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 – 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 = their target market

Sponsorships for Small vs. Large Organizations Small Organization SponsorshipsLarge Organization Sponsorships May not spend the time to develop good sponsorship programs May provide unrealistic deadlines Limited staff May have more difficulty communicating with the sponsors Tend to develop poor relationships with sponsors May have staff or be able to hire consultants to develop a good sponsor program Better program organization Good communication with sponsors May have unrealistic expectations about their event Sponsors have more confidence in giving money to large organizations

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!

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?