6.02 Describe How to Secure Sponsorships

List the steps in securing sponsors 1. Understand all aspects of the event 2. Locate companies who may be potential sponsors 3. Make contact with potential sponsors 4. Close the deal with the sponsor 5. Establish a partnership with the sponsor

Aspects of the Event Who is the audience? What are the demographics, geographics, psychographics, and behavioral response of the audience? How would a corporate sponsor benefit by partnering with the event?

Aspects of the Event (continued) What media has already been put in place (radio, television, newspaper)? What is the total cost of the event? What percentage of the total cost will be covered by the sponsor(s)? How many sponsors are needed?

Locate companies who may be potential sponsors Review trade journals Research similar events to see who has previously sponsored Research potential sponsors – profile, budgetary and promotional cycles Decide who would be the best sponsor for the product

Make contact with potential sponsors Write sponsorship proposal Create fact sheet Outline benefits Send out letters requesting to see company representative Try cold calling on companies Schedule a meeting with the company

Make contact with potential sponsors (continued) Try to find out who is the decision- maker Present the proposal Prove the event aligns with current marketing goals Follow up after making presentation

Close the deal with the sponsor Negotiate the final contract Acquire a signed sponsorship agreement

Establish a partnership with the sponsor Discuss leveraging with the sponsor Fulfill the contract

Discuss aspects of a sponsorship agreement 1. Clauses in the sponsorship agreement 2. Benefits included in the sponsorship agreement 3. Summarize opportunities for leveraging sponsorships 4. Explain the sales process and client relations in sponsorships

Clauses in the sponsorship agreement Term: The length of the agreement and financial obligation Event definition: Clearly and precisely defines the event and leaves to misunderstandings. Sponsor benefits: Details all benefits the sponsor will be receiving. Sponsor obligations: Details what is due the entity, which includes but is not limited to: fees paid, in-kind, and any other obligations to be fulfilled by the sponsor

Clauses in the sponsorship agreement (Continued) Indemnity and insurance: Make sure everyone involved is protected from things that could go wrong. Indemnity is exemption from incurred liabilities, loss or penalties for damages. Insurance is the instrument used to protect the promoter. Confidentiality: Protect both the sponsor and sponsee.

Benefits included in the sponsorship agreement Exclusivity: Are companies willing to pay a higher fee to keep competitors from participating? Can the sponsee use phrases such as “official sponsor” or “presented by”?

Benefits included in the sponsorship agreement (continued) Media package Exactly what type of coverage will be provided? How much airtime will be provided? Will sponsors need to purchase additional media coverage? Will there be vignettes? What type of signage will appear on television?

Benefits included in the sponsorship agreement (continued) Media package (continued) Will ad space be provided? Will the sponsor’s name and logo be included on information sent out about the event? Will the sponsor be able to conduct contests or advertising campaigns?

Benefits included in the sponsorship agreement (continued) Signage What type of signage will be available? Will rotational and virtual signage be used? What about banners?

Benefits included in the sponsorship agreement (continued) Entertainment Will luxury boxes, hotel rooms and VIP passes be provided? Will the sponsor have access to the athletes or stars?

Benefits included in the sponsorship agreement (continued) Merchandise rights Will there be an area to sell merchandise? Will logos and trademarks be used?

Benefits included in the sponsorship agreement (continued) In-Kind Are sponsors willing to provide products? How much non-cash sponsorship will be provided?

Benefits included in the sponsorship agreement (continued) Internet Will the entity provide links to corporate websites? Will possible banner advertisements be provided?

Opportunities for leveraging sponsorships Makes the sponsorship more successful Spend between $1-$5 on leveraging for every $1 spent of the sponsorship fee Additional advertising – banners, magazines, radio or television

Explain the sales process & client relations in sponsorship 1. Preapproach 2. Approach 3. Determining needs 4. Feature/benefit presentation 5. Handling objections 6. Closing the sale 7. Suggestion selling 8. Follow-up

1. Preapproach Everything prior to sale What the entity wants out of the sponsorship Inventory Package prices – exclusivity, box seats, luxury boxes, lodging, transportation, invitations, tents, freebies/giveaways, samples, VIP passes, banners, signage, ad space, access to players/stars, TV or radio spots, public relations or press releases, promotions, entitlement to facility and logos on items Real cost of sponsorship

1. Preapproach (Continued) Aspects of the sponsor Prior events sponsored Current events being sponsored Target market Corporate expectations Amount company is willing to spend Aspects of the sponsorship What is the sponsee willing to offer them? Will more than one sponsorship package be offered? How will the company benefit from the sponsorship package? How is the sponsee willing to help track sponsorship value?

2. Approach Arrange a meeting Variety of dates Correct name Arrive early Dress professionally Introduce yourself Shake hands firmly Give business card Have background information on the sponsor Know your objectives

3. Determining needs Listen when appropriate Talk when appropriate Question to determine needs Verbal & nonverbal feedback Empathy

4. Feature/benefit presentation Explain how proposal can fill client’s needs Focus on the benefits Get sponsor involved in the sale Use visuals Use a logical order Large to small National to local

5. Handling objections Anticipate them Can occur at any time Based on need, product, price or time Use four step process: 1. Listen 2. Acknowledge 3. Restate 4. Answer

6. Closing the sale Close when sponsor is ready Look for buying signals Summarize major points Use objections to close sale Generate an offer Be flexible with proposal Bargain, discuss and settle Discuss fee arrangement Do not make agreements cannot keep

7. Suggestion selling Lengthen contract – multiple year Add additional promotional ideas

8. Follow-up Execute contract Thank you letter – sale or no sale Keep relationship going Help the sponsor feel they’re getting their money’s worth Measure, assess & evaluate Schedule follow-up appointment