Developing a Promotional Strategy for the Marketing of Sports Products Chapter 10

Promotion The Fourth and Final Variable of the Traditional Marketing Mix An Effort to Communicate with One or More of the Organization’s Target Markets Target markets are not always customers – various constituencies might be the financial market, potential sponsors, politicians, etc.

Promotional Mix As Earlier Noted, It Historically Incorporated Four Promotional Tools Advertising Personal Selling Sales Promotion Public Relations (Publicity)

Additions to the Promotional Mix Though Not Everyone Agrees, Two Tools Have Commonly Been Associated with Those of the Traditional Promotional Mix: Sponsorship Direct Response Marketing (DRM)

Integrated Marketing Communications (IMC) Plan New Terminology Encompasses All Promotional Tools Stresses That All Promotional Tools Used in the Development of the Organization’s Promotional Efforts Must Work in Harmony

The IMC Plan Consistency Synergy Must Support the Product, Distribution, and Pricing Strategies Must be Appropriate for the Target Market

The Communications Process

The AIDA Model for Effective Promotion Attention Interest Desire Action Hierarchy of Effects…..

Advertising Paid, Nonpersonal Form of Communication that is Generally Disseminated via One or More of the Mass Media Mass Media Include: TV Radio Magazines Newspapers Others Others might include outdoor (billboards), transit (bus, taxi, subway signage); some might put Internet here as a medium.

Advertising Media and Vehicles A Medium Is the Broad Mechanism for Conveyance of the Message Once a Medium Is Selected, the Marketer Must Still Select Specific Vehicles A Vehicle Is a Specific Option within Each Medium

Advertising Media and Vehicles Medium: Magazines Vehicles: Cosmopolitan TV Guide People Sports Illustrated

Personal Selling Paid Form of Direct Interaction between a Selling Entity and a Prospective Buyer Interactive Persuasive Process Designed to Encourage Action on the Part of the Prospective Buyer Interactive One-to-One Marketing Message Can be Adapted as Needed

Sales Promotion Tools Often Used as Direct Inducements to Encourage a Particular Response on the Part of the Prospective Buyer Examples: Free Samples Discount Coupons Specialty Advertising Contests Premiums Other examples include trade shows, consumer expos, POS (POP) display, and rebates.

Public Relations (PR) Non-personal Form of Communication Designed to Influence Attitudes and Opinions of Various Groups of Stakeholders Designed to Generate Positive Publicity Often Used to Counter Negative Publicity Essentially, Publicity is unpaid form of communications, but the PR designed to gain publicity has associated costs.

Sponsorship Relationship between a Marketer and a Property that Allows the Marketer Access to the Exploitable Commercial Potential Associated with the Sponsored Property In These Cases, the Sports Property is the Sponsor, Not the Sponsee The most common mistake students make when asked to develop an IMC for a sports team is that they fail to comprehend that it is the team (or other sports entity) that is the sponsor. They will say that Pepsi’s sponsorship of the NFL is part of the NFL’s IMC. Ask them who is selling what; how does that sponsorship help the NFL sell its product? Then show them how the NFL sponsors causes such as “Play 60” and “Tackling Men’s Health.”

Sponsorship by Sports Marketers Causes – Charities, Disaster Relief, Health Grass Roots Events – Museum Exhibits, Fairs, Local Festivals Youth Sports Special Cases of Sponsorship Venue Naming Rights Endorsements Licensing

Direct Response Marketing (DRM) Paid Form of Mass Communications Representing an Effort to Communicate with the Target Audience in a Manner Such That the Receivers Can Immediately Initiate Action Upon Receiving the Message e.g. Internet, Infomercials, Direct Mail Many simply refer to “Direct Marketing”.

Advertising Applications Spectator Sports – Radio Ad for Next Home Game for a Local Minor League Team Participation Sport – Newspaper Ad Seeking Members for a New Bowling League SASS – Magazine Ad for New Callaway Golf Balls

An Advertisement for a Spectator Sport

Personal Selling Applications Spectator Sports – Sell Luxury Suites at Major Sports Venue Participation Sports – Convert Trial Member of a Health Club into a Regular Member SASS – Fitting of Custom Golf Clubs

Sales Promotion Applications Spectator Sports – 2 for 1 Discount Coupon for the local MLB Team Participation Sports – Free Trial Membership at a Tennis Club SASS – PGA Merchandise Show; POP Display for a New Srixon Golf Ball

Sales Promotion for a Spectator Sport Collectable giveaway for the Springfield (Illinois) Sliders baseball team. MLB bobbleheads and replica jerseys appeal to fans.

Public Relations Applications Spectator Sports – Press Release Announcing Signing of New Star Player Participation Sports – Press Release Seeking Runners for a Charity Event SASS – Nike Press Release Explaining Often Criticized Labor Practices Abroad

Sponsorship Applications Spectator Sports – NFL’s Sponsorship of “Tackling Men’s Health” CRM Program Participation Sports – Ice Skating Venue with License to Use NHL Trademarks SASS – Sports Authority Field (NFL Venue); Jordan Spieth’s Endorsement of Under Armour Again, it is beneficial to stress the fact that the sports entity is the sponsor, not the sponsee. (NFL; Skating Venue; Sports Authority; Under Armour) It is a question of who is allocating resources and who is the recipient. (Note: As of March 2016, Sports Authority is undergoing a big transition due to poorly performing stores. Though there has been no mention of the VNR agreement being cancelled, it appears to be a possibility.

Sponsorship by a Sports Entity (NFL) Example where NFL is sponsoring a cause…. The NFL is devoting its resources while the cause is reaping the benefits specific to the resources committed by the NFL.

Direct Response Marketing (DRM) Applications Spectator Sports – DVD Sent to Known Buyers of Tickets to a NASCAR Event Participation Sports – Direct Mail Piece for Entry into a National Bowling Tournament SASS – Infomercial Reaching Prospective Purchasers of the Total Gym Exercise Equipment (Order by Phone or WWW)

DRM – New York Yankees Yankees sent this brochure out leading into final season at old Yankee Stadium in effort to capitalize on the nostalgia effect and sell tickets; the fan could call or use Internet to purchase them. The next season, they sent a similar brochure selling tickets to the inaugural season of the new Yankee Stadium seeking to capitalize on the Novelty effect.

Additional (Technology-based) IMC Tools Product Placement Social Media Viral Marketing Mobile Marketing SMS Marketing App-based Marketing Proximity Marketing

Emerging Tool: Product Placement

Brand Equity Value Associated with a Specific Brand High Levels of Brand Recognition Consumers Associate Quality with Brand Provides Differential Advantage that Creates Brand Preference or Insistence

Brand Equity Opportunities for Brand Extension Involving Other Sports Products: NBA – WNBA; D-League NFL – NFL Europe ESPN – ESPN Golf School Fox Sports – Fox Soccer Channel NHL – NHL Ice Skating Rinks NFL Europe lasted 17 seasons before folding; but now NFL stages regular season games in London each season. It is reported that the number may increase to 5 per season if London does not secure a permanent team there.

Brand Equity Opportunities for Brand Extension Involving Nonsports Products: Fox Sports – Sky Box Fun Food & Spirits ESPN – ESPN Zone

Brand Extension Based on Brand Equity

Cross-Promotion Joint (Collaborative) Marketing Effort of Two or More Marketing Entities May Be Common Ownership or Control Pittsburgh Steelers & Kenny Chesney Concert May Be Separate Entities ESPN Golf School Involves Golf Magazine

Effective Promotions – the NBA

Closing Capsule

Closing Capsule Sports Marketers Must Coordinate the Components of Their IMC Plan in a Manner that the Components Are Consistent and Support Each Other An Effective IMC Plan Does Not Require Initiatives in Each of the Categories of Promotional Tools

Closing Capsule Effective Promotion Helps Develop a Higher Level of Brand Equity Brand Equity Creates Opportunities to Collaborate in Effective Cross Promotions Not Only Must Components of IMC be Consistent, the IMC Must Support the Remainder of the Marketing Mix

Closing Capsule Our Examination of the Basic Elements of Marketing Strategy is Now Complete Target Market Marketing Mix Product Distribution (Place) Price Promotion (IMC Plan) So now we move on to the important task of Customer Relationship Management (CRM).