Download CHAPTER 8 – SPORTS PROMOTION

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.