Planning the Promotion Planning the Promotion Advertising and Sales Promotion Advertising and Sales Promotion 2 Public Relations and Personal Selling

Planning the PromotionPlanning the Promotion

Advertising and Sales PromotionAdvertising and Sales Promotion

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Public Relations and Personal SellingPublic Relations and Personal Selling

Section 8.1 – Planning the Section 8.1 – Planning the Promotion – Objectives Promotion – Objectives

Identify the roles of advertising and sales promotion in sports marketingExplain the promotional mixDescribe the use of technology in promotion

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Section 8.1 – Planning the Section 8.1 – Planning the Promotion – Event MarketingPromotion – Event Marketing

Events can be associated with a sanctioned sports league or a one-time promotional event

– Ex. Regular seasons game or Super BowlEvent marketing is all activities associated with the sale, distribution, and promotion of a sports event

Managing OrganizationsManaging OrganizationsSanctioned league events are presented by sports franchises

– Events promoted by franchise administrative support and marketing departmentRevenue is generated through broadcast media contracts, tickets sales, licensing agreements, and sponsorshipsLeague, run by a commissioner, determines the rules and schedules for competitions

– Commissioner makes final decisions regarding disputes and rulingsLicensing, sponsorships, and special promotions are governed by league policies

Section 8.1 – Planning the Promotion – Section 8.1 – Planning the Promotion – Promotion in Sports MarketingPromotion in Sports Marketing

Managing OrganizationsManaging Organizations – cont. – cont.Internationally, various organizations govern worldwide sports

– Each governing body at the global, national, and local levels runs competitions to comply with worldwide governing body

One-time promotions are usually organized by a committee that is responsible for the sporting event.Planning committee gets selected city ready for the competitive events, as well as for the hospitality, needs of the athletes and patronsPlanning committee also sells sponsorships to financially support the event


Promotion for sports is like promotion for any productFunction of sport promotion is to:– Generate sales– Attract a targeted audience– Help create a positive image

ALL sports events are business ventures and must produce revenue to cover expensesPromotion of the event helps to create interest and ticket sales– Draws an audiences for radio listeners, television viewers, and online

audience– Increased audience will increase advertising rates and sponsorships

• EX. Super Bowl XLIV charged $2.6 million for 30-second commercial


Sporting events target:– Fans of the sport – Potential customers of the products being promoted by the sponsors

ALL marketing efforts needs to attract those fans to the stadium or their television setsLoyal fans are needed for repeat ticket sales and regular viewingImages that sporting events, organizations, leagues, teams, and players project are the direct result of marketing effortsAssociation with positive images helps to build the company’s name and product brands in the minds of fans and the general public

Section 8.1 – Planning the Promotion – Section 8.1 – Planning the Promotion –

Promotional MixPromotional MixCompanies involved in sports marketing of products must decide what types of promotion will best suit their needsDifferent forms of promotion can be combined into a company’s promotional mix– Promotional mix is any combination of advertising, sales,

promotion, publicity, and personal selling

Each company must decide on its own promotional mixIt must decide which combination of media will provide the best return for the money spent on promotion for the particular product


Promotional BudgetPromotional BudgetPromotional budget can be a determining factor in deciding the promotional mixThree ways to determining a promotional budget:– Percentage of sales– Competitive parity– Objective-and-task method


Promotional BudgetPromotional Budget

Percentage of SalesPercentage of SalesA set percentage of previous year’s sales or the coming year’s sales are used to decide on the funds for the promotional budgetProblem is direct connection to sales– Sales low previous year, then there

may not be enough funds for new promotional budget

Benefit is that it is easy to calculate


Promotional MixPromotional Mix

Competitive ParityCompetitive ParityIndustry trends are used to determine promotional budget– Parity is having equality or similarityCompany studies its competitors’ promotions to see if it needs to spend the same amount of money to be competitiveProblem is that each company’s objectives may not be same


Promotional BudgetPromotional Budget

Objective-and-Task MethodObjective-and-Task MethodCompanies set objectives for their promotions and decide what promotional activities are necessary to reach those objectivesAlso takes Percentage of Sales and Competitive ParityDeciding on objectives of the promotion takes into account what competitors are doing– If cost of promotion is more than what company can afford,

their objectives will be reviewed to make the plan more in line with what they can spend

Section 8.2 – Advertising and Section 8.2 – Advertising and Sales Promotion – Objectives Sales Promotion – Objectives

Identify the roles of advertising and sales promotion in sports marketingIdentify the major types of advertising mediaDescribe the use of technology in promotion

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Section 8.2 – Advertising and Sales Promotion – Section 8.2 – Advertising and Sales Promotion –

The Role of AdvertisingThe Role of Advertising

Advertising is one of the four elements of the promotional mixAdvertising offers many possibilities when companies are deciding on what promotion method to useCompanies have control over the message they want to deliver since they pay for the advertisingThere is flexibility in delivering the message since there is a variety of media options



Advertising DefinedAdvertising DefinedAny paid promotion of an idea, good, or service by an identified sponsor– Examples:

• Idea = concept of getting physically fit• Good = tangible products such as baseball hat• Service = tickets to sporting events

Unpaid promotion is considered free publicityAdvertising rates depend on size of audience exposed to adIdentified sponsor is the advertiser who pays for the adPromotional and Institutional advertising are the two types of advertising



Advertising DefinedAdvertising DefinedPromotional AdvertisingPromotional Advertising– Advertising with a goal of selling

the item being promotedInstitutional AdvertisingInstitutional Advertising

– Advertising with a goal of developing goodwill or a positive image

– Used to simply remind consumers about a company or industry and to build public confidence



Types of MediaTypes of Media - Print - PrintNewspapers– A local medium which allows advertisers to target customers in its home

town– Geographically sensitive and inexpensive– Effective in reaching fans and audiences

Magazines– Regional and national in scope– Manufacturers advertise in magazines because of large number of

subscribers that they reach who are potential customers– Manufacturers benefit from selecting a specific audience– Can be sports-related magazines or specific to a single sport



Types of MediaTypes of Media - Print - PrintDirect Mail

– Offers the benefit of a personalized message for the recipient

– Technological tools, such as databases, will select qualified customers to receive direct mail pieces

– Up-to-date and categorized mailing list gives advertisers the ability to reach a select group of potential customers who meet their target-market qualifications

– Consumers considering this to be “junk-mail” will prevent many recipients from reading mail



Types of MediaTypes of Media - Print - PrintOutdoor Advertising– Billboards found on roadways– Offers the ability to geographically select your audience– Must be short because motorists may be driving past it– Act as a reminder that helps build brand recognition

Station Posters– Signs found at public transportation stations– Offers the ability to geographically select your audience

Stadium Signage– Signs found inside stadiums and sports arenas– Technology has allowed these signs to be digitally designed and viewed during

broadcasts by live and television audience

Types of MediaTypes of Media – Broadcast – BroadcastRadio and television are broadcast media used for advertisingRadio

– Allows advertisers to reach a segmented audience based on the radio station or network and the geographic area

– Benefits of radio include ability to communicate in many settings

• Ex. Car, home, beach– Disadvantage is that radio does not

broadcast a visual image

Television– Advantage is in its sight, sound, and

motion, which create dynamic communication

– Advertisers can also target an audience by selecting a specific TV program

– Infomercials are usually 30 minute commercials and teach viewers how to use a particular product

– Disadvantage is the price of running and producing commercial





Types of MediaTypes of Media – Direct Marketing – Direct MarketingVarious media methods are used to communicate directly with consumers to make a sale– Examples:

• Mail – letters, flyers, or postcards to potential customers listed in database

• Telephone – telephone solicitations• Computer – e-mail to reach online customers who are listed in

database

Database of people to contact is usedAdvertiser can customize a message for the person being contacted



Types of MediaTypes of Media – Online Advertising – Online AdvertisingBanner ads on Web sites special advertising messages directly to consumers through personal e-mail addressesUse of own Web sites to:– Promote products– Sell products directly to customers– Post information– Special sale promotions

Can also get exposure on portal site (yahoo, msn)Advantage is being able to count the number of visits to siteDisadvantage is that not all members of a target market can be reached


Sales PromotionsSales Promotions

Sales Promotion is a short-term incentive to get consumers interested in buying a product– Usually part of a advertisement or personal sales pitch– Promotions that can be used in order to get consumers excited and

interested enough to become customers and buy a product include:• Coupons, rebates, samples, premiums, contests, and sweepstakes

– Promotional events at sports arenas or stadiums can include:• Special events, giveaway items, contests, reduced ticket prices

– Promotions that target businesses often involve:• Sampling products, price incentives, free shipping, and/or free

merchandise



Coupons and RebatesCoupons and RebatesOffer some type of price reduction or free merchandiseDifference in two is that coupons are usually redeemed at store or on location, while rebates must be sent to manufacturer for redemption and reimbursementBenefits of coupons and rebates is methods of distribution and flexibility of use– Can be part of print advertisement, downloaded from internet, part of

product package, distributed in person at store, or through direct mail

Advantage to company is that they have an expiration dateDisadvantage is that they are easily copied by competitors



Samples and PremiumsSamples and PremiumsSampling is a common way to promote a new product– Samples are given away to potential

customers– Can be distributed with a local newspaper,

through the mail, or in person– New product booths are set up at sporting

events in order to distribute samples– Coupons are distributed with sample to

encourage future purchasesPremiums are items that are given away free with the purchase of merchandise



Contests and SweepstakesContests and SweepstakesContests participation requires completion of some task in order to win a prizeSweepstakes participants need only to sign up to be included in competitionBoth contests and sweepstakes are presented by a variety of media as they are part of an advertising campaign or sponsorship deal

Coordination of Sales PromotionsCoordination of Sales PromotionsFor sales promotions to be effective, they must be coordinated with the other media used in the ad campaign, as well as with the retail businesses involved

Section 8.3 – Public Relations Section 8.3 – Public Relations and Personal Selling - Objectivesand Personal Selling - Objectives

Identify the roles of public relations and personal selling in sports marketingIdentify the role of the media in public relationsExplain the types and steps of selling

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Section 8.3 – Public Relations and Section 8.3 – Public Relations and Personal Selling – Public RelationsPersonal Selling – Public Relations

Public Relations are activities that promote the image and communications a company has with its employees, customers, investors, and the public at largePublicity is the free mention of a product or company in the media– Different from advertising in that a company doesn’t pay for the publicity

it receives in the media– Advantage: the public may view information as news and therefore

objective and believable– Disadvantage: company’s lack of control over it

Bad publicity give a company a bad image that must be handled by public relations departmentPublic relations departments create positive publicity and sends it to the media in hopes that the media will publish it

Section 8.3 – Public Relations and Section 8.3 – Public Relations and Personal Selling – Public RelationsPersonal Selling – Public Relations

The Role of Media in Public RelationsMagazines, newspapers, televisions, radio, and internet provide outlets for public relations to functionMedia outlets decide on what news will be used on a given day

Press Kits and Press ReleasesPress kits and press releases are used to alert the media in hopes of getting media coverage– Press kits consist of promotional materials that can be used by the media

• Fact sheets, background information, press releases, videotapes– Press release is a newsworthy article that provides basic information to

answer questions about a subject, such as who, what, where, when, and why

• Sent out when a company does something that they believe is news worthy

Section 8.3 – Public Relations and Section 8.3 – Public Relations and Personal Selling – Personal SellingPersonal Selling – Personal Selling

Personal selling is direct communications by a salesperson to potential customers either in person or by phone– Inexpensive items may not need

personal selling because advertising and other forms of promotion may have already sold customers on the product

– Expensive items may need face-to-face contact in order to educate a consumer about features and benefits of product

Important part of the promotional mix because it allows for two-way communication between buyer and seller


Types of SellingTwo types of selling:– Order taking – consumers know what

they want and simply ask for it– Order getting – professional

salesperson who knows how to follow the steps of a sale, then follows up after a sale has been completed

• Sports agents, Advertisement Sales– Salesperson must be knowledgeable

about the features and benefits of the advertising medium and the audience that he or she would be reaching


Steps in the Selling ProcessProfessional selling consists of the following seven steps:– Approach, determine needs, present the product, overcome objections,

close the sale, perform suggestion selling, follow upSalespersons prepare for sale process through prospecting and pre-approach strategies

ProspectingProspecting– Looking for potential customers, or leads

• Can be generated by salesperson, or salespersons company; tradeshows; advertising

Pre-approachPre-approach– Learning about the products and the potential customers– Studying a potential customer requires research and sometimes a phone

call or email


Steps in the Selling Process1. Approach1. Approach– The first face-to-face meeting with

the potential customer– Initial conversation may be

friendly and based on a prior phone conversation during the pre-approach, or it may center directly on the purpose of the visit or the product


Steps in the Selling Process2. Determine Needs

– Looking, listening, and asking questions– Determine needs as early as possible

and keep determining needs throughout the sales process

– Reading body language will help determine if statements made were well received and which ones were not

– Do more listening than talking during meetings


Steps in the Selling Process3. Present the Product

– Product presentations should be developed around the customer’s needs and wants

– Most important features and benefits should be presented first to generate interest

– Suggestions to make product presentation successful:

1. Involve the customer2. Demonstrate the product3. Use sales aids


Steps in the Selling Process4. Overcome Objections

– Answering questions or eliminating doubts about a product

– Objections provide necessary feedback and help keep communication flowing

– Objections can become selling points because the buyer may have misconceptions or misinformation that need to be corrected or clarified


Steps in the Selling Process5. Close the Sale

– Getting a commitment from the customer to purchase the product

– Should occur naturally as the customer’s excitement about the product may become obvious6. Perform Suggestion Selling

– Presenting ideas for additional merchandise sales7. Follow Up

– Keep in contact with customers by phone, e-mail, mail or newsletters

– Developing a relationship with customer can lead to repeat sales

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Documents

Planning the Promotion Planning the Promotion Advertising and Sales Promotion Advertising and Sales Promotion 2 Public Relations and Personal Selling