6.02

List the steps in securing sponsors.

 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?  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? Understand all aspects of the event.

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

 Write the sponsorship proposal.  Create a fact sheet.  Outline benefits offered to sponsor.  Send out letters requesting to see company representative.  Try cold calling on companies.  Schedule a meeting with the company.  Try to find out who is the decision-maker.  Present the proposal with the understanding modifications will be made.  Prove to the potential sponsor the event aligns with their current marketing goals.  Follow up after making presentation. Make contact with potential sponsors.

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

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

Discuss aspects of a sponsorship agreement.

 Term: The length of the agreement and financial obligation.  Event definition: Clearly and precisely defines the event and leaves no misunderstandings.  Sponsor benefits: Details all benefits the sponsor will be receiving. Most of this is determined after the first proposal is discussed and modifications are made.  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.  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. Example: Venus Williams is sponsored by Mercedes-Benz. As a spokesperson for Mercedes-Benz, Ms. Williams is not held liable for lawsuits related to product failure.  Confidentiality: Protect both the sponsor and sponsee. Clauses 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:

 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 (short story, video or musical compellation)?  What type of signage will appear on television?  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:

 Signage.  What type of signage will be available?  Will rotational and virtual signage be used?  Will banners be allowed or provided?  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:

 Merchandise rights.  Will there be an area to sell merchandise?  Will logos and trademarks be used?  In-Kind.  Are sponsors willing to provide products?  How much non-cash sponsorship will be provided?  Internet.  Will the entity provide links to corporate websites?  Will possible banner advertisements be provided? Benefits included in the sponsorship agreement:

 Makes the sponsorship more successful.  Sponsors spend between $1 and $5 on leveraging for every $1 spent on the sponsorship fee.  Adding additional advertising elements such as banners, magazines, radio, or television.  Examples of leveraging:  A discounted ticket to an event with the proof of purchase of a product.  Point-of-purchase displays or better shelf space.  Two companies joining together creating a special deal for customers when they utilize both companies. Example: Marriott offers a discounted room rate when using a Visa credit card. Summarize opportunities for leveraging sponsorships.

Explain the sales process and client relations in sponsorships.

 Everything prior to the sale  What the entity wants out of the sponsorship.  Inventory, if applicable.  Package prices. Sponsorship packages could include:  Access to players or stars.  Ad space in program.  Airfare.  Banners.  Box seats.  Entitlement to a facility.  Exclusivity.  Freebies, giveaways and samplings of product.  Hotel rooms  Invitations to special events.  Logo identification on sponsor list.  Logo in print or television broadcasts.  Logo on certain items.  Luxury boxes.  Promotions.  Public relations or press releases.  Signage – rotational or virtual.  Television or radio spots.  Use of tent area.  VIP passes.  The real cost of the sponsorship; price everything based on impressions. Preapproach

 Aspects of the sponsor.  Prior events sponsored.  Current events being sponsored.  Target market including demographics, psychographics, geographics and behavorial response.  What does the corporation expect from the sponsorship?  How much is the company willing to spend on sponsorships and leveraging?  Aspects of the sponsorship.  What is the sponsee willing to offer the sponsor?  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 the sponsorship value? Preapproach

 Arrange a meeting; the potential sponsee must approach the potential sponsor.  Give a variety of possible dates so the company is not limited, allowing the company to indicate if the date is not convenient.  Get the correct name of the person with whom the sponsee will meet.  Arrive early.  Dress professionally.  Introduce yourself.  Shake hands firmly.  Give your business card.  Have background information on the sponsor.  Know your objectives. Approach

 Listen most of the time and talk only when appropriate.  Use questions to determine needs.  Give both verbal and nonverbal feedback.  Have empathy. Determining needs

 Explain how the proposal can fill the client’s needs.  Focus on the benefits to the sponsor.  Get the sponsor involved in the sale.  Use visuals.  Use a logical order such as large to small or national to local. Feature/benefit presentation

 Anticipate them.  They can occur at any time.  Usually based on need, product, price or time.  Use the four step process in handling objections:  Listen.  Acknowledge.  Restate.  Answer. Handling objections

 Close the sale when the sponsor is ready.  Look for buying signals.  Summarize major points of the sale.  Use objections to help close the sale.  Generate an offer.  Be flexible with the proposal. Let the sponsor think of it as a rough copy with the ability to be changed. Have different levels of sponsorships available to the sponsor.  Bargain, discuss and settle upon a sponsorship package.  Discuss the fee arrangement.  Do not make agreements you cannot accept. Closing the sale

 Lengthen contract time to a multi-year contract.  Add additional promotional ideas to the contract. Suggestion selling

 Execute the contract.  Send a thank you letter if the sale is made or not.  Keep the relationship ongoing. The relationship between the entity and sponsor does not end when the deal has been made.  Help the sponsor to feel they are getting their money’s worth.  Measure, assess and evaluate.  Schedule a follow-up appointment. Follow-up