19-1 Chapter 19 Developing a Promotional Strategy for the Marketing of Sports Products McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

19-2Promotion The Fourth and Final Variable of the Traditional Marketing Mix An Effort to Communicate with One or More of the Organization’s Target Markets

19-3 Promotional Mix Has Historically Incorporated Four Promotional Tools –Advertising –Personal Selling –Sales Promotion –Public Relations (Publicity)

19-4 Additions to the Promotional Mix Though Not Everyone Agrees: Two Tools Have Been Associated with Those of the Traditional Promotional Mix: –Sponsorship –Direct Response Marketing (DRM)

19-5 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

19-6 The IMC Plan Consistency Synergy Must Also Support the Product, Distribution, and Pricing Strategies Must be Appropriate for the Target Market

19-7 The Communications Process

19-8 The AIDA Model for Effective Promotion Awareness Interest Desire Action

19-9Advertising 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

19-10 Advertising Media and Vehicles A Medium Is the Broad Form of Communication Once a Medium Is Selected, the Marketer Must Still Select Specific Vehicles Vehicle Is a Specific Option within Each Medium

19-11 Advertising Media and Vehicles Medium: –Magazines Vehicles: –Cosmopolitan –Golf for Women –People

19-12 Personal Selling Paid Form of Direct Interaction between a Selling Entity and a Prospective Buyer Interactive One-to-One Marketing Message Can be Adapted as Needed Persuasive Process Designed to Encourage Action on the Part of the Prospective Buyer

19-13 Sales Promotion Tools Used as Direct Inducements to Encourage a Particular Response on the Part of the Prospective Buyer Examples: –Free Samples –Discount Coupons –Specialty Advertising –Contests

19-14 Public Relations (PR) Nonpersonal 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

19-15Sponsorship Relationship between a Marketer and a Property that Allows the Marketer Access to the Exploitable Commercial Potential Associated with the Property In These Cases, the Sports Property is the Sponsor, Not the Sponsee

19-16 Sponsorship by Sports Marketers Causes – Charities, Disaster Relief, Health Grass Roots Events – Museum Exhibits, Fairs, Local Festivals Special Cases of Sponsorship –Venue Naming Rights –Endorsements –Licensing

19-17 Direct Response Marketing (DRM) Paid Form of Mass Communications Effort to Communicate with the Target Audience in a Manner Such That the Receivers Can Immediately Initiate Action Upon Receiving the Message Internet, Infomercials, Direct Mail

19-18Advertising Spectator Sports – TV Ad for Next Home Game for Local Minor League Team Participation Sport – Newspaper Ad Seeking Members for a New Bowling League SASS – Magazine Ad for Nike Golf Balls

19-19 Personal Selling Spectator Sports – Sell Luxury Suites at Major Sports Venue Participation Sports – Convert Trial Member of Health Club into Regular Member SASS – Fitting of Custom Golf Clubs

19-20 Sales Promotion Spectator Sports – 2 for 1 Discount Coupon for MLB Team Participation Sports – Free Trial Membership at a Tennis Club SASS – PGA Merchandise Show

19-21 Public Relations 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

19-22Sponsorship Spectator Sports – NFL’s Sponsorship of “Tackling Men’s Health” CRM Program Participation Sports – NHL Licensed Ice Skating Rinks SASS – Reebok Stadium (Soccer Venue); Tiger Woods’ Endorsement of Nike

19-23 Direct Response Marketing Spectator Sports – DVD Sent to Known Buyers of Tickets to a NASCAR Event Participation Sports – Direct Mail Piece for Entry into Hoinke Bowling Tournament SASS – Infomercial Reaching Prospective Purchasers of Bowflex Exercise Equipment (Order by Phone or WWW)

19-24 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

19-25 Brand Equity Opportunities for Brand Extension Involving Other Sports Products: –NBA – WNBA –NFL – NFL Europe –ESPN – ESPN Golf School –Fox Sports – Fox Soccer Channel –NHL – NHL Ice Skating Rinks

19-26 Brand Equity Opportunities for Brand Extension Involving Nonsports Products: –Fox Sports – Sky Box Fun Food & Spirits –ESPN – ESPN SportsZone

19-27Cross-Promotion Joint (Collaborative) Marketing Effort of Two or More Marketing Entities May Be Common Ownership or Control –Memphis Grizzlies & Destiny’s Child Concert May Be Separate Entities –ESPN Golf School Involves Golf Magazine

19-28 Effective Promotions – the NBA

19-29 Closing Capsule

19-30 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 Six Categories

19-31 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

19-32 Closing Capsule Examination of the Basic Elements of Marketing Strategy Is Now Complete Target Market Marketing Mix –Product –Distribution (Place) –Price –Promotion (IMC Plan)