© 2016 Cengage Learning. All Rights Reserved.Sports and Entertainment Marketing, 4e CHAPTER 10 Promotional Planning

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 2 CHAPTER Promotional Events and the Event Triangle 10.2 Sponsorships and Endorsements 10.3 Promotional Plans

Winning Strategies Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 3 This sports marketing company specializes in interactive in-stadium and in-seat promotions for event sponsors. The promotions are memorable because fans receive something free, participate in sponsored activities throughout the game, and are able to keep and use the bag. NuBoard Media

LESSON Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 4 Promotional Events and the Event Triangle 10.1

The Essential Question Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 5 What impact does the event triangle have on the value of entertainment awards?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 6 Learning Objectives LO LO LO Describe the components and exchanges of an event triangle. Explain the effects of media broadcasting on the event triangle. Explain the promotional value of entertainment awards.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 7 Key Terms event triangle exchange booking agent trailer mash-up

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 8 THE RIGHT EVENT, FANS, AND SPONSORS Events include games and concerts. Sponsors pay event producers to promote their products during the event. Fans attend the event. Event triangle: interaction of event, sponsor, and fans Exchange: give-and-take among the three

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 9 Event Triangle ENTERTAINMEN T

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 10 The Exchanges GroupGive ToGive WhatReceive Fans EventMoneyEntertainment SponsorsMoneyProducts Event FansEntertainmentMoney SponsorsAccess to fansMoney Sponsors FansProductsMoney EventMoneyAccess to fans

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 11 Game operations: the extensive planning and implementation of every aspect that takes place in and around the sports venue, excluding the sports game itself Executive event producer: the person responsible for the event Game and Event Operations

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 12 Who are the members of the event triangle and what are their roles?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 13 MEDIA BROADCASTING Broadcasting an event means the audio and video content will be distributed to a wide audience via television networks, the Internet, and/or radio.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 14 The Event A major event venue is equipped to handle the technical and staff requirements of all broadcast media. Booking agent: a firm that contracts with the venue on behalf of the performers What a Difference It Makes

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 15 The Sponsors As part of the negotiated contract, the venue and booking agents agree on the sponsors. The venue controls the final selection of businesses approved as sponsors. Some sponsors do their own setup. Others pay the venue to set up anything needed for the promotions. What a Difference It Makes (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 16 The Fans The ticket price fans pay may be reduced because the sponsor is paying something for the event. Fans attending the event are shown as part of the broadcast so that fans viewing at home can experience the excitement of a live audience. What a Difference It Makes (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 17 Describe some of the effects that broadcasting can have on an event.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 18 AWARDING THE BEST The top four annual awards shows have a high marketing value. the Oscars (movies) the GRAMMYs (music) the Tonys (Broadway shows) the Emmys (TV)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 19 The Oscars Given by the Academy of Motion Picture Arts and Sciences Brings publicity and increases sales Trailer mashup: one short film posted online combines the short ads, or trailers, for all of the award-nominated films Awards Influence Sales

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 20 The GRAMMYs Given by the National Academy of Recording Arts and Sciences (NARAS) The awards include 30 fields of music. Awards Influence Sales (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 21 The Emmys Nighttime TV shows are recognized by the Academy of Television Arts & Sciences Daytime television, sports programming, newscasts, documentaries, and technology and engineering are recognized by the National Academy of Television Arts & Sciences Awards Influence Sales (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 22 The Tonys Given by the American Theatre Wing and The Broadway League Not as popular as the other three awards because fewer people see Broadway plays Awards Influence Sales (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 23 The Cannes International Film Festival promotes the film industry worldwide. Winning a Cannes Award helps promote an unknown film. International Events

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 24 Name the four major entertainment awards and explain their value to the industry.

LESSON Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 25 Sponsorships and Endorsements 10.2

The Essential Question Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 26 What are the benefits of sponsorships and endorsements?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 27 Learning Objectives LO LO Explain the benefits of sponsorship to the sponsor. Define endorsements and discuss their restrictions.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 28 Key Terms sponsorship logo corporate sponsorship endorsement

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 29 GAME DAY Sponsorship: an individual or business provides products, services, or financial support for a sports team or an event The support provides a link in the mind of the consumers between the company, its product, and the team or event.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 30 Costs Costs for production of the event or game (venue rental, entertainment, staff) Costs of selling the sponsorship (salespeople, production of contracts) Costs of providing benefits to the sponsor (sponsor tickets, signage, VIP treatment and hospitality for sponsors, media promotion, publicity, production of press releases) Costs and Benefits of Sponsorship

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 31 Benefits Increase sales and profits Introduce a new product or service to a large audience Become associated with an event in which the audience is the target market Earn the goodwill of the audience by showing a commitment to the event Costs and Benefits of Sponsorship (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 32 Benefits (cont.) Entertain clients or potential customers Serve as employee incentives Enhance the company’s image and improve community relations Enter new markets or a niche market Costs and Benefits of Sponsorship (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 33 Businesses want to be associated with winning teams. Companies may compete for sponsorship of the same teams. By Association

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 34 Logo: the graphic representation of a company’s name Corporate sponsorship example: Using the name of a product or business as part of the name of an event venue Supporting Sports

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 35 What costs are involved with sponsorships?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 36 WHAT IS AN ENDORSEMENT? Endorsement: a well-known person’s public expression of approval or support for a product or service Endorsements are promotional tools, not a form of sponsorship. The Federal Trade Commission (FTC) has the authority to regulate endorsements.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 37 FTC guidelines for the endorser and sponsor The truthful opinions and beliefs of the endorser must be expressed in the endorsement. Endorsers must have real experience with the product. If they haven’t tried it, they can’t talk about their experience with it. Legal Restrictions on Endorsements

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 38 FTC guidelines for the endorser and sponsor (cont.) The connection between the endorser and advertiser should be clearly revealed. If the endorser receives free products or is paid, this should be revealed to avoid being deceptive. The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser. Legal Restrictions on Endorsements (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 39 Advantages Consumers buy endorsed products more often than products that are not endorsed. Viewers are less likely to turn off a commercial featuring a celebrity than other commercials. Consumers believe celebrities. Celebrity Endorsements

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 40 Disadvantages Celebrity endorsements are expensive. Celebrity’s problems could cause negative publicity. Celebrities who endorse too many products lose credibility. Celebrity Endorsements (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 41 Positive, charismatic, trustworthy image Familiar to most consumers Career in process (rather than being retired) Presents few risks Believable relationship with the product What a Business Seeks in an Endorser

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 42 What are the advantages and disadvantages of using celebrity endorsers?

LESSON Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 43 Promotional Plans 10.3

The Essential Question Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 44 What steps are taken to develop a promotional plan, and which current promotional trends might be a part of the plan?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 45 Learning Objectives LO LO List steps in developing a promotional plan. Discuss recent promotional trends and ways to stay current.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 46 Key Terms promotional plan gross rating points (GRP) cost-per-thousand (CPM) promotional mix quantitative measurement loyal users qualitative measurement experiential activations

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 47 PLANNING TO PROMOTE New technology creates more ways to promote products and services. Know the target market to make an effective promotional plan.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 48 Promotional plan: a written, detailed description of how the four elements of promotion— advertising, sales promotion, publicity, and personal selling—will be used. It is part of the overall marketing plan. It usually covers a year at a time and is reviewed and updated throughout the year. Developing a Promotional Plan

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 49 To write a promotional plan: 1.Identify the target customers. 2.Set promotional goals. 3.Develop a promotional budget. 4.Select the promotional mix. 5.Measure the results. Developing a Promotional Plan (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 50 Identify the target customers. The target market should be specific. It guides the media selection and promotional mix. Set promotional goals. Goals should be specific and easy to measure. Developing a Promotional Plan (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 51 Develop a promotional budget. The budget must be tied to the goals. Gross rating points (GRP): multiplying the reach by the frequency, expressed as a percentage, provides the estimated total potential audience Cost-per-thousand (CPM): cost effectiveness of a specific media is evaluated based on the cost of each exposure to an ad divided by its reach in thousands Developing a Promotional Plan (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 52 Select the promotional mix. Promotional mix: the blending of the promotional elements of advertising, sales promotion, publicity, and personal selling Select the promotional mix and the media used based on the target customers, the advertising campaign goals, and the budget. Developing a Promotional Plan (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 53 Measure the results. Quantitative measurement provides information in terms of numbers or percentages. Loyal users: people who open an app at least three times in 30 days Qualitative measurement: subjective measurement that depends on interpretation Developing a Promotional Plan (cont.)

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 54 Why is the promotional mix an important part of the promotional plan?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 55 PROMOTIONAL TRENDS To stay informed about current trends: Be aware of changes in the world that affect the target market. Read and listen to multiple sources of information on a consistent basis. Be open to the ideas and viewpoints of others. Attend conferences or training opportunities with other professionals.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 56 Ads during the Super Bowl are expensive. Companies have paid $133,333 per second to reach an audience of 115 million people. The Super Ad Bowl

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 57 Pre-ads: brief ads that preview full-length ads Pre-ads build suspense. Pre-Ads

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 58 Advertising on mobile devices is still developing. Advertisers need to learn how to use apps on mobile devices to attract consumers. Social Networking

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 59 Trailers: ads for movies Trailers were originally shown after the feature film, but the audience left when the feature ended. Today, trailers are shown before the feature film. They can also be viewed on the Internet and on television. Movie Promotions

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 60 Film buffs: people who love movies Promotions that target film buffs have been used by Turner Classic Movie (TCM) cable channel. Experiential activations: interactions with customers through festivals, tours, or licensed merchandise to retain satisfied customers Film Buffs

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 61 How can marketers stay current with promotional trends?

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 62 Performance Indicators Graphic Design Promotion Event Demonstrate knowledge of graphic design and rules for layout. Demonstrate effective use of color, lines, text, graphics, and shapes. Use principles of design, layout, and typography in graphic design. Apply technical skills to manipulate graphics, artwork, and images. Use appropriate artwork and design techniques to effectively illustrate a theme. Generate a promotional flyer for marketing purposes. Produce a graphic design promotion that has eye appeal and shows imagination, creativity, and originality.

Sports and Entertainment Marketing, 4e © 2016 Cengage Learning. All Rights Reserved. Chapter 10 Slide 63 Think Critically Graphic Design Promotion Event 1.What are three examples of graphic design products that are used frequently in the business world? 2.Why is it important to carefully research information gathered on the Internet before using it in graphic design productions? 3.What does “copyrighted” mean? 4.How does graphic design enhance business publications?