Debate:In Canada, the federal governmentwill withhold funding from amateurteams that accept sponsorship from tobacco companies. Is this fair?
Identify the Target Market• Develop a comprehensive plan with a clear understanding of which specific targeted group is the focus for each plan.• Targeted customers will guide the direction of the media and promotional mix.
What is your Goal?• Promotional campaigns must know exactly what it is they want to accomplish.• Need to know the target market they wish to target.• Research various types of market segmentation.
Trade Sales Promotion• Trade Allowances: – Offer short-term discounts to distributors and retailers for selling or participating in the promotion of a product.• Trade Contests• Point of Purchase Displays
Employee Sales Promotions• Push Money – An extra commission paid to salespersons who sell or push particular products.
Set Promotional Goals• Set specific goals for each part of the promotional plan.• Make the goals measurable.
Promotional Trends• Moving from personal selling to social networking.• Movie Promotions – Trailers • Critical to attracting an audience • Rated for audience viewing age • Gain attention in only a few seconds
The Goal• Determine a specific, measurable goal is the first step in the advertising process.• What does the company want to accomplish and how it will know the goal has been met.• Goal must be specific.
Advertising• Collaborate with sports and entertainment organizations before and during the event.• Reach a balance between meeting sponsor’s goals and controlling costs.• Research and carefully plan each of the steps in the advertising process.
Legal Restrictions on Endorsements• FTC guidelines: – The truthful opinions and beliefs of the endorser must be expressed in the endorsement. – The endorser must have real experience with the product. – The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.
Legal Restrictions on Endorsements (Con’t) – Endorsements may not be presented out of context or reworded so as distort in any way the endorser’s opinion. – The endorser must use, continue to use, and believe in the product for as long as the endorser is featured in the advertisements. – If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the product in its new or revised state.
Advantages to Celebrity Endorsements• Studies have proven that consumers will buy products endorsed by celebrities over those not endorsed.• Viewers, listeners, and fans are less likely to turn off commercials featuring celebrities.• Consumers believe celebrities.
Disadvantages to Celebrity Endorsements• Endorsements are expensive.• If celebrities endorse too many products their credibility will be doubted.• Risk of negative publicity if the endorser commits a crime or serious social blunder.
Awards Influence Sales• In the entertainment industry, recognition brings increase in money, praise, increased potential for future success, and publicity.
The Effectiveness• Knowing the effectiveness of an advertising campaign can help to shape and improve a business’s future advertising strategies.
The Schedule• Concentration Strategy: Buying space in or time on a single medium.• Dominance Strategy: A firm buys the maximum reach and frequency in one medium and purchases additional space in or time on another media.
Primetime• When the largest viewing audiences are watching TV.• Most expensive time to advertise.• Paid for before the new TV season begins.
Beyond the Player and Team• Positive extends to: – Sports Facilities • Excellent service • Cleanliness • Safety – Cities • Fans known for good sportsmanship. • Hospitality
How Can they Afford It?• 24 – Commercial free except two 3 minute Ford commercials – Product placement • Jack drives all Ford vehicles • Ford automobiles are placed throughout the show.• Corporations pay a fee for products that are placed.• Products given to movies in return for prominent display.