Sponsorship

Its Everywhere!!!!!!
Sponsorship

When did it all begin?

1858- First known event that required paid admission. A baseball game (cost .50 cents).

1923- Golfer Gene Sarazen signed an endorsement deal with Wilson Sporting Goods that becomes the longest running endorsement deal in the history of sports. It was for $6000 per year plus travel. Lasted until his death in May 1999.

1925- Goodyear Tire and Rubber Company- builds the Pilgrim, the first blimp to fly over athletic fields.

1928- Coke partners with the Olympics and remains a sponsor to this day

When did it all begin?
1939- First televised NFL game. 1000 homes

1949- First major endorsement by a female. Babe Didrikson Zaharias signs with Wilson Sporting Goods for $100,000 per year

1951- First live coast to coast broadcast

1975- first pay-per-view athletic event Thrilla in Manilla, Ali vs. Frasier. 1984- The first Olympics to profit for the first time the Olympics is totally privately financed, and shows a profit

Sponsorship Defined
A partnership between a sponsor (business) and a property ( team, league, movie, etc.). A business sponsors a property to help achieve a variety of goals. Event triangle- The Event, The Business, The FansAll three components need each other or sponsorship wont work.

Growth of Sponsorship
Sponsorship is a foundation based on Borrowed Equity Equity means valueBorrowed because companies are borrowing something from the fans of sports/entertainmentBorrow their loyaltyThey will stick with a team through thick and thin Want good feeling towards the team to rub off on the products companyIts ok for sponsorship to build recognition towards the company but it eventually has to turn into revenue or the value isnt there.

Factors Contributing to the Growth of Sponsorship
Frustration with Traditional MediaCosts of advertising is up, viewership and ratings are down. Businesses are growing frustrated with the traditional mediaTradition media (tv, newspapers, radio, etc) is cluttered with ads. Makes it very difficult to stand outSocial Concerns (Cause Marketing)As concerns over environment, poverty, etc. increase, so does the feeling that these issues should be the concern of businesses. They look for opportunities to tie into causes they feel are importantThey are hoping you will too and will be loyal to their brand Studies have shown that customers are more willing to switch brands in order to purchase products of companies they believe in.

Factors Contributing to the Growth of Sponsorship
Dialogue not Monologue Instead of companies speaking to us about the product, companies view sponsorship as another means of strengthening their relationships with customersHigher Consumer AcceptanceSponsorship has a much more positive acceptance level than other types of advertising (telemarketing, ads in movies or videos).Without sponsors, customers know that without the sponsors the event may not happenSponsorship is viewed as giving something back

Why Companies Sponsor
Increase Visibility Exposure in Media and in PrintGreat for publicity: news coverage, signage, human interest stories, press conferencesAssociation with a particular lifestyleBuick- Is not necessary to play golf, but the product wants to be associated with that lifestyleWhy? Because golfers match their target marketBusiness to Business MarketingCoke and Pepsi fight with grocery stores for shelf spaceIf Coke sponsors a major event they have more bargaining power with the stores for point-of-purchase displays and end-cap space.

Why Companies Sponsor
Distinguish from the CompetitionCategory Exclusive Sponsorship a company locks out the competition and creates the position of being the only sponsor of an event.Used to entice new customersReap benefits- tickets, player appearances, VIP seating. Bank can make these benefits available to customersHospitality and EntertainmentUse the perks of sponsorship to network and build business relations outside business hoursTable at a charity dinner, preferred seatingA huge component The luxury suiteCan be used for employees and customers

Why Companies Sponsor
Opportunities to MerchandisePoint-of-Purchase Displays with sports tie-insSports and sports related merchandise are viewed and popular and in demand Show off a product or serviceCall attention to specific productsA motor oil company sponsors auto racing Drive SalesThe ultimate goal

Deciding What to Sponsor
Event/Team and Company Image CompatibilityCadillac sponsoring WWE (???)Size and scope of the event of a concernThe Audience (target market)Waste of resources if the people who buy the product arent watching Working with RetailersMany companies use sponsorships to secure new retail outlets or improve their working relationships with current retailers

Deciding What to Sponsor
Media ImpactMajor events get more media attentionNo value in media coverage if you are not visible and/or identified as a partnerThe more visible the more expensive the sponsorship

Types of Sponsorship
Title Sponsorship- Enables the corporate partner to appear as if they have ownership of the eventTostitos Fiesta BowlSmuckers Stars on Ice Presenting Sponsorship- (The Extreme Games are presented by)Title Sponsor or Presenting Sponsor of a section, area, entry, or teamToys R Us Kids sectionCould also be a sponsor of a weekend, day of an evenCould also be a sponsor of an award, trophy, or scholarship: Footlocker MVP award

Types of Sponsorship
ExclusivityLicense- Use of logo(s) and trademark(s) in advertising media and sales promotions as well as supporting materialsCan also be merchandising rights- the rights to sell event merchandise, on or off-siteMedia Inclusion- Sponsor inclusion in all print, outdoor, and/or broadcast adsAlso on promotional materials (flyers, apparel, etc), ad time during TV event, ad space in programOn-siteSampling Opportunities to fans, demonstration/display opportunities, coupon distribution

Types of Sponsorship
Signage- Venue signage, pre-event street banners, flags, etc., press conference signage. Can apply to the web as well

Hospitality- Event Tickets (luxury boxes, preferred seating, general admission), VIP tickets/passes (sideline pass, pit passes, press box, etc.)

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