MKT3627 Sales Promotion Sales Promotion, Events, and Sponsorships Remark: Parts of the slides come from textbook publishers' presentation; There is no mean of violating or claiming as a writer of content.

MKT3627 Sales Promotion Sponsorship An investment in an activity in return for access to the exploitable commercial potential associated with this activity. When companies support an event like sport event, concert, or charity ex. Olympics Financially or donate product/service

MKT3627 Sales Promotion Sponsorship (Cont.) Mute non-verbal medium Messages are created using visuals, vocals, and context Sponsorship may be less effective in gaining attention

MKT3627 Sales Promotion Sponsorship (Cont.) Objectives: 1) Generation of awareness 2) Promotion of positive message about the product or company 4 Types of SPONSORSHIP: 1. Event-related sponsorship 2. Broadcast/Program sponsorship 3. Cause-related sponsorship 4. Ambush Marketing

MKT3627 Sales Promotion 1. Event-related sponsorship i.e. sponsoring soccer competition or activity Increase awareness or improve image 2. Broadcast/Program sponsorship A brand can sponsor a sports program, weather forecast or a soap Billboarding: mentioning the name of a sponsor Product placement: sponsor's product being used during the program to show to the audience i.e. series/ James Bond Increase brand salience (via liking and attention to) 4 Types of Sponsorship Best Known Type

MKT3627 Sales Promotion 3. Cause-related sponsorship A combination of PR, Sales Promo, and corporate philanthropy (charity), based on profit-motivated giving to good causes Not just Charity, but Charity + integration of company's communication strategy 4 Types of Sponsorship (Cont.) The oldest form

MKT3627 Sales Promotion 3. Cause-related sponsorship (Cont.) Transaction-based sponsorship (Cause-related marketing or point-of-purchase politics) A type of sponsorship in which the company invests a pre-specified amount of money in a good cause every time a consumer buys one of the company's product. i.e. a cause program to stop childhood hunger 4 Types of Sponsorship (Cont.)

MKT3627 Sales Promotion 4. Ambush Marketing Promotional stunts used at events by companies that are not official sponsors. Typically occurs when one big brand is trying to dilute the presence of a rival that is sponsoring an event, thus diminishing the return on the official sponsor's investment. For example, Nike ran its own soccer competition against the World Cup whose official sponsor was Adidas. Because of the publicity, many consumers assumed Nike was the official World cup sponsor. 4 Types of Sponsorship (Cont.)

MKT3627 Sales Promotion A type of Public Relation (PR) activity Using a number of elements of the promotion mix to create an event for the purpose of reaching strategic marketing objectives Building a product's marketing program around a sponsored event i.e. a golf tournament Event Marketing

MKT3627 Sales Promotion Can use to project right image for the brand Very Costly Objectives: 1. To build brand associations 2. To increase the perceived value of the brand in the consumer's mind Event Marketing (Cont.)

MKT3627 Sales Promotion Blimps, balloons, inflatable Skywriting plane Huge in size 3D Shape Interactive and Internet Promotions Other Promotional Supports

MKT3627 Sales Promotion Also known as = Continuity or Frequency program I.e. Frequent flier programs (Thai Airways Int'l) Membership programs (Carrefour I Wish Card) Objective: To increase customer retention Loyalty Program

MKT3627 Sales Promotion Make use of databases Mandates of Loyalty Programs: 1. Identify your best customers 2. Connect with those best customers 3. Retain the best customers, usually by rewarding them for their patronage 4. Cultivate new "best customers" Loyalty Program (Cont.)

MKT3627 Sales Promotion Co-marketing Co-branding Licensing Tie-ins Partnership Programs

MKT3627 Sales Promotion When manufacturers develop marketing communication programs with their main retail accounts, instead of for them. Advertising and sales promotion build brand equity for both manufacturer and retailer. i.e. Tesco-Unilever November Theme Co-marketing

MKT3627 Sales Promotion When two companies come together to offer a product i.e. King Power Duty Free logo on SCB credit card Co-branding

MKT3627 Sales Promotion When an established brand "rents" that brand to other companies, allowing them to use its logo on their product and in advertising or events i.e. Disney cartoons on ice cream Licensing

MKT3627 Sales Promotion Associations between complementary brands to create synergy (1+1=3) i.e. cross promotion and merchandising of Doritos chips and Salsa To spur impulse purchase Leverage similar strength Bigger impact in the marketplace Tie-ins