M426 Final Exam
80/20 rule
80% of revenue comes from 20% of customer base
present a solution
A soft close Phrase it by asking them their opinions or thoughts If prospect has positive reaction, then CLOSE If prospect has negative reaction or shows reluctance/hesitation for purchasing, then you need to focus on their objections
after account executive role
After 3-5 years, successful account execs typically stay working as a sales person, by moving on to Premium Seating Sales (Suites), which is more lucrative OR these individuals will move on to a Managerial role (Director of Ticket Sales, Ticket Sales Manager) where they will hire, train and coach the new entry level as well as account executive employees
account executive
After successfully completing the Inside Sales program Full-time, permanent position Account Execs will usually be placed in one of these areas: • Group Sales, Season Tickets, STH Servicing Still high volume calling, plus face-to-face meetings
the call
Begin the conversation with clearly identifying yourself and organization Start off with an easy open-ended question Explain why you are calling • Set agenda • Try to engage them in a conversation about product Circle back to specific offer If they say no, ask them for a reason for their objection Have counterpoints prepared so you can talk them through the problem and try and reach a solution Using the "feel, felt, found" method, rebuttals can be helpful If they say no again, it's time to wrap up the call End call on positive note
inventory
Broad term used to describe anything that could potentially be sold as a sponsorship • PA announcements, signage, video commercials on scoreboards, stadium naming rights...etc. • Constantly on the lookout for new inventory • Creativity and innovation are key • Ex: Libman at IU basketball games
post call
Critique yourself Replay the sales call in your head • What went well and what did not? • What would you change? • Were your questions open-ended? • Did you sell or did you tell?
after the call
Critique yourself • Was the sales call conversational? • Were you informed and enthusiastic? • How many open-ended questions did you ask? • Did you sell or did you tell? Do not judge it completely on whether you made a sale or not
consultative selling
Customer-focused sales method Seller thinks of themselves as a consultant who is trying to help prospect Seller asks questions in order to learn more about the customer before presenting customized solution that will specifically address the needs and desires of the prospect
sponsorship sales process
Different than ticket sales Sales reps don't make 100 calls a day Sales pitch and close don't come until later in the process Whole goal is to set up a meeting • Fact-finding meeting o Most partnerships start here o Meets with company and figures out who they are, what they do, who they want to target, what they have done in the past, what their budget is, who their competitors are
be patient in the sales call
Do not ask for a sale right away • A prospect is less likely to respond positively if the sales pitch is within the first 30 seconds • A regular conversation will erase some of the uneasiness that a prospect initially has and they will be more receptive to listening to what you have to say
use positive language
Don't be negative Cheap vs inexpensive or affordable
be honest
Don't mislead or deceive If you don't know the answer, say "I don't know"
why ask open ended questions?
Engagement in a conversation with prospect • Makes them more comfortable with us and erases tension/awkwardness We want to learn more about the prospect
inside sales rep (also known as ticket sales representative)
Entry level ticket sales job for professional sports team Short-term or seasonal: 6 month to 2 year positions Sales class probably consists of 6-20 individuals 80-100 sales calls per day
design matters
Focus on the design of your resume almost as much as the content Utilize bold face, italics, and spacing to separate the key parts of your resume Use a 10-12 point type with a conservative font
why are ticket sales so important
Giant revenue stream 2016 NBA attendance • First place average: Chicago Bulls 21,820 • Last place average attendance: Denver Nuggets 14,095
sales call mindset
Great sales people don't talk clients into buying; they listen and meet needs A successful sales person: • Is receptive to the prospect's viewpoint • Shows understanding and asks relevant questions • Meet their needs and tailors their benefits to the objectives • Restates the prospect's concern • Shows sincerity
use descriptive language
Helps the person visualize buying that ticket and/or going to the game • "picture this..." • "imagine this..."
wrap-up the call
If successful sale, then repeat details of ticket package and collect payment information If not successful, then thank them for their time and end on a positive note
steps of a sale call
Intro Set agenda Ask open-ended questions Present solution (soft close) Understand and overcome objections Close (again) Wrap-up the call Post call; critique yourself
leveraging sponsorship assets
Inventory/assets: in terms of sponsorship sales, the attributes or elements a sport property owns and can sell to a firm • Ex: signage within a sport venue, tickets, hospitality, trademarked logos
Why sales calls aren't scary
It's sports They are people interested in your product You aren't bothering them It's okay if the call doesn't result in a sale Rejection isn't personal
before the sales call
Know your product • You should sound like an expert about what you are selling Avoid sounding robotic • Don't plan a script
naming rights
Lucas Oil Stadium, Indianapolis Colts • $122 million for 20 years ($6.1 M per year) • Exposure • Company name branded on signs outside of the stadium, mentioned on all radio, TV, newspaper, magazine, internet references to home Colts games • Forever linked with the Colts and the NFL • Super Bowl
Major League Soccer & The National Sales Center
Major League Soccer owns and operates a centralized ticket sales training "campus", the National Sales Center in Minnesota
why would a company purchase a sponsorship
Many marketers looking for innovative, outside-of-the-box ways to promote their product Sport sponsorships becoming more common and accepted Emotive link between their brand and the sport organization's audience Serve as a platform for brand extension and can cut through the noise of traditional media advertising Potential to interact with the audience To increase public awareness or enhance company image Exposure—trying to reach a large audience to promote your company • Dallas Cowboys: avg. 88,000 per home game • MasterCard official sponsor of the World Cup—advertises billboards at every match o They received 7.5 minutes of exposure on TV broadcasts, on average, per match Compared to a typical 30 second TV ad
Sales process
Mark McCormack—selling consists of following elements: • Identify customers • Getting through to them • Increasing their interest • Persuading them to act on that interest
sponsorships in collegiate athletics
Most athletic departments do not have infrastructure, personnel and culture to operate a successful sponsorship sales department
ticket sales careers are
Perception vs reality Challenging but fair Clearest path towards working for a pro sports team Control your own fate
define sales
Primary role of sales is to sell existing products and services at a level of price, quality, and performance acceptable to customers • Any 3 out of sync—not acceptable to customers, won't buy
intro and setting the agenda
Prospects on the other side of phone are wondering who is calling and why Eliminate this confusion right away by clearly identifying yourself and the purpose of the call Set the agenda: "Hello, this is Jonathan Benedek from the Indiana University Athletics Department, and I'm calling today to talk about IU Football season."
listen 70%; talk 30%
Selling vs telling Make connections through conversation so you can relate yourself and what you are selling to the prospect
College Athletics and IMG/Learfield
Several college athletics departments outsource their ticket sales to IMG/Learfield Ticket Solutions Hires ticket sales employees to work for IMG/Learfield to sell on behalf of one of their partner schools Sales staff placed on campus
be enthusiastic
Smile Prospect can tell by tone of voice how much you care about the product and making a sale
o Learfield Sports/IU Sports Properties
Sponsorship and multimedia rights holder of IU athletics IU sports properties is a division of Learfield Sports Matt Bauschek, General Manager Contract thru 2021 Learfield pays IU athletics a lump sum of money each year Whatever Learfield sells, they keep
sponsor fit
Sport sponsorships are more effective when there is a logical match between the two brands, between the product and the market segment Examples: • Mountain Dew and the X-Games • Busch Stadium, Miller Park, Coors Field
tailor your resume
Tailor it to the specific job posting that you are applying for • You should not be using the same resume over and over again for every job posting use the same buzz words
activation
The set of strategic efforts that are designed to support and enhance the sponsorship Activation in budget should at least equal the costs of the sponsorship rights fees Physical presentation of a sponsorship--Just know its not promotion
ask open ended questions
To engage the prospect in a normal, back-and-forth conversation • Make it a more natural, relaxed conversation To try and make a connection • Do you and the prospect have shared experiences that you can bond over? What are your commonalities that will help you relate to one another? To learn more about the prospect • What are their wants, needs, desires, motivations? • How can you help them? (think Consultative Selling)
The National Sales Center in Minnesota
Training class consists of 20 individuals and training sessions last four months Training consists of actual selling on behalf of one of the MLS clubs Gets your foot in the door and a chance to prove yourself "First dibs" on interview opportunities with one of the clubs
overcoming objections
Try to anticipate the most common objections that you are likely to hear • Price, time commitment, team performance, etc. What rebuttals, or counterpoints, could you give to make the prospect reconsider their initial objection? • Should you offer a slightly different package, perhaps? • How can you spin a negative into a positive?
pricing
Unique since any package can be priced differently Derive as much revenue as possible from sponsorships • Value is critical
bullet points
Use to describe your experience with that organization Utilize your bullet points not just to describe your responsibilities but to also point out accomplishments/achievements, and professional skills that you gained from the experience
closing
When ready to close, tell them all details one more time • Present package, cost, and exactly what it covers Remember, a sale is not a sale without a payment
present a solution (again)
When you feel to conversation is going right, try again for the soft close When you receive the second "no" or hesitation, it is time to wrap up the phone call and move on
your resume belongs to you
this document is yours But don't overdo it. Keep off such personal facts like pets, hobbies, etc.
time
(does the customer have the time to consume the product) time it takes to get a customer or lose a customer
Quantity
(how many units are being sold)
quality of product
(wins/losses, star power)
strategic fit
: the congruence between the sponsor's target market and the audience attracted by a sport property o Demographics o Geography o Psychographics o Brand image o Purchase behaviors
sport sponsorship sales
Corporate sales, corporate partnerships, sport sponsorship is when external organization or company pays for advertising time/exposure with a sport property
examples of sport sponsorship
Lucas Oil Stadium, McDonald's All-American Basketball Game
objections
What is the prospect objecting to? There are many different reasons why people choose not to purchase Ask open-ended questions to find out why Use the "feel-felt-found" method • Feel: relate to prospect's situation • Felt: let him or her know that this initial thought is common, meaning that the situation can change • Found: What you want your customer to do (purchase your product or put a deposit down now...). then present something positive your customer will receive that he or she cares a great deal about.
experiences
Your experiences that are the most relevant to the job you are applying for should be listed near the top
past
already have connection to organization o If you can determine why this group is no longer buying a product develop strategies on how to get them back
resumes should not have
bad grammar and typos
pass-through rights
benefits from sport organization that sponsor gives to its business partners o Ex: if a soft drink company is a sponsor for a team, it might receive tickets, which it gives to grocery stores to use in promoting sales of their soft drink
Common techniques for pricing sponsorships:
cost-plus, relative value, competitive market, a la carte
3 types of customers
current, past, potential
10 common elements packages in sport sponsorships
intellectual property, category exclusivity, media, tickets/hospitality, venue signage, sponsor identification, event marketing/special events, in-game promotions, pass-through rights, direct marketing/use of property's database
Sport organizations have...
more full-time employees devoted to selling than any other department
current
most valuable o Currently demonstrating behavior that includes purchasing and product usage o More likely to spend more and refer new customers o It is 10X more expensive to gain a new customer than to retain an existing one
it all starts at the top...
name should be large, in bold and stick out from the rest of the text
category exclusivity
not allowing a sponsor's competitors to promote their business or products within the sport organization's events or facilities
cost
not just overall cost but the purchase price or payment options, opportunity cost
cost-plus
o A method of pricing sport sponsorship in which the costs of all elements of a sponsorship are added together, along with the sport property's desired profit margin, to develop a final cost
• Sponsor objectives:
o Brand awareness o Sales objectives o Targeting marketing messages to particular market segments o Advantage over competitors o Increase brand loyalty o Showcase community and social responsibility o Sampling and trial usage o Showcase product o Entertain clients o Employee motivation and retention o Demonstrate how the product performs
• Building and maintain strong relationships are key
o Helps with renewals and referrals
active sponsors in sport
o Mega-brands (Coke, McDonalds) o Sport Brands (Nike, Adidas) o Fast-moving consumer goods (soft drinks, snacks) o Financial services (banks) o Auto (Toyota, Nissan) o Telecommunications (Verizon, Sprint) o Travel o Beer o Gambling o Retail
relative value
o Method of pricing sport sponsorships in which the costs of other common marketing options are observed and used to derive a competitive sponsorship asset price
• To ensure renewals, documentation is key
o Needs to be cultivated as the season goes along so you don't have to do it all at once o Binder full of information/documentation about their sponsorship of their product
personal selling
o Use theme based advertising (general media) o Advertise during the broadcast of the sponsored event o Advertise in the event program o Incorporate the sponsoree's logo on packaging and in promotional efforts o Distribute free products o Provide prizes o Place point-of-sale display
questions to ask the decision maker
o What sport sponsorships have worked in the past? o What objectives is the business looking to achieve through the sponsorship? o What are the key challenges facing the business?
media
opportunity to advertise during team-controlled media broadcasts, such as a pre-game coach's show
steps of activation sale
prospecting/research, opening the conversation/build rapport, needs analysis, sale presentation, handling objections, pricing, closing
Four main factors cause customers to buy or not buy
quality of product, quantity, time, cost
event marketing/special events
sponsor has a presence at sport organization's special events such as fan fests, press conferences, or team tailgate parties
venue signage
sponsor messaging is displayed within the sport venue
tickets/hospitality
sponsor receives tickets/access for guests to attend events
in-game promotions
sponsor recognized as provider of fan-centric activities during the event such as giveaways or contests
direct marketing/use of property's database
sponsors gain access to the sport organization's member database allowing the sponsor to market directly to those potential consumers
sponsor identification
sport organization acknowledges sponsor as official partner in certain communications with the media and the public
ticket sales are..
the lifeblood of any organization because so many other revenue streams are dependent on it • Tree trunk of sport organizations
• Value-in-kind (VIK):
the use of a sponsor's goods or services exchanged for a sport property's assets within a sponsorship agreement. The goods or services are traded in lieu of cash, often because it is less expensive for the sponsor, but also meets a need of a sport property which might otherwise have to buy the same goods or services
potential
third priority o Lower interest in product o Higher costs associated with generating awareness/interest o Reasons: Lack of comprehension Lack of interest Lack of accessibility Inadequate resources Loyalty
intellectual property
use of team logos and other trademarked symbols
sponsorship sales
• A sponsorship is when you charge other businesses to advertise their brand at your games to fans • More people at your games more you can charge for sponsorship investments by corporations in a sport property to help support the firm's organizational, marketing and promotional objectives or strategies Mutual benefit of sponsor and sport organization Purpose: marketing tools for companies
other revenue streams dependent on ticket sales
• Concessions, merchandise, parking
ticket sales career--what's it like to work in sports? (it is)
• Fast-paced • Action-packed • Exciting • Competitive rewarding
ticket sales career--what's it like to work in sports? (it is not always)
• Fun and games • Laid back • Lucrative • Easy
goal of activation
• Goal is to have sponsor develop a cohesive strategy between the brand message being sent through sponsorship and all of their other marketing initiatives
proposal in the sponsorship sales process
• Inventory is rarely sold as individual units • Need to package your undesirable inventory with your desirable inventory • Allows sales reps to tailor a specific package to a specific clients to meet their needs and give them a unique experience • No two sponsorship packages will be identical—different things can be negotiated into the deal o Tickets, exclusivity, special access • To ensure renewals, documentation is key • Building and maintain strong relationships are key
needs analysis
• Learn about the potential sponsor's business
common activation strategies
• PR • Advertising • Sales promotions • Direct marketing • Personal selling
prospecting/research
• Pool of potential sponsorship buyers is not nearly as deep as it is for potential ticket buyers • Fill primary and secondary sponsorship categories first
handling objections
• Price/budget • Lack of belief in sport marketing to meet objectives • Down economy • Engaged in too many other marketing efforts • Sport property doesn't fit the right demographics
opening the conversation/build rapport
• Selling sponsorship is all about timing • People like to do business with people they trust
sales presentation
• Start with brainstorming ways the organization can meet the prospect's business objectives • Invite the prospect to experience or sample the product before seeing the sales presentation (intervention) • Eduselling • Should be no more than 3 pages and hit all key objectives: o Intro o Overview of the property's fan demographics o Highlights of how the inventory meets the prospect's needs o Fee structure o Call to action
perception
• Ticket sales drive attendance, which affects perception • Empty arena hurts your image o Makes team look undesirable • Full stadium shows that games are the place to be and drives sales (FOMO)