1. PROMOTIONS

2. Promotion
Any form of communication a business or organization uses to encourage customers to purchase products and improve its public image.
For example: Harris Teeter sponsors a little baseball team by purchasing new uniforms and equipment.

3. Promotion (con’t) Organizations use promotion to:
inform target market of a product.
persuade the target market to purchase the product.
remind them continuously of the product.

4. Promotion (con’t) Examples include: web sites Social media
fan festivals
t-shirts give aways

5. Differentiate between institutional and product promotion.
Institutional promotion, also referred
to as organizational advertising, is
designed to:
create a positive image.
establish and maintain goodwill.
may result in an increase in sales of the good or service.

6. Institutional Promotion
Examples include:
NBA Read to Achieve Program
Nike and Reebok basketball camps
Camp Mariah (Mariah Carey)
Daddy’s House (P. Diddy)

7. Differentiate between institutional and product promotion
Product promotion, also referred to
as product advertising, is designed
to:
simulate sales of a business, organization, or products.
launch new products.

8. Product Promotion Examples include:
pre-album release listening parties.
a musician promoting release of new single.
Coca-Cola setting up pre-concert promotion booths providing samples of Vanilla Coke.

9. promotional mix and the different forms of promotion.

10. Elements of The Promotional Mix
Any combination of the different forms of promotion to sell goods and services

11. Different Forms of Promotion - Advertising
Any paid, non-personal form of communication by an identified sponsor
Examples include: TV commercials, magazine advertisements, direct mail, and the Internet

12. Different forms of promotion Sales Promotion
Activities or communications that encourage consumers to purchase products
Example include: giveaways, sweepstakes, free samples, award shows, contests, and coupons

13. Different forms of promotion Personal Selling
Personal selling is face-to-face, personalized communication between a seller and a buyer
Examples include: presentation of a demo from a recording artist to a record label executive

14. Different forms of promotion – Public or Community Relations
Activities used by a business or organization to gain and maintain a positive relationship between themselves and the community

15. Two types of Public or Community Relations
The internal community includes the employees of the company or organization
For example, Coke holding an annual picnic for employees and their families.

16. Two types of Public or Community Relations
The external community includes people outside of the company or organization
For example, Pepsi donating circus tickets to a Big Brother/Big Sister organization.

17. Different forms of promotion - Sponsorship
The financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation

18. Types of media used in advertising- Print media
Any written form of communication used to inform, persuade, or remind consumers about products or services offered

19. Print Media - Newspaper
The most common and the most cost effective type of print media
Newspapers are most effective for local businesses that are trying to reach a specific geographical market

20. Print Media - Magazines
Likely to be used by advertisers to segment the market based on demographic and behavioral segmentation
For example: men more likely to subscribe to Field and Stream, so this would be cost effective for a brand of men’s razors.

21. Print Media – Direct Mail
Sent directly to customers, or potential customers of a particular store
For example: all Blockbuster Video members would receive a flyer announcing a special sales event

22. Print Media – Outdoor Advertising
Includes any outdoor signs and billboards
Outdoor advertising provides 24-hour advertising

23. Print Media – Transit Advertising
Uses public transportation, such as buses, bus stands, taxicabs, and subways to post advertising messages

24. Types of media used in advertising – Broadcast Media
Any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered

25. Broadcast Media - Radio Advertising
Advertisers match their target market to a radio station that segments a particular market.
Has the ability to reach a wide audience.

26. Broadcast Media - TV Advertising
Includes commercials and infomercials
Is the most effective type of broadcast media as well as the most expensive

27. Types of media used in advertising – Online Media
Is the placement of advertising messages on the Internet World Wide Web

28. On-line Media – Banner Ads
Are rectangular boxes at the top or bottom of web sites that are used to promote a web site or business

29. On-line Media – Pop-up Ads
Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing

30. On-line Media – E-mail Ads
Are used to tailor messages to fit individual web surfers
E-marketers compile or purchase customers databases containing information based on sites visited by web surfers

31. Types of media used in advertising – Specialty Media
Include “everyday” items with a company name written on them
Examples include: calendars, pens, magnets, and coffee mugs

32. Types of media used in advertising – Miscellaneous
Many other creative ways of communicating advertising messages to consumers
Examples include: blimps, supermarket carts, hot air balloons, and in-theater advertisements

33. Forms Of Sales Promotions – Annual Awards Shows
Academy Awards (Oscars)
awarded by Academy of Motion
Picture Arts & Sciences
Nomination generates media coverage and increases ticket sales
Producers and studios promote films to Academy members through trade publications and talk-show circuit

34. Forms Of Sales Promotions – Annual Awards Shows
National Academy Of Recording Arts and Sciences (NARAS) award the Grammy Awards
NARAS is an association of more than 13,000 recording professionals
A Grammy might draw attention to an artist, but does not guarantee acceptance in form of sales

35. Forms Of Sales Promotions – Annual Awards Shows
Emmy Awards are awarded by 2 branches of the same organization
Academy of TV Arts and Science awards prime-time Emmy Awards for night time television and Daytime Emmy Awards for daytime television

36. Forms Of Sales Promotions – Annual Awards Shows
Emmy Awards draws monumental attention to TV shows
Increases viewing because of winning actors/actresses

37. Forms Of Sales Promotions – Annual Awards Shows
Tony Awards are awarded to theater professionals for outstanding achievement

38. Forms Of Sales Promotions – Annual Awards Shows
ESPY Awards by ESPN and are awarded for excellence in sports performance
Nominating committee consists of sports executives, journalists and retired athletes

39. Forms Of Sales Promotions – Annual Awards Shows
Besides athletes and coaches, many actors and musicians attend and participate in event
ESPY Awards make contributions to the V Foundation, established by ESPN in honor of the late NCSU Basketball Coach Jim Valvano

40. Forms Of Sales Promotions – Trade Shows & Conventions
Provide promotional opportunities for manufacturers wholesalers, retailers, and movie producers to learn about and support new products in the industry

41. Forms of Sales Promotions - Incentives
Used to generate awareness, interest, and increase sales.

42. Forms Of Sales Promotions - Incentives
Contests
Prizes are awarded based on contestant skill and/or ability
Examples include: American Idol, Fear Factor, and Dog Eat Dog

43. Forms Of Sales Promotions - Incentives
Sweepstakes
Prizes awarded based on the chance or luck of the contestant
Examples include winning concert tickets from a local radio station

44. Forms Of Sales Promotions - Incentives
Rebates
Discounts offered by manufacturer when consumer purchases a sports entertainment good or service during specified time period
For example: mail-in rebates for purchasing two DVD’s at a time

45. Forms Of Sales Promotions - Premiums
Low cost items given away with the sponsor’s product as part of a sales promotion
For example: Powerade gives away a cooler with a purchase of a case of powdered drink mix

46. Forms Of Sales Promotions - Premiums
Coupons
Offer price reductions and found in print advertisements, inserted inside packaging, incorporated as part of the product package, or mailed to consumers
For example: Blockbuster coupons on popcorn packaging or coupons inserted in Sunday newspaper

47. Forms Of Sales Promotions - Premiums
Traffic-builders
Low cost items given to customers for attending an event, or visiting a store
For example, first 200 customers to attend grand opening of new Sports Authority receive a Sports Authority key chain

48. Forms Of Sales Promotions - Sampling
Refers to giving consumers a “taste” for sporting event or concert
For example: fan participation at a track and field event and Faith Hill selecting member of the concert audience to stand with her on stage

49. Analyze the steps of promotional planning
Determine strategy for reaching target market

50. Analyze the steps of promotional planning
Push strategies
Used by manufacturer to convince or “ push “ retailers to carry and promote products
Relies heavily on personal selling and sales promotion

51. Analyze the steps of promotional planning
Pull strategies
Directed towards customers to increase their interest and demand for products
Customers will “pull“ or convince retailers to carry sports or entertainment products.
Relies heavily on advertising

52. Analyze the steps of promotional planning
Determine the objectives of the promotional activity
For example, is the objective to increase sales, increase market share, or create brand awareness ?

53. Analyze the steps of promotional planning
Establish a promotional budget
No exact science exists for establishing a promotional budget

54. Analyze steps of promotional planning - Budgets
Common methods of determining budgets include:
Percentage of expected sales.
Based on a percentage of past or expected sales to determine budget
Advantages include limited financial risk. Disadvantages include sales may decrease reducing promotional budget

55. Analyze steps of promotional planning - Budgets
Objective and task method
Company determines promotional goals, steps needed to meet goals and calculates cost for promotional activities
Most cost effective method for it takes into account what company wants to accomplish

56. Analyze steps of promotional planning - Budgets
Competitive equivalence
Involves matching competitors promotional outlay
Weakest method because it takes into account competitors’ objective only

57. Analyze steps of promotional planning - Budgets
“Whimsical” allocation
All money available after expenses is allocated as promotional budget
Short-term method used to increase sales by building reputation

58. Analyze the steps of promotional planning
Develop promotional mix
Specific mix chosen should take into consideration the target market, promotional goals, promotional budget
Care should be given to aligning national and local promotional efforts

59. 5.03 Discuss the use and importance of Sponsorships and Endorsements

60. SPONSOR:
A business, person, organization, that finances a sports or entertainment entity
Financing can be in the form of money, products, equipment, services, or any combination of the four

61. SPONSORSHIP
Financing of a sports or entertainment entity (athlete, team, concert, or event) by a business in return for recognition affiliation

62. Reasons for Sponsoring SEM Events
Increase sales and profits through affiliation
Increase market share for existing products and services
Introduce new products or services
Increase brand awareness and company image

63. Reasons for Sponsoring SEM Events
Enter and reach new target markets
Build and maintain relationships with customers
Build and maintain goodwill within the community

64. Reasons for Sponsoring SEM Events
Entertain clients, employees, or potential customers
Entertain existing customers, potential customers, or employees and their families

65. Types of Sponsorships
Barter Sponsorships –company doesn’t pay for the sponsorship solely with monetary compensation
Also referred to as “in-kind”
Example – Sponsoring a little league team; company pays for equipment and uniforms in return for their name/logo on the team’s uniforms

66. Types of Sponsorships
Endorsements – also called testimonials are personal recommendations regarding the use or quality of a good or service
Consumers are more likely to purchase a good or service if a celebrity endorses it
For example, Dennis Franz using Nextel phones in commercial

67. Types of Sponsorships
Naming rights – contractual agreements between a sponsor and a venue or event
Company or organization will sponsor a sports or entertainment facility or event
In return, company or organization’s logo will appear in affiliation with the facility or event

68. Types of Sponsorships
Naming rights
Examples include:
Fed-Ex Orange Bowl in Miami
Coca-Cola 600 at Lowes Motor Speedway

69. Personal Services Agreement
Are contracts between a company and a celebrity
for the endorsement of a good or service

70. Personal Services Agreement – Obligations May Include:
Hours the celebrity has been contracted
Does the celebrity have the right to refuse an engagement?
How far in advance must engagement be scheduled?
Is there a minimum/maximum amount of time a celebrity must spend at any single event?

71. Personal Services Agreement – Obligations may Include:
What type of travel and hotel accommodations will be provided?
What affect does immoral conduct by the celebrity have on the agreement?
Is the contract related to the overall achievement of the celebrity?

72. 5.04 Demonstrate the use of technology in promotion

73. World Wide Web (WWW)
Collection of internet sites that are available to users with an internet connection

74. E-Commerce
The electronic exchange of products and services.

75. Web site
Can contain numerous web pages.

76. Key components of a web site
Text is the written words coded in Hypertext Markup Language (HTML) that tells the web browser how to view each web page
Photos or video clips include team photos, footage of sports events, concerts, or movie trailers.

77. Key components of a web site
Graphics are clip art or drawings on web pages.
Hyperlinks are links to other web pages within a web site, or to another web site

78. Types of E-Commerce web sites
Product Information
Includes descriptions of products offered for sale
Product payment information
Return and warranty policies
General information about business
Contact information for company

79. Types of E-Commerce web sites
Customer Interaction
Provides opportunity to:
Place product orders
Pay for orders
Obtain shipping costs and dates
Obtain tracking information

80. Advantages of E-Commerce
Instantaneous and direct communication with customers
Customers can place orders at their convenience
Lower start-up and operating costs
Allows small company to reach global markets
Companies can gather information on customer buying habits and interests

81. Disadvantages of E-Commerce
Lack of personal contact with customers
Increased competition between companies that sell same products on web
Customers might use site to obtain product information, but purchase from local businesses
Customer service can be a challenge when problem exists with an order

82. Advertisements on the WWW
Banner ads used to promote a web site or company through use of hyperlinks

83. Advantages of banner ads
Opportunity to reach millions of potential customers
Relatively low cost per contact
Capability to use appealing graphics and sound effects

84. Disadvantages of banner ads
Ads might not reach intended target market
Can be perceived as “junk” and ignored
May not be cost effective based on target audience

85. Use of e-mail as a form of promotion
ads can offer special offers and promotions
Sometimes perceived as unwanted or spam
E-newsletter can provide information, special offers and promotions to customers

86. Use of e-mail as a form of promotion
E-marketers compile or purchase customer databases from sites visited by consumers.
E-marketers may use this information to tailor messages for target marketing