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Chapter 10 Promotion and Paid Media

10

Promotion

and Paid Media

C H A P T E R

Objectives

  • To recognize the complexity of promotion with respect to the various forms it can assume as part of the marketing mix
  • To understand promotion and its importance in sport through a historical context and to consider how that context has evolved because of the importance of media and sponsorship relationships

(continued)

Objectives (continued)

  • To identify and differentiate between the integral elements of promotion and the advantages and limitations of each
  • To appreciate the importance of both price and nonprice promotional strategies and the way in which they are used in the sales process to influence buyer behavior
  • To recognize the key characteristics of effective promotional campaigns aimed at expanding existing consumer bases and at increasing frequency of consumption

Promotion

  • 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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Types of Promotion

  • Advertising—any paid, nonpersonal (not directed to individuals), clearly sponsored message conveyed through the media
  • Personal selling—any face-to-face presentation in which the seller has an opportunity to persuade the consumer

(continued)

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Types of Promotion (continued)

  • Publicity—any form of exposure in the media not paid for by the beneficiary or within the beneficiary’s control or influence
  • Sales promotion—a variety of activities including displays, trade shows, sampling, coupons, premium items, exhibitions, and performances

Goals of Promotion

Promotion should include the following steps:

  • A: increase awareness
  • I: attract interest
  • D: arouse desire
  • A: initiate action

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Advertising

Advertising should do the following:

  • Create awareness
  • Communicate information about attributes and benefits
  • Develop, change, and enhance an image
  • Associate brand or product with emotions
  • Precipitate behavior

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Batra, Myers, and Aaker* Model of the Advertising Communication System

  • Source—originator of message
  • Message—content and execution of message
  • Channel—type of media or signage displaying message

(continued)

*R. Batra, J.G. Myers, and D.A. Aaker, Advertising Management, 5th ed. (Upper Saddle River, NJ: Prentice Hall, 1996), 47.

*

Batra, Myers, and Aaker Model of the Advertising Communication System (continued)

  • Receiver—target market for message
  • Destination—where the message ends up, often beyond the receiver (who may spread it by word of mouth)

Figure 10.1

Types of Advertising Media for Sport

  • Signage
  • Endorsements
  • Print media
  • Electronic media
  • Billboards, blimps, and buses

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Signage

  • Signage includes electronic or printed messages or logos identifying a sponsor on any number of materials.
  • Signage is one of the more visible and common elements of advertising media in sport.

(continued)

Signage (continued)

  • Depending on a sponsor’s objectives, signage can vary from being a critical component of an overall sponsorship agreement to being unimportant.
  • Impact of signage is often measured in terms of impressions.

Endorsements

  • Definition: A well-known celebrity athlete uses his or her fame to help a company sell or enhance the image of the company, products, or brands.
  • When seeking endorsers, brands strive to find a good fit or match between their products and the endorser.
  • Brands are challenged when using celebrity endorsers to ensure that the celebrity conveys the appropriate image.

Table 10.1

Print Media

  • Print media grant the sport marketer a high degree of control over content and are relatively inexpensive.
  • Print media can be easily ignored by the target audience.

(continued)

Print Media (continued)

  • Types of print media:
  • Magazines
  • Newspapers
  • Schedule cards
  • Handouts and brochures
  • Posters
  • Point of purchase displays
  • Direct mail

Figure 10.2

Electronic Media

  • As compared with print media, electronic media offer greater flexibility in attracting consumer attention and creating messaging in consumers’ native language.
  • Several types of electronic media are used:

(continued)

Electronic Media (continued)

  • Radio
  • Traditional radio
  • Streaming
  • Podcasts
  • Television
  • Scoreboards
  • LED signage
  • Public address systems

Table 10.2

Types of Television Commercial Structures

  • Story
  • Problem solution
  • Chronology
  • Special effects
  • Testimonial
  • Satire
  • Spokesperson
  • Demonstration
  • Suspense
  • Slice of life
  • Analogy
  • Fantasy
  • Personality

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Hallmark Events

  • A hallmark event is a major one-time event (or annually recurring event) of limited duration, developed to enhance the awareness, appeal, and profitability of a tourism destination.
  • Hallmark events do the following:
  • Promote the host organization to the public
  • Promote the sponsors of the event and their products

(continued)

Hallmark Events (continued)

  • Create unique hospitality opportunities
  • Promote and add to the growth of the particular sport
  • Promote the event as a revenue-generating opportunity
  • Attract significant media interest and coverage
  • Promote the destination as a site not only for future hallmark events but also for tourism and possible economic investment

Sales Promotions

  • Can be in the form of either price discount or nonprice promotion
  • Recommendations when using sales promotions:

  • Be careful not to alienate season-ticket holders.
  • Use sponsors to help cover costs of value-added promotions, but marketers must find promotions that work for all levels of consumers.

(continued)

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Sales Promotions (continued)

  • Price discounts are often short-term fixes that can have unintended consequences for consumer behavior.
  • Understand the promotion’s effect on concession and merchandise sales.
  • Be aware of the game schedule and timing of the promotion (peak-on-peak promotions).

Promotional Components

  • Theme
  • Product sampling
  • Open house
  • Coupons, vouchers, and discount codes
  • Contests and sweepstakes
  • Premiums and giveaways

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Frequency Escalator

  • When promoting a sport product, marketers must balance attracting new customers with encouraging current customers to become more committed to the product.
  • The concept of the frequency escalator suggests that sport marketers gradually encourage potential consumers to move from a state of unawareness of a sport product to a state of heavy consumption.

Types of Nonconsumers

  • Aware nonconsumers
  • Unaware nonconsumers
  • Media consumers
  • Misinformed nonconsumers

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Promotional Planning Model

  • Level 1: nonpattern attenders (light users)
  • Level 2: multiple attenders (medium users)
  • Level 3: frequent attenders (heavy users)
  • Level 4: defectors (descending the escalator)

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Figure 10.8

Putting It All Together

  • Several marketing platforms can boost the value and impact of a promotional campaign:
  • Marketing objectives
  • Revenue objectives
  • Entertainment objectives