1.07

1.07Employ sales-promotion activities to

inform or remind customers of business/product

Explain the nature of SPONSORSHIP in SEM industries

What is Sponsorship?

• Sponsorship:– Providing financial or other support to a

sport/event in exchange for recognition– Two or more parties benefit from the

arrangement in the form of a partnership – Sponsors want recognition & affiliation

Successful Sponsorships

The key to building successful sponsorship programs is to match the correct products or

services with the people who want to purchase them = their target market

BENEFITS of Sponsorships

• Public and Community relations = Increase of Brand Image

• Brand recognition directly with your Target Market

• Sales and profits through affiliation & brand awareness

• Market Share and/or introduce new products– Enter new markets

RISKS of Sponsorships

• Loosing Streak• Too many sponsors at one event• Could create a bad image and your associated with it

– Example: Super Bowl wardrobe malfunction in 2003

• Could encounter Ambush Marketing– Ambush marketing is when a company will expose their products/logo at

an event without authorization or payment LEGALLY– Goal of ambush marketers is to encourage fans to view it as a sponsor– Example: Coke is a sponsor but Pepsi is outside the event handing out

free Pepsi tees or coolies

EXCLUSIVITY in Sponsorships

• When a business purchases the rights to be the only one of its kind to sponsor a sport entity– Example: You will not find Coca-Cola and Pepsi sponsoring

the same event

PARTNERSHIPS

• Relationship between sponsor and sponsee– Communication and develop partnership– Ongoing dialogue to expand relationship

• Both parties benefit

Sponsorship Contracts

SPONSORSHIP PROPOSAL: includes information about cost,marketing opportunities, audience demographics, conflicts and

time parameters

Formal contract: spells out exactly what each party will do(Avoid legal conflict)

Why Should EXPLOIT your Sponsorship

EXPLOITING THE SPONSORSHIP = ADVERTISING YOUR SPONSORSHIP

– If a business spends all of their marketing budget on

sponsorship fees = No money left over to advertise the

sponsorship

– If target market is not aware of sponsorship, then

sponsorship is wasted money!

http://www.youtube.com/watch?v=Auqp28Bk4RI

Conduct an Internet scavenger hunt to find three current news articles about sport/event sponsorships.

Print the articles, and write a synopsis of each.