Download Retailing Chapter 2

direct mail
Planning the promotion
Advertising
Sales promotion
Public relations
Personal selling
sweepstakes
coupons
website
billboards
Event Marketing
Developing an effective
promotional mix and
corresponding budget
requires an understanding
of event marketing and
types of promotions.
event marketing all
activities associated with
the sale, distribution,
and promotion of a
sports event
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Promotional Mix
The different forms of
promotion can be
combined into a company’s
promotional mix.
Companies, teams, and
individual athletes have the
ability to target their
markets and fans with a
great variety of media and
promotional tools.
promotional mix any
combination of
advertising, sales
promotion, publicity,
direct marketing, and
personal selling
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Promotion in Sports
Marketing
The functions of promotion in sports marketing are:
Generate sales
Attract a targeted audience
Help create a positive image
REMEMBER: all sporting
events are business
ventures, and therefore,
must produce revenue to
cover expenses
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Promotional Budget
3 ways to determine a promotional budget:
Percentage of sales
A set percentage of last year’s sales
Competitive parity
Industry trends, study competitors
Objective-and-task method
Whatever it takes to reach the objective
AD BUDGETS: A 2004 Super Bowl ad costs $2.25 million
for a 30-second, one time spot. But weekly Monday Night
Football ads run $272,900 each.
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The Role of Advertising
Since a company pays for
advertising, it has control
over the message it wants
to deliver.
Two types of advertising are:
Promotional advertising
Institutional advertising
advertising any paid
promotion of an idea,
good, or service by an
identified sponsor
promotional advertising
advertising with a goal of
selling an item being
promoted
institutional advertising
advertising with a goal of
developing goodwill or
positive image
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The Role of Advertising
The four types of advertising media are:
Print
– Newspapers, magazines, direct mail, outdoor advertising,
stadium signage
Broadcast
– Radio and television
What are some advantages
and disadvantages of each
type of media?
Direct marketing
– Many types used to communicate directly with consumers
Online advertising
– Banner advertising, company Web sites, online promotions
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Sales Promotion
Types of sales promotions
include:
Coupons
Rebates
Samples
Premiums
Contests
Sweepstakes
sales promotion a
short-term incentive to
get consumers interested
in buying a product
Which sales
promotions do you
respond to most?
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MLB Giveaways
Rank
Promotion
% Increase in
Game Attendance
1
Beanie baby
37.4
2
Beach towel
26.4
3
Umbrella
20.1
4
Coupon
20.0
5
Baseball cap
19.9
6
Fireworks show
19.1
7
Hat (not baseball cap)
17.3
8
Bat
15.0
9
Heritage/Family Days
14.9
10
Beanbag toy
14.4
Source: Street and Smith’s Sports Business Journal (1, no.25)
Public Relations
Publicity gives a company
an image that must be
handled by a company’s
public relations
department.
Is bad publicity better
than no publicity?
publicity the free
mention of a product or
company in the media
public relations
activities that promote
the image and
communications a
company has with its
employees, customers,
investors, and public
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Public Relations
To alert the media in hopes
of getting media coverage,
companies, teams, and
individuals prepare press
kits and press releases.
press releases a
newsworthy article that
provides the basic
information to answer
questions such as who,
what, where, when, and
why
Press Release Link
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Personal Selling
Personal selling is
important as part of the
promotional mix because it
allows for two-way
communication between
the buyer and seller.
personal selling direct
communication by a
salesperson to potential
customers either in
person or by telephone
What are some
characteristics of a
good salesperson?
There are two types of
selling—order taking and
order getting.
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Activity
Sports Marketing Promotional Mix
• Create a promotional mix using sports-related
examples for each element of the mix. Use the
template provided.
• Example
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