Sponsorship strategies,
techniques and sales process
Alain Ferrand & Luiggino Torrigiani
Ferrand/Torrigiani - Marketing Innsbuck 2009
1
Parties Objectives
Status
Objectives for
sponsor
Sponsor
•Evaluate
•Optimize
•ROI
prospect
•Evaluate
•Adapt
•Negotiate
Ferrand/Torrigiani - Marketing Innsbuck 2009
Objectives for
OSO
•Loyalty
•Demonstrate ROI
•Increase
perceived quality
•Fit
•Customized
•Credibility
2
What are sponsors looking for?
• Understanding sponsors’ expectations
• Sponsorship to meet their marketing objectives
• Commercial objectives aiming at selling more
products and services
• Corporate objectives aiming at promoting
sponsor social values and performance, and
corporate citizenship
Ferrand/Torrigiani - Marketing Innsbuck 2009
3
Sponsorship objectives
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•
•
•
•
•
•
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Increase sales and market share
Increase brand or products awareness
Demonstrate products performance
Provide credibility to their brand or product
Build image in the marketplace
Stimulate their sales force
Stimulate their distribution network
Develop goodwill and positive attitude towards the brand
Develop B2B relationships
Hospitality with customers
Internal Shared values
Maintain leadership in market place against competition
Ferrand/Torrigiani - Marketing Innsbuck 2009
4
Combined strategies
• Sponsorship objectives derived from marketing
strategies
• Strategies evolve in time following the plan:
Brand recall, awareness, image, know-how,
channels, sales,…
• Change according to targets
Ferrand/Torrigiani - Marketing Innsbuck 2009
5
Exploiting the programs
• Multiply associations between sponsor, event
and target audience
• Media and promotional activities
• Signage on-site
• PR activities
• Merchandising
• Human resources programs
Ferrand/Torrigiani - Marketing Innsbuck 2009
6
OFFER
PRICE
Generic
offers
pricing
Information
about the fit
Customization
Offer
customization
Price
customization
in relation with
personalisation
Adaptation
negotiation
Offer
Customization
in order to enhance
Its perceived
value
Perceived
Value
enhancement
Price customization
in relation with activation
programs planned
and negotiation
To conceive
communication
plan
To create:
- Dossier
- Video
- Proposal
To choose
and organize
the sale force
Information
in order to
set up the
prospecting list
To communicate
the offer
To negotiate
To convince
To reassure
Confrontation
with legal
perspective
Confrontation
with legal
perspective
Confrontation
with legal
perspective
Contact
formalization
Brand protection
Regulations analysis
Regulation
Warranties
Finalisation
Specific
activation
programs
conception
COM*
To conceive
global generic
offers
Diagnostic
about the
fit
SALE
LEGAL
MARKETING
Strategic
Basic
decisions
Communication about commercial action
Contract
agreement
Sponsorship package structure
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•
•
•
Hierarchy (naming rights)
Inventory
Exclusivity (product exclusivity)
Contribution Vs Visibility (rights and
obligations)
• Image
• Servicing
• Less for more
Ferrand/Torrigiani - Marketing Innsbuck 2009
8
Golden rules
• Exploit what you can
• Only exploit what you can deliver
• Fulfill the objectives of your events and those of
your partners
Ferrand/Torrigiani - Marketing Innsbuck 2009
9
Offer design
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•
•
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Sponsor category
Marketing rights
Venue design
Hospitality
Services (personal in contact, logistics,
printing, surveys,…)
• Communication plan
• Experience
Ferrand/Torrigiani - Marketing Innsbuck 2009
10
Pricing
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To cover your budget?
Market price (competition)
Positioning and values
Quality of fit and ability to meet sponsor’s objectives
Promotion, advertising and media impact
Value of hospitality packages (tickets, catering,
transportation, service, gifts,…)
VIP settings
Consultant fees (advertising, creative work, decoration,
personnel,…)
Insurance
After event reports and research
Ferrand/Torrigiani - Marketing Innsbuck 2009
11
Pricing
Cost Reference Competition
Contacts
Competition price
Reference price
Cost
Ferrand/Torrigiani - Marketing Innsbuck 2009
12
Sponsorship model
ROI assessment
Service perceived
quality
Marketer
Rights
owner
FIT
Sponsor
Contribution (cash, Value
In Kind)
Sport
organisations
Sport facilities
managers
Activation programs
STAKEHOLDERS
Athletes
Other
Sponsors
Local
authorities
Providers
Media
Fit analysis on qualitative dimensions
SPECIFIC
SO or EVENT
COMMON
SPECIFIC
SPONSOR
POSSIBLE
EFFECT
VALUES
IMAGE
PERCEIVED
QUALITY
BENEFITS
RELATIONSHIP
STAKEHOLDERS
Transfer or reinforcement
Ferrand/Torrigiani - Marketing Innsbuck 2009
14
Fit analysis on quantitative dimensions
LEVEL
OS or EVENT
LEVEL
SPONSOR
POSSIBLE
EFFECT
AWARENESS
ATTITUDE
SATISFACTION
Transfer
HIGH
LOW
Ferrand/Torrigiani - Marketing Innsbuck 2009
15
Structure and content
• Executive summary: short and to the point
• The project: the arguments, the hard data (numbers), media
exposure, audiences,…
• Objectives: mission statement, communication plan, brand,
positioning
• Detailed inventory of rights offered
• Key benefits to the sponsor: image transfer, brand awareness,
hospitality, networking, distribution channels, sales, shared
values,…)
• Price
Ferrand/Torrigiani - Marketing Innsbuck 2009
16
Sponsorship customized proposal
presentation (PowerPoint)
Slides
Content
1st Slide
Name of the SO or the event, dates and rights owner identification
2nd Slide
Synthetic presentation: concept, impact, legitimacy…
3rd Slide
Positioning
4th Slide
Localization, targeted audience..
5th Slide
Rights owner presentation (facts and features)
6th and following slides SO or event brand equity and fit with potential sponsor justification
(benefits)
Following slides
Programs and onsite activities
Following slides
Marketing and communication plan
Following slides
Customized proposal (priced)
Following slides
Activation plan proposal
Following slides
Business contact
Sponsorship sales process
Sponsorship proposal
Follow-up
Negotiation
Contract
Servicing (perceived quality)
Evaluation
Debriefing
Ferrand/Torrigiani - Marketing Innsbuck 2009
18
Sales Process
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•
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•
•
Prepare, prepare, prepare
If possible, make appointment by phone
Explain the benefits of your proposal
Explain the fit
Use corporate language, your are discussing a
business deal!
• Be enthusiastic
• Don’t discuss the price until the sponsor is excited
Ferrand/Torrigiani - Marketing Innsbuck 2009
19
Sales Process
• Only send your proposal once you have understood your
prospect ’s needs
• Audiovisuals to support your package, not to replace it
• Follow-up within a week by phone and letter
Ferrand/Torrigiani - Marketing Innsbuck 2009
20
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•
•
•
•
Who sells?
Who sells?
Using an agency or a consultant
Servicing your sponsors
Enthusiasm, network and fit: the keys to success
Give confidence to prospect and describe how you are
going to deliver
Ferrand/Torrigiani - Marketing Innsbuck 2009
21
Differentiating
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•
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Values
Offer
Price
Communication
Targets
Activation
Service
Experience
Managing expectations and satisfaction
Ferrand/Torrigiani - Marketing Innsbuck 2009
22
Benefits of differentiation
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•
Develop competitive advantages
Not easy comparable
Customized
Meeting expectations
Credible
Less sensitive on price
Ferrand/Torrigiani - Marketing Innsbuck 2009
23
Before the event
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•
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Coordination / Key account management
Production of material
Designing of hospitality
Consistency
Reactivity
Activation
Coop-marketing
Ferrand/Torrigiani - Marketing Innsbuck 2009
24
Follow-up during the event
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•
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•
•
Checking contracts Rights and obligations
Checking visuals
How are the other sponsor treated?
Public and audience
Decoration and organisation
hospitality
Ferrand/Torrigiani - Marketing Innsbuck 2009
25
Follow-up after the event
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•
•
•
•
•
•
De-briefing
Financial and organisational results
Direct audience
Media impact
Image and brand awareness studies
Customers’ satisfaction
Increased sales?
Ferrand/Torrigiani - Marketing Innsbuck 2009
26
Return On Investment
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•
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•
•
•
•
•
•
Brand exposure in seconds (SMS, SRI)
Advertising equivalence
Sales
Markets reached
Board efficiency
Logo readability on various support
Price versus ROI
Awareness and image
Perceived quality and attitude
Ferrand/Torrigiani - Marketing Innsbuck 2009
27
Evaluation from sponsor
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•
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Strategic fit
Possibility to differentiate
Activation
Competitive advantage
OSO ability to adapt and service
Quality of experience provided
Brand value
Relationship value
Ferrand/Torrigiani - Marketing Innsbuck 2009
28
OFFER
PRICE
Generic
offers
pricing
Information
about the fit
Customization
Offer
customization
Price
customization
in relation with
personalisation
Adaptation
negotiation
Offer
Customization
in order to enhance
Its perceived
value
Perceived
Value
enhancement
Price customization
in relation with activation
programs planned
and negotiation
To conceive
communication
plan
To create:
- Dossier
- Video
- Proposal
To choose
and organize
the sale force
Information
in order to
set up the
prospecting list
To communicate
the offer
To negotiate
To convince
To reassure
Confrontation
with legal
perspective
Confrontation
with legal
perspective
Confrontation
with legal
perspective
Contact
formalization
Brand protection
Regulations analysis
Regulation
Warranties
Finalisation
Specific
activation
programs
conception
COM*
To conceive
global generic
offers
Diagnostic
about the
fit
SALE
LEGAL
MARKETING
Strategic
Basic
decisions
Communication about commercial action
Contract
agreement