Communicating value, driving consumption, and managing media channels.
Learning Objectives
Recognize the Role: Understanding how promotion influences recognition, affinity, and sales.
Price vs. Non-Price: Distinguishing between different promotional tactics.
Campaign Effectiveness: Identifying characteristics of promotions that increase frequency during campaigns.
Media Channels: Understanding the roles of Paid, Earned, and Owned media in the marketing mix.
Case Study: Swag Giving Way to Experience
Traditional Approach: Historically, Major League Baseball (MLB) and other leagues depended on physical giveaways, referred to as "swag" (e.g., hats, bobbleheads) to attract spectators to games.
The Statistics: MLB continues to use giveaways for over 25% of games; certain teams hold more than 12 bobblehead nights each season.
The Trend: A shift is noted from tangible items towards exclusive, "money-can't-buy" experiences.
Example: Fans now prefer experiences like on-field photos or batting practice access over merely receiving a $5 plastic souvenir.
What is Promotion?
Definition: Any activity aimed at stimulating consumer interest, awareness, and purchase of a product.
The Communication Link: Promotion is the method through which the marketer communicates to the fan, conveying the benefits associated with the other three Ps (Product, Price, Place).
Variety: Promotional activities can range from a $0.50 coupon to a $5 million Super Bowl commercial.
The AIDA Model
A — Awareness: Ensuring fans recognize the game or product exists.
I — Interest: Highlighting features that appeal to the fan's specific needs and desires.
D — Desire: Creating a want or emotional connection to the experience offered.
A — Action: The push needed to encourage the purchase of a ticket, jersey, or subscription.
Example: A flashy Instagram ad generates Awareness; a highlight reel develops Interest; a limited-time discount creates Desire; a "Buy Now" button prompts Action.
Elements of the Promotional Mix
Advertising: Paid, non-personal communication methods (e.g., Commercials, Billboards).
Personal Selling: Direct individual interaction (e.g., Ticket sales representatives).
Publicity/PR: Unpaid media exposure alongside managing reputation.
Advertising in Sport
Function: Advertising seeks to create an image, disseminate information, and influence consumer behaviors.
Consistency: Advertising is a controlled message as opposed to the unpredictable outcome of a sporting event.
Example: Nike's "Just Do It" campaign focuses on emotional identity rather than specific game scores.
Advertising Objectives: Frequency vs. Reach
Reach: The total number of different individuals exposed to the advertisement.
Example: A major highway billboard has high reach due to its exposure.
Frequency: The number of times each individual sees the advertisement.
Example: A radio advertisement played daily over a week exhibits high frequency.
The Rule of Thumb: Most fans require seeing a message 3 to 7 times before taking action.
The Concept of "Waste"
Definition: Waste in advertising refers to spending that exposes uninterested individuals to the marketing message.
Targeting: Precise targeting leads to decreased waste in ad spend.
Example: Purchasing a TV ad for a local hockey game on a national cooking channel is likely to result in high waste due to mismatched audiences.
Advertising Media: Signage Visibility
Static or Digital Displays: Advertising found inside or outside sporting venues.
Virtual Signage: Digital advertisements included in broadcasts, not physically located in the venue.
Example: In NBA arenas, LED ribbon displays rotate sponsors every two minutes, maximizing exposure opportunities for various brands.
Advertising Media: Endorsements
The "Halo" Effect: Utilizing an athlete's fame enhances trust in brand products.
Fit: It is critical that the athlete’s personality and image align with the promoted brand.
Example: Patrick Mahomes endorsing State Farm connects the reliability of a star quarterback to the reliability of an insurance company.
Sales Promotion: The Incentive
Primary Goal: To elevate the perceived value of a product or ticket without necessarily lowering its price.
Urgency: Promotions are frequently linked to specific dates or events.
Example: An event titled "Post-game Fireworks Night" delivers a game alongside a fireworks show at the same price.
Price-Oriented Sales Promotions Tactics
Common Tactics: Discounts, Family 4-packs, BOGOs, and value menus.
Risk: Frequent use could devalue the product, causing fans to wait for discounted offers instead of purchasing at full price.
Example: The Atlanta Falcons introduced "Fan First" pricing, reducing concession prices to enhance overall event value for attendees.
Non-Price-Oriented Sales Promotions Tactics
Common Tactics: Giveaways (premiums), special events, and themed nights.
Benefit: These initiatives enhance value without conditioning fans to expect low-priced tickets.
Example: “Star Wars Night” allows fans to dress up, with the first 5,000 attendees receiving a themed jersey.
The Bobblehead Phenomenon
Why It Works: Bobbleheads serve as tangible collectibles that induce "FOMO" (Fear Of Missing Out).
Supply and Demand: Limiting item availability (e.g., first 10,000 fans) boosts early arrivals and excitement.
Example: MLB teams commonly experience a 10-15% increase in game attendance during bobblehead promotional nights compared to regular weekday games.
Theme Nights and Special Events
Purpose: To reach niche segments who may not typically attend games.
Examples: Pride Night, Military Appreciation, Pups at the Park, Heritage Nights.
Strategy: Tailoring entertainment, food, and music to resonate with specific communities for a single event.
Product Sampling and Trial
Concept: The "Try before you buy" approach in sports environments.
Implementation: Free trial sessions for youth programs or single-game trial memberships in fitness entities.
Example: Minor League teams may allow fans to experience premium seating for 3 innings to encourage upgrading their seat selection.
Open Houses and Fan Fests
Engagement: Inviting community members when games are not happening to foster relationships.
Experience: Offering stadium tours, chances to meet players, and season ticket selection opportunities.
Example: The "NFL Draft Experience" provides a lengthy fan fest building enthusiasm without any live sports action occurring.
Coupons and Vouchers
Tracking: These promotions allow for clear attribution of which advertising led to specific purchases.
Retail Partnerships: An example includes a deal such as "Buy a sandwich at Subway, get a $5 ticket voucher."
Example: Promotions like McDonald's "Free Fries if the team wins" connect team success to consumer advantages, encouraging restaurant visits on game days.
Contests and Sweepstakes
Contest Definition: Contests usually require skill (e.g., making a halftime half-court shot for a car).
Sweepstake Definition: Sweepstakes rely purely on chance (e.g., signing up by email for a trip to the Super Bowl).
Goal: To collect data, as teams use these events to acquire fan email addresses for future marketing efforts.
Bundling: Value Beyond the Ticket
Definition: This concept includes grouping various products for a single price.
Example: An "All-Inclusive" ticket might include parking, a hot dog, and soda bundled together.
Benefit: Simplifies decision-making for families and positions the total offering as a better value.