Army Sponsorship and Advertising Briefing
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Army Sponsorship and Advertising Briefing. Pierre Laxa and Gabriele Perez U.S. Army Community and Family Support Center Atlanta, August 6, 2002. Session Overview. Program Overview/Policies Military Market Appeal/Sponsor Objectives Key Players Sales Process Internal Controls

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Army Sponsorship and Advertising Briefing

Pierre Laxa and Gabriele Perez

U.S. Army

Community and Family Support Center

Atlanta, August 6, 2002


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Session Overview

  • Program Overview/Policies

  • Military Market Appeal/Sponsor Objectives

  • Key Players

  • Sales Process

  • Internal Controls

  • Financial Reporting

  • Q&A/Wrap Up

  • 2


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Sponsorship

Mission

Support vital MWR programs by obtaining private sector funding, services, or supplies in exchange for advertising and promotional opportunities within the Army community.

  • 3


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Written Policy

  • 1988 Originally authorized by OASD as an exception to DoDI 1015.2

  • 1995 OASD authorized addition of advertising

  • Current Policy:

    • DoDI 1015.10 (Encl. 9 and 10) http://www.dtic.mil/whs/directives/corres/pdf/i101510wch1_110395/i101510p.pdf

    • AR 215-1 (7-47) http://www.armymwr.com/corporate/regulations/r215_1.pdf

    • Army Sponsorship Desk Reference http://www.armymwr.com/corporate/docs/marketing/corporatepartnerships/CSDeskReference.pdf

  • All services participate in sponsorship.

  • 4


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Sponsorship Definition

THE EXCHANGE OF VALUES. The exchange of cash/goods/services in return for advertising and promotional opportunities.

“Quid Pro Quo” = Exchange of values

Not a gift or donation!

  • 5


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Essential Sponsorship

Components

  • Exchange of Value

  • Written Agreement

  • Legal Review

  • 6


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Gift & Donation Definition

  • Unsolicited

  • In best interests of Army

  • No exchange of value

  • AR 215-1, para 7-39

  • Legal office must review offer

  • 7


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Commercial Advertising

  • Authorized by DoDI 1015.10, Encl 10 & AR 215-1

  • Two functions

    • Sell space in MWR media

      • Print

      • Electronic (website or marquees)

      • Signs

    • Purchase advertising in commercial media for events open to the surrounding community.

  • 8


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Commercial Advertising

  • Installation examples

  • On-line

    • Commercial NAF site (.com site, not .mil)

  • Prohibited on Armed Forces Radio & Television Service, commander channels and APF electronic media

  • 9


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Programs/Events

Eligible for Sponsorship

  • MWR programs and events

  • Army Family Team Building (AFTB)

  • Army Family Action Plan (AFAP)

  • Army Community Services (ACS)

    • * Events open to the military community

    • * Designed to target military consumers vs. MWR employees

    • * Must be NAF component of Event/Activity vs. employees

    • * Family Support groups or units not eligible recipients

  • 10


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Sponsorship Guidelines

  • No cost to federal government

  • Consumer Products – no gov’t contractors

  • AAFES coordination

  • Solicited sponsorship

  • Unsolicited sponsorship (alcohol, tobacco)

  • No disfavor or reprisal for non-sponsors

  • 11


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Primary Sponsor Objectives

  • Increase sales (both direct and indirect)

  • Generate visibility & awareness

  • Create or change image

  • Differentiate from competitors

  • Demonstrate commitment to specific group

  • Gain platform for business-to-business marketing

  • Merchandise at point of sale

  • Demonstrate product attributes

  • 12


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What the Military Offers

  • On-site event presence

  • Media tie-ins- TV, Radio, Print

  • Verbal recognition

  • Web ads

  • Billboards/Electronic Signage

  • Research

  • 13


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What Corporations Offer

  • Cash

  • Products

  • Services

  • Credibility

  • 14


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Key Players

  • Sponsorship Professional

  • Command

  • Installation Legal Office

  • Program Manager

  • Marketing Team (Co-Workers)

  • 15


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Sponsorship Manager’s Role

  • Questions for Program Manager

    • Activities?

    • Audience?

    • Attendance?

    • Advertising/Promotions?

  • How can this event benefit potential sponsors?

    • Offered benefits?

  • Packaging Events? Partnering with MWR?

  • Prospecting – ask for leads

  • 16


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Sales Process

  • Team meeting w/key players

  • Create timeline

  • Identify potential sponsors

  • Determine client needs and objectives

  • Customize proposal based on client needs

  • 17


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Sales Process Prospecting

  • Active sponsors

  • Sponsors of other events in your area

  • Cold Calls

  • Chamber of Commerce/community involvement

  • 18


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Sales Process

  • Follow up

  • Obtain commitment

  • Draft written agreement

  • Legal review and approval

  • Signature by both parties

  • Execute all sponsor benefits

  • After-action report (AAR)

  • 19


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Internal Controls

  • Imagine ……. you were audited:

    • Management controls

      • Installation SOP

      • Army regulations (DoDI)

      • Army sponsorship desk reference

  • 20


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Internal Controls

  • Program Policy

    • Find policies in AR 215-1 para 7-47; Sponsorship Desk Reference, AR 210-1; DoDI 1015.10, Encl. 9 + 10

      • Events and programs

      • Solicitation/proposals

      • Coordination with AAFES

      • Tobacco and alcoholic beverages

      • Responsible Use Campaign/The Surgeon General’s Warning

    • Designation Memo

      • The Installation POC

      • Annual training and ethics briefing

  • 21


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Internal Controls

  • Legal Review

    • All agreements must be in writing

    • Agreements cannot exceed 1 year, annual renewals NTE 5 years

    • Right of First Refusal- negotiable benefit

    • Work in advance

    • Good relationship with Legal – involve early

  • 22


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Internal Controls

  • Legal Review

    • Agreements must include:

      • Event or program description

      • Detailed summary of MWR and Client obligations and responsibilities

      • Value of client fee (cash, goods, services)

      • Term and termination clause

      • Certification that no costs incurred by sponsor are charged to Federal Government

      • Force Majeure clause

      • Independent contractor clause

      • Assignment clause

      • Appropriate disclaimers- responsible use campaign

  • 23


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Internal Controls

  • Record Keeping

    • Keep accurate records of all transactions – provide audit trail

    • Invoices include name of event/program, dollar amount, and FMD address for payment

    • All monetary transactions by check – NO CASH

  • 24


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Internal Controls

  • Record Keeping (cont.)

    • Signed Agreement

      • Sponsor’s name, organization, and address

      • Event or program sponsored

      • Retail value of sponsor’s fee (cash, goods, services) and appropriate documentation

    • Solicitation documentation

    • Legal concurrence document (coordination)

    • Copy of invoice/check

    • After Action Reports

  • 25


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Internal Controls

  • Accounting Procedures

    • Budget Guidance

      • FY02 S/A established in Budget Guidance

      • FMD only authorized agency to accept payments

      • Sponsorship income credited to GLAC 553

      • Advertising income credited to GLAC 557

      • FMDs received briefing on Budget Guidance

      • Work with your FMD people, build relationship

    • Website for FY03 Budget Guidance:

      www.armymwr.com/corporate/operations/financial/

      operating_guidance/03guide/default.html


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Financial Reporting

  • Reporting Requirements

    • Bi-annual reports

    • Revenue and expenses

    • Installation SMIRF data

      http://www.hqmwr.army.mil/Misapps/SMIRF/smirf.htm

  • 27


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Financial Reporting

  • Reporting Procedure

    • CFSC provides forms and instructions

    • Installations submit reports to MACOMs/ Regions

    • MACOMs/Regions validate and compile, then submit to CFSC

    • CFSC analyzes total revenue and expenses data and submits Army-wide report

  • 28


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Financial Reporting

  • Reporting Measurements

    • Revenue

      • Advertising Income

        • Cash

          • 100 %

      • Sponsorship Income

        • Cash

          • 100 %

  • 29


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Financial Reporting

  • Reporting Measurements

    • Revenue (cont.)

      • Sponsorship

        • In-Kind

          • Budgeted/cost avoidance items – 100%

          • Media – 50% of stated retail or rate card value

          • Program Enhancement – 50% of stated retail value for any single item valued at $150 or higher

  • 30


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Financial Reporting

  • Reporting Measurements

    • Expenses

      • Labor

        • Total cost including benefits, overtime, comp time

      • Cost of Sales/Associated Costs

        • Any item used in sales

      • Training/Professional Development

        • Industry association membership fees, conference registration fees.

  • 31


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Where areWe Headed?

  • Command Directive

    • Emphasis on generating cash, not in-kind

  • Return on Investment

    • Income/Expense Comparison

  • Battling slowing economy and spending

    • Companies must justify how they spend their funds

  • Focus on several revenue-producing events/programs

    • Packaging

    • Client focused

  • Bringing revenue and benefits directly to installations

    • Army-wide Promotions

    • Army-wide Franchise Advertising

  • 32


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Contact Information

Pierre Laxa

(703) 681-5274, DSN 761-5274

E-mail: [email protected]

Gabriele Perez

(703) 681-7290, DSN 761-7290

E-mail:[email protected]

U.S. Army Community and Family Support Center

CFSC-SP

4700 King Street

Alexandria, VA 22302-4403

  • 33



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