Advertisements and sales

To put it simply, advertising is the practice of making something go noticed. It is generating awareness for a product or service by exposure. There are a few tactics used in advertising such as repetition, subliminal messaging, differentiation or emotional connection. Next time you watch an advertising, try to think for a second: Why is this appealing to me? It may be because they have already profiled you and know exactly how you will behave. Watch the following video on the science of advertising.

Watch: The Secret Science Of Advertising (2.23 minutes)

ATL versus BTL in advertising

ATL Advertising

ATL, stands for Above The Line. Advertising refers to the conventional advertising mediums that reach vast groups of audiences. This advertising method usually seeks a response from the audience in the following platforms:

BTL Advertising:

BTL, or Below The Line, refers to the direct activities that help the brand build a targeted relationship with the audience. It provides an effective channel for the consumer as well as a metric in testing the effectiveness and conversions (purchases). We can find the following examples in BTL advertising

Sales promotions

Sales promotions are short-term tactics designed to boost sales and create a sense of urgency among consumers. In eSports, sales promotions can be used for merchandise, game tickets, or in-game items. For example, offering a limited-time discount on eSports team jerseys during a tournament can attract fans and increase sales.

Public relations

PR activities help build a positive image of the brand within the eSports community and beyond. A press release about a business partnership between a gaming company and a prominent eSports team can generate media coverage, improving the brand's reputation and visibility.

Text Marketing (Text Messages)

Text marketing involves sending promotional messages to a targeted list of subscribers. eSports organisations can use this method to update fans about upcoming events, ticket sales, or exclusive offers. For instance, a text message blast can inform subscribers about a special discount code for an eSports event ticket.

Mailing

Physical mailings, such as postcards or brochures, can effectively reach a targeted audience in eSports. Sending a customised invitation to a gaming convention or eSports tournament to a select list of enthusiasts can create a personal connection and drive attendance.

Flyers

Flyers are tangible and can be distributed at gaming events or in local gaming stores. An example could be a flyer promoting a local eSports competition, complete with event details and registration instructions.

Catalogues

While less common in eSports, catalogues can be used for showcasing a range of merchandise, from gaming accessories to team apparel. These can be distributed at eSports events and provide a comprehensive view of available products.

Sponsorships

Sponsorship deals in eSports involve supporting teams or events in exchange for brand exposure. For instance, a gaming hardware company sponsoring a professional eSports team not only gains visibility through team jerseys but also gets product placement in streams and social media shout-out.

Stages of product placement

There are 3 stages of product placement induced by advertising: identification & recognition, spontaneous memory, and top of mind.

Identification and recognition

There are millions of products out there, yet for some reason we identify a few immediately. We may not have used it, we may not need it or even want it, but we surely identify certain products because we have interacted with them enough to remember them.

Ferrari Brand

Spontaneous memory

Spontaneous memory refers variety of products, for example, fast food. We immediately have several brands in our heads.

Do you have any of these in mind when asked for fast food?

Top of Mind

Top of the mind is the is the first brand that pops into your head when someone mentions a product or service. If you are asked for a soft drink/carbonated drink what is the first drink that pops into your mind? Ask yourself the same question with an energy drink.

What is the purpose of advertising?

There are several reasons to advertise, depending on the stage of your product or service.

Generate Awareness

Advertising allows us to make others aware of our existence. Without it, how else would people find us or recognise us?

Generate Traffic

Traffic represents direct exposure to your brand. It consolidates potential customers in one place, constituting the number of people who view the advertising.

Boost Engagement

Engagement entails direct interaction with the customer and the brand in question. It appeals to potential customers by engaging their senses.

Generate Leads

This term refers to the likelihood of someone becoming further interested in or recommending the product. This is often reflected in data-gathering efforts.

Increase Sales

The primary objective of advertising is to bring clients to the brand and boost the company's revenue.

Knowledge Check Activity

The Four Ps of marketing, also known as the marketing mix, are a set of essential elements that businesses and marketers use to develop and execute marketing strategies.

Each ‘P’ is a component inside this framework used by all sorts of marketers – if you able to follow this framework, you can create a successful marketing campaign. The four ‘P’s are Product, Place, Price, and Promotion.

Product (or service)

A product is an item that is offered for sale. An item can be either a service or a product. Some features of the product are:

Product Strategies

• Cost strategy: concentrates on producing the best product for the lowest price.
• Differentiation strategy: distinguishes your product from others.
• Focus strategy: targets a specific market segment.
• Quality strategy: focuses on producing high-quality products.
• Service strategy: focuses on providing excellent customer service.

Place

Place: This element refers to how the product gets to the customer in the right quantity, time, and place. This includes distribution channels, logistics, market coverage, and service levels.

Place strategies

•  Intensive: An intensive place strategy is when a company places its product in as many stores as possible.
• Selective: A selective place strategy is when a company places its product in only a few retail stores.
• Exclusive: An exclusive place strategy is when a company places its product in one retailer. This is usually for luxury products that require salespeople to convey information about the product during the sale, such as cars.

Price

Pricing refers to the price of each product or the levels of pricing on services. The marketing strategy to make a profit. This should include components such as: needs to include the cost of goods, the advertised price, discounts, sales, and payments.

Pricing strategies

There are several price strategies that may include but not limited to:

• Cost Plus Pricing. This strategy involves calculating the cost of producing a product or delivering a service and then adding a predetermined markup to determine the final price.
• Competitive Pricing. Businesses set their prices based on what their competitors are charging for similar products.
• Value based pricing: This approach focuses on the perceived value of the product or service to the costumer.
• Penetration Pricing. A strategy where prices are initially set low to gain market share. Prices may be raised later once a customer base is established.
• Skimming Pricing. The opposite of penetration pricing, where high initial prices are set to target early adopters and maximise profits.
•  Bundle Pricing. Multiple products or services are sold together as one item.
• Value Pricing. Prices are set to align with the perceived value of the productor service So, when do we know if we have set a good price? When the perceived value bought is higher than the perceived value given. Let’s look at the following diagram on value pricing.

Promotion

How the product is product/service is promoted. How does the information get to the audience? Unlike advertising, promotion strategies are just creating for a short period of time. Their objective is to find ways to attract new clients to your product or service.

Promotion strategies in eSports

• Content Marketing: Creating and sharing valuable content like posts, videos, infographics with the purpose of building fan engagement
• Social Media Marketing: Leveraging social platforms to connect and engage with the audience
• Email Marketing: Sending targeted emails to a list of subscribers to promote products
• Influencer Marketing: Collaborating with influencers or industry experts
• Search Engine Optimisation (SEO): Optimising website content to improve its visibility on search engines like Google. 
• Viral Marketing: Creating content from a viral trend in social media
• Loyalty Programs: Rewarding repeat customers with exclusive offers
• Referral Programs: Encouraging existing customers to refer friends and family in exchange for discounts, rewards or other incentives.

The world is full of amazing people. Every region in every country has a huge and powerful history full of life and culture – learning to respect and enjoy different cultures in all forms is great.

Cultural awareness is vital in eSports and business development, particularly in advertising. It enables brands to connect with their audience authentically, avoid cultural pitfalls, and build long-lasting relationships within the diverse and passionate eSports community. Ignoring cultural awareness can lead to misunderstandings, alienation, and missed opportunities for growth in this dynamic industry.

Global reach and diverse audience

eSports transcends geographical boundaries, attracting a diverse and global audience. To effectively advertise and expand business in this space, it's essential to understand and respect the cultural nuances of your target markets. For instance, recognising different cultural preferences in graphics, language, and themes can significantly impact its reception when promoting a game or product.
Example: Tencent's mobile game "Honor of Kings" successfully adapted to various international markets by tailoring in-game events and content to align with cultural holidays and preferences. In doing so, they maintained their global player base while respecting regional differences.

Sponsorship and brand alignment

eSports teams and events often feature sponsors, and these partnerships need to align with the values and sensibilities of the eSports community. A failure of this can lead to major backlash and can harm the team's/events reputation and fanbase. Example: League of Legends European Championship (LEC) announces sponsorship from Saudi megacity NEOM. Read this article, Riot faces criticism after League of Legends competition sponsored by Saudi megacity, outlining the backlash following this sponsorship. Following the announcement, just a few hours later, the partnership was cancelled and since then many staff have decided to leave the league permanently.

Content and messaging

Cultural awareness is vital when crafting advertising content and messaging. What works in one culture may not resonate in another. Moreover, avoiding cultural insensitivity or stereotypes is essential to maintain a positive image.
Example: In 2020, Nike’s campaign featuring South Korean eSports star Faker displayed cultural awareness by respecting local customs and values. This approach endeared the brand to the eSports audience in South Korea.

Community engagement

eSports communities are often tight-knit and passionate. Understanding the cultural norms within these communities can help businesses engage with fans more effectively. Whether it’s through social media engagement or community events, being culturally aware fosters a sense of belonging.
Example: The Brazilian eSports scene thrives on a strong sense of community and engagement. Brands like Red Bull have successfully tapped into this by sponsoring local tournaments and engaging with Brazilian gamers on social media, demonstrating a profound cultural understanding.

Regulatory compliance

Different regions have varying regulations and restrictions on advertising, especially in the gaming and eSports space. Being culturally aware means not only understanding these rules but also respecting the sensitivities of the local culture.
Example: In the Middle East, where conservative values prevail, advertisers in the eSports industry have to be mindful of content that might be considered culturally inappropriate. Failing to do so could lead to legal issues and a damaged reputation.

The target audience of your brand is everything. The audience is strongest way to earn revenue. If you are selling PC peripherals (Gaming mouse, Keyboards, mouse pads etc) your audience will most likely consist of people who use computers and tend to buy new gear and are up-to-date with new hardware.

Target audience categories

A target audience is broken down into three components: geographic, demographic and likes/ hobbies. The target audience is who you are aiming for when marketing the product. This does not mean it is only exclusive to them, but who you want to buy the product.

Geographic

Geographic refers to where your audience lives. Worldwide is not a suitable answer. As you are building a target audience you are ‘targeting’ a set audience from a certain geographical location. Nike is a brand known and worn worldwide, by all genders, anybody and everybody. Sportsmen or causal wear.  This marketing scenario is in South Korea, targeting a younger audience.

Demographic

“Demographic analysis examines and measures the dimensions and dynamics of populations” – Wikipedia. Demographic covers a variety of components such as age, sex, income status, education, and more. To re-use the example from above we know the geographic location is: South Korea. But how about the demographic?

Age Range: 16–25

An age range should usually sit within the same generation. A minimum of 5 years and a maximum of 10 years. You may lose creative flow once you surpass 10 years.

Race or/and Ethnicity: Korean

Location doesn’t always identify the audience’s race or ethnicity. Maybe you are marketing Europeans tourist in NZ? Do you need to create a marketing campaign using different languages?

Gender or/and Sex: Female

This doesn’t mean other genders, or the opposite sex can’t buy the product marketed. This means the advertisement is more persuasive.

This component can help how you market the correct product to a suitable audience.

?income:>

Employment: Unemployed/Part-time

This component can help you identify if the product fits the target audience where you should money into (in regard to types of advertisement and marketing strategies)

Likes/Hobbies

The likes and hobbies of target audience can be as expansive as you wish. The likes and hobbies can really dictate the art direction/vision of the marketing campaign. Using the Nike Woman example target audience, we can finalise our audience. You can stick with the common topics or expand to more niche topics, do remember a target audience is a group of people not just one or two people. “Korean pop, trendy sportswear, bold design, comfort, reading books, baseball, hanging out with friends, travelling around Korea with family, Instagram, tik tok, painting, piano.”

Sales refers to the process of selling products or services to customers in exchange for payment, It encompasses a series of activities and interactions between a seller and a buyer with the ultimate goal of completing a transaction. Sales can occur through various channels, including in person, online, over the phone or through written agreements. 

Selling merchandise

Selling merchandise can be profitable if done correctly. From common merch such as clothing and houseware to more niche merch such as balloons, cup holders, or chop stick wrappers. The merchandise should make sense for the brand (to maximise profit). Plan the merchandise you want to sell. What is the process from the creation of the logo to a customer wearing/buying.

“Product proposals break down product features, potential, and potential revenue. To construct a successful product proposal, you should outline your key features, prepare product visuals, and make sure your market data projects profitability. A good project proposal gives people a reason to care and invest in your idea.” – beautiful.ai

You’ve put in all the hard work, from the development of your idea to analysis the competition and developing a prototype! Time to put all of that in a well formatted document to give to potential clients, First as a word document then translate that into a side deck / presentation.

Document details

The document should include but not limited to

• product features
• Target audience/potential customers
• benefits of the product
• any metrics or trends of the product.

This document will be read by potential clients from around the world, be sure to double check the grammar and the document is formatted correctly.

Knowledge Check Activity