promotion for the particular product

9. Section 8.1 – Planning the Promotion – Promotional Budget • Promotional budget can be a determining factor in deciding the promotional mix • Three ways to determining a promotional budget: • Percentage of sales • Competitive parity • Objective-and-task method

10. Section 8.1 – Planning the Promotion – Promotional Budget Percentage of Sales • A set percentage of previous year’s sales or the coming year’s sales are used to decide on the funds for the promotional budget • Problem is direct connection to sales • Sales low previous year, then there may not be enough funds for new promotional budget • Benefit is that it is easy to calculate

11. Section 8.1 – Planning the Promotion – Promotional Mix Competitive Parity • Industry trends are used to determine promotional budget • Parity is having equality or similarity • Company studies its competitors’ promotions to see if it needs to spend the same amount of money to be competitive • Problem is that each company’s objectives may not be same

12. Section 8.1 – Planning the Promotion – Promotional Budget Objective-and-Task Method • Companies set objectives for their promotions and decide what promotional activities are necessary to reach those objectives • Also takes Percentage of Sales and Competitive Parity • Deciding on objectives of the promotion takes into account what competitors are doing • If cost of promotion is more than what company can afford, their objectives will be reviewed to make the plan more in line with what they can spend

13. Section 8.2 – Advertising and Sales Promotion – Objectives • Identify the roles of advertising and sales promotion in sports marketing • Identify the major types of advertising media • Describe the use of technology in promotion 13

14. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising • Advertising is one of the four elements of the promotional mix • Advertising offers many possibilities when companies are deciding on what promotion method to use • Companies have control over the message they want to deliver since they pay for the advertising • There is flexibility in delivering the message since there is a variety of media options

15. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Advertising Defined • Any paid promotion of an idea, good, or service by an identified sponsor • Examples: • Idea = concept of getting physically fit • Good = tangible products such as baseball hat • Service = tickets to sporting events • Unpaid promotion is considered free publicity • Advertising rates depend on size of audience exposed to ad • Identified sponsor is the advertiser who pays for the ad • Promotional and Institutional advertising are the two types of advertising

16. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Advertising Defined Promotional Advertising • Advertising with a goal of selling the item being promoted Institutional Advertising • Advertising with a goal of developing goodwill or a positive image • Used to simply remind consumers about a company or industry and to build public confidence

17. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Types of Media - Print Newspapers • A local medium which allows advertisers to target customers in its home town • Geographically sensitive and inexpensive • Effective in reaching fans and audiences Magazines • Regional and national in scope • Manufacturers advertise in magazines because of large number of subscribers that they reach who are potential customers • Manufacturers benefit from selecting a specific audience • Can be sports-related magazines or specific to a single sport

18. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Types of Media - Print Direct Mail • Offers the benefit of a personalized message for the recipient • Technological tools, such as databases, will select qualified customers to receive direct mail pieces • Up-to-date and categorized mailing list gives advertisers the ability to reach a select group of potential customers who meet their target-market qualifications • Consumers considering this to be “junk-mail” will prevent many recipients from reading mail

19. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Types of Media - Print Outdoor Advertising • Billboards found on roadways • Offers the ability to geographically select your audience • Must be short because motorists may be driving past it • Act as a reminder that helps build brand recognition Station Posters • Signs found at public transportation stations • Offers the ability to geographically select your audience Stadium Signage • Signs found inside stadiums and sports arenas • Technology has allowed these signs to be digitally designed and viewed during broadcasts by live and television audience

20. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Types of Media – Broadcast Radio and television are broadcast media used for advertising Television Advantage is in its sight, sound, and motion, which create dynamic communication Advertisers can also target an audience by selecting a specific TV program Infomercialsare usually 30 minute commercials and teach viewers how to use a particular product Disadvantage is the price of running and producing commercial Radio • Allows advertisers to reach a segmented audience based on the radio station or network and the geographic area • Benefits of radio include ability to communicate in many settings • Ex. Car, home, beach • Disadvantage is that radio does not broadcast a visual image

21. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Types of Media – Direct Marketing • Various media methods are used to communicate directly with consumers to make a sale • Examples: • Mail – letters, flyers, or postcards to potential customers listed in database • Telephone – telephone solicitations • Computer – e-mail to reach online customers who are listed in database • Database of people to contact is used • Advertiser can customize a message for the person being contacted

22. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising Types of Media – Online Advertising • Banner ads on Web sites special advertising messages directly to consumers through personal e-mail addresses • Use of own Web sites to: • Promote products • Sell products directly to customers • Post information • Special sale promotions • Can also get exposure on portal site (yahoo, msn) • Advantage is being able to count the number of visits to site • Disadvantage is that not all members of a target market can be reached

23. Section 8.2 – Advertising and Sales Promotion – Sales Promotions • Sales Promotion is a short-term incentive to get consumers interested in buying a product • Usually part of a advertisement or personal sales pitch • Promotions that can be used in order to get consumers excited and interested enough to become customers and buy a product include: • Coupons, rebates, samples, premiums, contests, and sweepstakes • Promotional events at sports arenas or stadiums can include: • Special events, giveaway items, contests, reduced ticket prices • Promotions that target businesses often involve: • Sampling products, price incentives, free shipping, and/or free merchandise

24. Section 8.2 – Advertising and Sales Promotion – Sales Promotions Coupons and Rebates • Offer some type of price reduction or free merchandise • Difference in two is that coupons are usually redeemed at store or on location, while rebates must be sent to manufacturer for redemption and reimbursement • Benefits of coupons and rebates is methods of distribution and flexibility of use • Can be part of print advertisement, downloaded from internet, part of product package, distributed in person at store, or through direct mail • Advantage to company is that they have an expiration date • Disadvantage is that they are easily copied by competitors

25. Section 8.2 – Advertising and Sales Promotion – Sales Promotions Samples and Premiums • Sampling is a common way to promote a new product • Samples are given away to potential customers • Can be distributed with a local newspaper, through the mail, or in person • New product booths are set up at sporting events in order to distribute samples • Coupons are distributed with sample to encourage future purchases • Premiums are items that are given away free with the purchase of merchandise

26. Section 8.2 – Advertising and Sales Promotion – Sales Promotions Contests and Sweepstakes • Contests participation requires completion of some task in order to win a prize • Sweepstakes participants need only to sign up to be included in competition • Both contests and sweepstakes are presented by a variety of media as they are part of an advertising campaign or sponsorship deal Coordination of Sales Promotions • For sales promotions to be effective, they must be coordinated with the other media used in the ad campaign, as well as with the retail businesses involved

27. Section 8.3 – Public Relations and Personal Selling - Objectives • Identify the roles of public relations and personal selling in sports marketing • Identify the role of the media in public relations • Explain the types and steps of selling 27

28. Section 8.3 – Public Relations and Personal Selling – Public Relations • Public Relations are activities that promote the image and communications a company has with its employees, customers, investors, and the public at large • Publicity is the free mention of a product or company in the media • Different from advertising in that a company doesn’t pay for the publicity it receives in the media • Advantage: the public may view information as news and therefore objective and believable • Disadvantage: company’s lack of control over it • Bad publicity give a company a bad image that must be handled by public relations department • Public relations departments create positive publicity and sends it to the media in hopes that the media will publish it

29. Section 8.3 – Public Relations and Personal Selling – Public Relations The Role of Media in Public Relations • Magazines, newspapers, televisions, radio, and internet provide outlets for public relations to function • Media outlets decide on what news will be used on a given day Press Kits and Press Releases • Press kits and press releases are used to alert the media in hopes of getting media coverage • Press kits consist of promotional materials that can be used by the media • Fact sheets, background information, press releases, videotapes • Press release is a newsworthy article that provides basic information to answer questions about a subject, such as who, what, where, when, and why • Sent out when a company does something that they believe is news worthy

30. Section 8.3 – Public Relations and Personal Selling – Personal Selling • Personal selling is direct communications by a salesperson to potential customers either in person or by phone • Inexpensive items may not need personal selling because advertising and other forms of promotion may have already sold customers on the product • Expensive items may need face-to-face contact in order to educate a consumer about features and benefits of product • Important part of the promotional mix because it allows for two-way communication between buyer and seller

31. Section 8.3 – Public Relations and Personal Selling – Personal Selling Types of Selling • Two types of selling: • Order taking – consumers know what they want and simply ask for it • Order getting – professional salesperson who knows how to follow the steps of a sale, then follows up after a sale has been completed • Sports agents, Advertisement Sales • Salesperson must be knowledgeable about the features and benefits of the advertising medium and the audience that he or she would be reaching

32. Section 8.3 – Public Relations and Personal Selling – Personal Selling Steps in the Selling Process • Professional selling consists of the following seven steps: • Approach, determine needs, present the product, overcome objections, close the sale, perform suggestion selling, follow up • Salespersons prepare for sale process through prospecting and pre-approach strategies Prospecting • Looking for potential customers, or leads • Can be generated by salesperson, or salespersons company; tradeshows; advertising Pre-approach • Learning about the products and the potential customers • Studying a potential customer requires research and sometimes a phone call or email

33. Section 8.3 – Public Relations and Personal Selling – Personal Selling Steps in the Selling Process 1. Approach • The first face-to-face meeting with the potential customer • Initial conversation may be friendly and based on a prior phone conversation during the pre-approach, or it may center directly on the purpose of the visit or the product

34. Section 8.3 – Public Relations and Personal Selling – Personal Selling Steps in the Selling Process 2. Determine Needs • Looking, listening, and asking questions • Determine needs as early as possible and keep determining needs throughout the sales process • Reading body language will help determine if statements made were well received and which ones were not • Do more listening than talking during meetings

35. Section 8.3 – Public Relations and Personal Selling – Personal Selling Steps in the Selling Process 3. Present the Product • Product presentations should be developed around the customer’s needs and wants • Most important features and benefits should be presented first to generate interest • Suggestions to make product presentation successful: • Involve the customer • Demonstrate the product • Use sales aids

36. Section 8.3 – Public Relations and Personal Selling – Personal Selling Steps in the Selling Process 4. Overcome Objections • Answering questions or eliminating doubts about a product • Objections provide necessary feedback and help keep communication flowing • Objections can become selling points because the buyer may have misconceptions or misinformation that need to be corrected or clarified

37. Section 8.3 – Public Relations and Personal Selling – Personal Selling Steps in the Selling Process 5. Close the Sale • Getting a commitment from the customer to purchase the product • Should occur naturally as the customer’s excitement about the product may become obvious 6. Perform Suggestion Selling • Presenting ideas for additional merchandise sales 7. Follow Up • Keep in contact with customers by phone, e-mail, mail or newsletters • Developing a relationship with customer can lead to repeat sales

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