1. 1 Promotion Unit Chapter 10 Sports & Entertainment Promotion Chapter 11 Promotional Planning

2. 2 Sports & Entertainment Promotion 10.1 Promoting Sports & Entertainment 10.2 Advertising & Placement 10.3 Publicity & Sales Promotions Chapter 10

3. 3 Lesson 10.1 Promoting Sports and Entertainment Goals  Describe the goals of promotion.  List and define four elements of promotion.

4. 4 THE PURPOSE OF PROMOTION  Promotion  the process of making customers aware of a product, service, or event  Primary Goal = INCREASE SALES  Winning new customers  Persuading customers to be loyal

5. 5 Promotional Goals  Related goals include:  increasing customers’ usage  maintaining customer loyalty  building a fan base  educating potential customers  overcoming the hesitation of first-time buyers

6. Promotional Examples   Group pricing / Special pricing   Buy 1 Adult ticket, get child ticket ½ price   Increase attendance, builds fan base   Long-time supporters   Upgraded tickets, discount parking   Secures loyalty with current customers

7. 7 PROMOTIONAL ELEMENTS  The four elements of promotion are  advertising  publicity  sales promotions  personal selling (next 4 slides…)

8. 8 #1 ~ Advertising  advertising  a paid form of communication delivered by a product maker or seller to consumers  Effective Advertising:  Catch people’s attention  Clearly explain benefits  Inform customers of WHERE they can get it  Advertising can: take many forms, appear in almost any media and reach millions of people

9. 9 #1 ~ Advertising  product placement  a product integrated into the plot of a television show or a movie  more discreet than advertising  Truman Show – Commercials during show. Movie Trailer - http://www.youtube.com/watch?v=c3gI9ms8Fdc Fake Commercials http://youtu.be/frXlYeflkt4 (9:58-12:02) http://www.youtube.com/watch?v=c3gI9ms8Fdc http://youtu.be/frXlYeflkt4 http://www.youtube.com/watch?v=c3gI9ms8Fdc http://youtu.be/frXlYeflkt4

10. 10 #2 ~ Publicity  publicity  any unpaid media attention  either positive or negative  focused on product, service or business  Outside the Business:  Newspaper Articles, TV News Stories  Within the Business:  Press Releases, Speeches, Community Involvement through service & donations

11. 11  sales promotions  additional incentives offered for a limited time to encourage consumers to buy a product  Limited Time Memberships  48 Hour Sales  Giveaways  Coupons  Items with company’s name printed on it  Free Samples #3 ~ Sales Promotions

12. 12 #4 ~ Personal Selling  personal selling  an in-person, face-to-face communication between a seller and a customer  Vendor to business buyer  Sales rep to store manager  Retail Clerk to Customer

13. 13 #4 ~ Personal Selling  Advantage:  Immediate attention to questions/hesitations  Knowledgeable Salesperson:  Offers information  Demonstrate product/service  Makes comparisons to similar products  Use personal experiences  Answer questions and close the deal

14.   What are the four elements of promotion?   Advertising   Publicity   Sales Promotion   Personal Selling

15. 15 Lesson 10.2 Advertising and Placement Goals  List and describe the steps involved in developing effective advertising.  Describe the use of product placement.

16. 16 Opening Act ~ Page 261  Determine how much it would cost to watch 10 episodes of your top 6 shows at a cost of $5 each.  Brainstorm alternative ways production of TV programming could be funded.  What ways would be most appealing to TV viewers?

17. 17 ADVERTISING  Advertising informs consumers about new products and services and helps consumers make comparisons among alternatives.

18. 18 Step by Step (described more in next slides)  Cost effective advertising requires: 1.Set a measurable advertising goal. 2.Develop the advertising budget. 3.Create an advertising theme. 4.Choose the advertising media. 5.Create the message. 6.Develop an advertising schedule. 7.Measure the effectiveness of the advertising.

19. 19 #1 ~ The Goal  S.M.A.R.T.  Specific, Measurable, Attainable, Realistic, Timely  What do we want to accomplish??? With Detail... #2 ~ The Budget  marginal analysis  setting the advertising budget by estimating the point at which an additional dollar spent on advertising equals additional profit

20. 20  directs a percentage of expected sales revenues to the advertising budget  fixed sum per unit  an advertising budget based on the expected number of units to be sold  competitive parity  designed to maintain the current share of voice  share of voice  maintaining a similar dollar amount or frequency of advertising as that of competitors #2 ~ The Budget (continued)  percent of sales

21. 21 #3 ~ The Theme  tagline (theme)  a slogan that conveys the main message of the ad #4 ~ The Media  Print (newspaper, magazines, bags, billboards)  broadcast/cable (radio, TV)  Internet  out-of-home (billboards, stadium signs, radio)  in-home (TV, magazines)

22. 22   Media Mix selected is primarily based on: advertising budget and target audience  media strategy  choosing the media that will bring the most effective advertising message to the targeted consumer  reach  the number of people in the target market expected to receive the message through the chosen medium #4 ~ The Media (continued)

23. 23  copy  the words to be spoken or printed in the advertisement  Artwork, Photos, Video added to enhance viewers’ interest and grab their attention  wear out  when advertising loses its effectiveness due to overexposure or poor message quality #5 ~ The Message

24. 24  frequency  the number of times the targeted customer is exposed to the media  concentration schedule  buying / relying on a single medium  dominance strategy  a firm buys the maximum reach and frequency in one medium and purchases additional space in or time on other media #6 ~ The Schedule

25. 25  Evaluation = Critical  If ad doesn’t meet our goal, it’s cost & efforts were wasted!  Helps shape and improve future advertising strategies.  response rate  the number of customers who connect with and act in relation to the ad  Collected, complied, examined… #7~ The Effectiveness

26. 26 It’s Showtime  New Fall TV shows are “pitched” to ad firms before airing. (Spring meeting/presentation)  Ad Firms buy time slots based on compatibility of potential viewing audiences.  primetime  when the largest viewing audiences are watching TV  the most expensive time to advertise  priced based on expected audience ratings

27. 27 Interactive Advertising  Effective advertising will engage viewers and motivate them to take specific action.  Digital communications can be used to create an interactive connection with potential customers.

28. 28 Interactive Advertising  Pontiac – contest to photograph new G6 with phones to enter for a chance to win $1 Million.  Encouraged people to look for G6 on the street, visit the dealership, attend the car show, etc.  Created publicity & awareness  Other Medias ran the story/article  Text Messaging & Twitter Interactions  Encourages watching LIVE TV rather than recorded

29. 29 1.Set measurable goal 2.Develop budget 3.Create theme 4.Choose media 5.Create message 6.Develop schedule 7.Measure effectiveness (evaluation)  List the steps involved in developing effective advertising.

30. 30 PRODUCT PLACEMENT  Product placement is a fast growing form of sales promotion used in  Films (Movies)  TV shows  Live theater  Product placement can be used to offset the need for traditional advertisements.

31. 31 Brainstorm  Fox Network ~ Show “24”  Commercial Free Episode included only two 3-minute ads by Ford Motor Company (At beginning and end of show)  Main Character, Jack Bauer, drives a Ford Expedition and other Fords are seen throughout the show.  What other products have you seen perfectly placed in Movies, TV or Theater?

32. 32 Who Pays?  Three common ways that product placement deals might be constructed:  fee basis  A corporation will pay a fee to the film’s producers for prominent product placement.  barter  If a very expensive product is needed, it may be provided for use in the film in exchange for the prominent display of the brand name.  agreement  Company promotes movie in product advertising in exchange for product placement.

33. 33  Name three ways product placement deals are constructed.  Fee Basis  Barter  Agreement (Previous Slide)

34. 34 Lesson 10.3 Publicity & Sales Promotions Goals  Define publicity and explain its role in creating a positive public image.  Describe various types of sales promotions.

35. 35 PUBLICITY  Although publicity is free, the message is controlled by:  the news media  others that are presenting the message  Can be a very positive promotional tool OR  Can have very negative side effects

36. 36 Goodwill  goodwill  customers’ positive feelings about the business  Charity Events, Marathons (Walks, 5K, etc.)  Participants - Pledge Money  Business Donations – for public acknowledgment

37. 37 Damage Control  publicist  a person who is responsible for maintaining relations with the public and news media  damage control  an attempt to refute, justify, or downplay negative stories  trys to focus attention on more positive stories

38. 38 Grass-Roots Publicity  grass-roots effort  when an unknown person or event is propelled into the spotlight by fans  viral campaign  a promotion where a few online mentions turn into a real buzz about a movie  propels the movie into a mega hit  astroturfing  creating a fake grass-roots effort (forced, fake)

39. 39 Image is Everything  public relations (PR)  the arm of promotion that tries to create a favorable public opinion for an individual or organization  Creating the Image  Public relations focus on the future with the intent of creating a positive image of the business.  Spokesperson: must know the desired image and represent the company message, professionally.

40. 40  Athletes & Their Public Image  Pro athletes feel the pressure of being public role models while meeting athletic performance standards.  Sub par performances = disappointing contracts  Pressure can lead to immature, bad decisions  What do they do to keep a positive public image?  Community involvement, Charities, etc. (positive-caring, giving)  Media Coverage leads people to believe they are overpaid for their talents. (Negative – greedy, thoughtless)

41. 41

42. 42  Game Day Image  Sports facilities need to maintain a positive reputation  Excellent service, cleanliness, safe, etc.  Sports facilities and sports fans need to have a positive image to encourage visitors to attend games.  Economically helps area and team.  Bad reputation: keeps people away.

43. 43  How is publicity different from other types of promotion?  Publicity is free exposure but not really controlled by the business or person receiving. (So it can be negative)

44. 44 SALES PROMOTIONS  Sales promotions are marketing efforts that offer  customers an additional incentive to buy  a limited time motivator to make a purchase  Immediate positive influence: changes reluctant potential consumers into buyers.

45. 45 Consumer Sales Promotions  consumer sales promotion  directed at the final consumer:  temporary price reductions (1/2 price ticket)  price-pack deals (4 tickets + 4 hot dogs)  coupons ( $ or % off)  special gifts (posters, rally towels)  contests (offer prizes)  rebates (refund part of price)

46. 46 Trade Sales Promotions  trade sales promotion  directed at members of the distribution channel 1.trade allowances  offer short-term discounts to distributors and retailers for selling or participating in the promotion of a product 2.trade contests  Sell the most, get a reward 3.point-of-purchase displays  Display materials provided to help sell product

47. 47 Employee Sales Promotions  push money  an extra commission paid to sales persons who sell or push particular products  For example, an appliance manufacturer offers a bonus for selling a washer or dryer from a line that has been discontinued.

48. 48  List three consumer sales promotions.  temporary price reductions (1/2 price ticket)  price-pack deals (4 tickets + 4 hot dogs)  coupons ( $ or % off)  special gifts (posters, rally towels)  contests (offer prizes)  rebates (refund part of price) 