8.1 Planning the Promotion Event Marketing event marketing Developing an effective promotional mix and corresponding budget requires an understanding of event marketing and types of promotions. event marketing all activities associated with the sale, distribution, and promotion of a sports event 1

Event Marketing Sanctioned league events are presented by sports franchises. –Licensing, sponsorships, and special promotions are governed by league policies Internationally, various organizations govern worldwide sports. –Promotions are organized by a committee Ex. FIFA (Soccer), USOC (Olympics in the U.S.) Promotions function in sports to generate sales, attract a targeted audience, and create a positive image. Creates interest. -Fans are like clientele, must attract new and maintain old. 2

Promotional Mix promotional mix The different forms of promotion can be combined into a company’s promotional mix. Example: Russell Athletic -Target of year olds -Theme “Are you Russell Material?” -Used print, broadcast, stadium signs, online adv. and sales promotion (ESPN, Sports Illus. Yahoo!, espn.com, etc.) promotional mix any combination of advertising, sales promotion, publicity, direct marketing, and personal selling 3

Promotional Budget The three ways to determine a promotional budget are: 4 Percentage of sales method – uses a percentage of previous sales (Easy to calculate but sales could change) Competitive parity -spend equal or similar to your competitors’ budget (Objectives could be different, may not be capable) Objective-and-task method -Each promotion has a task and then list tasks and costs to achieve them (Takes first two methods into consideration)

The Role of Advertising advertising Since a company pays for advertising, it has control over the message it wants to deliver. 5 advertising any paid promotion of an idea, good, or service by an identified sponsor (Cost determined by audience size) Two types of advertising are: Promotional advertising Example: EA Sports games Institutional advertising Example: Team thanking fans at end of season/”Got Milk” with athletes promotional advertising advertising with a goal of selling an item being promoted-Almost all adv. institutional advertising advertising with a goal of developing goodwill or positive image

The Role of Advertising The four types of advertising media are: 6 Print (See chart next slide) –Newspapers, magazines, direct mail, outdoor advertising, station posters, stadium signage Broadcast –Radio (Segmented based on station) and television (Sight, sound, motion) Direct marketing –Many media used to communicate directly with consumers (Phone, mail, computer) Online advertising –Banner advertising, company Web sites, online promotions (Number of hits can be counted)

Types of Media: Print 7 Newspapers Magazines Direct Mail Outdoor Advertising Station Posters Stadium Signage Local; targets customers in home town Regional or national; large specific audience Personalized message; may be considered “junk mail” Geographically selected audience; short message Geographically selected audience; short message; aimed at travelers Seen by people at an event and television viewers; often used by sponsors

Sales Promotion sales promotions Types of sales promotions include: 8 sales promotion a short-term incentive to get consumers interested in buying a product -Gets customers excited and interested enough to buy product Coupons-Price reduction Rebates-Price reduction Samples-Given away, try Premiums-Given w/ purchase Contests-Complete task Sweepstakes-Sign up or entered

Advertising and Promotional Advantage Companies, teams, and individual athletes have the ability to target their markets and fans with a great variety of media and promotional tools. -Many different combinations can be used depending on the situation and what is being sold. 9

Public Relations Publicity public relations department Publicity gives a company an image that must be handled by a company’s public relations department. - Publicity affects Public Relations -It’s up to the media to decide what will be used on a given day and what has top priority. Is it news? Will it sell? 10 publicity the free mention of a product or company in the media -Can be positive or negative. “No such thing as bad publicity.”?? public relations activities that promote the image and communications a company has with its employees, customers, investors, and public

Public Relations press releases To alert the media in hopes of getting media coverage, companies, teams, and individuals prepare press kits and press releases. -A press kit consists of promotional materials that can be used by the media such as fact sheets, press releases, background info., and video 11 press releases a newsworthy article that provides the basic information to answer questions such as who, what, where, when, and why. (Ex. When a player is traded a press release is sent to the media by the franchise) -Tries to get media to go with the story

Personal Selling Personal selling Personal selling is important as part of the promotional mix because it allows for two-way communication between the buyer and seller. 12 personal selling direct communication by a salesperson to potential customers either in person or by telephone -More effective in person

Personal Selling There are two types of selling—order taking and order getting. -Order taking – record what is asked for, no real sales ability -Order getter – Like an agent (sales and negotiating skills) Ex. TV salesman 13 There are two ways to prepare for the sales process—prospecting and preapproach strategies -Prospecting – looking for potential customers (leads). Trade shows, leave business card, advertising (call for more information), etc. -Preapproach – learning about the products themselves and put together a presentation with the highlights and features of your products (New shoe design, new car design)

Personal Selling The seven steps of personal selling are: 14 1.Approach- face to face, establish a relationship 2.Determine needs- Involves looking, listening, asking questions 3.Present the product- Involve the customer, demonstrate the product, use sales aids (models, swatch of material) 4.Overcome objections- Answer questions to eliminate doubts, eliminate misconceptions 5.Close the sale- getting a commitment to purchase, should come naturally, should not be forced 6.Perform suggestion selling- suggesting merchandise that may be purchased and related to the original purchase (batteries, case, charger) 7.Follow up- phone, , letter after the sale is made. Could lead to repeat sales

Power of the Promotional Mix The right combination of all the elements of the promotional mix works to create synergy. -All elements work together, more powerful 15 Advertising Sales promotion Publicity Personal selling Attract customers and fans Sales Positive image