Planning the Promotion Advertising and Sales Promotion Public Relations and Personal Selling 2

Chapter 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. 3

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 4

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 Promotions function in sports to generate sales, attract a targeted audience, and create a positive image. 5

Promotional Mix The different forms of promotion can be combined into a company’s promotional mix. promotional mix any combination of advertising, sales promotion, publicity, direct marketing, and personal selling 6

Promotion in Sports Marketing The functions of promotion in sports marketing are: Generate sales Attract a targeted audience Help create a positive image 7

Promotional Budget The three ways to determine a promotional budget are: Percentage of sales Competitive parity Objective-and-task method 8

Turn on the Web Where can you watch live baseball, highlights, and replays at any time? On TV? On video? It’s available online through MLB.TV—that’s dot-TV, not dot-com. Viewer fees make this sports outlet a profitable business. Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com. In fact, Web business contributes to a growing portion of sports revenue—an estimated 15 percent in 2004. The Internet has been friendly to sports, as cyber giants such as Yahoo! and AOL offer sports online. Auto racing and golf are also using the medium. However, football dealmakers are reluctant to embrace Webcasts if television revenue is lost in the deal. For more information on sports and entertainment marketing, go to marketingseries.glencoe.com. 9

What are the three functions of promotion in sports marketing? 1. What are the three functions of promotion in sports marketing? Explain the promotional mix. List the three ways to determine a promotional budget. 2. Quick Check Answers To generate sales, attract a targeted audience, and help create a positive image. It is any combination of advertising, sales promotion, publicity, direct marketing, and personal selling. percentage of sales, competitive parity, and objective-and-task method 3. 10

The Role of Advertising Since a company pays for advertising, it has control over the message it wants to deliver. advertising any paid promotion of an idea, good, or service by an identified sponsor promotional advertising advertising with a goal or selling an item being promoted Two types of advertising are: Promotional advertising institutional advertising advertising with a goal of developing goodwill or positive image Institutional advertising 11

The Role of Advertising The four types of advertising media are: Print Newspapers, magazines, direct mail, outdoor advertising, station posters, stadium signage Broadcast Radio and television Direct marketing Many media used to communicate directly with consumers Online advertising Banner advertising, company Web sites, online promotions 12

Types of Media: Print Newspapers Local; targets customers in home town Magazines Regional or national; large specific audience Direct Mail Personalized message; may be considered “junk mail” Outdoor Advertising Geographically selected audience; short message Station Posters Geographically selected audience; short message; aimed at travelers Stadium Signage Seen by people at an event and television viewers; often used by sponsors 13

Sales Promotion Types of sales promotions include: Coupons Rebates sales promotion a short-term incentive to get consumers interested in buying a product Coupons Rebates Samples Premiums Contests Sweepstakes 14

Advertising and Promotional Advantage Companies, teams, and individual athletes have the ability to target their markets and fans with a great variety of medial and promotional tools. 15

What are the major types of advertising media? 1. What is the difference between promotional and institutional advertising? What are the major types of advertising media? List the different forms of sales promotions. 2. Quick Check Answers Promotional advertising has as its goal the sale of the item being promoted, but institutional advertising seeks to develop goodwill or a positive image. print, broadcast, direct marketing, and online advertising coupons, rebates, samples, premiums, contests, and sweepstakes 3. 16

Public Relations Publicity gives a company an image that must be handled by a company’s public relations department. publicity the free mention of a product or company in the media public relations activities that promote the image and communications a company has with its employees, customers, investors, and public 17

Public Relations To alert the media in hopes of getting media coverage, companies, teams, and individuals prepare press kits and press releases. press releases a newsworthy article that provides the basic information to answer questions such as who, what, where, when, and why 18

Personal Selling Personal selling is important as part of the promotional mix because it allows for two-way communication between the buyer and seller. personal selling direct communication by a salesperson to potential customers either in person or by telephone 19

Personal Selling There are two types of selling—order taking and order getting. There are two ways to prepare for the sales process—prospecting and preapproach strategies 20

Personal Selling The seven steps of professional selling are: Approach. Determine needs. Present the product. Overcome objections. Close the sale. Perform suggestion selling. Follow up. 21

Power of the Promotional Mix The right combination of all the elements of the promotional mix works to create synergy. Advertising Sales promotion Publicity Personal selling Attract customers and fans Sales Positive image 22

What are the advantages and disadvantages of publicity? 1. What are the advantages and disadvantages of publicity? Explain the role of media in public relations. List and explain the steps in the selling process. 2. Quick Check Answers The advantage is that the public views what it sees and hears in the media as news, which is believed to be objective and credible. The disadvantage is a company’s lack of control over it, and that bad publicity gives the company a bad image. The media provide outlets for public relations to function. Approach: the first face-to-face meeting with the customer; determine needs: looking, listening, and asking questions to determine needs; present the product: developed around the customer’s needs; overcome objections: answering questions and eliminating doubts; close the sale: getting a commitment; perform suggestion selling: presenting ideas for additional merchandise; and follow up: keep in contact with customers. 3. 23

Checking Concepts Define event marketing. 1. 2. Advertising gives a company control over the message it wants to deliver as the company pays for it. Sales promotions are usually part of advertisements or a personal sales pitch designed as short term incentives to interest consumers through vehicles such as coupons, rebates, samples, premiums, contests, and sweepstakes. 4. The promotional budget can be a determining factor in deciding the promotional mix. It can be determined in three ways: percentage of sales, competitive parity, objective-and-task method. 3. The promotional mix is any combination of advertising, sales promotion, publicity, and personal selling. 2. All activities associated with the sale, distribution, and promotion of a sports event. 1. 2. Identify the elements in the promotional mix. Explain a budget in sports marketing. 3. Checking Concepts Answers All activities associated with the sale, distribution, and promotion of a sports event. The promotional mix is any combination of advertising, sales promotion, publicity, and personal selling. The promotional budget can be a determining factor in deciding the promotional mix. It can be determined in three ways: percentage of sales, competitive parity, objective-and-task method. Advertising gives a company control over the message it wants to deliver as the company pays for it. Sales promotions are usually part of advertisements or a personal sales pitch designed as short term incentives to interest consumers through vehicles such as coupons, rebates, samples, premiums, contests, and sweepstakes. Identify the roles of advertising and sales promotions. 4. continued 24

Checking Concepts 5. Define public relations and personal selling. 6. In a contest, the entrant must perform a task; in a sweepstakes, participants need only sign up. 6. The steps are: approach, determine needs, present product, overcome objections, close the sale, perform suggestion selling, and follow up. 7. Public relations are activities that promote the image and communications a company has with its employees, customers, investors, and public. Personal selling is direct communication by a salesperson to potential customers either in person or by telephone. 5. 6. Differentiate between contests and sweepstakes. Checking Concepts Answers Public relations are activities that promote the image and communications a company has with its employees, customers, investors, and public. Personal selling is direct communication by a salesperson to potential customers either in person or by telephone. In a contest, the entrant must perform a task; in a sweepstakes, participants need only sign up. The steps are: approach, determine needs, present product, overcome objections, close the sale, perform suggestion selling, and follow up. List the steps in the selling process. 7. continued 25

Checking Concepts Critical Thinking The media—magazines, newspapers, television, radio—provide outlets for public relations to function; anything newsworthy will be picked up by the media. Sports organizations, as well as all other companies, rely on the media to get the news out, but it is the media that decide what news to use on any given day. 8. Explain the role that the various media play in public relations. Checking Concepts Answers The media - magazines, newspapers, television, radio - provide outlets for public relations to function; anything newsworthy will be picked up by the media.  Sports organizations, as well as all other companies, rely on the media to get the news out, but it is the media that decide what news to use on any given day. 26

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