Why Companies Sponsor

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