Chapter 1: Introduction to Sport
Promotion and Sales
Objectives:
1.
Understand the dominant position occupied by promotion and sales within sport,
hospitality & tourism marketing.
2.
Become familiar with the elements composing the modern sport promotion mix.
3.
Understand the basic concepts of organizing a sport promotion and sales campaign.
4. Appreciate the importance of sales to the marketing function of sport, hospitality,
and tourism organizations.
5.
Incorporate the broadness of the hospitality and tourism sector along with the sport
focus within the textbook key components.
Marketing
vs.
Promotion
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relations in ways that benefit
the organization and its stakeholders
(AMA).
Promotion involves the vehicles through which the marketers conveys
information about the product, place, and price, creating a position for the
product in the mid of the consumer (Mullin, Hardy, and Sutton , 2000);
Promotion is a special form of communication, primarily dedicated to the task of
persuasion (Kotler, 1975); Promotion is a means of motivating customers to action
(Shimp and DeLozier, 1986)
Marketing vs. Promotion
Marketing Mix Components
• Product
• Place
• Price
• Promotion -------------------------Promotion Mix Components
• Advertising
• Publicity
• Sales Promotions
• Personal Selling
Figure 1.1
Promotional Tools Commonly Used
Sponsorship
Endorsements
Web Sites
Email Blasts
Podcasts
Sales Presentations
FAM Tours (Familiarization)
Media Guides
Tourism Development Council
Blogs
Advertisements
Exhibitions
Contests
Infomercials
Athlete Appearances
Sports Marketing Mix consists of all
activities designed to meet the needs
and wants of sports consumers through
exchange processes.
2 thrusts:
• The marketing of sports products and
services directly to consumers of
sport (this includes a broad spectrum
of marketing efforts) ,
• And marketing to other consumers
and industrial products or services
through the use of sport promotions,
including the expansive use of sport
as a corporate communication
platform (e.g., FedEx (Mullin, Hardy,
and Sutton, 2000).
Product
Development
Communication
Distribution
Testing
Pricing
Sport Promotion Mix
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Advertising
Publicity
Personal Contact
Incentives
Atmospherics
Licensing
Sponsorship
Advertising
- Any paid form of nonpersonal presentation of
ideas, goods, or services by an identified
sponsor.
- $27.4 Billion in the US is spent annually on
sport-related advertising
- Largest viewing audience is Super Bowl…30
second commercial goes for $2.6 Million
Sport Promotion Mix
Publicity
- Any nonpersonal stimulation of demand for a
product, service, or business unit as a result of
supplying commercially significant news to a
published medium.
- Free advertising or hype
- Generates press coverage, and its agentry
(promoting that press publicity).
- Must have links to editors, producers, booking
agents, beat writers, readers, viewers, and
listeners.
What Merits Good Publicity?
• Appears to be news and not
sponsored information
(truthfulness is key).
• Tends to catch recipients who may
actively avoid advertising.
• High potential for dramatization,
thus narrative content which is
not limited by time or scope.
Sport Promotion Mix
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Advertising
Publicity
Personal Contact
Incentives
Atmospherics
Licensing
Sponsorship
Personal Contact/Selling
- Refers to any person-to-person
communication involving an organizational
representative & 1 or more prospective
client/stakeholder.
- Critical to the success of a promotional
campaign.
- Can be tailored to match the customer’s
specific interest and needs.
- Consists of human contact and direct
communication rather than impersonal mass
communication
- Builds relationships!
Relationship Marketing:
An integrated effort to identify,
maintain, and build a network,
for the mutual benefit of both
sides, though interactive,
individualized, and valueadded contacts over a long
time ( Capulsky & Wolf, 1991)
Sport Promotion Mix
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Advertising
Publicity
Personal Contact
Incentives
Atmospherics
Licensing
Sponsorship
Incentives
- Represent all emotional, social, psychological,
functional, or financial conditions that encourage
some overt behavior response.
- Similar to sales promotions (i.e., reduced prices,
contests, free samples, & premium giveaways).
- Knowing the customers motives is key component
to incentivizing.
- Corporations are more apt to sponsor an event
when there is an apparent match between the
company’s marketing objectives & the sponsee’s
offering.
Sport Promotion Mix
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Advertising
Publicity
Personal Contact
Incentives
Atmospherics
Licensing
Sponsorship
Atmospherics
- Represent all efforts to design the place
of purchase or consumption so as to
create specific cognitive or emotional
effects in consumers.
- Key points of promotion!
- Think half-time performances, mascot
skits, hockey game hype & t-shirt crowd
blasters.
- Music to build hype, fireworks after a
win, etc.
Sport Promotion Mix
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Advertising
Publicity
Personal Contact
Incentives
Atmospherics
Licensing
Sponsorship
Licensing
- Fastest growing component of the sport marketing mix.
- Sport-licensed products accounted for $14 billion in sales in
2006.
- Sports licensing generates over $1 billion in royalty revenue
annually.
- Promotion – stimulates awareness, interests, and
enthusiasm within the marketplace.
- Profitability – a fee is charged (royalty) for a 2nd party
to use the name, symbol, logo,etc.
- Protection – able to exercise control over the use of
any name, likeness, symbol, logo, or mark associated
with the event, team, league, or athlete.
Sport Promotion Mix
Sponsorship
- Contains the following ingredients: arena
signage (advertising); event, team, or facility
naming rights (publicity); hospitality ( personal
contacts and atmospherics); retail
promotional sales (incentives); and event,
team, or league cobranding (licensing).
- Considered the newest component of the in
the promotional mix.
- Has emerged and become front and center in
sports since the downfall of the economy.
- Examples of the largest events, The Nokia
Super Bowl & the Olympics (GE, McDonald’s,
Samsung, Coca-cola, NBS Sports, etc.)
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Advertising
Publicity
Personal Contact
Incentives
Atmospherics
Licensing
Sponsorship
Why is it important to study Sport
Promotion and Sales?
• Communication is the foundation of all buyer behavior
– Including sport management, hospitality & tourism industry
– That is easier said than done…How do you communicate to these
consumers? What is more effective? What are the most
appropriate channels?
• Critical sport/hospitality/tourism marketing duties are
promotion/sales related, if not contingent or tied to a pay
incentive of sale.
• Not everyone can (or needs to be) a winner, but it is a significant
predictor, along with customer interaction through personal
contact to bring in and kept a loyal consumer.
• Sales and Service are lacking in sport marketing preparation and
practice. Hospitality and tourism are typically better prepared
simply because it’s an easier sale item.
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