Advertising and Sales Promotion

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1 Advertising and Sales Promotion 1

2 The Role of Advertising What is the difference between Advertising and Publicity? Since a company pays for advertising, it has control over the message it wants to deliver. Two types of advertising are: Promotional advertising Institutional advertising advertising any paid promotion of an idea, good, or service by an identified sponsor promotional advertising advertising geared towards selling a specific good or service institutional advertising advertising geared towards developing positive image of the company (institution) 2

3 What did they do then? What would you do now? Take a couple min to think about and write down how sports marketers used to advertise/promote in the PAST Classroom discussion Take a couple min to think about and write down how sports marketers advertise/promote TODAY How is it different than what they did in the past? Classroom discussion

4 The Role of Advertising The four types of advertising media are (PBDO): 1. Print newspapers, magazines, direct mail, outdoor advertising, bus/subway station posters, stadium signage 2. Broadcast television and radio 3. Direct marketing any media used to communicate directly with consumers mail (personalized letters), telephone (tele-marketing) 4. Online advertising company websites, banner ads, online promotions, direct 4

5 Types of Print Media: Newspapers Local; targets customers in home town Magazines Regional or national; large specific audience Direct Mail Personalized message; may be considered junk mail Outdoor Advertising Station Posters Stadium Signage Geographically selected audience; short message Geographically selected audience; short message; aimed at travelers Seen by people at an event and television viewers; often used by sponsors 5

6 Group Activity: Media Types Gather in groups of 3 For your assigned Media Group below, brainstorm what are the Advantages & Disadvantages for each media type used Group 1 Group 2 Newspapers Stadium Ads Billboards (Outdoors) Online Ads (website & banner ads) Radio Direct Telephone Magazines Group 3 Direct Mail Bus/Subway (Outdoors) Television Online Promotions

7 Sales Promotion Types of sales promotions offered by companies include: 1. Coupons 2. Rebates Offers some type of price reduction or free merchandise Difference between the two? Coupon redeem at store, rebate sent in to company Advantages: expiry date, means forced to use flexibility of distribution (in person, magazines, online, package, mail) Disadvantages: easily copied by competitors not many are redeemed, avg redemption rate is 5% What is a Sales Promotion? a short-term incentive to get consumers interested in buying a product 7

8 3. Samples Samples given to customers to try product Especially good if new products Can be provided thru mail or home, in person, at events, instore Coupons are usually included with product to encourage people to purchase 4. Premiums Premiums are free products provided with purchase of other products Eg/ inside cereal you receive free baseball cards, movie tickets, etc Sales Promotion

9 5. Contests 6. Sweepstakes Difference between the two? Contest: you must perform a task to win prize. Eg/ Free Throw or Center Ice Shot contest, Essay competition, etc Sweepstakes: are prize giveaways where you only need to register to win prize Eg/ Honda new car giveaway, Tim Horton s Roll Up the Rim Sales Promotion

10 Giveaways What type of game day giveaways do teams participate in? Guess: Which giveaway had the largest increase in game attendance for MLB? 1. Beanie Babies ~ 37.4% 2. Beach Towels ~ 26.4% 3. Umbrella ~ 20.1% 4. Baseball Cap ~ 20% 5. Fireworks Show ~ 19% Why would these be the top giveaways vs others such as bobble heads, toys, etc? What is it about these items? Would these giveaways be as effective if used for other sporting events?

11 Consolidation Gather in pairs and on a sheet of paper write your names For extra marks, answer the following and handin to me No talking between groups, otherwise no bonus marks 1. What is the difference between; Promotional Advertising and Institutional Advertising? 2. What are the 4 Types of Advertising Media (PBDO) 3. List any 2 of the 6 types of Sales Promotions we discussed 4. What was the #1 giveaway at MLB games to increase attendance? GO!

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