Sports and Entertainment Promotion Chapter 10 Winning Strategies

Sports and Entertainment Promotion Chapter 10

Winning Strategies Velocity Sports and Entertainment Velocity sports and entertainment is a promotional agency that specializes in sponsorship and event marketing. Velocity works with its clients to seek sponsorships that focus on the cross-promotional opportunities offered by sports and entertainment events. In its third year of existence, Velocity ranked 99 on PROMO magazine’s list of top 100 promotional agencies. By the following year, Velocity had jumped to 19 on the list. In 2004, Velocity had climbed to the number 2 spot and has continued to make headlines ever since.

Velocity’s clients include Golf Digest, Fed. Ex, Cirque Du Soleil, and Universal Parks and Resorts. Toyota Motor Sales, USA, chose Veloctiy to activate its sponsorship of the NASCAR Nextel Cup Series. The series was viewed as a next stop for Toyota to expand its role with NASCAR and promote is Camry brand. Velocity had previously helped Toyota become the “official vehicle, car, and truck” of Lowe’s Motor Speedway, home to NASCAR’s All-Star Challenge.

When the Fed. Ex Orange Bowl hosted the Bowl Championship Series, Fed. Ex asked Velocity to help develop first-class, VIP hosting events during the days before the game. The events were for the best customers, potential customers, and their spouses. Velocity planned and executed four days and three nights of events for the customers at the Miami Marriott Doral Golf Resport and Spa. Fed. Ex strengthened its customer relations based on Velocity’s strategies and plans.

Think Critically 1. Why would a promotion firm want to move up on the list of top firms? 2. Look at PROMO Magazine’s web site and determine three of the criteria for making its top-100 list.

Promoting Sports and Entertainment Chapter 10 Lesson 1

Opening Act Newspapers are under pressure to increase revenue while more and more consumers are turning to electronic media as sources of information. The Wall Street Journal made a decision to give up editorial space on its front page to make room for advertisements. The 120 -year-old newspaper has been a standard for information about financial and business news around the world.

Judy Barry, Senior VP - Advertising Sales, was quoted as saying, “Our new front-page advertising opportunity enables our clients to make a powerful statement to the journal’s unique readership. ” What kind of people read the Wall Street Journal? What kind of advertisements would be appropriate for the front page? How could the Journal attract young readers?

The Purpose of Promotion the process of making customers aware of a product, service, or event Primary Goal to increase sales Promotion Includes Advertising and publicity to draw attention to a product or service

Promotional Goals Main Goal Increase Sales Related Goals Increasing customers’ usage, maintaining customer loyalty, building a fan base, educating potential customers, and overcoming the resistance of hesitant first-time buyers

Considerations Before spending money the company must know: Exactly what it wants to accomplish The market it wants to target A company must research the various types of market segmentation Geographic - Where the people live Demographic - Age, income, gender, occupation, education, ethnic background Psychographic - Buying habits, trends, interests

Gaining New Fans - An Example Professional Tennis began losing fan in the early 1990 s The US Tennis Association (USTA) and the Tennis Industry Association (TIA) wanted to keep their strong audience of 21 -35 year olds and generate a love of tennis in the younger generation.

Promotional Strategies Tennis Welcome Center partnership Tennis facilities set up across the United States to offer friendly introductory lessons to help make the experience fun for beginners. Tennis representatives were hired to attract new players to tennis facilities

Outcome The Taylor Research & Consulting Group and Sports Marketing Surveys conducted market research to determine the success of the program With 25, 500 Americans surveyed - the results showed that participation in tennis dramatically increased in 2005 The number of frequent tennis players increased by 8. 8 percent Player retention improved by 6 percent over the previous year

Intermission What is the goal of promotion?

Promotional Elements Promotion cannot overcome the drawbacks of a poor product that is priced too high, but can ensure that the target market of a good product know its benefits Four elements Advertising Publicity Sales Promotion Personal Selling

Advertising A paid form of communication delivered by a product maker or seller to consumers Should catch the audience’s attention Can take many forms and reach millions of people Product Placement A product is integrated into the plot of a movie or television show Sometimes a character will use the product and then place it in plain view for the audience

Publicity Any UNPAID media attention, both negative and positive, about a business and its products, services, or events Includes newspaper articles and television news stories A business can try to get publicity through press releases, speeches, letters to the editor, and community involvement through volunteer work and donations

Sales Promotion Additional incentives offered for a limited time to encourage consumers to buy a product Examples include Limited-time memberships Giveaways Coupons Items with the company’s name on them Free samples

Personal Selling In-person, face-to-face communication between a seller and a customer Can be between a vendor and a business buyer or a retail associate and a customer The advantage is that the seller can immediately address and concerns or questions

Successful Selling A knowledgeable seller can Offer information Demonstrate the product Tell stories about personal experiences with the product Answer any questions that may arise

Intermission List four elements of promotion.

Encore 1. Promotion is a. The process of making customers aware of a product, service, or event b. The exchange of a product or service for another item of value c. A deceptive practice d. Part of product/service management 2. An example of publicity is a. Giving a coupon for a free CD case with the purchase of a CD b. Being featured on the evening news c. Buying advertising space in a newspaper d. Helping a customer find an item in a sporting goods store

3. Think about a sales promotion that you have been offered. Did it influence you to buy? How could the experience have been improved without costing the company more money? 4. Think about the last time you experienced personal selling. Describe your experience. Include details about how you were treated, whether you were given good information, and whether you bought or intend to buy the product. How could the experience have been better?

Assignment Use the Internet to research how technology is being used in advertising to help match advertisers with consumers who are interested in their product. Write one-page explaining your findings and how you feel about these practices.