Session Seven

1. Session Seven Epictetus, 55-155 AD “What concerns me is not the way things are but, rather, the way people think things are.

2. Sales steps to take during tight financial times • Go “outside” your normal contacts • Explore recession resistant categories (fuel, utilities, telcos, pharms, consumer staples, senior products) • Make 5 extra calls a day • Ask for referrals • Offer creative financing • Treat customers as partners • Write your goals • Be a consultative salesperson • Keep in touch with former sponsors • Don’t get discouraged

3. Know the recession survival statistics McGraw-Hill has researched each recession. Their conclusion? Companies that CUT marketing dollars during a recession not only lost market share but had to spend twice as much when they came out of the recession to REGAIN their original share!

4. Estimated promotion marketing for 2008 $350+ billion!!!!

5. Sell benefits, not features DON’T say … “posters, flyers, banners, blah, blah, blah” RATHER … a variety of marketing collateral that reaches a diverse market, reinforcing your branding strategy and helping you achieve your marketing objectives

6. And, don’t dwell on branding Sponsors are savvy Sponsors want more Sponsors want a return on their investment (ROI) Sponsors are just as interested in intangibles as they are tangibles Sponsors want to be treated as partners

7. Who do you talk to? • President • Vice President of • Marketing • Public Relations • Human Resources • Brand management • Product management • Sales • Advertising • Multicultural marketing • Sponsorship • Brand managers • Product managers • Business owner

8. And, do your homework BEFORE you call! • God bless Google (or Yahoo or any of your favorite search engines) … research the potential sponsor • Spot the need • Match need to your resources • Ask for the order • Make the sale!

9. Understand the sponsor Know their … • Business • Competition • Budget cycle • Market share • Past experiences with sponsorship • In short, be a consultative salesperson

10. Listening leads to understanding Terms your buyer knows ROI ROO ROE ROMI

11. Success highlights during a recession • 1930’s… P&G … didn’t lay off people- invented the concept of branding-started first radio soap opera; Advertising Age launched, Business Week launched • 1970’s … Charles Scwab founds discount brokerage; • 1980’s … Ted Turner founded CNN; MTV launched; miles based loyalty programs started; generic products are launched; Home Depot opens its first store • 1991 … Sales of SUV’s ROSE! • 2001 … Wikipedia was conceived; first iPod introduced

12. Why this information? You need it for your sales calls! Advice to sponsors: • Don’t cut the budget • Maintain or increase strong launches • Beware of discounting • Go with the flow • You can’t go wrong with diversion (and that, folks, is us!)

13. Why this information? You need it for your sales calls! Advice to sponsors: • Don’t cut the budget • Maintain or increase strong launches • Beware of discounting • Go with the flow • You can’t go wrong with diversion (and that, folks, is us!)

14. Creative negotiating options • Cash first • Cash plus barter • Barter • Shared sponsorships • Creative financing (terms/credit cards) • Converting barter to cash • Media sales partners • L-O-N-G lead time

15. Creative negotiating options • Cash first • Cash plus barter • Barter • Shared sponsorships • Creative financing (terms/credit cards) • Converting barter to cash • Media sales partners • L-O-N-G lead time

16. Events benefits checklist SPONSOR BENEFITS CHECKLIST _____ Radio commercials _____ Newspaper advertising _____ Television _____ Transit (bus and rail) cards _____ Metro brochures _____ Booth _____ Participation in ________________ _____ Volunteer recognition _____ Banners _____ Hospitality _____ Customers _____ Clients _____ Staff _____ Employees _____ Sampling _____ Product sales _____ Audio announcements _____ On-site signage _____ Program guide _____ Public relations _____ Internet _____ Sales promotion _____ Database development _____ Contests _____ Premiums _____ Cross-promotion with other sponsors _____ Category exclusivity Other: __________________________________________________________________ ________________________________________________________________________ Based on this discussion, the best partnership would be the ______________________. Let’s walk through that right now to ensure that we have met all your needs. “Name of Event … contact information”

17. Process Go through this BEFORE you talk investment Remember the definition of sponsorship: An investment, in cash and/or in kind, in return for access to exploitable business potential associated with an event or highly publicized entity.

18. Adapting Sales Strategies for a Recession (Correction/Downturn) … whatever! This week’s findings In general … no one knows what to call this! Two communities .. Holland, MI and Philadelphia, PA Yes, No, Maybe, I don’t know (take your pick)

19. Selling single events Two ways to sell … Horizontally … title, presenting, associate, official product Vertically … the children’s area, the senior’s area, the teen area, the stage, the port-a-potties, etc.

20. Selling multiple events Rubik’s Cube Again, you can sell either horizontally … buy all and get __________________ OR Vertically … pieces OR Vertically … own one of the events I prefer horizontally because …

21. Selling multiple day events This is beyond a Rubik’s Cube! Step one … try to sell all Step two … sell half (first half, second, half, every other) Step three … sell clusters (3, 6, etc.) Step four … sell one Now, for the Rubik’s Cube … Sell all … vertical would be sponsor the food court, etc. Then vertical clusters, on down to the “one only”

22. Selling value Remember, benefits, benefits, benefits! Use the “What Sponsors Want” List as your source for benefits orientation • Increase sales • Corporate hospitality • Introduce a new product • Expand use of current products • Sampling • Asset/category exclusivity • Employee incentives • Customer incentives • Trade incentives • Product branding • Differentiation from the competition • Association with a particular lifestyle • Heighten visibility • Shape consumer attitudes • Entertainment • Cross promotion with other sponsors

23. Cost vs. investment … pricing Key thing to remember … the COST of an activity is IRRELEVANT to your buyer! The buyer is interested in the VALUE of what they receive in the way of BENEFITS to them!

24. 13 Factors affecting sponsorship decisions • Benefits • Timing • Budget • Personnel • Market conditions • Customers’ perceptions of your offering • Other sponsors • Category exclusivity • Merchandising opportunities • Hospitality opportunities • Event history • Sales opportunities • Cross marketing opportunities

25. 13 Traits of good salespeople • Passion • Knowledge about the buyer • Creativity • Constant networking • Constantly seeking new contacts • A good listener • Empathy • Determination • Confidence • Self-esteem • Ego • Tenacity • Written goals

26. 13 Reasons Salespeople Don’t Succeed • Not making enough calls • Not following through • Not listening • Not starting every day with a plan • Not describing benefits clearly • Not asking for the order often enough • Negatively prejudging a prospects ability to buy • Not dealing with objections • Ignoring the power of a positive attitude • Not changing and growing • Lack of focus on priorities • Failure to work harder and smarter • Egotistical

27. How to read the annual report Here are the items you should be looking for … • Vision or mission statement • Strategies (and tactics) for achieving #1 • Principal lines of business • Target markets • Challenges/problems • Success measurements • Competitive advantage • Profit increases/decreases • Gross profit margins

28. Lucky 13 bits of advice • Believe you have already succeeded when you walk in the door • Have written goals • Have a sales plan (ties in with #2) • Go the extra mile • Be willing to negotiate • Be willing to walk away • Have a personal mission statement • Deliver 110% • Take responsibility for your actions • Replace negative statements with positive statements • Allow yourself to make mistakes … none of us is perfect! • Always ask yourself … what is the worst that can happen • Be honest … with your sponsors and yourself

29. Know the trends Need to know these in order to tie your sponsorship offering into the needs of the sponsor • More unique assets • Customization/personalization • Localization/grassroots marketing • Unique exclusivity • Interactive/experiential opportunities

30. Trends (continued) • Opportunity to leverage with other sponsors (sponsor summit) • Opportunity to leverage with other suppliers • Flexibility • Virtual experience (Wii) • Social networking (YouTube, Craig’s List, Facebook, MySpace, Blogs <including video blogs>, Podcasts, Twittering) • Lower cost-per-touch

31. Trends (continued) • Emphasis on lifetime value of a customer • Measurement (ROI, ROE, ROO, ROMI) • Marketing to seniors • Healthy and natural foods • Anything African (spices, Shea butter, etc.) • Anything “green” … organic, environmentally sensitive, etc.

32. Trends (continued) • Sleep and stress-reducing aids • Specialized events (vertical) • Think globally, act locally (side note: International travelers) • Greater creativity • Consumercentric • Psychographics

33. What’s not a trend • Packages • All things to all people/large, generic events • Demographics • Branding as the key sales approach • Clutter • Centralization • One size fits all

34. More sales ammunition You’ve got the trends … now some statistics (from PROMO January 2008) • 30% plan to spend more on events and 42% expect to hold steady (IEG says 40% will spend more) • 30% spent $100K to $499K in 2007 • 27% allocated $1-5 million • 30% devote 25% or MORE of total marketing budgets to event sponsorship

35. One major irritant of event marketing Ambush marketing … Or, as better said by Michael Lynch VISA … Parasitic marketing HOWEVER …

36. Still the Promo survey … 30% admit to ambushing! And 26% have been ambushed! I don’t like it but … “The Ambush Marketing Toolkit” is available through McGraw-Hill Book Co. (Kim Skildum-Reid) if you must To my way of thinking it’s dishonest and unfair … for everyone

37. More from the Promo survey … Sponsors measure impact by sales, intent to purchase, brand preference altered and amount of time engaged with product Marketing activities tied to events included sweepstakes, contests, data collection, sampling, coupon distribution, local advertising and radio tie-in

38. Interestingly … The IEG survey people are still interested in branding and demographics! And, IEG says … 46% determine their budget 4Q 25% 3Q 9% 2Q 20% 1Q

39. How to do that Must follow the 12 steps • Take inventory • Establish media and retail partners • Develop sponsorship offerings • Research partners • Make contact • Set appointment

40. … continued • Be creative on the sales call • Ask for the order • Keep the sponsor in the loop • Involve the sponsor in the event • Provide post-event report (ROI, etc.) • Renew for next year

41. Positive aspects of “Recession” • Media will be more willing to work with you (they need you and your assets) … this is good for you • Competitors are cutting budgets – you will stand out … this is good for your sponsors • Staying in front of your customers indicates you are a survivor …good for sponsors

42. Please remember this … Sponsorship is THE BEST MARKETING TOOL to use in an economic downturn because it provides the greatest return on investment based on cost per thousand (CPM)

43. Sell smart … sell confidently Believe that what you have has value Then, you have to prove it! That’s where pricing comes in … on two levels • Being confident that you are pricing your sponsorship offerings fairly • Providing a post event report that accurately reflects the ROI of the event

44. Pricing First Some rules … no packages Work with the events benefit checklist Know the value of those benefits Develop your offerings based on CPM (cost per thousand) Be flexible

45. Pricing First Some rules … no packages Work with the events benefit checklist Know the value of those benefits Develop your offerings based on CPM (cost per thousand) Be flexible

46. $ values to use …based on CPM Posters $35 Flyers/Bag Stuffers $50 Banners $1.50 Table Tents $75 On Site Banners $100 Payroll Stuffers $75 Radio/TV/Print Rate card Tickets, gaited events Face value Tickets, backs $75 Booth Space Rate Card What else?

48. What does this mean? • You know the value of what you are selling • You can VALIDATE the value • You can BELIEVE the value • You can have confidence in yourself that it is being presented properly

49. Categories • Title • Presenting • Associate • Official product • Vertical sponsorship • Cheapskate! 

50. 10 Basic Rules for Success • Believe that you have already succeeded • Replace negative statements with positive phrases • Take responsibility for your actions • Always set written goals • Think positively • Formulate a personal mission statement • Always ask “what is the worst that could happen?” • Allow yourself to make mistakes • Strive to be the best you can be • No one was born great … we can CHOOSE success