Ch. 10. Sports & Entertainment Promotion. 10.1 – Promoting Sports & Entertainment. Goals Describe the goals of promotion. List and define four elements of promotion. The Purpose of Promotion. Promotion the process of making customers aware of a product, service, or event.
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Ch. 10 Sports & Entertainment Promotion
10.1 – Promoting Sports & Entertainment Goals • Describe the goals of promotion. • List and define four elements of promotion.
The Purpose of Promotion Promotion • the process of making customers aware of a product, service, or event
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
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.
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?
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
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
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
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
Sales Promotion • $100 billion annually • Consumer-Oriented Promotions • Coupons • Deals • Premiums • Contests • Sweepstakes • Samples • Continuity programs • Point-of-purchase displays • Rebates • Product Placement
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
Pit-stop • What are 4 elements of promotion?
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
10.2 Advertising & Placement
10.2 – Advertising & Placement Goals • List and describe the steps involved in developing effective advertising. • Describe the use of product placement.
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!
?? • What “industries” do you think spend the most money on advertising?
Advertising • The advantages: • Reach • Make an emotional connection with the target through the use of actors, music, images, etc. • Why is this so important?
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
Developing the Campaign • Identifying the Target Audience • Specifying Advertising Objectives • Setting the Advertising Budget • Designing the Advertisement • Types of appeals • Creating the Message
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
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
Developing the Campaign • Scheduling the Advertising • Three factors • Buyer turnover • Purchase frequency • Forgetting rate • Three approaches • Continuous • Flighting • Pulse
Advertising Goal? • Be SPECIFIC • Be Measurable
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
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.
What is Product Placement? • The insertion of branded products or services into mass media content with the intent of influencing consumer attitude or behavior • http://www.youtube.com/watch?v=5A0-u85aAYg • Why product placement? • Oversaturation of traditional advertising outlets • Reach a captive and involved audience • Product placement is a fast growing form of sales promotion used in • films • TV shows • live theater
History of Placements • Cigarettes • De Beers diamonds • E.T. & Reese’s Pieces • Reese’s sales increased 65% after the movie’s release • Seinfeld and Junior Mints
Product Placement History • Lumiere films in the 1890s • http://www.youtube.com/watch?v=j4hP2fL8liE • E.T. • http://www.youtube.com/watch?v=AfAzUAxWELU • Today it is a $3.36B dollar industry • Product channels • TV • Film • Books • Video Games • Music and Music Videos
The Basics • Product placement can be used to offset the need for traditional advertisements. • 24 on the Fox network • Ford vehicles used extensively
Definition of Product Placement • Plug versus Placement: • a “plug” is an on-camera mention of a brand, usually delivered by a celebrity. • Placement usually integrates a brand into a scene or story line.
Types of placements • Visual: a branded product serves as a prop in the scenery or background • Audible: A character refers to a brand by name • Use: A character uses a product • Integrated: the brand is integrated into the story line. • Integrated placements are the most effective • Virtual placements: (digitally added after the fact)
In Film • A few examples of product placement in film: • The Man of Steel • http://www.youtube.com/watch?v=KjB6r-HDDI0&feature=share&list=PLD806D12F8C69BB88
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.
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.
Newer forms of placement • Madison Avenue is scrambling to place brands anywhere and everywhere • Board games: Monopoly now features playing pieces molded in the image of McDonald's french fries, a Toyota Prius, a Motorola cell phone, and a Starbucks mug. • Children’s books: M&M's sells book to help teach counting skills to preschoolers • Music: In the top 20 songs of 2005, Mercedes-Benz was mentioned 100 times, Nike 63, Cadillac 62, Bentley 51, and Rolls-Royce 46. • Prescription drugs: According to Neilson, there were 337 visual or audio mentions of Prescription drugs in 2006 • Eggs: CBS hired EggFusion, an "on-egg messaging" company, to print its logo on 35 million eggs.
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
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."
Testimonial Glittering Generality How advertising “appeals” to you
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
Bandwagon Repetition How advertising “appeals” to you
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.
Humor Sex appeal How advertising “appeals” to you
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.
Fear Animation How advertising “appeals” to you
10.3 Publicity & Sales Promotion
10.3 - Goals • Define publicity and explain its role in creating a positive public image. • Describe various types of sales promotions.
What is Publicity? • Although publicity is free, the message is controlled by • the news media • others that are presenting the message