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Sponsorships

Sponsorships. Sponsorships. Sponsorship. A business relationship between a provider of funds, resources & services and an organization that offers in return specific rights that may be used for commercial advantage. Sponsorship Growth. Decreasing efficiency of the media

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Sponsorships

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  1. Sponsorships Sponsorships

  2. Sponsorship • A business relationship between a provider of funds, resources & services and an organization that offers in return specific rights that may be used for commercial advantage.

  3. Sponsorship Growth • Decreasing efficiency of the media • Viewership of ads & readership on the decline • Changing social priorities • People want to know values of co. • Sponsorship seen as marketing that gives something back • See sponsorship at an event you choose rather than forced to watch

  4. Sponsorship Growth • Cause marketing • Switch to a product that supports a cause • 34% - perception of a company “changes” depending on the type of event the company is sponsoring. • 64% - sponsorship of a local event would make them think more favorably of a company.

  5. Arts 5% $786 million $503 million

  6. Why Do Companies Sponsor? • Increase brand awareness, preference & loyalty • Increase sales & market share • Image enhancement • Enhance or change image • Phillip Morris – education, recreation, environment • Associated with certain causes • Create goodwill • Utility companies

  7. Why Do Companies Sponsor? • Hospitality opportunities • UPS & State Farm Rail Classic • An example…

  8. Why Do Companies Sponsor? • Other • Upper management interested in cause • Taxes • To secure naming rights • Generate media benefits • To reach a precise target market • LPGA vs. NFL • Museum eg…

  9. In Kind Services (5) • Product support • Personnel support • Prizes • Media

  10. In-Kind Eg • Reno Sparks Convention & Visitors Association • listing in the special events calendar, • listing in the visitor planner • listing on the PR calendar • Sales promotion of special events at trade shows throughout the year • RSCVA website listing • Distribution of event brochures at RSCVA visitor centers, inclusion

  11. Possible Sponsor Offerings • Use of logo, name, trademark…Olympics • Naming rights • Staples Center • O Neill Cold Water Classic • Lucas Oil Stadium • University of Missouri…

  12. Possible Sponsor Offerings • Hospitality • Tickets, lodging, transportation • On-site entertainment & special events • Right to use designated phrases • Official sponsor of the 2008 Beijing Olympics • Official basketball of the WNBA • PGA…

  13. Possible Sponsor Offerings • Category exclusivity • State Farm & no Country Companies • Publicity • Banners & logos at events • T-shirts • Logo on the wall of the press room • Brand exposure thru media…

  14. Possible Sponsor Offerings • Association with a particular market segment • Beer vs. wine makers & their target market • Sales opportunities • Signage at event

  15. Sponsorship Process • Find companies with the interest & the ability to pay • Investigate the corporation • Develop a proposal • Develop an agreement • Follow-up

  16. 1. Find Companies • Find companies with the interest & the ability to pay • Develop a database of potential sponsors • Geography • Local, regional, national

  17. 2. Investigate Corporation • Sources of information • Annual report • Website • Clippings from local & national papers (i. Wall Street Journal) • Know decision makers & who to contact • Talk to your staff • Networking in community

  18. 2. Investigate Corporation • What to know • Who owns the company • Pizza Hut, KFC – Pepsi • Company needs & interests • Why they would sponsor • Exposure, affiliation, reach new customers • Pepsi=youth

  19. 2. Investigate Corporation • What to know • Budget • Cycle & fiscal year • Advertising dollars available • Process to request sponsors • Other events they sponsor

  20. 3. Develop a Proposal • Description of event or property offered • History of event / property • Years in operation • Logistics • Sell them on the event (benefits) • Proposal objectives to match sponsor needs • Reno/Tahoe example…

  21. 3. Develop a Proposal 25-50% 10% <10%

  22. 3. Develop a Proposal • Packaging options…. • Title sponsorship • Often request 1st right of refusal on other sponsors • Allstate Sugar Bowl (previously Nokia) • Macy’s T-giving Parade • Others? • Presenting sponsorship • 25%-50% $$ of title sponsor • Exclusive rights with their product category • More money needed, the more narrowly defined the categories • Eg….

  23. Categories Reserved by Mars – World Cup Soccer • Candy & confection • Block chocolate, cocoa • Chocolate covered snack bars, biscuits, mints • Potato chips • Tortilla chips • Nuts • Pretzels

  24. 3. Develop a Proposal • Packaging options…. • Official sponsors • @ 10% of title sponsor • Smaller package than presenting sponsor • Allowed to sponsor categories not sponsored by P.S. • Good level for smaller companies • Official supplier • Offer goods & services • Food, beverage, equipment PGA tournament example…..

  25. Title sponsor Corp name in title Hospitality tent On-site signs 500 event tickets 48 entries in pro-am tourney Cost: $750,000 plus a requirement to buy $1M in network advertising Presenting Sponsor Hospitality tent On-site signs 300 event tickets 36 entries in pro-am tourney Cost: $300,000 plus a requirement to buy $500,000 in network advertising PGA Tournament

  26. Associate Sponsor 7 sponsors at this level On-site signs 12 spots in pro-am tourney Hospitality tent Cost: $35,000 Small Sponsorship 4 spots in pro-am tourney ($16,500) Hospitality tent ($10,000) Signs on-site ($5000) PGA Tournament

  27. 3. Develop a Proposal • Quality presentation materials • Tailored to the business, neat, high quality • Insert logos • Show title of event with corporation’s name • Make proposal data driven • Use market research to link your customers with their product • Psychographics • Brand awareness info

  28. 4. Develop an Agreement • Legal contract with details • Effective dates • Start & stop dates • Sponsorship renewal terms

  29. 4. Develop an Agreement • Legal contract with details • Benefits of sponsorship & sponsorship commitment • Exchange of product & services • Monetary and/or in-kind services given • Benefits received • Spelled out explicitly • Signage location, size of logo, colors of logos, number of mentions, etc

  30. 4. Develop an Agreement • Legal contract with details • Advertising & promotion responsibilities • Detail marketing activities • Dates advertisement starts, media plan • Who is responsible for coordinating media exposure • Termination clause • Use legal terms for this section • How to deal with one of the parties backing out

  31. 4. Develop an Agreement • Legal contract with details • Indemnification and insurance • Lists how much coverage each entity provides for liability & workers’ comp • Signatures!

  32. 5. Follow-up • Detailed benefits supplied • Promotional activities conducted to support sponsorship • Samples of sponsor materials, ie. Photos, tickets • Meeting to discuss positives & negatives of event

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