Why Companies Sponsor • Increase visibility • Associate with particular lifestyles • Business-to-Business Marketing • Distinguish from the competition Why Companies Sponsor • Hospitality & Entertainment • Opportunites to merchandise • Show off product/service • Drive sales Criteria for partnership . . . Compatibility What does this mean? 1.What is the image of Cadillac? 2.Would sponsoring the WWF be a good idea for Cadillac? Why? Criteria for partnership . . . Audience What does this mean? 44% of America’s Cup fans would “Almost Always” buy A.C. sponsored products over non-sponsors. Criteria for partnership . . . Working w/Retailers What does this mean? Pepsi “under the cap” promotion Criteria for partnership . . . Media Impact What does this mean? Placing signs where they will be seen on television Criteria for partnership . . . Exclusivity What does this mean? Does Pizza Hut have control of the Arrowhead high school sports market? Criteria for partnership . . . Increase consumer sales What does this mean? Quik Trip making items available at a discount with a “fill up” of gasoline Pricing Sponsorships • Tangible . . . easy to place a price on Examples: logo on event materials, tickets, hospitality, on-site sampling, ad in program • Intangible . . . difficult to place a price on Examples: prestige of property, category exclusivity, attracting media coverage Leveraging Sponsorship Key Question . . . “How can sponsorship be leveraged to maximize sponsorship?” Leveraging Sponsorship • Drive consumer sales – offer discount with purchase-proof of purchase • Added-value for consumers – family night • Self-liquidators – right to sell video tape of highlights Leveraging Sponsorship • Retailer incentives – General Mills increasing POP displays, shelf space • Cross promotions – Pizza Hut and US Cellular “Call of the Game” • Media involvement – Use mascot to deliver news release to media Measuring Sponsorship Results • Perspective #1 As a PROPERTY “Prove” sponsorship opportunities have been successful to gain new partners and renew current partners • Perspective #2 As a SPONSEE Consider whether or not to continue the partnership based on the value you received Measuring Sponsorship Results Most sponsorship pros agree there are 3 categories of evaluation . . . 1. Sales results 2. Changes in attitudes & awareness 3. Media coverage Why Sponsorships Fail • In the past . . . The boss simply sponsored what he “liked” versus what would be “effective.” SO Some common reasons for failure are . . . Why Sponsorships Fail • Pay & Run • The Details • Impatience • A Little Here & A Little There Why Sponsorships Fail • No One to Run the Show • The “Inside” is Left Out • Fans? What Fans? Why Sponsorships Fail The common causes for sponsorship failure can all be eliminated through concentrated effort on the part of both parties to ensure a successful event. The infamous “that’s good enough” can lead to disaster. Sponsorship Rights & Benefits • A sponsee must be able to offer rights and benefits to the sponsor in exchange for the sponsorship fee. • These rights and benefits are called INVENTORY. Sponsorship Rights & Benefits Here is a generic inventory list . . . • Sponsorship type: title • Sponsorship: presenting • Exclusivity Sponsorship Rights & Benefits • License: use of logo, • • merchandising Media Inclusion On-site: sampling, coupons Sponsorship Rights & Benefits • Signage: venue, pre• • event, press conference Hospitality: event tickets, VIP tickets Cause Tie-In: mention sponsor charity organization or donation Sponsorship Rights & Benefits • • • • In-Kind Equipment Services Technology Expertise • • The Web Any of the above on web site Links to sponsor site Additional Inventory Items • Ball Racks • PA Announcements • Warm-ups • Player Introductions • Half-time Stats • Stats Crew • Three Point Shot Additional Inventory Items • • • • • • • • Blimp Pocket Schedule Basket Standards Scoreboards Ball Boy/Girl Uniforms Half-time Entertainment Game Night Sponsorship Game Ball Delivery Additional Inventory Items • Attendance Guessing Game • Game MVP • Locker Room Signs • National Anthem Singer
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