Explain the concept of sponsorship.

EXPLAIN THE CONCEPT OF SPONSORSHIP.

Sponsor A business, person or organization that

finances a sports or entertainment entity.

Sponsee The entity (event, sport, athlete,

entertainer, or venue) that receives money for product from the sponsor.

Sponsorship

The financing of a sports or entertainment entity by a business in return for recognition affiliation.

Sponsorship (continued)

Involves money, products or services

Marketing exchange

With any sport or entertainment entity

In-kind sponsorship

Forms: Teams Governing bodies Athletes Facilities Event Sport Leagues

Sponsorship (continued)

Factors used to determine what to sponsor: Increase in product

sales Compatibility and

image Tie-in Potential media

coverage Exclusivity of

competitors

Types or levels Title sponsorship Presenting

sponsorship

History & Growth of Sponsorship

Roman times – gladiators and chariot drivers would wear colors representing specific merchants

17th & 18th centuries – pubs in England sponsored horse races

Mid 1800s – local companies sponsored Harvard & Yale rowing teams

History & Growth of Sponsorship (Continued)

MLB – first major league sport sponsored by corporations

1970s – change in sponsorship because of ban of tobacco and alcohol ads

1984 – Corporate sponsors of the LA Olympics (limit: 30 sponsors)

Increase in sponsorship Athletes as walking

advertisements Ease of targeting a

specific market Increase advertising

costs Lifestyle sports Live programming of

sporting events New media Nontraditional

sporting activities

Overcrowding of advertising

Taxpayers not willing to increase the amount paid for sports

Event TriangleAudience: the

potential market

Entity: needs the

sponsor for financial

assistance

Sponsors: need the entity for

public recognition

Sponsorship is an

ongoing partnershi

p.

Why companies sponsor entities:

Help businesses reach their target market

Increase sales Increase market

share Inform potential

customers about their product

Enhance overall goals and objectives

Give sponsors the right partner

A way to introduce new products

Increase public awareness or perception

Prevent direct competition through exclusivity

Repositioning Psychographics Networking

opportunities Exposure and visibility Promote goodwill

Why entities utilize sponsors Financial support In-kind support

How the audience benefits from sponsorships

Lower ticket prices Exposure to new products Free samples and give-aways Non-evasive advertising

DESCRIBE HOW TO SECURE SPONSORSHIPS

List the steps in securing sponsors

1. Understand all aspects of the event2. Locate companies who may be

potential sponsors3. Make contact with potential sponsors4. Close the deal with the sponsor5. Establish a partnership with the

sponsor

Aspects of the Event

Who is the audience? What are the demographics,

geographics, psychographics, and behavioral response of the audience?

How would a corporate sponsor benefit by partnering with the event?

Aspects of the Event (continued)

What media has already been put in place (radio, television, newspaper)?

What is the total cost of the event? What percentage of the total cost will be covered by the sponsor(s)?

How many sponsors are needed?

Locate companies who may be potential sponsors

Review trade journals Research similar events to see who

has previously sponsored Research potential sponsors – profile,

budgetary and promotional cycles Decide who would be the best sponsor

for the product

Make contact with potential sponsors

Write sponsorship proposal Create fact sheet Outline benefits

Send out letters requesting to see company representative

Try cold calling on companies Schedule a meeting with the company

Make contact with potential sponsors (continued)

Try to find out who is the decision-maker

Present the proposal Prove the event aligns with current

marketing goals Follow up after making presentation

Close the deal with the sponsor

Negotiate the final contract Acquire a signed sponsorship

agreement

Establish a partnership with the sponsor

Discuss leveraging with the sponsor Fulfill the contract

Discuss aspects of a sponsorship agreement

1. Clauses in the sponsorship agreement

2. Benefits included in the sponsorship agreement

3. Summarize opportunities for leveraging sponsorships

4. Explain the sales process and client relations in sponsorships

Clauses in the sponsorship agreement

Term: The length of the agreement and financial obligation

Event definition: Clearly and precisely defines the event and leaves to misunderstandings.

Sponsor benefits: Details all benefits the sponsor will be receiving.

Sponsor obligations: Details what is due the entity, which includes but is not limited to: fees paid, in-kind, and any other obligations to be fulfilled by the sponsor

Clauses in the sponsorship agreement (Continued)

Indemnity and insurance: Make sure everyone involved is protected from things that could go wrong. Indemnity is exemption from incurred liabilities, loss or penalties for damages. Insurance is the instrument used to protect the promoter.

Confidentiality: Protect both the sponsor and sponsee.

Benefits included in the sponsorship agreement

Exclusivity: Are companies willing to pay

a higher fee to keep competitors from participating?

Can the sponsee use phrases such as “official sponsor” or “presented by”?

Benefits included in the sponsorship agreement (continued)

Media package Exactly what type of coverage will be

provided? How much airtime will be provided? Will sponsors need to purchase additional

media coverage? Will there be vignettes? What type of signage will appear on television?

Benefits included in the sponsorship agreement (continued)

Media package (continued) Will ad space be provided? Will the sponsor’s name and logo be

included on information sent out about the event?

Will the sponsor be able to conduct contests or advertising campaigns?

Benefits included in the sponsorship agreement (continued)

Signage What type of signage will

be available? Will rotational and virtual

signage be used? What about banners?

Benefits included in the sponsorship agreement (continued)

Entertainment Will luxury boxes, hotel rooms and VIP

passes be provided? Will the sponsor have access to the

athletes or stars?

Benefits included in the sponsorship agreement (continued)

Merchandise rights Will there be an area to sell

merchandise? Will logos and trademarks be used?

Benefits included in the sponsorship agreement (continued)

In-Kind Are sponsors willing to provide products? How much non-cash sponsorship will be

provided?

Benefits included in the sponsorship agreement (continued)

Internet Will the entity provide links to

corporate websites? Will possible banner

advertisements be provided?

Opportunities for leveraging sponsorships

Makes the sponsorship more successful

Spend between $1-$5 on leveraging for every $1 spent of the sponsorship fee

Additional advertising – banners, magazines, radio or television

Explain the sales process & client relations in sponsorship

1. Preapproach2. Approach3. Determining needs4. Feature/benefit presentation5. Handling objections6. Closing the sale7. Suggestion selling8. Follow-up

1. Preapproach Everything prior to sale

What the entity wants out of the sponsorship Inventory Package prices – exclusivity, box seats, luxury

boxes, lodging, transportation, invitations, tents, freebies/giveaways, samples, VIP passes, banners, signage, ad space, access to players/stars, TV or radio spots, public relations or press releases, promotions, entitlement to facility and logos on items

Real cost of sponsorship

1. Preapproach (Continued)

Aspects of the sponsor Prior events sponsored Current events being

sponsored Target market Corporate expectations Amount company is

willing to spend

Aspects of the sponsorship What is the sponsee

willing to offer them? Will more than one

sponsorship package be offered?

How will the company benefit from the sponsorship package?

How is the sponsee willing to help track sponsorship value?

2. Approach Arrange a meeting

Variety of dates Correct name

Arrive early Dress professionally Introduce yourself Shake hands firmly Give business card

Have background information on the sponsor

Know your objectives

3. Determining needs Listen when appropriate Talk when appropriate Question to determine needs Verbal & nonverbal feedback Empathy

4. Feature/benefit presentation

Explain how proposal can fill client’s needs

Focus on the benefits Get sponsor involved in the sale Use visuals Use a logical order

Large to small National to local

5. Handling objections Anticipate them Can occur at any time Based on need, product, price or time Use four step process:

1. Listen2. Acknowledge3. Restate4. Answer

6. Closing the sale Close when sponsor is ready Look for buying signals Summarize major points Use objections to close sale Generate an offer Be flexible with proposal Bargain, discuss and settle Discuss fee arrangement Do not make agreements cannot keep

7. Suggestion selling Lengthen contract – multiple year Add additional promotional ideas

8. Follow-up Execute contract Thank you letter – sale or no sale Keep relationship going Help the sponsor feel they’re getting

their money’s worth Measure, assess & evaluate Schedule follow-up appointment

EVALUATE THE EFFECTIVENESS OF SPONSORSHIPS

How do businesses assess and measure the success of the sponsorship?

Measure customer awareness.

Measure obtainment of established goals.

Compare sales prior to sponsorship and post sponsorship.

Review corporate accounts, retailers, shelf space, and other store traffic for increases.

Assessing and measure the success of the sponsorship (continued)

Look at sales within a specific geographical area where the sponsorship occurred or its viewing area.

Use rate cards containing information on the advertising time or space to determine the value of publicity.

Track the amount of advertising exposure to the public and add up what it would cost the company to simulate those promotional efforts.

Analyze impressions.

Why sponsorships fail? Just paying the

sponsorship fee and doing nothing else could result in failure.

Not knowing what is included in the sponsorship agreement.

Business become impatient. It takes time for the association to a particular company or its products with an entity.

Excluding company employees in the sponsorship. The employees should be excited and aware.

Not meeting the demands with staffing and product availability.

Excluding the fans.

Ambush marketing Also called parasite

marketing. Occurs when a company

does not pay the fee to be an official sponsor but uses techniques to make the public believe the company is the official sponsor.

Is usually associated with major events.

Hurts corporate sponsorship because the public is confused about who is the real or official sponsor.

Official Sponsor

The End Any Questions??????