©2015 Cengage Learning. All Rights Reserved. May not be scan.docx

©2015 Cengage Learning. All Rights Reserved. May not be
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7e
Event Sponsorship,
Product Placements,
and Branded Entertainment
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Learning ObjectivesJustify the growing popularity of event
marketing and sponsorship as a modern means of experiential
brand promotionSummarize the uses and appeal of product
placements in venues like TV, movies, and video games
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16
16

Learning ObjectivesExplain the benefits and challenges of
connecting with event venue or entertainment properties in
building a brandDiscuss the challenges presented by the ever-
increasing variety of communication and branding tools for
achieving integrated brand promotion via the consumer
experience
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16
16
Convergence of Madison & Vine
Madison & Vine: Refers to two renowned avenues representing
the advertising and entertainment industries, respectively
Chaos Scenario: Predicted a mass exodus from the traditional
broadcast media due to:
Audience fragmentation
Consumers’ desire to control their information environment
Availability of ad-avoidance hardware
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16
16

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Ad avoidance is fueling product placement and branded
entertainment
Courtesy of TiVo, Inc.
Event SponsorshipMarketer provides financial support to help
fund an event
And in return acquires rights to display a brand name, logo, or
advertisement on-site at the eventMedia impressions: Creating a
metric to judge sponsorship spending to spending in the
traditional measured mediaLeveraging: Collateral activity
reinforcing the link between a brand and an event
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16
16
Event SponsorshipProvide opportunities for face-to-face contact
with key customersConsumer–event congruity: Occurs when an
event sponsor fits a consumer’s image and sense of self
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16

16
Guidelines for Event SponsorshipMatch the brand to the
eventTightly define the target audienceStick to a few key
messagesDevelop a plot lineDeliver exclusivityDeliver
relevanceUse the InternetPlan for the before and after
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16
16
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One of the best uses of event sponsorship
is reaching a well-defined target audience that may be hard to
reach through other IBP tools, particularly advertising

Product PlacementPlacing a product into the content and
execution of an entertainment vehicleOn television - Provide
implicit endorsement in soap operas and reality showsAt the
movies - Reach young consumers who are unreachable via
traditional mediaIn video games - Repetitive brand exposures in
games affect purchase intent
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16
16
Product Placement ConsiderationsIntegrate the placement
within the IBP campaignMake the placement look
authenticDevelop the right industry relationshipsDo not expect
quantifiable ROI
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16
16
Branded EntertainmentDevelopment and support of
entertainment property Primary objective is to feature a firm’s
brand to effectively connect with consumers
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16
16

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Branded entertainment puts the brand in a natural setting
© The Procter & Gamble Company. Used by permission.
Product Placement and Branded Entertainment
ConsiderationsRisk of oversaturationProcess break downs due
to lack of predictabilityDisclosure of product-placement deals
advocated by consumer rights groups
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16
16
The Coordination ChallengeFunctional specialists focus on their
specialty and lose sight of what others in the organization are
doingCompetition for budget within the organization leads to
rivalry between departments Lack of alignment results in poor

integration
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16
16
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7e
Sales Promotion,
Point-of-Purchase
Advertising, and
Support Media
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Learning ObjectivesExplain the importance and growth of
modern sales promotionDescribe the sales promotion techniques
used in the consumer marketDescribe the sales promotion
techniques used in the trade channel and business markets
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Learning ObjectivesIdentify the risks to the brand of using sales
promotionUnderstand the role and techniques of point-of-
purchase advertisingDescribe the role of support media in a
comprehensive IBP strategy
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Sales PromotionUse of incentive techniques to create a
perception of greater brand value among consumers, the trade,
and business buyers Generates short-term increase in sales by:
Motivating trial use
Encouraging larger purchases
Stimulating repeat purchases
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Types of Sales Promotion
Consumer-market sales promotion: Induce household consumers
to purchase a firm’s brand
Trade-market sales promotion: Motivate distributors,
wholesalers, and retailers to stock and feature a firm’s brand in
their store

Business-market sales promotion: Help cultivate buyers in
organizations or corporations who make purchase decisions
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Reasons for the Growth of Sales PromotionDemand for greater
accountabilityShort-term orientationConsumer response to
promotionsProliferation of brandsIncreased power of
retailersClutter
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Objectives for Consumer-Market Sales PromotionStimulate trial
purchaseStimulate repeat purchasesStimulate larger
purchasesIntroduce a new brandCombat or disrupt competitors’
strategiesContribute to Integrated Brand Promotion
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CouponEntitles a buyer to a designated reduction in price for a
product or service
Advantages
Facilitates giving discount to price-sensitive consumers while
selling at full price to others

Induces brand switching and repeat purchases
Timing and distribution can be controlled by the manufacturer
Gets regular users to trade up within a brand array
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Coupon
Disadvantages
Timing of redemption cannot be controlled
Heavy redemption by regular brand buyers reduces a firm’s
profitability
Handling, processing, and distribution incur high costs
Misredemption practices erode profitability
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Price-Off DealOffers cents off merchandise at the P-O-P
through specially marked packages
Advantages
Controllable by the manufacturer
Affects a positive price comparison against competitors
Disadvantage
May cause inventory and pricing problems for retailers
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PremiumsItems offered free, or at a reduced price, with the
purchase of another itemTypes
Free premium: Provides consumers with an item at no cost
Self-liquidating premium: Requires consumers to pay most of
the cost of the item received as a premium
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Advertising SpecialtiesHave a message placed on a useful item
that is given free to consumers
With no obligation to make a purchaseHelp reinforce a company
or brand name with the target customer
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Contests and Sweepstakes
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Limitations of Contests and SweepstakesThere are complex
legal issues involved Game gains focus and brand becomes
secondaryCommunicating a meaningful message in the context
of a game is not feasible Risk of errors in administration is high
and can create negative publicityMay not project a prestigious
image for the brand
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Sampling and Trial Offers
Sampling: Provide a consumer with an opportunity to use a
brand on a trial basis with little or no riskTypes
In-store sampling: Popular for food products and cosmetics
Door-to-door sampling: Expensive but effective if aimed at
target segments in well-defined geographic areas
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Sampling and Trial Offers
Mail sampling: Samples are delivered through the postal service
On-package sampling: Samples are attached to another product
package, targeted to current customers
Mobile sampling: Logo-emblazoned vehicles dispense samples

to consumers at various locations
Trial offers: Induce consumer trial use of a brand, and are used
for expensive items
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Gift CardsFree or for-purchase debit cards that provide the
holder with a preset spending limitCards are designed to be
colorful and memorable
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Firms use gift cards as a way to draw
attention to the brand and as a way for loyal customers to
introduce their friends to the brand’s offerings
RebateMoney-back offer requiring a buyer to mail in a form
requesting the money back from the manufacturer

AdvantagesIncreases the quantity purchased by
consumersConsumer redemption rate is low, resulting in higher
revenue for the manufacturers
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Frequency or Continuity ProgramsOffer discounts or free
product rewards for repeat purchase or patronage of the same
brand, company, or retailerBetter suited for large firms
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Sales Promotion Directed at the Trade
Channel and Business MarketsMarketers adopt a push strategy
Push strategy: Push a brand into the distribution channel until it
reaches the consumerObjectives
Gain initial distribution and shelf placement
Increase order size
Encourage cooperation with consumer-market sales promotions
Increase store traffic
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Trade-Market Sales Promotion Techniques
Incentives - Awards given to retailers for reaching targeted
sales levelsPush money: Monetary reward offered to salespeople
for featuring a marketer’s brand with shoppers
AllowancesMerchandise allowances: Free products offered as
payments to the trade for setting up and maintaining displays
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Trade-Market Sales Promotion TechniquesSlotting fees: Direct
cash payments made to induce food chains to stock an itemBill-
back allowances: Provide retailers a monetary incentive for
featuring a brand in advertising or in-store displaysOff-invoice
allowance: Advertisers allow wholesalers and retailers to deduct
a set amount from the invoice they receive for merchandise
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Trade-Market Sales Promotion Techniques
Sales-training programsProvide training for retail store
personnelEnsure factual information and persuasive themes
reach consumers at the P-O-P
Cooperative (Co-Op) advertisingProvides money directly to
retailers for featuring company’s brand in local
advertisingManufacturers set specifications for the size and
content of an ad or send the template for the ad
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Here is an example of co-op advertising by a manufacturer in
support of a retailer
Hublot is being featured by a California retailer in a magazine
ad
Manufacturers provide the ad template for the retailer to run,
featuring the firm’s brand
Business-Market Sales Promotion Techniques
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Risks of Sales PromotionCreating a price orientation Borrowing
from future sales Risk of alienating customersManagerial time
and expenseLegal considerations
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Point-of-Purchase AdvertisingMaterials used in the retail
setting to:
Attract shoppers’ attention to a brand
Convey primary brand benefits
Highlight pricing informationObjectives
Draw attention to a brand in the retail setting
Maintain purchase loyalty among loyal users
Stimulate increased usage of the brand
Stimulate trial use by other brands’ users
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Types of Point-of-Purchase
Advertising and Displays
Short-term promotional displays: Used for six months or less
Permanent long-term displays: P-O-P presentation for more than
six months
OptionsWindow and door signageCounter/shelf unitFloor stand
and shelf talkerMobile/banner
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Types of Point-of-Purchase
Advertising and DisplaysCash registerFull line
merchandiserEnd-of-aisle display or gondolaDump
binIlluminated signMotion displayInteractive unitOverhead
merchandiserCart advertising and aisle directoryRetail digital
signage
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P-O-P AdvertisingIn relation to mobile or location marketing
P-O-P offers can be sent through mobile devicesIn relation to
trade and business markets
Encourage retailers to support one manufacturer’s brand over
another
P-O-P display can enhance the atmosphere of a store and make
the shopping experience easier for customers
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Support Media
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Outdoor Signage and Billboard Advertising
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Transit Advertising
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Mass transit has become an advertising vehicle too
Aerial and Cinema Advertising
Aerial advertising: Involves airplanes pulling signs or banners,
skywriting, or blimps
Cinema advertising: Ads that run in movie theaters before the
film and other advertising appearing off-screen within a theater
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Directory Advertising
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PackagingContainer or wrapping for a productPromotional
benefits to the advertiser
Helps create brand awareness
Can attract attention and induce the shopper to examine the
product
Create a perception of valueColor, design, and shape of a
package affect consumer perceptions of quality, value, and
image
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Packaging
Promotional benefits of packaging
to the advertiserThe package carries the brand name and
logoThe package can communicate valueThe package can
communicate image and quality
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An effective package can attract attention in the store and also
serve as a constant brand name reminder for the user

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