1. 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

2. 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

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

4. 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)

5. 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

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

7. 19-7 The Communications Process

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

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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. 19-19 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

20. 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

21. 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

22. 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

23. 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)

24. 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

25. 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

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

27. 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

28. 19-28 Effective Promotions – the NBA

29. 19-29 Closing Capsule

30. 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

31. 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

32. 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)