2.09 Sports II

ROI ROI is short for “Return On Investment” This means that you want to make as much profit as possible There are many ways to do so, such as: Developing a promo budget Developing a promo calendar Planning a strong promotional mix Hiring a promoter to do all of the above for you

Sporting Event Promoters Sporting events are business activities that require planning, funding, registration and sponsorship income. A sports promoter will handle activities such as: projecting attendance and revenues visiting and selecting venues creating a budget selling sponsorships overseeing marketing handling on site logistics dealing with all of the business activities related to running an event. May spend months preparing for a one day event!

Sporting Event Promoters There are many types of promoters: Some only promote for specific sports, such as boxing, since the industry is specialized Some venues have full-time promoters that are contracted to be used for every event Some promoters only do business logistics while others are full-service Must decide if hiring and paying a promoter will increase ROI or not Good to use when event will be held in multiple cities or is very large/complex

Coordinate the Promotional Mix Marketers should be sure to coordinate the promotional mix, which includes: Advertising Sales Promotions Public Relations Personal Selling Direct Marketing It is important that all elements of the promo mix work together towards a common goal and reinforce each other.

Well-Coordinated Promotional Mix By sending the same promotional message through various promotional channels you can reach a wide audience If running a tv ad about a new product, you could also: Mail free samples to customers Ensure that salespeople are well-informed about the product Set up promotional visual merchandise in the store Strong Promotional Mixes will attract more customers and increase sales, which increases ROI

Setting a Promotional Budget While some businesses set promotional budgets as a fixed number, most are based on estimated sales projections The average business allocates about 9 to 12% of projected sales to advertising; however, it can be as low as 2% or as high as 25%. Because the budget is based on projected sales, it can increase/decrease throughout the year, so marketers must be flexible when planning. Promotional budgets also may be increased in an attempt to match competition

Sample Budget Planning Last year’s sales were $500,000 Company expects a 5% growth in sales They want to spend 11% of sales on promotion $500,000 x 1.05 = $525,000  this year’s estimated sales $525,000 x 0.11 = $57,750  this year’s promotional budget

Using Promotional Budget Once marketers know their budget, they should go ahead and plan their major campaigns for the whole year. Due to possible fluctuations in the budget, it’s wise to prioritize planned expenses; this makes it easy to cut costs later or maximize use of possible extra funds Promotional Budget should be based on the coordinated promotional mix and organizational goals Ex: If goal is to make corporate image more about high quality, ads should emphasize quality and service instead of price. Ex: If goal is to increase B2B sales, more $ should be spent on personal selling than on consumer ads.

Promotional Calendar A promotional calendar is a document that outlines the major promotional events that are planned at the beginning of the year Should only include events that are sure to happen Sports teams and performers will publicize the calendar as a promotional tool Get people excited about upcoming events Causes people to keep them in mind all year Increase advance ticket sales Sponsors can be featured in calendar if they choose to pay the cost to cover the event; this helps stretch promotional budget

Atlanta Braves’ 2014 Promotional Calendar How might this promotional calendar effect sales? What sponsors do you see featured? Will the events have a good ROI? p?c_id=atl p?c_id=atl