7-1 Chapter 7 Leveraging: Activation Of the Sponsorship Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

7-2Leveraging Sponsorship Has Been Characterized as a License to Spend More Money Sponsorship Is Not a Stand-Alone Activity Need to Support Any Sponsorship with Additional Efforts Designed to Reinforce the Awareness that the Marketer Is an Official Sponsor of the Property

7-3Leveraging Also Referred to as: –Activation –Collateral Support Defined as: –the set of strategic initiatives that are designed to support and enhance the sponsorship

7-4 Why Leverage? Reinforce Relationship in Consumers’ Minds Reduce Vulnerability to Ambush Marketing Increase Likelihood that the Sponsorship Will Achieve Its Anticipated Objectives

7-5 License to Spend Drop in Figure 7.1 Here

7-6 How Much Should Be Spent on Leveraging Activities? No Universal Agreement Actual Amounts Vary Significantly Generally Accepted Standard Is That a Minimum of $1 Should Be Spent on Leveraging for Each $1 Committed to Rights Fees

7-7 Leveraging in Practice IEG Reported Expenditure Ratio in 2004: $1.30 Spent on Leveraging for Each $1.00 Paid in Rights Fees New Report Indicates that Ratio Increased in 2007 to an All-time High of $1.90

7-8 Leveraging Techniques Drop in Box 7.1 Here

7-9 Theme-Based Advertising Use Advertising that Focuses on the Same Theme Germane to the Sponsored Event For example: – adidas Sponsors FIFA and the World Cup of Soccer; They Use TV and Magazine Ads that Feature a Soccer Theme to Leverage that Sponsorship

7-10 Example of Theme-Based Ad Drop in Figure 7.2 Here

7-11 Advertise During the Broadcast of the Event Often, Sponsors Are Given Opportunities to Purchase Advertising Time Prior to that Time Being Offered to Nonsponsors For Example: –McDonald’s Airs TV Advertisements during the Olympic Broadcast in an Effort to Leverage Its Sponsorship of the IOC

7-12 Advertise in the Event Program Reach the Fans at the Event; Those in Attendance Will Read the Program and Be Exposed to the Sponsors’ Advertisements For example: –FedEx Used Ads in the Ryder Cup Program to Reach Fans and Increase On-Site Business

7-13 Use Sponsee’s Logo on Packaging & Promotion Incorporate Trademarks and Logos of the Sponsored Event on Product Packaging Must Have Been Granted This Right in the Contract by the Sponsee Incorporate Logo on Other Promotional Efforts For Example: –McDonald’s Incorporates Logos of World Cup, UEFA, & Olympics on Its Drink Cups

7-14 Use of Logo on Packaging Drop in Figure 7.3 Here

7-15 Distribution of Free Products or Premiums Use Free Samples of Sponsor’s Product or Promotional Giveaways that Feature the Sponsee’s Trademarks and Logos For Example: –Absopure Gives Free Samples of Its Water at Michigan Stadium –GM Gave Out Poster Featuring NFL Team

7-16 Use of Premium Drop in Figure 7.4 Here

7-17 Provision of Prizes Sponsor Provides Goods and Services that Sponsee Uses as Prizes for Selected Activities For Example: –Southwest Airlines Provides Tickets that MLB’s St. Louis Cardinals Give Away to Contest Winners Selected from Fans in Attendance

7-18 Point-of-Sale Display (POS) Use of Themed Signage at Retailers; the Signage Features the Sponsorship For Example: –adidas Uses Displays that Feature Soccer in General and the Brazilian Soccer Team in Retail Stores in South America

7-19 Push Strategy for Retailers Engaging in Activities Designed to Persuade Retailers to Increase Exposure of the Sponsor’s Products and Promotions within the Retail Stores This May Involve Some Type of Financial Compensation for the Retailer For Example: –NASCAR’s Sponsor, Country Time, Achieved a Substantial Increase in Display Space because Retailers Saw a Chance to Increase Their Sales

7-20 Consumer Sales Overlay Consumers Associated with the Sponsor Can Buy Tickets at Discounted Prices For Example: –AAA Is a Sponsor of the Detroit Tigers; Members of AAA Have Several Opportunities Each Season to Purchase Tickets at Half Price (2 for 1)

7-21 Cross-Promotions with Co-Sponsors Collaborate with Another of the Property’s Sponsors in a Joint Marketing Endeavor For Example: –U.S. Olympic Team Sponsors (Hilton Hotels and United Airlines) Put Together Travel Packages While Referencing Their Association with the USOC

7-22 Affinity Programs Capitalize of the Brand Equity and the Consumers’ Affection for the Sponsee Effective For CRM-Based Sponsorships, but Applicable in Sports Marketing For Example: –MNBA NFL “Extra Points” Visa Credit Card Features NFL Logos and Consumer Benefits Are Accumulated by Using the Card

7-23 Web Tie-Ins Acknowledgement of the Relationship on the Sponsor’s Own Web site – May Link For Example: –McDonald’s Web Site Has a Link for “Sports” Clicking Through Will Direct the Browser to a Listing of All of the Marketer’s Sponsorships Where One Can Click Through to Any of Its Sponsorships Including the IOC, All American High School Basketball, FIFA, and NASCAR

7-24 Provide Hospitality Reward Top Employees & Customers Reinforce Relationship with Sponsee in the Eyes of Those Entertained by Sponsor For Example: –Nokia Invited 2,000 Customers to Attend the Nokia Sugar Bowl – Included Parties and Other Events Affiliated with the Game

7-25 Overview of Leveraging Essential for Maximizing Impact Expensive – Consider Cost of Leveraging as Well as the Cost of the Rights Fees Sponsee Can Advise Sponsors on the Use of Effective Leveraging Strategies

7-26 Example of a Leveraging Effort Visa and the NFL Components –Affinity Credit Card –Contest for Consumers Who Use the Card –Print Advertising Featuring NFL Logos –POS Featuring NFL Logos in Stores –Cross-Promotion with DirecTV –Chance to Win Tickets to Super Bowl

7-27 Example of a Leveraging Effort Best Western International and NASCAR Components –NASCAR Room Rate (Discounts) –Affinity Credit Card –Cross-Promotions with Co-Sponsors –On-Site Hospitality at Race Location –Access to Tickets through Hotel

7-28 Ten Steps to Effectively Leveraging a Sponsorship Drop in Box 7.2 Here

7-29 Make-Buy Decision Make – Sponsor Develops and Implements Its Own Leveraging Program Buy – Sponsor Hires an Outside Agency to Assist in the Development and Implementation of Its Leveraging Program

7-30 Who Is Used When “Buying”? Insert Figure 7.7 Here

7-31 Closing Capsule If a Sponsorship Fails to Achieve Its Objectives, the Sponsor Must First Ask Itself: “Did We Do an Adequate Job in Leveraging Our Sponsorship?” Leveraging Helps Reduce Impact of Ambush Marketing Efforts

7-32 Closing Capsule Sponsorship Is Only Effective When the Consumer Recognizes the Relationship between the Sponsor and the Sponsee Effective Leveraging Makes that Recognition Far More Likely