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Manage promotional activities to maximize return on promotional
investments.2.09 SEM II
ROIROI is short for “Return On
Investment”There are many ways to do
so, such as:Developing a promo budgetDeveloping a promo
calendarPlanning a strong
promotional mixHiring a promoter to do all
of the above for you
Event Promoters An Event promoter will handle activities such as:
projecting attendance and revenuesvisiting and selecting venuescreating a budgetselling sponsorshipsoverseeing marketinghandling on site logisticsdealing with all of the business activities related to
running an event.May hire an event promoter if large event is
scheduled in many cities over time.
Coordinate the Promotional MixMarketers should be sure to coordinate the
promotional mix, which includes:AdvertisingSales PromotionsPublic RelationsPersonal SellingDirect 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
Many businesses coordinate a wide variety of promotional activities such as advertising, special events, and displays in order to reach a large audience.
If running a tv ad about a new product, you could also:Mail free samples to customersEnsure that salespeople are well-informed about
the productSet up promotional visual merchandise in the
storeStrong Promotional Mixes will attract a large
audience and increase sales, which increases ROI
Setting a Promotional BudgetWhile some businesses set promotional
budgets as a fixed number, most are based on estimated sales projections
Because the budget is based on a forecast, it needs to be flexible.
Promotional budgets also may be increased in an attempt to match competition
Sample Budget PlanningLast year’s sales were $500,000Company expects a 5% growth in salesThey want to spend 11% of sales on promotion
$500,000 x .05 = $25,000 this year’s estimated sales growth
$525,000 x 0.11 = $57,750this year’s promotional budget
Promotional CalendarA promotional calendar is a
document that outlines the major promotional events that are planned at the beginning of the year
Marketers use a promotional calendar as an advertising tool.
Sports teams and performers will publicize the calendar as a promotional toolGet people excited about
upcoming eventsCauses people to keep them in
mind all yearIncrease advance ticket sales
Hist
oric
al P
rom
otion
s Minor vs. Major
League Baseball
Promotions
Look up a promotional calendar for a sports team of your choice.
What sponsors do you see featured?How might this promotional calendar effect
sales?Pick one of the promotional events that is listed.
Describe the event in detail. You may have to find additional info on other websites.
Who do you think the event is targeting?Will it increase ticket sales?Do you think that the event will give a good ROI? Why
or why not?