Manage promotional activities to maximize return on promotional

investments.2.09 SEM II

ROIROI is short for “Return On

Investment”There are many ways to do

so, such as:Developing a promo budgetDeveloping a promo

calendarPlanning a strong

promotional mixHiring a promoter to do all

of the above for you

Event Promoters An Event promoter will handle activities such as:

projecting attendance and revenuesvisiting and selecting venuescreating a budgetselling sponsorshipsoverseeing marketinghandling on site logisticsdealing with all of the business activities related to

running an event.May hire an event promoter if large event is

scheduled in many cities over time.

Coordinate the Promotional MixMarketers should be sure to coordinate the

promotional mix, which includes:AdvertisingSales PromotionsPublic RelationsPersonal SellingDirect Marketing

It is important that all elements of the promo mix work together towards a common goal and reinforce each other.

Well-Coordinated Promotional Mix

Many businesses coordinate a wide variety of promotional activities such as advertising, special events, and displays in order to reach a large audience.

If running a tv ad about a new product, you could also:Mail free samples to customersEnsure that salespeople are well-informed about

the productSet up promotional visual merchandise in the

storeStrong Promotional Mixes will attract a large

audience and increase sales, which increases ROI

Setting a Promotional BudgetWhile some businesses set promotional

budgets as a fixed number, most are based on estimated sales projections

Because the budget is based on a forecast, it needs to be flexible.

Promotional budgets also may be increased in an attempt to match competition

Sample Budget PlanningLast year’s sales were $500,000Company expects a 5% growth in salesThey want to spend 11% of sales on promotion

$500,000 x .05 = $25,000 this year’s estimated sales growth

$525,000 x 0.11 = $57,750this year’s promotional budget

Promotional CalendarA promotional calendar is a

document that outlines the major promotional events that are planned at the beginning of the year

Marketers use a promotional calendar as an advertising tool.

Sports teams and performers will publicize the calendar as a promotional toolGet people excited about

upcoming eventsCauses people to keep them in

mind all yearIncrease advance ticket sales

Hist

oric

al P

rom

otion

s Minor vs. Major

League Baseball

Promotions

Look up a promotional calendar for a sports team of your choice.

What sponsors do you see featured?How might this promotional calendar effect

sales?Pick one of the promotional events that is listed.

Describe the event in detail. You may have to find additional info on other websites.

Who do you think the event is targeting?Will it increase ticket sales?Do you think that the event will give a good ROI? Why

or why not?