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EOM - Unit 4

The document outlines the elements of the marketing mix, focusing on the promotion aspect, which includes advertising, sales promotion, personal selling, direct marketing, and public relations. It details the communication models, strategies for effective communication, and the development and management of advertising and sales promotion programs. Additionally, it emphasizes the importance of measuring communication results and managing integrated marketing communications (IMC) to enhance customer engagement and brand awareness.

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0% found this document useful (0 votes)
11 views116 pages

EOM - Unit 4

The document outlines the elements of the marketing mix, focusing on the promotion aspect, which includes advertising, sales promotion, personal selling, direct marketing, and public relations. It details the communication models, strategies for effective communication, and the development and management of advertising and sales promotion programs. Additionally, it emphasizes the importance of measuring communication results and managing integrated marketing communications (IMC) to enhance customer engagement and brand awareness.

Uploaded by

mugeshpandi2024
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Unit 4

The Marketing Mix Element

PROMOTION
Promotion Mix
(Marketing Communications Mix)
• The specific blend of promotion tools (advertising,
public relations, personal selling, sales promotion,
and direct marketing tools) that the company uses to
convincingly communicate customer value and
build customer relationships
Advertising
• Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified
sponsor via
– print media (newspapers and magazines),
– broadcast media (radio and television),
– network media (telephone, cable, satellite, wireless),
– electronic media (audiotape, videotape, videodisk,
CD-ROM, Web page),
– mobile media, (advertising via mobile (wireless)
phones or other mobile devices),
– display media (billboards, signs, posters).
Sales promotion
• Short-term incentives to encourage the purchase or
sale of a product or a service.
– consumer promotions
– trade promotions
– business and sales force promotions

• includes discounts, coupons, displays, demonstrations,


and events.
Personal Selling
• Face to Face personal interactions with the
customer by the firm’s sales force for the purpose of
engaging customers, making sales, and building
customer relationships.
• includes sales presentations, trade shows, and
incentive programs.
Direct marketing
• Direct marketing is the use of consumer-direct (CD)
channels to reach and deliver goods and services to
customers without using marketing middlemen.
• Helps to obtain an immediate response and build
lasting customer relationships.
• includes direct mail, email, telemarketing, catalogs,
online and social media, mobile marketing, and more
Public Relations (PR) or Publicity

• Building good relations with the company’s various


publics by obtaining favorable publicity, building up
a good corporate image, and handling or heading
off unfavorable rumors, stories, and events.

• includes press releases, sponsorships, events, and


webpages.
Communication Macro Model
• Major parties – sender and receiver
• Major tools – message and media
• Major communication functions – encoding, decoding,
response, and feedback.
• Noise - random and competing messages that may
interfere with the intended communication.
Communication Macro Model
• Senders must know
– what audiences they want to reach
– what responses they want to get.
• They must encode their messages so the target audience
can successfully decode them.
Communication Macro Model
• They must encode their messages so the target audience
can successfully decode them.

• They must transmit the message through media that


reach the target audience and develop feedback
channels to monitor the responses.
Communication Micro Model
• Concentrate on consumers’ specific responses to communications
Communication Micro Model
• Awareness. If most of the target audience is unaware of the
object, the communicator’s task is to build awareness.
• Knowledge. The target audience might have brand awareness but
not know much more.
• Liking. Given target members know the brand, how do they feel
about it?
• Preference. The target audience might like the product but not
prefer/ suggest it to others.
• Conviction. A target audience might prefer a particular product
but not develop a faith/belief about buying it.
• Purchase. Finally, some members of the target audience might
have conviction but not quite get around to making the purchase.
Developing Effective Communication Strategies
1) Identify the Target Audience
• Process must start with a clear target audience in mind
– potential buyers of the company’s products,
– current users, deciders, or influencers,
– and individuals, groups, particular public, or the
general public.

• The target audience influence on the communicator’s


decisions about what to say, how, when, where, and to
whom.
2) Determine the Communications Objectives

i. Establish the Category Need— Ex - A new to the


world product such as electric cars will always begin
with a communications objective of establishing
category need.

ii. Creating Brand Awareness—Raising the consumer’s


ability to recognize or recall the brand in sufficient
detail to make a purchase.
2) Determine the Communications Objectives

iii. Building Brand Attitude—Helping consumers


evaluate the brand’s perceived ability to meet a
currently relevant need
• Relevant brand needs may be
– negatively oriented (problem removal, problem
avoidance)
– positively oriented (sensory satisfaction, intellectual
stimulation, or social approval).
Household cleaning products - problem solution;
Food products – sensory oriented ads
2) Determine the Communications Objectives

iv. Brand Purchase Intention—Moving consumers to


decide to purchase the brand.
• Promotional offers like coupons or two-for-one
deals encourage consumers to make a mental
commitment to buy.
3) Design the Communications

• What to say (message strategy):


• product or service performance (the quality, economy,
value of the brand)
• whereas others may relate to (the brand as being
contemporary, popular, traditional).

• Who should say it (message source):


– Celebrity
3) Design the Communications
• How to say it (creative strategy):
– Informational Appeals - elaborates on product or service
benefits.
• Ex - problem solution ads (Saridon stops the toughest headache pain),

– Transformational appeal elaborates on a non product-related


benefit or image.
• Communicators use negative appeals such as fear, guilt, and shame to
get people to do things (brush their teeth, have an annual health checkup)
or stop doing things (smoking, abusing alcohol, overeating).
• Communicators also use positive emotional appeals (Dairy milk) such
as humor, love, pride, and joy.
Informational Appeals
Informational Appeals
Fear Appeal
Fear Appeal
Fear Appeal
Guilt Appeal
Erotic Appeal
Humour Appeal
Humour Appeal
Humour Appeal
Emotional Appeal Poster Ads
Comparative
Advertising
Comparative Advertising
4) Select the Communications Channels

• Personal Communications Channels : let two or more


persons communicate face-to-face or person-to-audience
through a phone, mail, or e-mail.
• Ex - direct and interactive marketing, word-of-mouth
marketing, and personal selling.
• Non-Personal (Mass) Communications Channels: are
communications directed to more than one person and include
advertising, sales promotions, events and experiences, and
public relations.
5) Establish the Total Marketing
Communications Budget
Affordable Method :
• Some companies set the communications budget at what they think
they can afford.
Percentage-of-sales Method:
• Some companies (Automobile companies) set communication
expenditures at a specified percentage of current or anticipated sales.
Competitive-parity Method:
• Some companies set their communications budgets to achieve share
of voice parity with competitors.
Objective-and-Task Method:
• Develop communications budgets by defining specific objectives,
identifying the tasks that must be performed to achieve these
objectives, and estimating the costs of performing them.
6) Deciding on the Marketing
Communications Mix
Type of product market:

• Consumer marketers tend to spend comparatively more on


sales promotion and advertising;

• Business marketers tend to spend comparatively more on


personal selling.
6) Deciding on the Marketing
Communications Mix

Buyer Readiness Stage Communication tool

Awareness-building Advertising and Publicity


Customer comprehension
Advertising and Personal selling
(gaining knowledge)
Customer conviction
Personal selling
(faith or belief)
Closing the sale (purchase) &
Reordering Personal selling and Sales promotion
6) Deciding on the Marketing
Communications Mix
Product Life cycle stage Communication tool

• Advertising, events and experiences, & publicity -


highest cost-effectiveness,
Introduction
• Personal selling - to gain distribution coverage and
sales promotion and direct marketing - to induce
trial
Growth • Word of mouth and interactive marketing
• Advertising, events and experiences, and personal
Maturity
selling
Decline • Sales promotion
7) Measuring Communication Results

• Calculate the sales before and after the promotional


activity.
8) Managing IMC

• Integrated Marketing Communication is a process of


promoting the products using all possible Communication mix
tools.
• IMC should improve the company’s ability to
– reach the right customers
– with the right messages
– at the right time and
– in the right place
Advertising
Advertising
• Any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor via

– print media (newspapers and magazines),

– broadcast media (radio and television),

– network media (telephone, cable, satellite, wireless),

– electronic media (audiotape, videotape, videodisk, CD-


ROM, Web page), and

– display media (billboards, signs, posters)


Developing and Managing an
Advertising Program
1) Setting the Advertisement Objectives
(Mission)
• Informative advertising: aims to create brand awareness and
knowledge of new products.
• Persuasive advertising: aims to create liking, preference,
conviction, and purchase of a product or service.
• Reminder advertising: aims to stimulate repeat purchase of
products and services.
• Reinforcement advertising: aims to convince current
purchasers that they made the right choice.
2) Deciding on the Advertising Budget
(Money)
• Stage in the product life cycle
• Market share and consumer base
• Competition
• Advertising frequency
• Product substitutability – Brands in less-differentiated or
commodity-like product classes (beer, soft drinks, banks, and
airlines) require heavy advertising to establish a unique image.
3) Developing the Advertising Campaign
(Message)

• Rational Appeal: Focuses on Measurable benefits of


selecting the product or brand.
• Emotional Appeal: Try to create a good feel about
the product.
• Fear Appeal: Arouses fear by demonstrating the
consequences of not purchasing & using a particular
product.
4) Deciding on Media (Media)
• Reach (R): The number of different persons or households
exposed to a particular media schedule at least once during a
specified time period
• Frequency (F): The number of times within the specified time
period that an average person or household is exposed to the
message
• Impact (I): The qualitative value of an exposure through a
given medium
4) Deciding on Media (Media)
5) Measuring Effectiveness
(Measurement)
Communication Effect Research:
• Communication-effect research, called copy testing, seeks to
determine whether an ad is communicating effectively.
• Copy testing is a specialized field of marketing research that
determines an advertisement's effectiveness based on
consumer responses, feedback, and behavior.
• Marketers should perform this test both before an ad is put into
media and after it is printed or broadcast.
Sales Effect Research:
• What sales are generated by an ad that increases brand
awareness by 20 percent and brand preference by 10 percent?
Sales Promotion
Sales Promotion
• A variety of short-term incentives to encourage trial
or purchase of a product or service including
– consumer promotions
– trade promotions
– business and sales force promotions
Developing & Managing a Sales
Promotion
1) Establishing Objectives
• For consumers, objectives include
– encouraging purchase of larger-sized units,
– building trial among non-users, and
– Attracting switchers away from competitors’ brands.
• For retailers, objectives include
– persuading retailers to carry new items
– encouraging off-season buying,
– encouraging stocking of related items,
– offsetting competitive promotions,
– building brand loyalty, and
– gaining entry into new retail outlets.
• For the sales force, objectives include
– encouraging support of a new product or model,
– encouraging more prospecting, and
– stimulating off-season sales.
2) Selecting Consumer Promotion Tools

• The promotion planner should take into account the


– type of market,
– sales promotion objectives,
– competitive conditions, and
– each tool’s cost-effectiveness.
• Samples, Coupons, Cash Refund Offers (Rebates),
Premiums (Gifts), Prizes (Contests), Free Trials, Tie-
in Promotions & Point-of-Purchase (P-O-P) Displays
and Demonstrations
3) Selecting Trade Promotion Tools
4) Selecting Business And Sales Force
Promotion Tools
5) Developing the Program

• In planning sales promotion programs, marketers are


increasingly blending several media into a total
campaign concept.
6) Implementing and Evaluating The
Program
• Lead time is the time necessary to prepare the program
prior to launching it.
• Sell-in time begins with the promotional launch and ends
when approximately 95 percent of the deal products is in
the hands of consumers.
Manufacturers can evaluate the program using
• Sales data
• Consumer surveys
• Experiments
Personal Selling
Personal Selling
• Face-to-face interaction with one or more prospective
purchasers for the purpose of making presentations,
answering questions, and procuring orders.

• Personal presentations by the firm’s sales force for


the purpose of engaging customers, making sales,
and building customer relationships.
Salesperson

• An individual who represents a company to customers


by performing one or more of the following activities:
prospecting, communicating, selling, servicing,
information gathering, and relationship building.
Sales Quota

• A standard that states the amount a salesperson


should sell and how sales should be divided among
the company’s products.
Role of the Sales Force
• Linking the Company with Its Customers
– The sales force serves as a critical link between a company
and its customers. In many cases, salespeople serve two
masters—the seller and the buyer.
• Co-ordinating Marketing and Sales
– the sales force and other marketing functions (marketing
planners, brand managers, marketing content managers,
and researchers) should work together closely to jointly
create value for customers
Types of Sales Representatives
• Deliverer—delivers the product.
• Order taker—
– inside order taker (standing behind the counter) or
– outside order taker (calling on the supermarket manager)
• Missionary— Do not take orders, but builds goodwill or
educates the actual or potential user.
• Technician—A salesperson with a high level of technical
knowledge.
• Demand creator—relies on creative methods for selling
tangible products or intangibles.
• Solution vendor—expertise in solving a customer’s problem.
Designing the Sales Force
1) Sales Force Objectives
• Prospecting - Searching for prospects or leads
• Targeting - Deciding how to allocate their time among prospects and
customers
• Communicating - Communicating information about the company’s
products and services
• Selling - Approaching, presenting, answering questions, overcoming
objections, and closing sales
• Servicing - Providing various services to the customers —consulting
on problems, rendering technical assistance, arranging finance
• Information gathering - Conducting market research and doing
intelligence work
• Allocating - Deciding which customers will get scarce products during
product shortages
2) Sales Force Strategies
Marketing managers face several sales force strategy
and design questions.
• How should salespeople and their tasks be structured?
• How big should the sales force be?
• Should salespeople sell alone or work in teams with
other people in the company?
• Should they sell in the field, by phone, or using online
and social media?
3) Sales Force Structure
• A company that sells many products to many types of
customers might need a product or market structure.
(1) a strategic market sales force (composed of
technical, applications, and quality engineers and service
personnel) assigned to major accounts
(2) a geographic sales force calling on customers in
different territories
(3) a distributor sales force for calling & coaching
distributors
(4) an inside sales force doing marketing and taking
orders via phone and online
4) Sales Force Size
• Companies use workload approach to establish sales force
size. This method has five steps:
1. Group customers into size classes according to annual sales
volume.
2. Establish desirable call frequencies (number of calls on an
account per year) for each customer class.
3. Multiply the number of accounts in each size class by the
corresponding call frequency to arrive at the total workload for
the country, in sales calls per year.
4. Determine the average number of calls a sales representative can
make per year.
5. Divide the total annual calls required by the average annual calls
made by a sales representative, to arrive at the number of sales
representatives needed.
Workload approach
Account clients Calls per account Total workload
type per year
A 1000 36 36000
B 2000 12 24000
Total 3000 60000

Average calls/sales rep/year = 1000

Total reps required = total workload / average sales calls


= 60,000/ 1000
= 60 sales reps required

Suppose the company estimates it has 1,000 A accounts and 2,000 B accounts.
A accounts require 36 calls a year, and B accounts require 12, so the company
needs a sales force that can make 60,000 sales calls (36,000 + 24,000) a year.
If the average full-time rep can make 1,000 calls a year, the company needs 60
reps.
5) Sales Force Compensation
• Fixed amount - salary
• Variable amount - commissions, bonus, or profit sharing
• Expense allowances - costs of travel
• Benefits - paid vacations, sickness or accident benefits,
pensions, and health and life insurance
Managing the Sales Force
1) Recruiting and Selecting
Representatives
• One survey revealed that the top 27% of the sales force
brought in more than 52% of the sales.
• It’s a great waste to hire the wrong people.
• The average annual turnover rate of sales reps for all
industries is almost 20%.
• Sales force turnover leads to lost sales, the expense of
finding and training replacements, and often pressure on
existing salespeople to pick up the slack.
2) Training Sales Representatives

• New reps may spend a few weeks to several


months in training.
• The median training period is
– 28 weeks in industrial-products companies
– 12 weeks in service companies
– 4 weeks in consumer-products companies
3) Supervising Sales Representatives

• Sales Reps (paid mostly on commission),


generally receive less supervision.
• Sales Reps (who are salaried), are likely to
receive substantial/continual supervision.
4) Motivating Sales Representatives

Intrinsic versus Extrinsic Rewards:


• Salespeople are highly motivated by pay followed by
promotion, personal growth, and sense of accomplishment.
• Least valued rewards were liking and respect, security,
and recognition.
Annual Sales Quotas:
• Developed from annual marketing plan
• Compensation is often tied to degree of quota fulfillment.
5) Evaluating Sales Representatives

• Sales reports (divided between activity plans & write-


ups of activity results)
• Personal observation
• Salesperson self-reports
• Customer letters and complaints
• Customer surveys
• Conversations with other sales reps
Steps in Effective Personal Selling

1. Prospecting And Qualifying


2. Pre-approach
3. Presentation And Demonstration
4. Overcoming Objections
5. Closing the Sale
6. Follow-Up And Maintenance
1.Prospecting And Qualifying
• The first step in selling is to identify and qualify
prospects.
• More companies are taking responsibility for finding
and qualifying leads so salespeople can use their
expensive time doing what they do best: selling.
• IBM qualifies leads according to the BANT acronym:
– Does the customer have the necessary budget,
– the authority to buy,
– a compelling need for the product or service, and
– a timeline for delivery that aligns with what is possible?
2. Pre-approach
• The salesperson needs to learn as much as possible
about the prospect company (what it needs, who takes
part in the purchase decision) and its buyers (personal
characteristics and buying styles).
• How is the purchasing process conducted at the
company? How is it structured?
• Another task is to choose the best contact approach—
– a personal visit, phone call, e-mail, or letter.
3. Presentation And Demonstration
• The salesperson tells the product ―story‖ to the buyer,
using a features, advantages, benefits, and value
(FABV) approach.
 Features describe physical characteristics of a
market offering, such as chip processing speeds or
memory capacity.
 Advantages describe why the features give the
customer an edge.
 Benefits describe the economic, technical, service,
and social pluses delivered.
 Value describes the offering’s worth (often in
monetary terms).
4. Overcoming Objections
• Customers typically pose objections.
• Psychological resistance includes resistance to
interference, preference for established supply sources or
brands, laziness, unwillingness to give up something,
unpleasant associations created by the sales rep,
predetermined ideas, dislike of making decisions, and a
neurotic attitude toward money.
• Logical resistance might be objections to the price,
delivery schedule, or product or company characteristics.
• To handle these objections, the salesperson maintains a
positive approach, asks the buyer to clarify the objection,
questions in such a way that the buyer answers his own
objection.
5. Closing the Sale
• Closing signs from the buyer include physical actions,
statements or comments, and questions.
• Reps can ask for the order, recapitulate the points of
agreement, offer to help write up the order, ask
whether the buyer wants A or B, get the buyer to make
minor choices such as color or size, or indicate what
the buyer will lose by not placing the order now.
• The salesperson might offer specific inducements to
close, such as an additional service, an extra quantity,
or a token gift.
6. Follow-Up And Maintenance
• Follow-up and maintenance are necessary to ensure
customer satisfaction and repeat business.
• Immediately after closing, the salesperson should
cement any necessary details about delivery time,
purchase terms, and other matters important to the
customer.
• He or she should schedule a follow-up call after
delivery to ensure proper installation, instruction, and
servicing and to detect any problems, assure the buyer
of his or her interest, and reduce any cognitive
dissonance.
• The salesperson should develop a maintenance and
growth plan for the account.
Direct Marketing
Direct Marketing

• Direct marketing is the use of Consumer-Direct (CD) channels


to reach and deliver goods and services to customers without
using marketing middlemen.
Methods of Direct Marketing
Direct marketers can use a number of channels to reach
individual prospects and customers:
• Direct mail
• Catalog marketing
• Telemarketing
• Interactive TV
• Kiosks
• Web sites
• Mobile devices
Benefits of Direct Marketing

• Customize and personalize messages (Market demassification)

• Builds a continuous relationship with each customer.

• It is convenient.

• It saves time to introduce more products.


Direct Mail
• Direct-mail marketing means sending an offer, announcement,
reminder, or other item to an individual consumer.
• Using highly selective mailing lists, direct marketers send out
millions of mail pieces each year—letters, flyers, and
multimedia DVD’s.
• Direct mail is a popular medium because it permits target
market selectivity, can be personalized, is flexible, and allows
early testing and response measurement.
Catalog Marketing

• In catalog marketing, companies may send full-line


merchandise catalogs

 specialty consumer catalogs, and business catalogs,

 usually in print form but also as DVDs or online


Telemarketing
• Telemarketing is the use of the telephone and call centers to attract
prospects, sell to existing customers, and provide service by taking
orders and answering questions.
• It helps companies increase revenue, reduce selling costs, and
improve customer satisfaction.
Companies use call centers for
 Inbound telemarketing—receiving calls from customers
 Outbound telemarketing—initiating calls to prospects and
customers.
 Tele Sales – Taking orders through Tele calling.
 Tele Coverage – Calling customers to maintain good
relationships.
 Tele Prospecting – Identify the qualified Prospects.
 Customer Service – Answering customer Queries.
Public and Ethical Issues in
Direct Marketing
• Irritation: Many people don’t like hard-sell direct marketing solicitations.
Firms have been popping up to help block unwanted junk mail.

• Unfairness: Some direct marketers take advantage of impulsive or less


sophisticated buyers or prey on the vulnerable, especially the elderly.

• Deception and fraud: Some direct marketers design mailers and write copy
intended to mislead or exaggerate product size, performance claims, or the
―retail price.‖ The Federal Trade Commission receives thousands of complaints
each year about fraudulent investment scams and phony charities.

• Invasion of privacy: It seems that almost every time consumers order products
by mail or telephone, apply for a credit card, or take out a magazine
subscription, their names, addresses, and purchasing behavior may be added
to several company databases. Critics worry that marketers may know too
much about consumers’ lives and that they may use this knowledge to take
unfair advantage.
Public Relation / Publicity
Public Relation / Publicity
• Public relations (PR) includes a variety of programs to
promote or protect a company’s image or individual
products and handling or heading off unfavorable rumors,
stories, and events.

• Companies use PR to build good relations with consumers,


investors, the media, and their communities.

• Public relations is used to promote products, people, places,


ideas, activities, organizations, and even nations.
Public Relation – Functions
• Press relations: Presenting news and information about the organization in
the most positive way.
• Product publicity or Sponsorship: publicizing specific products and
brands.
• Corporate communications: Promoting, understanding of the
organization through internal and external communications – Publishing
quarterly reports
• Lobbying: Building and maintaining relationships with legislators and
government officials to promote or defeat legislation and regulation
• Counseling - Advising management: about public issues, and company
positions and image during good times and bad.
• Investor relations: Maintaining relationships with shareholders and others
in the financial community.
• Development: Working with donors or members of nonprofit organizations
to gain financial or volunteer support.
• Public affairs: Building and maintaining national or local community
relationships.
National Egg Coordination Committee
Marketing Public Relations (MPR)
MPR goes beyond simple publicity and plays an important role in
the following tasks:
• Launching new products
• Repositioning a mature product
• Building interest in a product category: Companies and trade
associations have used MPR to rebuild interest in declining
commodities such as Egg and Milk
• Influencing specific target groups
• Defending products that have encountered public problems
- Nestle Maggi
• Building the corporate image
Major Decisions in Marketing PR

• Establishing Objectives

• Choosing Messages and Vehicles

• Implementing the Plan

• Evaluating Results
Sponsorship or Events – Objectives
1. To identify with a particular target market: Customers
can be targeted geographically, demographically,
psychographically, or behaviorally according to events.
2. To increase salience of company or product name:
Sponsorship offers sustained exposure for a brand, a
necessary condition for reinforcing brand salience.
3. To create or reinforce key brand image associations:
Events themselves have associations that help to create or
reinforce brand associations.
Sponsorship or Events – Objectives
4. To enhance corporate image: Sponsorship can improve
perceptions that the company is likable and prestigious.
5. To create experiences and evoke feelings: The feelings
engendered by an exciting or rewarding event may indirectly
link to the brand.
6. To express commitment to the community or on social issues:
Cause-related marketing sponsors nonprofit organizations and
charities.
Sponsorship or Events Objectives
7. To entertain key clients or reward key employees: Many
events include lavish hospitality tents and other special
services or activities only for sponsors and their guests.

8. To permit merchandising or promotional opportunities:


Many marketers tie contests, in- store merchandising, direct
response, or other marketing activities with an event.
Major Sponsorship Decisions

1. Choosing the appropriate events

2. Designing the sponsorship program

3. Measuring the effects of sponsorship


Major Sponsorship Decisions
1. Choosing the appropriate events:
• Because of the number of sponsorship opportunities and their
huge cost, many marketers are becoming more selective.
• The event must meet the marketing objectives and
communication strategy defined for the brand. It must have
sufficient awareness, possess the desired image, and be able to
create the desired effects.
• The audience must match the target market and make
favorable attributions for the sponsor’s engagement.
• An ideal event is also unique but not encumbered with many
sponsors, lends itself to ancillary marketing activities, and
reflects or enhances the sponsor’s brand or corporate image.
Major Sponsorship Decisions
2. Designing the sponsorship program:
• Many marketers believe the marketing program accompanying

• An event sponsorship ultimately determines its success. At


least two to three times the amount of the sponsorship

• Expenditure should be spent on related marketing activities.


Major Sponsorship Decisions
3. Measuring the effects of sponsorship:
• Supply-side methods for measuring an event’s success assess
the media coverage, for example, the number of seconds the
brand is clearly visible on a television screen or the column
inches of press clippings that mention it.
• The demand-side method identifies the sponsorship’s effect
on consumers’ brand knowledge. Marketers can survey
spectators to measure their recall of the event and their
resulting attitudes and intentions toward the sponsor.

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