1.07 Employ sales-promotion activities to inform or remind customers of business/product
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 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 • 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 • 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 • 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
PARTNERSHIPS • Relationship between sponsor and sponsee • Communication and develop partnership • Ongoing dialogue to expand relationship • Both parties benefit
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 EXPLOITING THE SPONSORSHIP = ADVERTISING 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.