Chapter 10 Promotion and Paid Media 10 Promotion and Paid Media C H A P T E R

Objectives To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix To understand promotion and its importance in sport through a historical context and to consider how that context has evolved because of the importance of media and sponsorship relationships (continued)

Promotion Any activity designed to stimulate interest in, awareness of, and purchase of a product Method to convey information about the place, price, and product Critical in the positioning of a product in the mind of the consumer

Types of Promotion Advertising—any paid, nonpersonal (not directed to individuals), clearly sponsored message conveyed through the media Personal selling—any face-to-face presentation in which the seller has an opportunity to persuade the consumer (continued)

Types of Promotion (continued) Publicity—any form of exposure in the media not paid for by the beneficiary or within the beneficiary’s control or influence Sales promotion—a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performances

Goals of Promotion Promotion should include the following steps: A: increase awareness I: attract interest D: arouse desire A: initiate action

Types of Advertising Media for Sport Signage Endorsements Print media Electronic media Billboards, blimps, and buses

Endorsements Definition: A well-known celebrity athlete uses his or her fame to help a company sell or enhance the image of the company, products, or brands. When seeking endorsers, brands strive to find a good fit or match between their products and the endorser. Brands are challenged when using celebrity endorsers to ensure that the celebrity conveys the appropriate image.

Table 10.1

Print Media Print media grant the sport marketer a high degree of control over content and are relatively inexpensive. Print media can be easily ignored by the target audience. (continued)

Print Media (continued) Types of print media: –Magazines –Newspapers –Schedule cards –Handouts and brochures –Posters –Point of purchase displays –Direct mail

Figure 10.2

Electronic Media As compared with print media, electronic media offer greater flexibility in attracting consumer attention and creating messaging in consumers’ native language. Several types of electronic media are used: (continued)

Electronic Media (continued) Radio –Traditional radio –Streaming –Podcasts Television Scoreboards LED signage Public address systems

Table 10.2

Types of Television Commercial Structures Story Problem solution Chronology Special effects Testimonial Satire Spokesperson Demonstration Suspense Slice of life Analogy Fantasy Personality

Sales Promotions Can be in the form of either price discount or nonprice promotion Recommendations when using sales promotions: –Be careful not to alienate season-ticket holders. –Use sponsors to help cover costs of value- added promotions, but marketers must find promotions that work for all levels of consumers. (continued)

Sales Promotions (continued) –Price discounts are often short-term fixes that can have unintended consequences for consumer behavior. –Understand the promotion’s effect on concession and merchandise sales. –Be aware of the game schedule and timing of the promotion (peak-on-peak promotions).

Promotional Components Theme Product sampling Open house Coupons, vouchers, and discount codes Contests and sweepstakes Premiums and giveaways

Frequency Escalator When promoting a sport product, marketers must balance attracting new customers with encouraging current customers to become more committed to the product. The concept of the frequency escalator suggests that sport marketers gradually encourage potential consumers to move from a state of unawareness of a sport product to a state of heavy consumption.

Types of Nonconsumers Aware nonconsumers Unaware nonconsumers Media consumers Misinformed nonconsumers

Promotional Planning Model Level 1: nonpattern attenders (light users) Level 2: multiple attenders (medium users) Level 3: frequent attenders (heavy users) Level 4: defectors (descending the escalator)