Chapter 8 Sports Promotion

Objectives Define event marketing. Explain promotion and the promotional mix in sports marketing. Identify the roles of advertising and sales promotion in sports marketing. Describe the use of technology in promotion. Identify the roles of public relations and personal selling in sports marketing. Explain the types and steps of selling.

Section 8.1 Planning the Promotion

Event Marketing 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. Leagues determine rules and schedules. Most leagues have commissioners. Name the NFL, NBA, MLB, and NHL Commissioner. ___________. Which commissioner does the best job? Why?_____________________.

Promotion in Sports Marketing The function of promotion is to generate sales, attract a targeted audience, and help create a positive image. Name 3 recent sports promotions: ____________________.

Promotional Mix The “promotional mix” is any combination of advertising, sales, promotion, publicity, and personal selling. Ex.: Russell Athletic ran a promotion with the theme “Are you Russell Athletic material?” To reach their year old target market, they used print, broadcast, stadium signage, online advertising, and sales promotions (i.e Sports Illustrated, ESPN, Yahoo).

Promotional Budget There are 3 ways to determine a promotional budget: 1) Percentage of Sales 2) Competitive Parity 3) Objective and Task Method

Percentage of Sales Percentage of sales method uses a percentage of last year’s sales to decide on the funds for the promotional budget.

Competitive Parity Parity means having equality or similarity. A company studies its competitors’ promotions to see if it needs to spend the same amount of money to be competitive.

Objective and Task Method Companies set objectives for their promotion and decide what promotional activities are necessary to reach those objectives.

Section 8.2 Advertising and Sales Promotion

The Role of Advertising Advertising is one of the 4 elements of the promotional mix. Advertising offers a variety of media options, therefore is flexible in delivering the promotional message.

Advertising Defined “Advertising” is any paid promotion of an idea, good, or service by an identified sponsor.

Promotional Advertising “Promotional Advertising” is advertising with a goal of selling the item being promoted. Ex.: EA Sports advertises its games to make sales.

Institutional Advertising “Institutional Advertising” is advertising with a goal of developing goodwill or a positive image. Ex.: Mia Hamm’s commercial “Got Milk?” to promote the milk industry.

Types of Media 1) Print 2) Broadcast 3) Direct Marketing 4) Online Advertising

Print Print media consists of many different forms of communication: newspapers, magazines, direct mail, outdoor advertising, stadium posters, and stadium signage.

Newspapers Newspapers are generally a local medium which allows an advertiser to target customers in its home town.

Magazines Magazines are more regional as well as national in scope. Ex.: ESPN The Magazine or Sports Illustrated

Direct Mail Direct Mail offers the benefit of a personalized message. Ex.: Season ticket holders may get specific mailings about upcoming events.

Outdoor Advertising Outdoor advertising consists of billboards found on roadways. The major benefit is that it offers the ability to geographically select an audience.

Station Posters Station posters are signs found at public transportation stations, such as airline and railroad terminals. Ex.: Ads for sports drinks for thirsty travelers.

Stadium Signage Stadium signage includes signs found inside stadiums and sports arenas. These signs can be electronically designed and viewed during tv broadcasts.

Broadcast Radio and Television are broadcast media used for advertising. Radio is a medium that allows advertisers to reach a segmented audience based on geographic area. TV advertising’s major advantage is its sight, sound, and motion, which creates dynamic communication. A disadvantage is cost.

Direct Marketing Direct marketing uses various media to communicate directly with consumers to make a sale. Direct mail may come in the form of letters, flyers, or postcards.

Online Advertising Online advertising has become another popular medium. Businesses can purchase “banner ads” on websites like ESPN.com to promote their products.

Sales Promotion Sales Promotion is a short-term incentive to get customers interested in buying a product. Varieties of sales promotion include: coupons, rebates, samples, premiums, contests, and sweepstakes. The purpose of these promotions is to get the consumer excited enough to buy the product.

Coupons and Rebates Coupons and Rebates offer some type of price reduction or free merchandise. The difference between coupons and rebates is that coupons are usually redeemed at retail stores, and rebates must be sent to the manufacturer.

Samples and Premiums In a sampling campaign, samples of a new product are given away to potential customers.

Contests and Sweepstakes The difference between contests and sweepstakes as sales promotions is that you must perform a task in a contest to win the prize, but sweepstakes participants need only to enter to be included. In the competition.

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. Publicity differs from advertising because a company does not pay for the exposure it gets in the media.

The Role of Media in Public Relations Magazines, newspapers, television, and radio provide outlets for public relations to function. Sports leagues rely on media to get the news out. Give an example of a current event in sports. ________________.

Press Kits and Press Releases A “press release” is a newsworthy article that provides basic information to answer questions about a subject, such as who, what, where, when, and why. Ex.: Press Release – Michael Vick signing with the Philadelphia Eagles.

Personal Selling Personal Selling is direct communication by a salesperson to potential customers either in person or by phone.

Types of Selling There are two types of selling – order taking and order getting. Order taking does not involve much sales ability because consumers know what they want and ask for it. Order getting occurs when a professional salesperson follows steps of a sale to secure an order.

7 Steps in the Selling Process 1) Approach (Meet/Greet) 2) Determine Needs (Qualify) 3) Present the Product (Present/Demo) 4) Overcome Objections 5) Close the sale (Close) 6) Perform Suggestion Selling (Up Sell) 7) Follow Up

Prospecting Prospecting involves looking for potential customers or leads.

Preapproach Learning about the products and the potential customers is the basis of the preapproach. Ex.: Sports agents put together sales presentations that highlight the features and benefits of the sports celebrities they represent.

Step 1: Approach The approach is the first face- to-face meeting with the potential consumer (meet and greet).

Step 2: Determine Needs Determining needs involves looking, listening, and asking questions (qualifying). 2 Ears & 1 Mouth???????

Step 3 Present the Product The product presentation should be developed around the customer’s needs and wants (not yours). Suggestions for an effective presentation: 1) Involve the customer, (shoes – let them try them on) 2) Demonstrate the product,(car – road test) 3) Use sales aids (video).

Step 4: Overcome Objections Overcoming objections involves answering questions or eliminating doubts about a product. Ex.: A customer may not want to buy a treadmill cause it takes up to much space. The salesperson can overcome the objection by showing them that it folds up.

Step 5: Close the Sale Closing the sale means getting a commitment from the customer to purchase the product.

Step 6: Perform Suggestion Selling Suggestion selling is presenting ideas for additional merchandise sales. Ex.: Customer bought a suit, so the salesperson could offer accessories, like shirts, ties, shoes.

Step 7 Follow Up In professional selling, a sale is the beginning of a relationship, that if cultivated can lead to future sales and prospects (customer referrals).

Personal Selling Oral Presentation Activity (100 Total Points) Role Play – Customer & Sales Representative Choose a partner, and a potential product to sell (sales rep.) and buy (customer). Each partner will choose one of the two roles (sales rep. or customer). Write a script (both sales rep. and customer) that follow the 7 Step Personal Selling process. Partners will do an oral presentation of their sale using their script and the 7 Step Personal Selling process. Grading factors will include: 1) Completion of all 7 steps, 2) Proper oral presentation skills – (eye contact, pronunciation, non-verbal cues, voice inflection, enthusiasm, proper body language). 3) Persuasiveness of presentation.

Sports Time Line (100 Total Points) 1) Choose a sport such as basketball or a team such as the Boston Celtics. 2) Use the internet or library to research to learn the history of the sport or team and major media or promotional events that have taken place. 3) Create a time line about the sport or team since its beginnings as a franchise.

Checking Concepts/Critical Thinking/Cross-Curriculum Skills (100 Total Points/10 Points Each) 1) Define event marketing. 2) Identify the elements in the promotional mix. 3) Explain a budget in sports marketing. 4) Identify the roles of advertising and sales promotions. 5) Define public relations and personal selling. 6) Differentiate between coupons and sweepstakes. 7) List the steps of the selling process. 8) Explain the role that the various media play in public relations. 9) You are the marketing and advertising manager for a company that runs batting cages. A new batting cage site is opening. Identify what you would include in your press kit that announces this opening. 10) Work with another student. One of you is a sports agent; the other is a sponsor. “Sell” your client, who is a famous or promising athlete, to the sponsor. (Role Play).