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

3. Section 8.1 – Planning the Promotion – Objectives
Identify the roles of advertising and sales promotion in sports marketing
Explain the promotional mix
Describe the use of technology in promotion 3

4. Section 8.1 – Planning the Promotion – Event Marketing
Events can be associated with a sanctioned sports league or a one-time promotional event
Ex. Regular seasons game or Super Bowl
Event marketing is all activities associated with the sale, distribution, and promotion of a sports event
Managing Organizations
Sanctioned league events are presented by sports franchises
Events promoted by franchise administrative support and marketing department
Revenue is generated through broadcast media contracts, tickets sales, licensing agreements, and sponsorships
League, run by a commissioner, determines the rules and schedules for competitions
Commissioner makes final decisions regarding disputes and rulings
Licensing, sponsorships, and special promotions are governed by league policies

5. Section 8.1 – Planning the Promotion – Promotion in Sports Marketing
Managing Organizations – 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 patrons
Planning committee also sells sponsorships to financially support the event

6. Section 8.1 – Planning the Promotion – Promotion in Sports Marketing
Promotion for sports is like promotion for any product
Function 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 expenses
Promotion 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

7. Section 8.1 – Planning the Promotion – Promotion in Sports Marketing
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 sets
Loyal fans are needed for repeat ticket sales and regular viewing
Images that sporting events, organizations, leagues, teams, and players project are the direct result of marketing efforts
Association with positive images helps to build the company’s name and product brands in the minds of fans and the general public

8. Section 8.1 – Planning the Promotion – Promotional Mix
Companies involved in sports marketing of products must decide what types of promotion will best suit their needs
Different 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 mix
It must decide which combination of media will provide the best return for the money spent on promotion for the particular product

9. Section 8.1 – Planning the Promotion – Promotional Budget
Promotional budget can be a determining factor in deciding the promotional mix
Three ways to determining a promotional budget:
Percentage of sales
Competitive parity
Objective-and-task method

10. Section 8.1 – Planning the Promotion – Promotional Budget
Percentage of Sales
A set percentage of previous year’s sales or the coming year’s sales are used to decide on the funds for the promotional budget
Problem 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

11. Section 8.1 – Planning the Promotion – Promotional Mix
Competitive Parity
Industry trends are used to determine promotional budget
Parity is having equality or similarity
Company studies its competitors’ promotions to see if it needs to spend the same amount of money to be competitive
Problem is that each company’s objectives may not be same

12. Section 8.1 – Planning the Promotion – Promotional Budget
Objective-and-Task Method
Companies set objectives for their promotions and decide what promotional activities are necessary to reach those objectives
Also takes Percentage of Sales and Competitive Parity
Deciding 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

13. Section 8.2 – Advertising and Sales Promotion – Objectives
Identify the roles of advertising and sales promotion in sports marketing
Identify the major types of advertising media
Describe the use of technology in promotion 13

14. Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Advertising is one of the four elements of the promotional mix
Advertising offers many possibilities when companies are deciding on what promotion method to use
Companies have control over the message they want to deliver since they pay for the advertising
There is flexibility in delivering the message since there is a variety of media options
Advertising
Sales Promotion
Publicity
Personal Selling

15. Unpaid promotion is considered free publicity
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Advertising Defined
Any 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 publicity
Advertising rates depend on size of audience exposed to ad
Identified sponsor is the advertiser who pays for the ad
Promotional and Institutional advertising are the two types of advertising

16. Promotional Advertising
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Advertising Defined
Promotional Advertising
Advertising with a goal of selling the item being promoted
Institutional 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

17. Types of Media - Print Newspapers Magazines
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Types of Media - Print
Newspapers
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

18. Types of Media - Print Direct Mail
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Types of Media - Print
Direct 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

19. Types of Media - Print Outdoor Advertising Stadium Signage
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Types of Media - Print
Outdoor 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
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

20. Types of Media – Broadcast
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Types of Media – Broadcast
Radio and television are broadcast media used for advertising
Radio
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

21. Types of Media – Direct Marketing
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Types of Media – Direct Marketing
Various 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 – to reach online customers who are listed in database
Database of people to contact is used
Advertiser can customize a message for the person being contacted

22. Types of Media – Online Advertising
Section 8.2 – Advertising and Sales Promotion – The Role of Advertising
Types of Media – Online Advertising
Banner ads on Web sites special advertising messages directly to consumers through personal addresses
Use 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 site
Disadvantage is that not all members of a target market can be reached

23. Section 8.2 – Advertising and Sales Promotion – Sales 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

24. Section 8.2 – Advertising and Sales Promotion – Sales Promotions
Coupons and Rebates
Offer some type of price reduction or free merchandise
Difference in two is that coupons are usually redeemed at store or on location, while rebates must be sent to manufacturer for redemption and reimbursement
Benefits 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 date
Disadvantage is that they are easily copied by competitors

25. Section 8.2 – Advertising and Sales Promotion – Sales Promotions
Samples and Premiums
Sampling 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 purchases
Premiums are items that are given away free with the purchase of merchandise

26. Section 8.2 – Advertising and Sales Promotion – Sales Promotions
Contests and Sweepstakes
Contests participation requires completion of some task in order to win a prize
Sweepstakes participants need only to sign up to be included in competition
Both contests and sweepstakes are presented by a variety of media as they are part of an advertising campaign or sponsorship deal
Coordination of Sales Promotions
For 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

27. Section 8.3 – Public Relations and Personal Selling - Objectives
Identify the roles of public relations and personal selling in sports marketing
Identify the role of the media in public relations
Explain the types and steps of selling 27

28. Section 8.3 – Public Relations and Personal 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 large
Publicity 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 department
Public relations departments create positive publicity and sends it to the media in hopes that the media will publish it

29. Section 8.3 – Public Relations and Personal Selling – Public Relations
The Role of Media in Public Relations
Magazines, newspapers, televisions, radio, and internet provide outlets for public relations to function
Media outlets decide on what news will be used on a given day
Press Kits and Press Releases
Press 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

30. Section 8.3 – Public Relations and Personal 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

31. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Types of Selling
Two 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

32. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Steps in the Selling Process
Professional selling consists of the following seven steps:
Approach, determine needs, present the product, overcome objections, close the sale, perform suggestion selling, follow up
Salespersons prepare for sale process through prospecting and pre-approach strategies
Prospecting
Looking for potential customers, or leads
Can be generated by salesperson, or salespersons company; tradeshows; advertising
Pre-approach
Learning about the products and the potential customers
Studying a potential customer requires research and sometimes a phone call or

33. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Steps in the Selling Process
1. 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

34. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Steps in the Selling Process
2. 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

35. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Steps in the Selling Process
3. 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:
Involve the customer
Demonstrate the product
Use sales aids

36. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Steps in the Selling Process
4. 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

37. Section 8.3 – Public Relations and Personal Selling – Personal Selling
Steps in the Selling Process
5. 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 obvious
6. Perform Suggestion Selling
Presenting ideas for additional merchandise sales
7. Follow Up
Keep in contact with customers by phone, , mail or newsletters
Developing a relationship with customer can lead to repeat sales

38. End of