8-1 Chapter 8 Developing and Selling the Sponsorship Proposal McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

8-2 Preliminary Actions Prospecting – Finding Potential Sponsors Gather Information –On Prospects –On Prospects’ Target Markets

8-3 Sponsorship Proposal Must Match the Proposal to the Needs of the Prospective Sponsor Effort to Link Prospect and the Property It Is a Sales Tool It Is a Basis for Beginning Negotiations

8-4 Elements of a Sponsorship Proposal

8-5Introduction A Written Handshake Create Positive Impression Help Get the Proposal Read by Prospect Basic Information

8-6 History of the Event When Was Event First Staged Has the Title Changed Over Its Life Who Are the Participants Any CRM Overlay Media Coverage Rudimentary Financial Information (Optional)

8-7 Plan Components What Will the Sponsor Get from the Sponsee in Return for Its Commitment Customize – Boilerplate Proposals Do Not Work Offer Components Such as: Category Exclusivity, Signage, Hospitality, etc.

8-8 Value Enhancements Ways in Which the Sponsee Will Help the Sponsor Achieve Its Objectives Examples: –Leveraging Opportunities –Cross-Promotion Opportunities –Protection Against Ambush Marketing –Postevent Research Regarding Effectiveness –Fulfillment Report

8-9Terms Rights Fees –Cash –VIK Timelines –Single Payment Due –Payment Schedule for Lengthy Contracts

8-10 Executive Summary May Be at Beginning or End of Proposal Capture the Key Elements Important because Not All Executives Will Take the Time to Read the Entire Proposal May Be the Basis for Rejection

8-11 Prospect Specification Some Large Companies Receive a Large Number of Sponsorship Proposals They May Have Staff Whose Primary Task Is to Identify the Good and Bad Proposals These Companies Often Have a Standardized Format That Must Be Used

8-12 A Harsh Reality It Has Been Reported that Less than 10% of the Proposals Submitted to Prospects Are Given Serious Consideration Less than 1% of All of the Proposals Receive Funding from the Prospect

8-13 Selling the Sponsorship Convert the Prospect into a Customer Typical Business-to-Business (B2B) Marketing Strategies and Tactics

8-14 Selling the Sponsorship Negotiating the Deal Proposal Represents an Offer by Sponsee Prospect Likely to Issue Counteroffer Need Mutual Understanding –What Do I (the Sponsee) Have to Offer? –What Does the Prospect Need? –What Adjustments to Proposal Are Needed? Close the Deal

8-15 Closing the Deal Typical Closing Techniques Examples: –Added Inducement Close (e.g. more signage) –Standing Room Only (SRO) (other prospects) –Balance Sheet Approach (list pros and cons) –Alternative Decision Approach (Want A or B?)

8-16 Customer Relationship Management Focus on Customer Retention Focus on Sponsor Satisfaction and the Resolution of Problems Focus on Communication Focus on Continuation of Relationship

8-17 Closing Capsule Task Is to Convert A Prospect into a Sponsor Key Element is the Sponsorship Proposal Will Likely Involve Meaningful Negotiations Focus on Sponsor Retention