1. 1.07 Explain the concept of sponsorship.

2. Sponsor
A business, person or organization that finances a sports or entertainment entity.

3. Sponsee
The entity (event, sport, athlete, entertainer, or venue) that receives money for product from the sponsor.

4. Sponsorship
The financing of a sports or entertainment entity by a business in return for recognition affiliation.

5. Sponsorship (continued)
Involves money, products or services
Marketing exchange
With any sport or entertainment entity
In-kind sponsorship
Forms:
Teams
Governing bodies
Athletes
Facilities
Event
Sport
Leagues

6. Sponsorship (continued)
Factors used to determine what to sponsor:
Increase in product sales
Compatibility and image
Tie-in
Potential media coverage
Exclusivity of competitors
Types or levels
Title sponsorship
Presenting sponsorship

7. Ambush marketing Also called parasite marketing.
Official Sponsor
Ambush marketing
Also called parasite marketing.
Occurs when a company does not pay the fee to be an official sponsor but uses techniques to make the public believe the company is the official sponsor.
Is usually associated with major events.
Hurts corporate sponsorship because the public is confused about who is the real or official sponsor.

8. History & Growth of Sponsorship
Roman times – gladiators and chariot drivers would wear colors representing specific merchants
17th & 18th centuries – pubs in England sponsored horse races
Mid 1800s – local companies sponsored Harvard & Yale rowing teams

9. History & Growth of Sponsorship (Continued)
MLB – first major league sport sponsored by corporations
1970s – change in sponsorship because of ban of tobacco and alcohol ads
1984 – Corporate sponsors of the LA Olympics (limit: 30 sponsors)

10. Increase in sponsorship
Athletes as walking advertisements
Ease of targeting a specific market
Increase advertising costs
Lifestyle sports
Live programming of sporting events
New media
Nontraditional sporting activities
Overcrowding of advertising
Taxpayers not willing to increase the amount paid for sports

11. Event Triangle Audience: the potential market
Sponsorship is an ongoing partnership.
Sponsors: need the entity for public recognition
Entity: needs the sponsor for financial assistance

12. Why companies sponsor entities:
Help businesses reach their target market
Increase sales
Increase market share
Inform potential customers about their product
Enhance overall goals and objectives
Give sponsors the right partner
A way to introduce new products
Increase public awareness or perception
Prevent direct competition through exclusivity
Repositioning
Psychographics
Networking opportunities
Exposure and visibility
Promote goodwill

13. Why entities utilize sponsors
Financial support
In-kind support

14. How the audience benefits from sponsorships
Lower ticket prices
Exposure to new products
Free samples and give-aways
Non-evasive advertising