C H A P T E R 10

C H A P T E R 10 Promotion and Paid Media Chapter 10 Promotion and Paid Media

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)

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

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)

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 should include the following steps: • A: increase awareness • I: attract interest • D: arouse desire • A: initiate action

Types of Advertising Media for Sport • Signage • Endorsements • Print media • Electronic media • Billboards, blimps, and buses

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

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

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)

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

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

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)