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33 Cards in this Set
- Front
- Back
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What are promotions
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Any activity designed to stimulate interest in, awareness of, and purchase of a product Method to convey information about the place, price, and product Critical in the positioning of a product in the mind of the consumer
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Promotions mix
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ADVERTISING Any paid, non-personal (not directed to individuals), clearly sponsored message conveyedthrough the mediaPERSONAL SELLING Face-to-face or phone presentation in which the seller has an opportunity to persuade the consumerPUBLICITY Any form of exposure in the media not paid for by the beneficiary or within the beneficiary's control or influenceSALES PROMOTION Involves a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performancesSPONSORSHIP IInvesting in a sport property in order to accomplish organizational marketing objectives
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Communications process
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Sender (source)Encoding Message (channel)Medium DecodingReceiver Noise Feedback
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Message characterisitcs
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SidednessPositivePositive & NegativeAppealEmotional RationalComparativeInclude competitor data
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Promotional planning
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Identify target market(s)
Set promotional objectives Determine the budget Develop promotional mix |
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Target markets
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Push Strategy
Channel intermediaries push the product Distributors are offered discounts Objective is to fill stores with the product Focus is not on consumer Pull Strategy Stimulate demand for product Distributors are forced to buy and stock shelves Consumers are offered discounts or promotions Focus is on consumer |
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Advertising
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Direct objectives
Elicit a behavioral response or induce action (purchase) Two types: End user advertising Sales focused Sales promotion advertising Level of participation Indirect objectives Increase awareness, enhance image, improve attitudes, educate consumers |
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Athlete endorsements
3 factors |
Three main factors impact athlete endorser effectiveness
Expertise Knowledge, skill, experience Credibility Trustworthiness, morals, values Attractiveness Physical, intellectual, personal |
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Theories of advertising
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Congruence theory
The more congruent two images are, the more likely a consumer is to link the advertising messages in their memory Match-up hypothesis Matching a celebrity endorser with a congruent product or service helps make the advertising message more effective |
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Athletes as endorsers
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Sport-related products
Image-related products Non-related products Build long-term relationships Avoid over-exposure Beware of negative behavior |
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Q-score ratings
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industry standard for measuring consumer appeal of personalities characters etc..
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Relationship marketing
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Process of creating, maintaining, and enhancing strong personal relationships with fans, customers, or other stakeholders of the organization
Easier to move current fans UP the escalator than to get new fans ON the escalator! Teams AND sponsors are looking for more ways to actively engage, communicate, and interact with fans |
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Public relations
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Provide communication that will enhance the image of the organization
Used to identify, establish, and maintain mutually beneficial relationships between the sports organization and the various publics Miami Dolphins “Special Teams” Publicity Generated by an outside source and is uncontrolled by the organization |
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internal publics
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Employees
Volunteers Athletes Suppliers Spectators |
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external publics
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Community
Sanctioning bodies Intermediaries Competition |
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Sponsorship/promotional licensing
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An investment in cash, or in-kind, in an activity in return for the exploitable commercial potential association with that activity
This relationship is then used to achieve the following promotional objectivesRight to use logo/marks Right to product/category exclusivity Entitlement Official or presented by status Service or pouring rights Opportunity to conduct promotional activities such as contests, advertising, sales activities |
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Who sponsors sports
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Anheuser Busch - $330 million
PepsiCo -- $310 million General Motors -- $235 million Nike -- $230 million Coca-Cola -- $230 million Miller-- $180 million Chrysler -- $155 million Ford-- $145 million McDonald’s -- $120 million Mastercard -- $115 million |
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Most common things to sponsor
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Sports 69%
Entertainment & attractions 10% Cause marketing 9% Arts 5% Festivals, fairs & annual events 4% Associations & member organizations 3% |
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Why sponsor sports
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Cuts through clutter
An exclusive platform Communication -- an exciting atmosphere that provides opportunities for participation, sampling, feedback and merchandising Publicity -- entitlement, media coverage OwnershipDefend market share and position Convey success Association with a desirable affiliate Cause Affiliation Good Citizen Hospitality / Entertainment possibilities |
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What do sponsors want from sport they sponsor
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A sport with a strong future
A sport organization that is responsive to us as a customer & understands our needs Good Value for the money Strong relationship with their fans A way to achieve sales objectives Unique hospitality opportunities Identification with particular market segmentsExposure A way to drive customers to the sponsor Must create a “Buzz” Continual effort to promote the sponsor and provide value added An advantage over competitors Cooperation Annual report |
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Nascar fans
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NASCAR Fans have demonstrated the highest levels of affinity -- NASCAR fans are most able to identify the sponsors of their sport -- survey research documented respondents ability to identify (unaided) more than 200 sponsor brands -- and only 1% were incorrect3 out of 4 NASCAR fans purchase the products of NASCAR sponsors Most importantly -- over 40% of NASCAR fans switch brands when a manufacturer became a NASCAR sponsor
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Pricing
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Price is the exchange value of a good or service and the value of an item in the marketplace.
Price is the most manipulated part of the marketing mix. Easily changed Effective tool Highly visible |
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Value
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Value is the quantitative measure of the worth of the product.
Satisfaction = Benefit Cost |
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Sport products that are priced
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Hard or soft goods (equipment or apparel)
Tickets Memberships Concessions (food, novelties) Information (magazine, cable subscriptions) Access for corporate entities (entitlement space, signage, banner ads) Image (“swoosh” or photo) |
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Fan cost index
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mlb 197.35
nba 287.85 nfl 420.54 nhl 313.68 |
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Consumer perception: linking price with value
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Consumer perceptions somehow link price (and total cost) with value. Marketers must recognize this and attempt to explain the connection. Product values may include these elements:Quality (including a sense of rivalry, competitiveness, star power)
Convenience (including proximity to venue and parking) Aesthetics Cleanliness, comfort, security Availability (of tee times, of good seats) Durability |
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Break even analysis
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Fixed cost (FC)
Stadium rental Taxes Office equipment Variable cost (VC) Wages Material costs Concession stands Break-even point = FC / (selling price – VC) |
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Cost-plus pricing
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Cost + Desired profit = Price
Account for cost paid, then mark up to desired level. Demands accurate FC and VC information. |
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Capitation pricing
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Offering a price “per head”
Typically used on a group basis Providing a “group” discount that, in turn, creates a bulk-revenue stream |
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What the market will bear
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Largely based on experience and comparisons
Mistakes can prove costly |
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Elastic demand
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Elasticity of demand = Percentage change in quantity demanded / Percentage change in price
A measure of how sensitive a market is to price change Inelastic It occurs when a given percentage change in price results in a smaller percentage change in quantity. Increase in price will mean increase in profits. Elastic It exists when a given percentage change in price results in a larger percentage change in quantity. Increase in price will mean decrease in profits. Unitary Unitary demand exists when a given percentage change in price results in an equal percentage change in quantity. End result is the same as before. |
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Special pricing factors
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Lead time: The average amount of time between ticket purchase and the date of the event typically decreases as the price for the event decreases
User segmenting Single game Miniplan Season tickets Group tickets Time and place smoothing or variable pricing Pricing on demand Examples are good seats and bad seats, high volume time and low volume time |
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SBJ
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3 articles
Proper mix of promotional offerings can produce for teams How best to use the bait? MLB promotions by the numbers |
