business promotion
Promoters are typically hired on contract by entertainment venues, earning an agreed-to fee or a royalty (colloquially known as a "cut"). The royalty structure is often a simple percentage of admission fees (called "the door") and/or food and drink sales, but like other royalty arrangements many variations are possible such as minimums or maximums, allowances for various expenses, or limitations (e.g. only drink sales after midnight). Other promoters operate independently, renting venues for a fixed fee or under a revenue sharing arrangement with the building owner or tenant, and keeping all of the additional profits from a successful event. One common arrangement for small venues is for the promoter to earn all of the admissions fees, while the venue earns all of the food and drink revenue.
Some venues have exclusive arrangements with a single promotion company; others work with multiple promoters on a rotating schedule (one night per week, for example) or on an event-by-event basis. Promoters often work together, either as equal partners or as subcontractors to each other's events. Several promoters may work together for a large special event, e.g. a New Year's Eve party in a hotel ballroom. They may also deputize "hosts", who are essentially socially influential or desirable non-promoters who will market the events to their circle of friends in exchange for special treatment or free admission to the event.
At a minimum the event promoter manages publicity and advertising. Depending on the arrangement they may also handle security, ticket sales, door policies, decorations, and booking of entertainers. Many promoters are DJs or musicians themselves, and perform at their own event. Conversely, many musicians act as de facto promoters for their own concerts, either directly or through their manager or booking company. Historically, promotion has been a cottage industry, with companies operated by one or several well-connected charismatic individuals, often working part-time. However, with the rise of corporate ownership of live entertainment assets several large companies have emerged in the field, most notably Live Nation via its acquisition (indirectly, via Clear Channel), of Bill Graham Presents. The larger companies tend to promote more traditional mainstream music in exclusive contracts with concert halls. Alternative music and events and nightclubs remain in the hands of independent promoters.
[edit] Contracts and disputes
There are often disputes over money in the promotions industry because it is largely cash business with a history of corruption and uneven recordkeeping. In addition there are many accounting complexities to manage, particularly for large events: revenue, expenses, and oversight of parking, coat checks, concession vendor sales (e.g. CDs and t-shirts), box office so-called "convenience fees", in kind trades, promotional give-away items used to lure guests (e.g. free drinks), costs for insurance, cleaning staff, and so on. One area of frequent contention are quid pro quo cross-promotions, where the promoter or some other party connected with the venue will obtain a favor (for example, a price discount) in exchange for giving a future favor to the vendor. If the existence of the scheme, or the relationship between the parties, is undisclosed this may become a form of bribery. Another opportunity for misunderstanding are the various "lists" of guests who will be admitted for free or with VIP treatment, and the "door policy" used by bouncers to decide who will be admitted and at what price. To deal with these complexities event contracts can become quite long and detailed. Whether written or not, these arrangements tend to favor the party with the greater sophistication or the more control over the production of the event. Even the most detailed, professionally written and negotiated contracts can become the subject of lawsuits over interpretation.
Because nightclubs are often associated with drug and alcohol consumption, rowdiness, and other late-night behavior, promoters may become entangled in various criminal disputes as well.
[edit] Promotions methods
Promoters bring crowds through a variety of methods. The most direct are guerrilla marketing techniques such as plastering posters on outdoor walls, flyposting, and distributing handbills on windows of cars parked in entertainment districts. Promoters also keep mailing lists, usually email lists, of their preferred guests and their wider list of potential customers. Recently, many promoters have taken advantage of online technology such as online social networks and event listing sites to handle publicity, invitations, mailing lists, and so on. Clubs and promoters are among leaders in SMS text message advertising to their own lists as well as sponsored snippets on 3rd party lists for daily content to subscribers.
Promoters often build a brand out of their own personalities and the parties they host, marketing the events under a consistent name, style, type of program, and social experience that downplays the branding of the venue or artist. They may develop a loyal clientèle that will follow them from one location to another.
Guerilla Marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, pr stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience.
Promotion is generally sub-divided into two parts:
• Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertiser pays an advertising agency to place the ad
• Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows
promotional products refers to articles of merchandise that are used in marketing and communication programs. These items are usually imprinted with a company's name, logo or slogan, and given away at trade shows, conferences, and as part of guerrilla marketing campaigns.
Contents
[hide]
• 1 Products and uses
• 2 History in the US
• 3 Promotional products industry in the US
• 4 References
[edit] Products and uses
Almost anything can be branded with a company’s name or logo and used for promotion. Common items include t-shirts, caps, keychains, bumper stickers, pens, mugs, or mouse pads. The largest product category for promotional products is wearable items, which make up more than 30% of the total.[citation needed]
Most promotional items are relatively small and inexpensive, but can range to higher-end items; for example celebrities at film festivals and award shows are often given expensive promotional items such as expensive perfumes, leather goods, and electronics items. Companies that provide expensive gifts for celebrity attendees often ask that the celebrities allow a photo to be taken of them with the gift item, which can be used by the company for promotional purposes. Other companies provide luxury gifts such as handbags or scarves to celebrity attendees in the hopes that the celebrities will wear these items in public, thus garnering publicity for the company's brand name and product.
Business gifts used to foster customer goodwill and retention are the most common use for promotional items at 18.5%. Other objectives that marketers use promotional items to facilitate include tradeshow traffic-building, brand awareness, public relations, employee relations and events, dealer and distributor programs, new customer generation, not-for-profit programs, employee service awards, new product introductions, internal incentive programs, safety education, customer referrals, and marketing research.[citation needed]
Promotional items are also used in politics to promote candidates and causes. Promotional items as a tool for non-commercial organizations, such as schools and charities are often used as a part of fund raising and awareness-raising campaigns. A prominent example was the livestrong wristband, used to promote cancer awareness and raise funds to support cancer survivorship programs and research.
Collecting certain types of promotional items is also a popular hobby.
[edit] History in the US
The first known promotional products in the United States are commemorative buttons dating back to the election of George Washington in 1789. During the early 1800s, there were some advertising calendars, rulers, and wooden specialties, but there wasn’t an organized industry for the creation and distribution of promotional items until later in the 19th century.
Jasper Meeks, a printer in Coshocton, Ohio, is considered by many to be the originator of the industry when he convinced a local shoe store to supply book bags imprinted with the store name to local schools. Henry Beach, another Coshochton printer and a competitor of Meeks, picked up on the idea, and soon the two men were selling and printing bags for marbles, buggy whips, card cases, fans, calendars, cloth caps, aprons, and even hats for horses.[1]
In 1904, 12 manufacturers of promotional items got together to found the first trade association for the industry. That organization is now known as the Promotional Products Association International or PPAI, which currently has more than 7,500 global members.[2]
[edit] Promotional products industry in the US
At one time, the use of promotional products was limited to random give-aways and not as a part of an integrated marketing effort. Today, many more promotional products are distributed by businesses and organizations, sometimes with the assistance of a promotional consultant, [5]to specific target markets to generate specific and measurable results.
Businesses and organizations that use promotional products to achieve a particular goal should determine their intended rate of return (ROR). To maximize investment in a promotional campaign, promotional experts recommend following six steps: (1) Define a promotional objective (2) Identify a target audience (3) Determine the method of product distribution (4) Create (or continue) a theme (5) Develop a message, design, or logo for imprinting (6) Choose the correct promotional product [3]
2006 US sales of promotional products totaled $18.6 billion dollars, up from $17.8 billion in 2005.[4] The industry is growing at a faster rate than newspaper or radio advertising and is larger than Internet advertising ($16.8 billion), cable television ($16.9 billion), Yellow Pages advertising ($14.4 billion) and outdoor advertising ($6.8 billion).[5]
Some venues have exclusive arrangements with a single promotion company; others work with multiple promoters on a rotating schedule (one night per week, for example) or on an event-by-event basis. Promoters often work together, either as equal partners or as subcontractors to each other's events. Several promoters may work together for a large special event, e.g. a New Year's Eve party in a hotel ballroom. They may also deputize "hosts", who are essentially socially influential or desirable non-promoters who will market the events to their circle of friends in exchange for special treatment or free admission to the event.
At a minimum the event promoter manages publicity and advertising. Depending on the arrangement they may also handle security, ticket sales, door policies, decorations, and booking of entertainers. Many promoters are DJs or musicians themselves, and perform at their own event. Conversely, many musicians act as de facto promoters for their own concerts, either directly or through their manager or booking company. Historically, promotion has been a cottage industry, with companies operated by one or several well-connected charismatic individuals, often working part-time. However, with the rise of corporate ownership of live entertainment assets several large companies have emerged in the field, most notably Live Nation via its acquisition (indirectly, via Clear Channel), of Bill Graham Presents. The larger companies tend to promote more traditional mainstream music in exclusive contracts with concert halls. Alternative music and events and nightclubs remain in the hands of independent promoters.
[edit] Contracts and disputes
There are often disputes over money in the promotions industry because it is largely cash business with a history of corruption and uneven recordkeeping. In addition there are many accounting complexities to manage, particularly for large events: revenue, expenses, and oversight of parking, coat checks, concession vendor sales (e.g. CDs and t-shirts), box office so-called "convenience fees", in kind trades, promotional give-away items used to lure guests (e.g. free drinks), costs for insurance, cleaning staff, and so on. One area of frequent contention are quid pro quo cross-promotions, where the promoter or some other party connected with the venue will obtain a favor (for example, a price discount) in exchange for giving a future favor to the vendor. If the existence of the scheme, or the relationship between the parties, is undisclosed this may become a form of bribery. Another opportunity for misunderstanding are the various "lists" of guests who will be admitted for free or with VIP treatment, and the "door policy" used by bouncers to decide who will be admitted and at what price. To deal with these complexities event contracts can become quite long and detailed. Whether written or not, these arrangements tend to favor the party with the greater sophistication or the more control over the production of the event. Even the most detailed, professionally written and negotiated contracts can become the subject of lawsuits over interpretation.
Because nightclubs are often associated with drug and alcohol consumption, rowdiness, and other late-night behavior, promoters may become entangled in various criminal disputes as well.
[edit] Promotions methods
Promoters bring crowds through a variety of methods. The most direct are guerrilla marketing techniques such as plastering posters on outdoor walls, flyposting, and distributing handbills on windows of cars parked in entertainment districts. Promoters also keep mailing lists, usually email lists, of their preferred guests and their wider list of potential customers. Recently, many promoters have taken advantage of online technology such as online social networks and event listing sites to handle publicity, invitations, mailing lists, and so on. Clubs and promoters are among leaders in SMS text message advertising to their own lists as well as sponsored snippets on 3rd party lists for daily content to subscribers.
Promoters often build a brand out of their own personalities and the parties they host, marketing the events under a consistent name, style, type of program, and social experience that downplays the branding of the venue or artist. They may develop a loyal clientèle that will follow them from one location to another.
Guerilla Marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, pr stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience.
Promotion is generally sub-divided into two parts:
• Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertiser pays an advertising agency to place the ad
• Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows
promotional products refers to articles of merchandise that are used in marketing and communication programs. These items are usually imprinted with a company's name, logo or slogan, and given away at trade shows, conferences, and as part of guerrilla marketing campaigns.
Contents
[hide]
• 1 Products and uses
• 2 History in the US
• 3 Promotional products industry in the US
• 4 References
[edit] Products and uses
Almost anything can be branded with a company’s name or logo and used for promotion. Common items include t-shirts, caps, keychains, bumper stickers, pens, mugs, or mouse pads. The largest product category for promotional products is wearable items, which make up more than 30% of the total.[citation needed]
Most promotional items are relatively small and inexpensive, but can range to higher-end items; for example celebrities at film festivals and award shows are often given expensive promotional items such as expensive perfumes, leather goods, and electronics items. Companies that provide expensive gifts for celebrity attendees often ask that the celebrities allow a photo to be taken of them with the gift item, which can be used by the company for promotional purposes. Other companies provide luxury gifts such as handbags or scarves to celebrity attendees in the hopes that the celebrities will wear these items in public, thus garnering publicity for the company's brand name and product.
Business gifts used to foster customer goodwill and retention are the most common use for promotional items at 18.5%. Other objectives that marketers use promotional items to facilitate include tradeshow traffic-building, brand awareness, public relations, employee relations and events, dealer and distributor programs, new customer generation, not-for-profit programs, employee service awards, new product introductions, internal incentive programs, safety education, customer referrals, and marketing research.[citation needed]
Promotional items are also used in politics to promote candidates and causes. Promotional items as a tool for non-commercial organizations, such as schools and charities are often used as a part of fund raising and awareness-raising campaigns. A prominent example was the livestrong wristband, used to promote cancer awareness and raise funds to support cancer survivorship programs and research.
Collecting certain types of promotional items is also a popular hobby.
[edit] History in the US
The first known promotional products in the United States are commemorative buttons dating back to the election of George Washington in 1789. During the early 1800s, there were some advertising calendars, rulers, and wooden specialties, but there wasn’t an organized industry for the creation and distribution of promotional items until later in the 19th century.
Jasper Meeks, a printer in Coshocton, Ohio, is considered by many to be the originator of the industry when he convinced a local shoe store to supply book bags imprinted with the store name to local schools. Henry Beach, another Coshochton printer and a competitor of Meeks, picked up on the idea, and soon the two men were selling and printing bags for marbles, buggy whips, card cases, fans, calendars, cloth caps, aprons, and even hats for horses.[1]
In 1904, 12 manufacturers of promotional items got together to found the first trade association for the industry. That organization is now known as the Promotional Products Association International or PPAI, which currently has more than 7,500 global members.[2]
[edit] Promotional products industry in the US
At one time, the use of promotional products was limited to random give-aways and not as a part of an integrated marketing effort. Today, many more promotional products are distributed by businesses and organizations, sometimes with the assistance of a promotional consultant, [5]to specific target markets to generate specific and measurable results.
Businesses and organizations that use promotional products to achieve a particular goal should determine their intended rate of return (ROR). To maximize investment in a promotional campaign, promotional experts recommend following six steps: (1) Define a promotional objective (2) Identify a target audience (3) Determine the method of product distribution (4) Create (or continue) a theme (5) Develop a message, design, or logo for imprinting (6) Choose the correct promotional product [3]
2006 US sales of promotional products totaled $18.6 billion dollars, up from $17.8 billion in 2005.[4] The industry is growing at a faster rate than newspaper or radio advertising and is larger than Internet advertising ($16.8 billion), cable television ($16.9 billion), Yellow Pages advertising ($14.4 billion) and outdoor advertising ($6.8 billion).[5]
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