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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!
sponsorship car activity
Sponsorship Car Activity
  • Find a Racing Car (NASCAR) and identify
  • Driver and number of the car
  • Major sponsor
  • Minor sponsors
  • How many sponsors did you find on one car?