Promotion

• Promotion is any form of communication used to inform, persuade, or remind people about an organization’s goods, services, image, ideas, community involvement, or impact on society ( Evans & Berman, 1987, p. 43).

Promotion

• The process of communication

Sender (source) Message Medium Receiver

Feedback

Promotion

• Source (sender)- Where the communication process originates.

• Credibility: the sources perceived expertise and trustworthiness

Promotion

• Message: the content of the words, symbols, meanings to be transmitted to the receiver.

• Medium- a communication channel that the company transmits the message to consumers.

• Feedback: the response a target audience makes to a message.

Promotion

• Functions of promotion • 1. Promotion creates awareness for the

company & products. • 2. Promotion establishes an image.• 3. Promotion increases sales• 4. Promotion can reposition the image of a

faltering product.• 5. Promotions alerts the consumer to sales• 6. Promotion tells the consumer where your

business is located.

Promotion

• AIDA • A – attention • I – interest• D – desire• A - action

Promotion

• The Hierarchy of Effects: a process by which consumers are ultimately led to action.

Action Conviction Preference

Liking Knowledge Awareness

Unawareness

Promotion• Promotion Planning• 1. Target Market consideration: who are your target market? • 2. Establish Promotion Objectives: what does your company

want to achieve in promotion?• 3. Check the Budget: How much money is available for

promotion?• 4. Develop Specific Plan• 5. Determine Promotional Mix: how do we promote our

products?• 6. Evaluation Plan: How will we evaluate promotion? Is it

successful?

Promotion

• Promotional Mix: Frequently used promotional methods

1. Advertising

2. Personal selling

3. Sales promotion

4. Publicity

Promotional Mix

• Selecting Promotion Mix

• 1. Resources, objectives, and mission

• 2. Characteristics of the Target market

• 3. Characteristics of the Product

• 4. Cost and availability of promotional methods

• 5. Push and Pull channel policies

Promotion

• 1. Advertising- A message that informs and persuades consumers through paid media.

• Objectives of Advertising: consistent with organizational objectives

• A. Direct Objectives: to elicit a behavioral response from the target market

• B. Indirect Objectives: to establish prebehavioral response to advertising

Promotion

• Process of developing advertising

• 1. Identify and analyze the target market• 2. Define advertising objectives• 3. Create advertising platform• 4. Determine advertising appropriation• 5. Develop media plan• 6. Create advertising message• 7. Execute campaign• 8. Evaluate advertising effectiveness

Promotion

• Mass Media Selection: what medium will be the most effective in reaching the target market

Promotion• Profiles of major Media• Medium Advantages Limitations• Radio Inexpensive, Audio only

Local acceptance, Low attention

High Geographic selectivity • TV Large Number of audience High costs

Combination of sight, sound High clutter and motion, High audience Short life selectivity

• Newspaper good local coverage Short life; limited audience

• the Internet Global access Clutter, hard to interactive capability measure

effectiveness

Promotion• Alternative forms of Advertising • a. Stadium signage

Promotion

• b. Billboards

• c. Fliers, Brochures

• d. Endorsements

Promotion

• II. Sales Promotions: a variety of short-term, promotional activities that are designed to stimulate immediate product demand.

• Premium giveaways, Contests & Sweepstakes, Sampling, Point of Purchase Displays, Coupons etc.

• Relatively cheap and can be more effective than advertising.

• Used to break a consumers behavior pattern, increase value to customer, build equity or induce loyalty

• Can be price or non-price promotions• Often tied to sponsors or media partners

Promotion

• III. Personal Selling: a form or person to person communication in which a sales person work with perspective buyers and attempt to influence their purchase needs to their products.

Promotion

• Benefits of Personal Selling• a. To immediately adapt the message they are

presenting based on feedback received from the target consumers

• b. To communicate more information to the target consumers than other forms of promotion

• c. Increases the likelihood of the target consumer paying attention to the message

• d. Increases the chances of developing a long-term relationship with consumers, due to the frequent person-to-person communication

Promotion

• Elements of the personal selling process• 1. Prospecting• 2. Preapproach• 3. Approach • 4. Making presentation• 5. Overcoming objections• 6. Closing the sale• 7. Following up

Promotion

• Management of the sales force• a. Establishing sales force objectives• b. Determining sales force size• c. Recruiting and selecting salespeople• d. Training sales personnel• e. Compensating sales people • f. Motivating salespeople• g. Managing sales territories• H. controlling and evaluating sales force

performance

Public Relations

• Public relations: an interactive marketing communications strategy that seeks to create a variety of mediums designed to convey the organizational philosophies, goals, and objectives to publics for the purpose of establishing a relationship built on comprehension, interest, and support.

Community Relations

• Community Relations

How is your organization perceived by– local citizens?– employees?– affiliated businesses?

Sport organizations are dependent on the public’s support and must demonstrate their worthiness to be part of the community and be viewed as a neighbor of choice.

Community Relations

• Community Relations: Generate goodwill

• “giving something back”

“being a good citizen”

“taking pride in the community”

Community Relations

• The Purposes of Community Relations• 1.

• 2. Build relationships

• 3.Show you are committed to community

• 4.

• 5.Improve employee morale & recruitment

• 6. Educate public about organization

Community Relations

• Player initiated www.twfound.org • Team initiated http://www.nba.com/nuggets• League initiated: • NBA: Gallaudet University• NBA Reading Initiative• NFL United Way• LPGA Charity for Breast Cancer.• PGA “Drive to a billion”

Community Relations

• Working with Charitable organizations

• Creating programs and events to raise awareness and money for charity

• Player and Staff appearances

Media Relations

• Media Relations: Communicating with the news media verbally or through other vehicles.” “MR is a window of all information of the organization to the outside world.”

Media Relations

• Functions of Media Relations• A. Communicate through the news media to

shape organization image• B. Provide organizational information & update

organizational changes• C. Maintain contacts with League offices, other

teams/institutions• D. Maintain relationships with other Leagues,

other departments, administrations, coaching staff, alumni.

Future of Sport Marketing

• Web-based Sport Marketing

• E-marketing is to make profit through the exchange process utilizing the internet as the medium.

Web-based Sport Marketing

• ESPN launched its official web-site of ESPNetSportZone in 1995

• Seattle Mariners launched their website to use the web for marketing.

• Online ticketing was a $10 billion market in 2001

• More than 50% of MLB teams offered tickets directly from their site

Web-based Sport Marketing

• Online advertising generated $940 million in 1997 to $ 8 billion in 2000

• ESPN.com has 35 sponsors yearly sponsorship on ESPN.com cost between $140,000 to $310,000

The Internet

• Site Unique Visitors/month• espn.com 7,185,000• Sportsline.com 5,218,000• NFL Internet group 4,999,000• MLB.com 4,578,000• CNNSI.com 3,136,000• NASCAR.com• Fansonly.com• sportingnews.com• sandbox.com• NBA.com

The Internet

A place for your “stuff” – A place to “post” as much information as you want.

• a. No limit -- information you can post!• b. Cost – It’s inexpensive as compared to

publishing• c. Update-ability – Can update it at will.• d. Worldwide reach -- With a site, you can

have people from around the world “view” your team

• e. Interactivity

Web-based Sport Marketing

• Characteristics of Successful website

• 1. ease of navigation

• 2. access to relevant and related information

• 3. constant updates with fresh information

• 4. entertaining content and site features

• 5. web address reflects the organization’s name www.nba.com

Web-based Sport Marketing

• Benefits of Interactive Marketing• 1. Results of marketing efforts are

measurable (Higher response rate than direct mail)

• 2. Ability to communicate with consumers on consumer selected topics

• 3. Cost-effective means for building relations with customers

• 4. Customer convenience provided

Web-based Sport Marketing

• Disadvantages of Interactive Marketing

• 1. Customer must access marketer in order for interactive marketing to begin

• 2. Hard to build or buy good e-mail lists

• 3. Perceived as spam if not targeted well

• 4. Consumer privacy issues

Atmospherics

• atmospherics – The physical characteristics of the facility

such as architecture, layout, signs and displays, color, lighting, temperature, access, noise, assortment, prices, special events, etc., that serve as stimuli and attention attractors of consumers.

Atmospherics

• Functions of Atmospherics

• a. Atmospherics draw consumers’ attention

• b. Establish a distinctive character for an organization

• c. Attune an organization to a distinctive class of consumers

Atmospherics

• Process of Atmospheric management

• 1. Defining the desired market and effects: Amenities provide each environment a differentiating or positioning strategy that should be designed to attract and accommodate a target audience or consumer

Atmospherics

• 2. Developing an atmospheric theme a. The organization’s philosophy and

mission b. Cultural features of the marketplace c. The calendar (anniversaries, holidays) d. Milestones that my include player or

performance achievements or records e. Elements within the sport business’s

promotional campaign f. Other available resources such as celebrity

appearance, sponsor agreements.

Atmospherics

• 3. Specifying the elements of the physical setting that are to carry the intended cognitions and effects

• a. Exterior structure: a venue’s façade communicates considerable information to the consumer.

Atmospherics

• b. Special Displays: Point-of-purchase and point-of –displays consisting of eye-catching exhibits intended to lure the consumer to the product or merchandise.

Atmospherics

• c. Interior Design Features: interior design features, such as color schemes, fixtures, lighting, and dress code, play an important role to attract consumers

Atmospherics

• 4. Selecting specific sensory elements that convey the desired effects

• a. Sound of Music: Sound effects are the most popular means of enhancing atmosphere in venues. A good selection of music acts as a way of exciting spectators and motivating a home team.

Atmospherics

• b. Integrating supporting cast members• 5. Coordinating the Production• a. Developing a checklist and itinerary of

all staged activities• b. Drafting a script of all scoreboard and

public address announcements• c. Employing an internal direct

communication system