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Olympic Sponsorship SeminarDebbie Sadd & Ian Jones

April 2008

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Controversy in design!!

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Worldwide Partners

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London 2012 Official Partners

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Official supporters so far…….

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Beijing Worldwide Olympic Partners

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Beijing 2008 Partners

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Sponsors

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Exclusive Suppliers

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Difference intitles

• World wide partners – Olympic Sponsor

• Beijing Partners – Beijing 2008

• Sponsors – not partners

• Exclusive Suppliers – not sponsors but exclusivity of product on Olympic Sites

• Suppliers – not exclusive

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What is Sponsorship?

“Sponsorship is a business relationship between a provider of funds, resources or services and an individual, event or organisation which offers in return, rights and association that may be used for commercial advantage in return for the sponsorship investment.” (BDS sponsorship,2008)

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Sponsorship

• Charitable donations - No commercial return is expected although a company make use donations to be seen as a good corporate citizen.

• Corporate patronage - A half-way house between donations and sponsorship, patronage generally provides only some recognition of a company’s activity among a relatively small, though influential, group. It is more common in the arts than sport.

• Corporate hospitality • Public/community relations - Sponsorship of sport can

be used to meet objectives on a company’s social or political agenda.

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The 4 Key Principles of SponsorshipThe 4 Key Principles of Sponsorship

Transparency

It is important that any sponsorship agreement with a company is not seen as an endorsement of their product or organisation. This will be achieved by making the relationship transparent to the public and staff in both organisations.

Equal partnership

It is important both parties form equal relationships with each other as it shows a positive working attitude for its membership and target audience. An active working partnership will enhance the relationship for both parties, and strengthen the task in hand.

Mutual benefit

Both parties should gain from a sponsorship agreement.Example - V.festival

Independence

It is important that the independence is not compromised by agreements with external parties.

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Benefits for Event

• Financial Investment• In-kind services• Marketing and media expertise• Event brand enhancement• Product and service offers for event

goers

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Benefits for Sponsor

• Increased brand awareness

• Brand image enhancement

• Product trial/service exposure

• Sales or hospitality opportunities

• Market interactivity

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Why marketers Sponsor Events

• To identify a particular target market or lifestyle• To increase awareness of company or product name• To create or reinforce consumer perceptions of key brand image

association• To enhance corporate image dimensions• To create experience and evoke feelings• To express commitment to the community or on social issues• To entertain key clients or reward key employees• To permit merchandising or promotional opportunities • To enhance recruiting efforts• Connections to athletes and celebrities • Reach top executives from other businesses• To demonstrate and display new products or existing products at the

event

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Ingredients of Sponsorship Proposals (based on contractual agreement)

• The rights to use team or organisational logos• Naming rights• The identification of sponsors in literature and event advertising• The extent of corporate hospitality• The rights to sell an event• The opportunity to perform sales promotion activities

(Sport and Event Marketing, 2001)

While there is no one correct format for sponsorship proposals, the most successful ones are customised to the sponsor. The sponsorship program is designed to meet the specific marketing needs and objectives of the targeted company.

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Objective Setting I

• There are 4 main groups of objectives that are used by the marketing managers for a successful sponsorship.

- Corporate Objective : This aims at public awareness and corporate image. This will potentially lead to stronger bonds with the clients and potential and existing customers.

- Brand / Product Objective: This aims to increase sales and brand awareness through the current target market.

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Objective Setting II

- Communications Objective: This tends to be short-term, only focusing on the quantity of the sponsorship and not quality. It is used to generate publicity not solely at the target market.

- Personal Objective: This objective is to raise the employee’s morale and company loyalty, it is purely a management interest.

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References

• Anon., (2007). Sponsorship - definition, information, sites, articles. Unknown. Available from: http://www.marketingterms.com/dictionary/sponsorship/

• Anon.,(2007). Sponsorship-definition, information, sites. Unknown available from: http://www.sponsorship.co.uk/in_sponsorship/in_sponsorship.htm

• Busby, R,. (Unknown). BDS Sponsorship. London. Available from: http://www.sponsorship.co.uk/in_sponsorship/in_sponsorship.htm

• Pope, N. & Turco, D. (2001) Sport & Event Marketing, Roseville, NSW: Mc-Graw-Hill Australia

• Anon., (2004). The History Of The Football League. Unknown. Available from:http://www.football-league.premiumtv.co.uk/page/History/0,,10794,00.html

• LeDrew, J,. (Unknown). Publications & Resources. Halifax. Available from:

http://www.sportnovascotia.ca/contents/publications/resources/marketing/sponsorship_proposal.htm

• McGarry, L,. (2007). Carphone Warehouse Pull Celebrity Big Brother Sponsorship - Unreality TV. Unknown. Available from:

http://www.unrealitytv.co.uk/celebrity-big-brother/breaking-news-carphone-warehouse-pull-celebrity-big-brother-sponsorship/

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References

• Prosser, D,. (2007). When Sponsorship Deals Go Bad. London. Available from: http://findarticles.com/p/articles/mi_qn4158/is_20070728/ai_n19446552

• P, A.F,. (2007). Adidas Drops T-Mobile After Doping. London. Available from: http://www.theage.com.au/news/sport/adidas-drops-tmobile-over-doping/2007/11/10/1194329521302.html

• Anon., (1993). Best Practise – Sponsorship. What you should expect from the parties involved. London: ISBA Publications.

• Wragg, D,. (1994). The effective use of Sponsorship. London: Kogan Page Limited.• Anon., (1999). The European Legal Alliance – Ambush Marketing. London. Available

from• http://www.ad-sponsorshiplaw.com/InfoCentre/briefingnotes/ambushmarketing.pdf• Kotler, P. & Keller., (2006), Marketing Management, 12th Edition, Prentice Hall, Upper

Saddle River, NJ.• Anon., (2008). IEG Sponsorship. Unknown. Available from: http://

www.sponsorship.com• Skinner, B. & Rukavina, V. (2003). Event Sponsorship, John Wiley and Sons, New

Jersey