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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.

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ch 10

Ch. 10

Sports & Entertainment


10 1 promoting sports entertainment
10.1 – Promoting Sports & Entertainment


  • Describe the goals of promotion.
  • List and define four elements of promotion.
the purpose of promotion
The Purpose of Promotion


  • the process of making customers aware of a product, service, or event
promotional goals
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
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:
    • Would any of these be considered promotional tools?
promotional elements
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
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 / 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 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 promotion1
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
  • 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 stop1
  • What are 4 elements of promotion?
quick review
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


  • List and describe the steps involved in developing effective advertising.
  • Describe the use of product placement.
  • 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?
  • The advantages:
    • Reach
    • Make an emotional connection with the target through the use of actors, music, images, etc.
      • Why is this so important?
  • 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
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 campaign1
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 campaign2
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 campaign3
Developing the Campaign
  • Scheduling the Advertising
    • Three factors
      • Buyer turnover
      • Purchase frequency
      • Forgetting rate
    • Three approaches
      • Continuous
      • Flighting
      • Pulse
advertising goal
Advertising Goal?
  • Be Measurable
the budget
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
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
What is Product Placement?
  • The insertion of branded products or services into mass media content with the intent of influencing consumer attitude or behavior
  • 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
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
Product Placement History
  • Lumiere films in the 1890s
  • E.T.
  • Today it is a $3.36B dollar industry
  • Product channels
    • TV
    • Film
    • Books
    • Video Games
    • Music and Music Videos
the basics
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
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
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
In Film
  • A few examples of product placement in film:
    • The Man of Steel
who pays
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 pays1
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
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
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 you1
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."
how advertising appeals to you3
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
how advertising appeals to you5
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.
how advertising appeals to you7
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.




Sales Promotion

10 3 goals
10.3 - Goals
  • Define publicity and explain its role in creating a positive public image.
  • Describe various types of sales promotions.
what is publicity
What is Publicity?
  • Although publicity is free, the message is controlled by
    • the news media
    • others that are presenting the message
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.
  • 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.
  • Public relations tools
    • New-product publicity
    • Consumer Education
    • Sponsorships
    • Company websites
  • Publicity tools
    • News Release
    • News Conference
    • Public Service Announcements
reasons for sponsorships
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
sponsorship defined
Sponsorship defined
  • Is an investment relationship between a corporate entity and a sport or property to achieve organizational goals through a cash or in-kind fee
  • “Signature Sponsors”
    • Paid the most for exposure and is most promoted during the event
sponsorship leveraging
Sponsorship Leveraging
  • Leveraging
    • Increasing the value fo the sponsorship through additional marketing efforts.
  • VISA – Olympics sponsorship example
    • Where VISA spent promotional budget for their Embrace the Spirit Give-Away
      • Signage @ 2,500 Retailers
      • Olympians Reunion center – 5,000 Guests
      • VISA Customer Center – 3,000 customer
      • Pass-Through Rights (Right to use logo)
      • Olympic themed cards – 20 Million cards (Licensing Agreement)
drawbacks to sponsorship
Drawbacks to Sponsorship
  • Becoming Common
    • Too long of an association MAY dilute power
  • Expensive
    • Many expenses to cover when sponsoring
  • Clutter
    • May have other sponsors or promotions
  • Negative Publicity
    • Event may not be viewed favorably
need for profit
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
reliant stadium
Reliant Stadium
  • Home of Houston Texans
  • $300M/30 years
  • Annual Value: $10M
fedex field
FedEx Field
  • Home of: Washington Redskins
  • $207M / 27 years
  • Annual Value: $7.7M
american airlines center
American Airlines Center
  • Home of: Dallas Mavericks, Dallas Stars
  • $195M / 30 years
  • Annual Value: $6.5M
phillips arena
Phillips Arena
  • Home of: Atlanta Hawks, Atlanta Thrashers
  • $181.9M / 20 years
  • Annual Value: $9.3M
univ of phoenix stadium
Univ. of Phoenix Stadium
  • Home of: Arizona Cardinals
  • $154M / 20 years
  • Annual Value: $7.7M
bank of america stadium
Bank of America Stadium
  • Home of: Carolina Panthers
  • $140M / 20 years
  • Annual Value: $7M
lincoln financial field
Lincoln Financial Field
  • Home of: Philadelphia Eagles
  • $139.6M / 20 years
  • Annual value: $6.7M
lucas oil stadium
Lucas Oil Stadium
  • Home of: Indianapolis Colts
  • $121.5M/20 years
  • Annual value: $6.1M
citi field
Citi Field
  • Home of: New York Mets
  • $400M / 20 years
  • Annual Value: $20M
sponsorship in entertainment
Sponsorship in Entertainment
  • Can get you an entire movie paid for without you spending anything!
    • $1.5 mill
  • Niche marketing— researching a target market to determine the specific items or services a small group of people will buy
    • Examples:
      • NASCAR
      • X – Games
sales promotion2
Sales Promotion
  • Sales promotions are marketing efforts that offer
    • customers an additional incentive to buy
    • a limited time to make the purchase
consumer sales promotion
Consumer Sales Promotion
  • Consumer sales promotion
    • directed at the final consumer
      • temporary price reductions
      • price-pak deals
      • coupons
      • special gifts
      • contests
      • rebates
trade sales promotion
Trade Sales Promotion
  • 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
employee sales promotion
Employee Sales Promotion
  • push money
    • an extra commission paid to sales persons who sell or push particular products
other types of promotion
Other types of Promotion
  • Endorsements
    • A public expression or approval / support for a product / service
    • A.K.A. – testimonials
    • There are some restrictions:
      • Endorser MUST state factual information
      • Endorser must have used the product
other types of promotion1
Other types of Promotion
  • Word-of-Mouth
    • One of the most effective ways of spreading the news about products and services
    • Used a lot by new, small businesses
    • Main setback = business has no control over
other types of promotion2
Other types of Promotion
  • Visual Merchandising
    • The process of displaying products in a way that makes them appealing and enticing to customers
      • Window displays
      • Interior displays
      • Signs