CHAPTER 8 – SPORTS PROMOTION I. Section 8.1 Planning the Promotion A. Event Marketing—all activities associated with the sale, distribution & promotion of a sports event 1. Managing Organizations—league (creates rules & schedules) is headed by a commissioner who oversees the teams, which have administrative and marketing departments. Revenue is generated through media contracts, ticket/stadium sales, licensing agreements & sponsorship. International sports are governed by international organizations (ie. FIFA). One-time promotions are usually handled by local committees (IOC and NY2012) B. Promotion in Sports Marketing—promote sport to generate sales, attract target audience & crate positive image. Need revenue to cover expenses. Marketing creates the images of the sporting event, organizations, leagues, teams, & players. C. Promotional Mix—combination of advertising, sales promotion, publicity & personal setting. Created by each team. D. Promotional Budget—determines promotional mix 1. Percentage of Sales—base future sales budget on last year’s total sales. Easy to calculate. 2. Competitive Parity—looks for industry trends to determine amount of spending. Parity = equality/ similarity. Problem is that each team’s objectives, therefore spending habits, are not the same. 3. Objective-and-Task Method—companies set objectives for their promotion & decide what promotional activities reach those objectives. Budget lists objectives along with costs. II. Section 8.2 Advertising and Sales Promotion A. The Role of Advertising 1. Advertising Defined—paid promotion of an idea, good, or service by an identified sponsor. Ad rates depend upon circulation (size of audience). Identified sponsor pays for the ad. a. Promotional advertising—with goal of selling promoted item. b. Institutional advertising—with goal of developing good will/positive image. (Thank for support, positive behavior, “Got Milk?” Public Service Advertising (PSA) 2. Types of Media a. Print i. newspapers ii. magazines iii. direct mail—“mailing list” from organization iv. outdoor advertising—billboards v. station posters—by public transportation vi. stadium signage—inside stadium/arena b. Broadcast—radio, TV (infomercial) Advantage is it reaches many people; disadvantage is price & time ad airs c. Direct marketing—Mail, phone, computer— usually fill out form/card for more information d. Online advertising—banner ads, pop-up ads B. Sales Promotion—short-term incentive to get consumers interested in buying a product 1. Coupons and Rebates 2. Samples and Premiums—items given away free with the purchase of merchandise 3. Contests and Sweepstakes 4. Coordination of Sales Promotions—media used in the ad campaigns III. Section 8.3 Public Relations and Personal Selling A. Public Relations—activities promoting the image & communications a company has with employees, customers, investors, & general public. Publicity— the free mention of a product/company/person in the media. ADV—exposure, no cost, positive image. DIS—no control, hurt image, lies. **no guarantee that information will be truthful 1. The Role of Media in Public Relations— organization sends info to the media, media chooses what it will uses—usually what will create the biggest “buzz” 2. Press Kits and Press Releases a. Press kits—promo materials to be used by the media (fact sheet, background info, press releases, videotapes) b. Press release—newsworthy article stating the “who, what, where, when, why & how(much)” B. Personal Selling—direct communication between Salesperson & potential customer **allows for two-way communication 1. Types of Selling a. Order taking—customer knows what it wants b. Order getting—involves “sales” **sports agent i. sales skills (knowledgeable about product) ii. negotiation skills 2. Steps in the Selling Process--Prospecting— looking for leads (trade shows or advertising) Preapproach—learn about product & potential customers. Qualify lead—make sure it is OK a. Approach—1st face-to-face meeting. Firm handshake. Friendly conversation. In OT, say “How may I help you?” b. Determine Needs—look, listen, ask questions throughout the sale process. Verbal & nonverbal c. Present the Product—develop around customer needs/wants. Involve customer. Demonstrate product. Use sale aids (video, sample, etc.) d. Overcome Objections—eliminate doubts e. Close the Sale—get a commitment f. Perform Suggestion Selling—get to buy(into) additional merchandise/situation g. Follow Up—keep in contact to help with future sales NAME ____________________________________ Chapter 8 HW Sports Marketing 1. What are the three functions of promotion in sports marketing? 2. Explain the promotional mix. 3. List the three ways to determine a promotional budget. 4. What is the difference between promotional and institutional advertising? 5. What are the major types of advertising media? 6. List the different forms of sales promotion. 7. What are two advantages and disadvantages of publicity? 8. What are the major types of advertising media? 9. List the different forms of sales promotion. Name __________________________________ Sp. Mkt. Ch. 8 Review 1. Define event marketing. 2. Identify the elements in the promotional mix. 3. Explain a budget in sports marketing. 4. Identify the roles of advertising and sales promotions. 5. Define & explain the difference between public relations and personal selling. 6. Define and explain the difference between contests and sweepstakes. 7. List & explain the 7 steps of the selling process. a) b) c) d) e) f) g) h) 8. Explain the role that the various media play in public relations.