1. Maximize ROI for Promotional Events
2.09 Sports II

2. ROI ROI is short for “Return On Investment”
This means that you want to make as much profit as possible
There are many ways to do so, such as:
Developing a promo budget
Developing a promo calendar
Planning a strong promotional mix
Hiring a promoter to do all of the above for you

3. Sporting Event Promoters
Sporting events are business activities that require planning, funding, registration and sponsorship income.
A sports promoter will handle activities such as:
projecting attendance and revenues
visiting and selecting venues
creating a budget
selling sponsorships
overseeing marketing
handling on site logistics
dealing with all of the business activities related to running an event.
May spend months preparing for a one day event!

4. Sporting Event Promoters
There are many types of promoters:
Some only promote for specific sports, such as boxing, since the industry is specialized
Some venues have full-time promoters that are contracted to be used for every event
Some promoters only do business logistics while others are full-service
Must decide if hiring and paying a promoter will increase ROI or not
Good to use when event will be held in multiple cities or is very large/complex

5. Coordinate the Promotional Mix
Marketers should be sure to coordinate the promotional mix, which includes:
Advertising
Sales Promotions
Public Relations
Personal Selling
Direct Marketing
It is important that all elements of the promo mix work together towards a common goal and reinforce each other.

6. Well-Coordinated Promotional Mix
By sending the same promotional message through various promotional channels you can reach a wide audience
If running a tv ad about a new product, you could also:
Mail free samples to customers
Ensure that salespeople are well-informed about the product
Set up promotional visual merchandise in the store
Strong Promotional Mixes will attract more customers and increase sales, which increases ROI

7. Setting a Promotional Budget
While some businesses set promotional budgets as a fixed number, most are based on estimated sales projections
The average business allocates about 9 to 12% of projected sales to advertising; however, it can be as low as 2% or as high as 25%.
Because the budget is based on projected sales, it can increase/decrease throughout the year, so marketers must be flexible when planning.
Promotional budgets also may be increased in an attempt to match competition

8. Sample Budget Planning
Last year’s sales were $500,000
Company expects a 5% growth in sales
They want to spend 11% of sales on promotion
$500,000 x 1.05 = $525,000 this year’s estimated sales
$525,000 x 0.11 = $57,750this year’s promotional budget

9. Using Promotional Budget
Once marketers know their budget, they should go ahead and plan their major campaigns for the whole year.
Due to possible fluctuations in the budget, it’s wise to prioritize planned expenses; this makes it easy to cut costs later or maximize use of possible extra funds
Promotional Budget should be based on the coordinated promotional mix and organizational goals
Ex: If goal is to make corporate image more about high quality, ads should emphasize quality and service instead of price.
Ex: If goal is to increase B2B sales, more $ should be spent on personal selling than on consumer ads.

10. Promotional Calendar
A promotional calendar is a document that outlines the major promotional events that are planned at the beginning of the year
Should only include events that are sure to happen
Sports teams and performers will publicize the calendar as a promotional tool
Get people excited about upcoming events
Causes people to keep them in mind all year
Increase advance ticket sales
Sponsors can be featured in calendar if they choose to pay the cost to cover the event; this helps stretch promotional budget

11. Atlanta Braves’ 2014 Promotional Calendar
How might this promotional calendar effect sales?
What sponsors do you see featured?
Will the events have a good ROI?