1.06 SPONSORSHIP

Sponsorship fastest growing promotional activities

People are receptive to companies that sponsor their teams/events.

Proper exploitation of sport/event sponsorships encourages people to buy products.

Sponsorships are available businesses everywhere and in all sizes.

Sponsors can find sport/event entities that meet their

marketing goals in all parts of the world and with

unlimited methods of sponsorship.

Local Sponsors Small, local businesses typically sponsor local

or regional teams to reach the people who buy their products.

To be competitive with large businesses forsponsorship opportunities, a small business

must havethe budget (money).

GOALS OF SPONSORSHIP Create brand recognition and increase brand awareness.

Entertaining as it is, NASCAR sponsors want to improve brand recognition.

EXCLUSIVE When a business purchases the rights to

be the only one of its kind to sponsor a sport entity

The sponsor and a sport/event entity is a

partnership

Who Benefits? The Sponsor, Sport/Event Entity, & Fans:

Sponsors - increased sales.Sport/Event entities- financial support.Fans – see teams or attend events.

• Sport Event The Fans

Sponsor

What must smaller businesses have in order to compete

with larger businesses for a sponsorship opportunity?

a.Publicity b. Brand awareness c. Budgetd. Exclusive rights

Creating a Sponsorship1. The business contacts the sport/event

entity.

The business may have a particular sport/event entity in

mind that is aligned with its brand image.2. The sport/event entity contacts the

business.

The Sponsorship Proposal INCLUDES: The cost Marketing opportunitiesAudience demographics

Example: Mountain Dew requires detailedInformation about the sponsorship, sponsorship

costs,marketing opportunities at the event, list ofcommitted sponsors, expected attendance at the

event,and audience demographics.

Terms of the Deal The business and sport/event entity must

determine terms of sponsorship.

If the terms of a sponsorship proposal are not

acceptable, the business may try to NEGOTIATE.

Written agreements between sponsor/

sport/event is LEGALLY BINDING

OBJECTIVE B

considerations in sponsoring

Sponsorship Issues• Goals of sponsorship• Reasons for selecting sport/event• Sponsorship risks Ambush marketing Clutter Guilt by association Strikes Losing streak Exploiting the sponsorship

sponsorship goalSIncreasing sales Gaining new customersReach Target Market Keeping existing customers

AMBUSH MARKETINGA business that pretends to be a sponsor,

howeverthey are not sponsor.

Example: Non-sponsoring business broadcasting

commercials during an event.

SPONSORSHIP CLUTTERWhen too many sponsors are involved with an event, fans may tune out all advertising

SPONSORSHIP RISKSGuilt by association Team strikes Losing season

EXPLOITING THE SPONSORSHIPSponsor gives away products during a sponsored event

Logo hats T-shirts Pennants Other specialty advertising