Chapter 10 Promotion and Paid Media

10

PromotionPromotionand Paid Mediaand 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

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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

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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

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.

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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:

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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

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.

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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

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)