Chapter 10

Sports and Entertainment

Promotion
10.1 Promoting Sports and
Entertainment
10.2 Advertising and Placement
10.3 Publicity and Sales Promotions

Sports and Entertainment Marketing

© Thomson/South-Western
Winning Strategies
Velocity Sports and Entertainment
 Velocity Sports and Entertainment
 promotional agency that specializes in
sponsorship and event marketing
 focuses on the cross-promotional opportunities
offered by sports and entertainment events

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Lesson 10.1

Promoting Sports and

Entertainment
Goals
 Describe the goals of promotion.
 List and define four elements of
promotion.

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Terms
 advertising
 product placement
 publicity
 sales promotions
 personal selling

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THE PURPOSE OF
PROMOTION
 promotion
 the process of making customers aware of
a product, service, or event

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Promotional Goals
 Increasing sales is the primary goal of
promotion.
 Related goals include
 increasing customers’ usage
 maintaining customer loyalty
 building a fan base
 educating potential customers
 overcoming the hesitation of first-time
buyers
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Gaining New Fans – An
Example
 To combat the declining audiences of
the early 1990s, the USTA and the TIA
took a number of initiatives.
 The associations created the Tennis
Welcome Center partnership.
 offered fun, friendly introductory lessons
 By 2005, there were about 5.8 million
new tennis players.
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 What is the goal of promotion?

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PROMOTIONAL ELEMENTS
 The four elements of promotion are
 advertising
 publicity
 sales promotions
 personal selling

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Advertising
 advertising
 a paid form of communication delivered by
a product maker or seller to consumers
 product placement
 a product integrated into the plot of a
television show or a movie
 more discreet than advertising

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Publicity
 publicity
 any unpaid media attention
 either positive or negative

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Sales Promotions
 sales promotions
 additional incentives offered for a limited
time to encourage consumers to buy a
product

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Personal Selling
 personal selling
 an in-person, face-to-face communication
between a seller and a customer

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 List four elements of promotion.

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Lesson 10.2

Advertising and Placement

Goals
 List and describe the steps involved in
developing effective advertising.
 Describe the use of product placement.

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Terms
 tagline
 media strategy
 reach
 wear out
 frequency

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

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Step by Step
 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.
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 The Goal
 specific
 measurable

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 The Budget
 marginal analysis
 setting the advertising budget by estimating the
point at which an additional dollar spent on
advertising equals additional profit

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  percent of sales
 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

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 The Theme
 tagline (theme)
 a slogan that conveys the main message of the ad

 The Media
 print
 broadcast/cable
 Internet
 out-of-home
 in-home

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 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

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 The Message
 copy
 the words to be spoken or printed in the
advertisement
 wear out
 when advertising loses its effectiveness due to
overexposure or poor message quality

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 The Schedule
 frequency
 the number of times the targeted customer is
exposed to the media
 concentration schedule
 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

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 The Effectiveness
 response rate
 the number of customers who connect with and
act in relation to the ad

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It’s Showtime
 primetime
 when the largest viewing audiences are
watching TV
 the most expensive time to advertise

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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.

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 List the steps involved in developing
effective advertising.

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PRODUCT PLACEMENT
 Product placement is a fast growing form of
sales promotion used in
 films
 TV shows
 live theater

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The Basics
 Product placement can be used to
offset the need for traditional
advertisements.
 24 on the Fox network
 Ford vehicles used extensively

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Who Pays?
 Three common ways that product
placement deals might be constructed
include
 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.

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  A corporation may make an agreement with
a film producer to include movie promotion in
its product advertising in exchange for
placement of the product in the movie.

 Assuming they appeal to the same market, both

parties will gain from the connection.

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 Name three ways product placement
deals are constructed.

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Lesson 10.3

Publicity and Sales Promotions

Goals
 Define publicity and explain its role in
creating a positive public image.
 Describe various types of sales
promotions.

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Terms
 goodwill
 publicist
 grass-roots effort
 viral campaign
 public relations (PR)
 trade allowances

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PUBLICITY
 Although publicity is free, the message
is controlled by
 the news media
 others that are presenting the message

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Goodwill
 goodwill
 customers’ positive feelings about the
business

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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
 trying to focus attention on more positive
stories

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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

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 astroturfing
 creating a fake grass-roots effort

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Image is Everything
 public relations (PR)
 the arm of promotion that tries to create a
favorable public opinion for an individual or
organization
 Public relations focus on the future with
the intent of creating a positive image of
the business.

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 Professional athletes feel the pressure
of being public role models while
meeting athletic performance standards.
 Sports facilities and sports fans need to
have a positive image to encourage
visitors to attend games.

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 How is publicity different from other
types of promotion?

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SALES PROMOTIONS
 Sales promotions are marketing efforts
that offer
 customers an additional incentive to buy
 a limited time to make the purchase

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Consumer Sales Promotions

 consumer sales promotion

 directed at the final consumer
 temporary price reductions
 price-pak deals
 coupons
 special gifts
 contests
 rebates

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Trade Sales Promotions
 trade sales promotion
 directed at members of the distribution
channel
 trade allowances
 offer short-term discounts to distributors and
retailers for selling or participating in the
promotion of a product
 trade contests
 point-of-purchase displays

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Employee Sales Promotions
 push money
 an extra commission paid to sales persons
who sell or push particular products

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 List three consumer sales promotions.

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PERFORMANCE INDICATORS
EVALUATED
 Define the target market.
 Explain the marketing strategy to increase
sales of Disney merchandise.
 Communicate promotional ideas clearly to
the judge.

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 Explain the value of the relationship with
retailers who sell to target markets that
watch Disney movies.
 Describe cooperative sponsorships and
promotional strategies with other
companies to increase sales of Disney
merchandise.

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THINK CRITICALLY
1. How could a gift shop located in movie
theaters near the exits help increase
sales?
2. What is the value of diversifying
distributors of Disney merchandise?

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 3. How can Disney benefit from
associating with other well-known and
respected companies?
4. Can sales of related merchandise
increase attendance at the Disney
movies? Explain.

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