Sales Promotion, Events, and Sponsorships

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Sales Promotion, Events, and
Sponsorships
Remark Parts of the slides come from textbook
publishers' presentation There is no mean of
violating or claiming as a writer of content.
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Sponsorship

• An investment in an activity in return for access
  to the exploitable commercial potential
  associated with this activity.
• When companies support an event like
• sport event, concert, or charity
• ex. Olympics
• Financially or donate product/service

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Sponsorship (Cont.)

• Mute non-verbal medium
• Messages are created using visuals, vocals, and
  context
• Sponsorship may be less effective in gaining
  attention

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Sponsorship (Cont.)

• Objectives
• 1) Generation of awareness
• 2) Promotion of positive message about
• the product or company
• 4 Types of SPONSORSHIP
• 1. Event-related sponsorship
• 2. Broadcast/Program sponsorship
• 3. Cause-related sponsorship
• 4. Ambush Marketing

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4 Types of Sponsorship
Best Known Type

• 1. Event-related sponsorship
• i.e. sponsoring soccer competition or activity
• Increase awareness or improve image
• 2. Broadcast/Program sponsorship
• A brand can sponsor a sports program, weather
  forecast or a soap
• Billboarding mentioning the name of a sponsor
• Product placement sponsor's product being used
  during the program to show to the audience
• i.e. series/ James Bond
• Increase brand salience (via liking and attention
  to)

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4 Types of Sponsorship (Cont.)
The oldest form

• 3. Cause-related sponsorship
• A combination of PR, Sales Promo, and corporate
  philanthropy (charity), based on profit-motivated
  giving to good causes
• Not just Charity, but Charity integration of
  company's communication strategy

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4 Types of Sponsorship (Cont.)

• 3. Cause-related sponsorship (Cont.)
• Transaction-based sponsorship
• (Cause-related marketing or
  point-of-purchase politics)
• A type of sponsorship in which the company
  invests a pre-specified amount of money in a good
  cause every time a consumer buys one of the
  company's product.
• i.e. a cause program to stop childhood hunger

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4 Types of Sponsorship (Cont.)

• 4. Ambush Marketing
• Promotional stunts used at events by companies
  that are not official sponsors.
• Typically occurs when one big brand is trying to
  dilute the presence of a rival that is sponsoring
  an event, thus diminishing the return on the
  official sponsor's investment.
• For example,
• Nike ran its own soccer competition against the
  World Cup whose official sponsor was Adidas.
• Because of the publicity, many consumers assumed
  Nike was the official World cup sponsor.

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Event Marketing

• A type of Public Relation (PR) activity
• Using a number of elements of the promotion mix
  to create an event for the purpose of reaching
  strategic marketing objectives
• Building a product's marketing program around a
  sponsored event
• i.e. a golf tournament

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Event Marketing (Cont.)

• Can use to project right image for the brand
• Very Costly
• Objectives
• 1. To build brand associations
• 2. To increase the perceived value of the
• brand in the consumer's mind

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Other Promotional Supports

• Blimps, balloons, inflatable
• Skywriting plane
• Huge in size
• 3D Shape
• Interactive and Internet Promotions

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Loyalty Program

• Also known as
• Continuity or Frequency program
• I.e.
• Frequent flier programs (Thai Airways Int'l)
• Membership programs (Carrefour I Wish Card)
• Objective To increase customer retention

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Loyalty Program (Cont.)

• Make use of databases
• Mandates of Loyalty Programs
• 1. Identify your best customers
• 2. Connect with those best customers
• 3. Retain the best customers, usually by
  rewarding them for their patronage
• 4. Cultivate new "best customers"

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Partnership Programs

• Co-marketing
• Co-branding
• Licensing
• Tie-ins

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Co-marketing

• When manufacturers develop marketing
  communication programs with their main retail
  accounts, instead of for them.
• Advertising and sales promotion build brand
  equity for both manufacturer and retailer.
• i.e. Tesco-Unilever November Theme

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Co-branding

• When two companies come together to offer a
  product
• i.e. King Power Duty Free logo on SCB credit card

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Licensing

• When an established brand "rents" that brand to
  other companies, allowing them to use its logo on
  their product and in advertising or events
• i.e. Disney cartoons on ice cream

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Tie-ins

• Associations between complementary brands to
  create synergy (113)
• i.e. cross promotion and merchandising of Doritos
  chips and Salsa
• To spur impulse purchase
• Leverage similar strength
• Bigger impact in the marketplace