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1.07. Employ sales-promotion activities to inform or remind customers of business/product. Explain the nature of SPONSORSHIP in SEM industries. What is Sponsorship?. Sponsorship: Providing financial or other support to a sport/event in exchange for recognition

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Employ sales-promotion activities to inform or remind customers of business/product

What is sponsorship
What is Sponsorship?

  • Sponsorship:

    • Providing financial or other support to a sport/event in exchange for recognition

    • Two or more parties benefit from the arrangement in the form of a partnership

    • Sponsors want recognition & affiliation

Successful sponsorships
Successful Sponsorships

The key to building successful sponsorship programs is to match the correct products or services with the people who want to purchase them = theirtarget market

Benefits of sponsorships
BENEFITS of Sponsorships

  • Public and Community relations = Increase of Brand Image

  • Brand recognition directly with your Target Market

  • Sales and profits through affiliation & brand awareness

  • Market Share and/or introduce new products

    • Enter new markets

Risks of sponsorships
RISKS of Sponsorships

  • Loosing Streak

  • Too many sponsors at one event

  • Could create a bad image and your associated with it

    • Example: Super Bowl wardrobe malfunction in 2003

  • Could encounter Ambush Marketing

    • Ambush marketing is when a company will expose their products/logo at an event without authorization or payment LEGALLY

    • Goal of ambush marketers is to encourage fans to view it as a sponsor

    • Example: Coke is a sponsor but Pepsi is outside the event handing out free Pepsi tees or coolies

Exclusivity in sponsorships
EXCLUSIVITY in Sponsorships

  • When a business purchases the rights to be the only one of its kind to sponsor a sport entity

    • Example: You will not find Coca-Cola and Pepsi sponsoring the same event


  • Relationship between sponsor and sponsee

    • Communication and develop partnership

    • Ongoing dialogue to expand relationship

  • Both parties benefit

Sponsorship contracts
Sponsorship Contracts

SPONSORSHIP PROPOSAL: includes information about cost,

marketing opportunities, audience demographics, conflicts and

time parameters

Formal contract: spells out exactly what each party will do

(Avoid legal conflict)

Why should exploit your sponsorship
Why Should EXPLOIT your Sponsorship


  • If a business spends all of their marketing budget on sponsorship fees = No money left over to advertise the sponsorship

  • If target market is not aware of sponsorship, then sponsorship is wasted money!

Conduct an Internet scavenger hunt to find three current news articles about sport/event sponsorships. Print the articles, and write a synopsis of each.