CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.02 Explain the function of promotion in sports and entertainment marketing.

Explain the promotional mix and the different forms of promotion.

A. Identify elements of the promotional mix. 1. Promotional mix is any combination of the different forms of promotion to sell goods and services. 2. The different forms of promotion include: a. Advertising is any paid, non-personal form of communication by an identified sponsor. For example, TV commercials, magazine advertisements, direct mail and the Internet. b. Sales promotions are activities or communications that encourage consumers to purchase products. For example, giveaways, sweepstakes, free samples, award shows, contests, and coupons. c. Personal selling is face-to-face, personalized communication between a seller and a buyer. For example, the presentation of a demo from a recording artist to a record label executive. d. Public or community relations are activities used by a business or organization to gain and maintain a positive relationship between themselves and the community. The two types of public or community relations are: i. The internal community includes the employees of the company or organization. For example, Coke holding an annual picnic for employees and their families. ii. The external community includes people outside of the company or organization. For example, Pepsi donating circus tickets to a Big Brother/Big Sister organization. e. Sponsorship is the financing of a sports or entertainment entity (athlete, league, team, concert, or event) by a business in return for recognition or affiliation. B. Identify the types of media used in advertising. 1. Print media is any written form of communication used to inform, persuade, or remind consumers about products or services offered. The forms of print media include: a. Newspapers are the most common and the most cost effective type of print media. Newspapers are most effective for local businesses that are trying to reach a specific geographical market. b. Magazines are likely to be used by advertisers to segment the market based on demographic and behavioral segmentation. For example, men are more likely to subscribe to Field & Stream, so this would be cost-effective for a brand of men’s razors. c. Direct mail is sent directly to customers, or potential customers of a particular store. For example, all Blockbuster Video members would receive a flyer announcing a special sales event.
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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.02 Explain the function of promotion in sports and entertainment marketing. Explain the promotional mix and the different forms of promotion.

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d. Outdoor advertising includes any outdoor signs and billboards. Outdoor advertising provides 24-hour advertising. e. Transit advertising uses public transportation, such as buses, taxicabs, and subways to post advertising messages. Broadcast media is any visual and/or auditory form of communication used to inform, persuade, or remind consumers about goods or services offered. Two types of broadcast media are: a. Radio advertisers match their target market to a radio station that segments a particular market. Radio advertising has the ability to reach a wide audience. b. Television advertising includes commercials and infomercials. Television advertising is the most effective type of broadcast media as well as the most expensive. Online media is the placement of advertising messages on the Internet and World Wide Web. The different forms of online advertising include: a. Banner advertisements are rectangular boxes at the top or bottom of Web sites that are used to promote a Web site or business. b. Pop-up advertisements are the advertisements that “pop-up” and interrupt Internet surfing. c. E-mail advertisements are used to tailor messages to fit individual web surfers. E-marketers compile or purchase customer databases containing information based on sites visited by web surfers. Specialty media are “everyday” items with a company name written on them. For example, calendars, pens, and coffee mugs. There are many other creative ways of communicating advertising messages to consumers. For example, blimps, supermarket carts, hot air balloons, and intheater advertisements.

C. Identify forms of sales promotions. 1. Annual award shows for sports and entertainment. a. The Academy Awards, or Oscars, are awarded by the Academy of Motion Picture Arts and Sciences. An Oscar nomination creates media coverage and increases ticket sales. Movie producers and studios advertise their films to Academy members through trade publications and the talk-show circuit. b. The National Academy of Recording Arts and Sciences (NARAS) presents the Grammy Awards. NARAS is an association of more than 13,000 recording professionals. NARAS forms a committee and winning artists are selected by a vote of membership. A Grammy Award might draw attention to the artist, but it does not guarantee acceptance of the artist by the public in the form of sales. c. The Emmy Awards are awarded by two branches of the same organization. The Academy of TV Arts and Science awards Prime-time Emmy Awards for
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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.02 Explain the function of promotion in sports and entertainment marketing. Explain the promotional mix and the different forms of promotion.

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nighttime television, and Daytime Emmy Awards for daytime television. The Emmy Awards draw monumental attention to television shows, increasing the number of people who view them because of winning actors/actresses. d. The Tony Awards are awarded to theater professionals for outstanding achievement. e. The ESPY Awards were by ESPN and are awarded for excellence in sports performance. The ESPY Select Nominating Committee (SNC) is composed of sports executives, journalists, and retired athletes who vote on nominees selected by the committee. Besides athletes and coaches, many actors and musicians (some of which perform) attend the event as well. The ESPY Awards make charitable contributions to The V Foundation, established by ESPN in honor of the late Jim Valvano. Trade shows and conventions are promotional opportunities for manufacturers, wholesalers, retailers, and movie producers to learn about and support new products in the industry. Incentives are used to generate awareness, interest, and increase sales. The different forms of incentives include: a. Contests. Prizes are awarded based on contestant skill and or ability. For example, American Idol, Fear Factor and Dog Eat Dog. b. Sweepstakes. Prizes are awarded based on the chance or luck of the contestant. For example, winning concert tickets from a local radio station. c. Rebates. Discounts offered by a manufacturer if the consumer purchases a sports or entertainment good or service during a specified time period. For example, mail in rebates for purchasing two DVD’s at one time or signing up for two programs at the local YMCA and receiving a discount. Premiums are low cost items given away with the sponsor’s product as part of a sales promotion. For example, Powerade gives away a cooler with a purchase of a case of powdered drink mix. Two forms of premiums include: a. Coupons offer reductions in price and are found in print advertisements, inserted inside product packaging, incorporated as part of the products package, or mailed to consumers. For example, Blockbuster coupons on popcorn packaging or coupons inserted within Sunday newspapers. b. Traffic-builders are low cost items given to customers for attending an event, or visiting a store. For example, the first 200 customers to attend the grand opening of the new Sports Authority receive a Sports Authority key chain. Sampling refers to giving consumers a “taste” for a sporting event or concert. For example, fan participation at a track and field event or Faith Hill selecting a lucky member of the concert audience to join her on stage.

D. Outline the steps of promotional planning. 1. Identify target market by using one of two strategies.
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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.02 Explain the function of promotion in sports and entertainment marketing. Explain the promotional mix and the different forms of promotion.

a. Push strategies are used by a manufacturer to convince or “push” retailers to carry and promote products in their retail establishments. This strategy relies heavily on personal selling and sales promotion. b. Pull strategies are directed towards customers to increase their interest and demand for products. Customers will “pull” or convince retailers to carry sports or entertainment products. This strategy relies heavily on advertising. 2. Determine the objectives of the promotional activity. For example, is the objective to increase sales, increase market share, or create brand awareness? 3. Establish a promotional budget. No exact science exists for establishing a promotional budget. The four most common methods of determining budgets include: a. Percentage of expected sales. This is based on a percentage of past or expected sales to determine amount of promotional budget. The advantage of this method is that there is limited financial risk. The disadvantage is sales may fall which may drastically reduce the promotional budget. b. Objective and task method. The sport or entertainment company determines promotional goals, the steps needed to meet the goals, and calculates the cost for the promotional activities. This is the most cost effective method because it takes into account what the company wants to accomplish and how it will be accomplished. c. Competitive equivalence. Matching the competitors’ promotional outlay. This is the weakest method of determining a promotional budget because it takes into account the competitors’ objective only. d. “Whimsical” allocation. All money that can be spent after expenses is allocated as the promotional budget. This is a short-term method used to increase sales by building a reputation. 4. Develop a promotional mix. The specific mix chosen should take into consideration the target market, the promotional goals, and the promotional budget. Care should be given to aligning national and local promotional efforts.

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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.02 Explain the function of promotion in sports and entertainment marketing. Explain the promotional mix and the different forms of promotion.

Resources Printed References: Marketing Essentials, 3rd ed., pp. 298-309. Sports and Entertainment Marketing, pp. 17, 60, 8488, 171-186, 204-208, 246-269. Marketing, pp. 101, 206-211, 355, 415-421, 432-433. Suggested Activities: Marketing Essentials, 3rd Ed., Zazz Lab, pp. 370-371. Forms of promotion compilation (continued) – Either as a class or in groups, ask students to categorize each of the promotion examples listed on the poster(s). Discuss the advantages and disadvantages of each form. This could be useful to as a mini-review at the end of the class. Industry awards and events research/presentations project – Have students pair up and select an assigned award/event. Examples including the Grammys’, Oscars’, Tonys’, Heismann, Emmys’, Cy Young, Rasberrys’, World Cup, Superbowl, Stanley Cup, Olympics, Billboard Music, People’s Choice, etc. Using the Internet, they are to research the following information to incorporate into a PowerPoint presentation to teach the class. Include the date of the award/event, brief history, notable past winners, significance of the award/event, elements of promotion used to promote the award/event, address how this award/event helps to promote the sports/entertainment industry. There is a 5.00 project at the end of this competency.

Teacher Notes

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CONTENT/TEACHING OUTLINE COMPENTENCY: 5.00 OBJECTIVE: 5.02 Explain the function of promotion in sports and entertainment marketing. Explain the promotional mix and the different forms of promotion.

Resources, cont.. Websites: www.emmys.com www.espn.com www.grammy.com www.oscar.com www.tonyawards.com Other Resources: 5.02 PowerPoint Presentation

Teacher Notes

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