Sports and Entertainment Promotion

10.1 Promoting Sports and Entertainment 10.1 Promoting Sports and Entertainment

10.2 Advertising and Placement10.2 Advertising and Placement10.3 Publicity and Sales Promotions 10.3 Publicity and Sales Promotions

THE PURPOSE OF PROMOTION

• promotion• the process of making customers aware of a

product, service, or event• http://www.youtube.com/watch?v=R55e-uHQna0

Chapter 10Slide 2

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 10Slide 3

Gaining New Fans – An Example

• Soccer fans from all over the world were beginning to get mad over the faking of injuries and bad sportsmanship going on in the game.

• So, In 2006 Nike started a “Joga Bonito” campaign for the up coming world cup in Germany.

• http://www.youtube.com/watch?v=Bp1b4UrvMjA

Chapter 10Slide 4

PROMOTIONAL ELEMENTS

• The four elements of promotion are• advertising• publicity• sales promotions• personal selling

Chapter 10Slide 5

Advertising• advertising

• a paid form of communication delivered by a product maker or seller to consumers• Roughly $4 million dollars per 30 seconds in the 2013 super bowl,

$1.7 million dollars for the 2013 Oscars.• The Simpsons: It's not exactly the ratings powerhouse it once was,

but it's still a top ten most-expensive show for advertisers, pulling in around $254,000 per spot. Monday's most expensive series for advertisers is Two and a Half Men ($252,000), Tuesday's is Glee ($267,000), Wednesday's and Thursday's are both X Factor ($320,000 and $283,000), poor Friday's is Blue Bloods ($76,000), and Saturday's is college football ($85,000)

• product placement• a product integrated into the plot of a television show or a

movie• more discreet than advertising• http://www.youtube.com/watch?v=XVUipHYKKrU

Chapter 10Slide 6

Publicity

• publicity• any unpaid media attention• either positive or negative

Chapter 10Slide 7

Sales Promotions

• sales promotions• additional incentives offered for a limited time

to encourage consumers to buy a product

Chapter 10Slide 8

Personal Selling

• personal selling• an in-person, face-to-face communication

between a seller and a customer• http://www.youtube.com/watch?v=y_yNq3EtX

mk

Chapter 10Slide 9

ADVERTISING

• Advertising informs consumers about new products and services and helps consumers make comparisons among alternatives.

Chapter 10Slide

10

Step by Step

• Cost effective advertising requires:1. Set a measurable advertising goal.

2. Develop the advertising budget.

3. Create an advertising theme.

4. Choose the advertising media.

5. Create the message.

6. Develop an advertising schedule.

7. Measure the effectiveness of the advertising.

Chapter 10Slide

11

• specific• measurable

Chapter 10Slide

12

The Goal

• marginal analysis• setting the advertising budget by estimating the point at

which an additional dollar spent on advertising equals additional profit.• How much is advertising worth? Can your company get away

with limited advertising?

• Name some companies that do limited advertising, but make millions.

Chapter 10Slide

13

The Budget

• 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 10Slide

14

percent of sales

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

• Just do it. – Nike, M’m! M’m! Good! – Campbell Soup, Got Milk? – Milk

• The Media• print• broadcast/cable• Internet• out-of-home• in-home

Chapter 10Slide

15

The Theme

• choosing the media that will bring the most effective advertising message to the targeted consumer• Which avenue is best utilized for your specific target

market??

• reach• the number of people in the target market

expected to receive the message through the chosen medium

Chapter 10Slide

16

media strategy

• 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

• Can you think of any products or services that this is currently happening too?

Chapter 10Slide

17

The Message

• frequency• the number of times the targeted customer is

exposed to the media

• 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 10Slide

18

The Schedule

• response rate• the number of customers who connect with and act

in relation to the ad

Chapter 10Slide

19

The Effectiveness

Its Showtime

• primetime• when the largest viewing audiences are

watching TV• the most expensive time to advertise

Chapter 10Slide

20

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.

Chapter 10Slide

21

PRODUCT PLACEMENT

• Product placement is a fast growing form of sales promotion used in• films• TV shows• live theater

Chapter 10Slide

22

The Basics

• Product placement can be used to offset the need for traditional advertisements.• 24 on the Fox network

• Ford vehicles used extensively

Chapter 10Slide

23

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 10Slide

24

• Assuming they appeal to the same market, both parties will gain from the connection.

Chapter 10Slide

25

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.

PUBLICITY

• Although publicity is free, the message is controlled by• the news media• others that are presenting the message

Chapter 10Slide

26

Goodwill

• goodwill• customers’ positive feelings about the

business

Chapter 10Slide

27

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 10Slide

28

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 10Slide

29

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 10Slide

30

• Sports facilities and sports fans need to have a positive image to encourage visitors to attend games.

Chapter 10Slide

31

Professional athletes feel the pressure of being public role models while meeting athletic performance standards.

SALES PROMOTIONS

• Sales promotions are marketing efforts that offer• customers an additional incentive to buy• a limited time to make the purchase

Chapter 10Slide

32

Consumer Sales Promotions

• consumer sales promotion• directed at the final consumer

• temporary price reductions• price-pak deals• coupons• special gifts• contests• rebates

Chapter 10Slide

33

THINK CRITICALLY1. 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 10Slide

34

4. Can sales of related merchandise increase attendance at the Disney movies? Explain.

Chapter 10Slide

35

3. How can Disney benefit from associating with other well-known and respected companies?