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

2. 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.

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

4. 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)

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

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

7. The Communications Process

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

9. 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.

10. 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

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

12. 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

13. 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.

14. 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.

15. 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.”

16. 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

17. 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”.

18. 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

19. An Advertisement for a Spectator Sport

20. 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

21. 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

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

23. 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

24. 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.

25. 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.

26. 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)

27. 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.

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

29. Emerging Tool: Product Placement

30. 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

31. 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.

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

33. Brand Extension Based on Brand Equity

34. 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

35. Effective Promotions – the NBA

36. Closing Capsule

37. 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

38. 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

39. 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).