MRKT 428 Exam 3

What is a sponsorship?

What is a sponsorship?

acquisition of rights to affiliate with a product or event

MAJOR PROMO TOOL

What is an example of a sponsor?

Mcdonalds being a sponsor for the winter olympics

What is an example of Licensing?

Nike paying a fee to produce clothing with the olympic rings

What is leading to the growth of sponsorship?

- Low Cost, High Exposure

-Tech developments

-Sports Offerings

-More Sports Channels

Why should people use sponsorships?

- IMC Efforts ( not good alone)

- Trying to reach masses (Good for getting Niche Markets)

-Increase brand awareness and positive associations

What can lead to failures with sponsorships?

- Not having the budget for activation

- Not long term

- Not measurable

- Too Brand Centered

- Competition

what is the sponsorship selling process?

1. Research Category

2. Schedule Meeting w/ decision maker

3. hold preliminary meeting (LISTEN rather than talk)

4. follow-up meeting

5. create proposal

6. present proposal draft

7. negotiate final deal

8. introduce client to activation team

What are the objectives of Sponsorships?

- increase visibility

- alter consumer perceptions

- display lifestyle commitments

- segmentation from competitors

- differentiate themselves

- showcase company and product

- merchandising opportunities

- community involvement

What are Coop Agreements in Sponsorships?

2+ entities that capitalize on a sponsorship or licensing opportunity

What are the benefits of a coop agreement?

- more active

- utilize existing relationships

- testing of relationship integrity

What are the ethical issues within sponsorships?

- athletes and their reputations

- sponsorship reputations

- inappropriate sponsors for sports organizations ( Gambling, Alcohol, Junk Food)

T/F Price is more important than value to consumers

False

How is Price the most critical marketing mix element?

- easily changes

- HUGE impact on consumer behavior

- HIGHLY visible

- Prevalent in the consumer's mind

What are the organizational objectives that influence pricing?

- income objectives

- sales objectives

- competition

- Social concern

what are the internal factors that influence price?

- product

- promotion

- distribution

- cost

- organizational objectives

What are the external factors that influence price?

- demand

- competition

- legal

- economy

- technology

What is non-price differentiation?

Product and other features are the determinant in consumers mind

What is price differentiation?

Price is the determinant in the consumers mind

What are some characteristics of a products Price lifetime?

- Price goes down over time

- Price is seen as an indication of quality

- Retailers should have similar positioning

What is the Price evaluation process?

1. expectations of current pricing

2. acceptable price range

3. expectations of future pricing

What is consumer-value based pricing?

setting price based on the experience or value a consumer will receive

What is cost-based pricing?

setting prices based on how much it costs to make, emphasis on profit margin

what is competition-based pricing?

pricing accordingly to competitors prices, to shift perception

What is dynamic pricing?

when price is impacted by demand

What is bundle pricing?

selling products together under one overall price

What is segmentation pricing?

charging based on market segment

What is penetration pricing?

setting a low initial price to draw in the mass market, and later increase the price as demand increases

What is market skimming pricing?

Setting a high price point to entice early adopters, and then lower the price as time continues.

What can cause price to increase?

- cost of inflation

- excess demand

- winning seasons

What can cause price to decrease?

- wanting to stimulate demand

- aging or outdated products

- often risky

What are traits of discounts in price?

- stimulates demand and rewards spending

- quantity (usually limited amounts)

- seasonal (based on holidays)

What is a contingency plan?

How we protect our marketing strategy from unexpected events or crises that could affect our ability to pursue the strategic direction

What are some crisis plan requirements?

- well defined response strategies

- specific procedures that that will lead to a more efficient and effective response

- steps that will deal with media impact and brand image

- efficient ways to deal with a variety of potential issues

How do you have effective implementation?

Must be planned, coordinated, and complementary

- allocate resources accordingly

- Plan (be detailed)

- Be prepared to adapt

What are the cohesive functional areas for contingency planning?

-Marketing

-PR and Communication

-Sales (ticketing and sponsorships)

-Development and fundraising

-Market Research

*Variety of Expertise is beneficial

How can you enhance staff performance?

- set goals and objectives

- evaluate progress

- correct weak links

- develop new goals annually

What are some standards Marketers can use to determine if they are reaching their goals?

- TMR fan cost index

- Web traffic

- Survey results

- Traditional measures: Sales, ROI, Engagement, Attendance

How are ways to can measure efficiency?

- Maximizing space and storage

- employee time efficiency: the right amount of employees? can jobs be combined, the amount of responsibilities

- wait times for consumers

- promotional budget

What is PR?

marcom strategy that manages public opinion through nonpaid promotion

What does PR professionals do?

Implements specific publicity plans and tactics coordinated with the marketing plan

What impacts does PR have on a company?

- consumer perceptions

- attitudes

- awareness levels

Why is there an increased importance on PR?

Loyal fans follow the media

What is a goal of PR?

earn public understanding and acceptance in a way that aligns with the company's positioning

What are skills that a PR manager uses?

- building relationships

- communication

- creating the PR plan

- making the pitch

- managing the story

- establish talking points

- managing crises

What does the media relations have to balance?

Public opinion and business strategy

What is reactive public relations?

responds only to inquiries

What is proactive public relations?

initiated by the organization rather than some external entity

What is interactive public relations?

relationships with the media and assists media with a variety of issues

What are some changes to Sports PR?

- tech (decreased reliance on traditional media, more fans get news and info from social media)

- teams report announcements to reputable sources

What are the goals of community relations?

-increase public understanding

-gain public approval and acceptance

What are the 3 forms of community relations?

1. those initiated by players

2. those initiated by teams/institutions

3. those initiated by leagues or governing bodies

What is Customer Lifetime Value (CLV)?

A formula that helps a marketing manager arrive at the monetary value associated with the long-term relationship of any given customer, revealing both the cost and the net worth of the relationship over time.

What is the customer lifetime value formula?

Total Revenue (life of the customer) - Total Expense (Life of the customer) = Lifetime Value

LR - LE - LTV

What is a reason customer lifetime value is important?

Season-ticket holders should be viewed not as a 4,000 annual spend but as somebody who could spend at least that amount every year for the next 20 years (80,000).

What is the Public relations formula?

Public relations = Media relations + Community relations