Sports and Entertainment Marketing© Thomson/South-Western
Chapter Chapter Chapter Chapter
Sports and Entertainment Promotion
10.1 Promoting Sports and 10.1 Promoting Sports and Entertainment Entertainment
10.2 Advertising and Placement10.2 Advertising and Placement
10.3 Publicity and Sales Promotions 10.3 Publicity and Sales Promotions
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Winning Strategies
Velocity Sports and Entertainment promotional agency that specializes in
sponsorship and event marketing focuses on the cross-promotional opportunities
offered by sports and entertainment events
Velocity Sports and Entertainment
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Lesson 10.1
Promoting Sports and Entertainment Goals Describe the goals of promotion. List and define four elements of
promotion.
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Terms advertising product placement publicity sales promotions personal selling
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THE PURPOSE OF PROMOTION promotion
the process of making customers aware of a product, service, or event
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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
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Gaining New Fans – An Example 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.
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What is the goal of promotion?
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PROMOTIONAL ELEMENTS
The four elements of promotion are advertising publicity sales promotions personal selling
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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
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Publicity
publicity any unpaid media attention either positive or negative
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Sales Promotions
sales promotions additional incentives offered for a limited
time to encourage consumers to buy a product
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Personal Selling
personal selling an in-person, face-to-face communication
between a seller and a customer
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List four elements of promotion.
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Lesson 10.2
Advertising and Placement
Goals List and describe the steps involved in
developing effective advertising. Describe the use of product placement.
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Terms tagline media strategy reach wear out frequency
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ADVERTISING
Advertising informs consumers about new products and services and helps consumers make comparisons among alternatives.
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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.
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specific measurable
The Goal
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marginal analysis setting the advertising budget by estimating the
point at which an additional dollar spent on advertising equals additional profit
The Budget
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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
percent of sales
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tagline (theme) a slogan that conveys the main message of the ad
The Media print broadcast/cable Internet out-of-home in-home
The Theme
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choosing the media that will bring the most effective advertising message to the targeted consumer
reach the number of people in the target market
expected to receive the message through the chosen medium
media strategy
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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
The Message
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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
The Schedule
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response rate the number of customers who connect with and
act in relation to the ad
The Effectiveness
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It’s Showtime
primetime when the largest viewing audiences are
watching TV the most expensive time to advertise
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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.
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List the steps involved in developing effective advertising.
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PRODUCT PLACEMENT
Product placement is a fast growing form of sales promotion used in films TV shows live theater
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The Basics
Product placement can be used to offset the need for traditional advertisements. 24 on the Fox network
Ford vehicles used extensively
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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.
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Assuming they appeal to the same market, both parties will gain from the connection.
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.
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Name three ways product placement deals are constructed.
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Lesson 10.3
Publicity and Sales Promotions
Goals Define publicity and explain its role in
creating a positive public image. Describe various types of sales
promotions.
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Terms goodwill publicist grass-roots effort viral campaign public relations (PR) trade allowances
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PUBLICITY
Although publicity is free, the message is controlled by the news media others that are presenting the message
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Goodwill
goodwill customers’ positive feelings about the
business
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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
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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
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creating a fake grass-roots effort
astroturfing
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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.
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Sports facilities and sports fans need to have a positive image to encourage visitors to attend games.
Professional athletes feel the pressure of being public role models while meeting athletic performance standards.
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How is publicity different from other types of promotion?
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SALES PROMOTIONS
Sales promotions are marketing efforts that offer customers an additional incentive to buy a limited time to make the purchase
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Consumer Sales Promotions
consumer sales promotion directed at the final consumer
temporary price reductions price-pak deals coupons special gifts contests rebates
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Trade Sales Promotions
trade sales promotion directed at members of the distribution
channel trade allowances
offer short-term discounts to distributors and retailers for selling or participating in the promotion of a product
trade contests point-of-purchase displays
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Employee Sales Promotions
push money an extra commission paid to sales persons
who sell or push particular products
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List three consumer sales promotions.
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PERFORMANCE INDICATORS EVALUATED Define the target market. Explain the marketing strategy to increase
sales of Disney merchandise. Communicate promotional ideas clearly to
the judge.
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Describe cooperative sponsorships and promotional strategies with other companies to increase sales of Disney merchandise.
Explain the value of the relationship with retailers who sell to target markets that watch Disney movies.
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THINK CRITICALLY
1. 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?
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4. Can sales of related merchandise increase attendance at the Disney movies? Explain.
3. How can Disney benefit from associating with other well-known and respected companies?