1. Introduction to Sponsorship: Concepts, Objectives, and Components
Chapter 4
Introduction to Sponsorship: Concepts, Objectives, and Components
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Sponsorship’s Role Another Promotional Tool for Marketers
Sponsorship Should Have a Synergistic Effect on a Marketer’s Promotional Efforts
Sponsorship Fits within the Promotional Mix
Integrated Marketing Communications (IMC)

3. Integrated Marketing Communications (IMC) Plan
Advertising
Personal Selling
Sales Promotion
Public Relations / Publicity
Sponsorship
Key Is How They All Work in Harmony
Sponsorship Is NOT Advertising

4. Evolution of Sponsorship Motives
Early Sponsorships Were Ego-Driven
CEO likes golf; company sponsors golf event
Focus Shifted to Philanthropic Motives
Sponsorship was a way to contribute to a cause
Most Sponsorships Today Focus on ROI
Sponsorship as an investment, not an expense

5. Advertising’s Advantages
Persuasive Message
Words and Images Used to Convey Ideas
Standardization
Everyone Receives an Identical Message
Guaranteed Size of Audience Reached
Circulation; TV Ratings; Radio Ratings

6. Advertising’s Advantages (Cont’d)
Evaluation of Effectiveness
Measures such as CPM Can Be Applied
Measure the Impact on Sales
Concept Testing Prior to Using Advertisement
Turnkey
May Be a Stand-Alone Tactic That Is Not Supported by Other Elements of the IMC

7. Sponsorship
A Relationship between a Marketer and a Property in Which the Marketer Pays a Cash or In-Kind Fee in Return for Access to the Exploitable Commercial Potential Associated with the Property
Many Types of Properties that Represent Sponsorship Opportunities for a Marketer

8. Sponsorship’s Advantages
Credibility
Image
Prestige
Internal Morale
Sales Opportunities
Access to Live Audience

9. Sponsorship Categories
Sports
Entertainment, Tours & Attractions
Cause-Related Marketing
Festival, Fairs & Annual Events
The Arts
Associations and Membership Organizations

10. Sponsorship Spending by Category (2008)
Sports (69%)
Entertainment, Tours & Attractions (10%)
Cause-Related Marketing (9%)
The Arts (5%)
Festival, Fairs & Annual Events (4.5%)
Associations and Membership Orgs (3%)
* Rounding creates small statistical error (IEG)

11. Worldwide Sponsorship Spending
Drop in Table 4.2 Here

12. Key Sponsorship Concepts
Participants
Sponsor – Party Seeking Association (Visa)
Sponsee – Property Owner (e.g. FIFA)
Linkages
Self-Evident – adidas products used in event
Strategic – Visa Credit Cards and FIFA have similar target markets

13. Key Sponsorship Concepts
Leveraging – Must Support Sponsorship with Additional Strategic Elements (i.e. Event-Oriented Advertising)
Ambush Marketing – Non-Sponsors often try to Create the Misperception among Consumers That They Are a Sponsor (Diminishes Value for the Actual Sponsor)

14. Re-Visit Types of Sponsorships
Traditional
Straight-forward Association
Special Cases of Sponsorship
Endorsements – Personality Sponsor
Venue Naming Rights – Building Sponsor
Licensing – Sponsorship Involving Trademark

15. Sponsorship Objectives
Drive Sales
Improve Image
Create Greater Awareness
Provide Hospitality Opportunities
Enhance Employee Morale

16. Drive Sales
Sustainable Competitive Advantage Via the Association with the Sponsee
Visa over MasterCard (No presence at World Cup)
Merchandising Opportunities
Selling Coca-Cola Products at the Olympics
Shape Consumer Attitudes
Firestone after negative PR (Indy 500)

17. Drive Sales (cont’d) Overcome Advertising Restrictions
Bans against Tobacco Advertising
Cut Through Advertising Clutter
Not Competing with Broadcast Advertising
Reach Small Segments and Niches
-Small specialized properties (local festival)

18. Improve Image Attain Positive PR Viewed as a Good Corporate Citizen
Support Seen as Helping the Sponsee
Viewed as a Good Corporate Citizen
Contribution to a Popular Sponsee
Especially for Causes or Local Events

19. Improve Image (Cont’d)
Shape Consumer Attitudes
Reach New Target Market
Selected Property Portrays Different Image
Philanthropy
Donations Viewed Favorably by Public

20. Create Greater Awareness
Increased Visibility
Ability to Reach More Potential Customers
Mass Reach to Introduce New Product
Mass Reach to Inform of New Brand Name

21. Provide Hospitality Opportunities
Entertain Customers, Prospects & Suppliers – Reinforce Relationships
Opportunity to Attend Event
Tickets; parking
Provision of Various Amenities
TV monitors, restrooms; premium seating

22. Enhance Employee Morale
Entertain Employees
Use of free tickets & hospitality areas
Reward high performers
Sense of Pride
Feeling of “My company cares”
Employee Involvement
Feeling of “I’m part of the corporate team”

23. Importance of Objectives
Drop in Table 4.5 Here

24. Sponsorship Components
Category Exclusivity
Signage
Right to Use Event Trademarks and Logos
Distribution Rights
Hospitality Areas
Complimentary Advertising
Free Tickets

25. Sponsorship Components (Cont’d)
Right to Purchase Additional Tickets
Link on the Event Web Site
(Sponsorship) Designation
Inclusion in Event Promotions
Access to Property Mailing List / Database
Right of First Refusal

26. Category Exclusivity
A Guarantee that the Sponsor’s Competitor Will Not Be Allowed to Become Involved with the Sponsee
Pepsi-Cola is a Sponsor of the World Cup of Cricket. Category Exclusivity Provides Assurance that Coca-Cola Will Not Be Involved in Any Official Capacity

27. Signage
Actual Signs Identifying and Promoting the Sponsor at the Event Venue
Helps to Reinforce the Relationship in the Consumers’ Minds
May Be Actual or Virtual Signage
There is a Concern About Signage Clutter

28. Right to Use Event Trademarks and Logos
Events Generally Have Terms and Symbols That Are Legally Protected
It Is Illegal to Use These Intellectual Properties Without Permission of Owner
Sponsors Use These in Advertising, on Packaging, and on Promotional Items

29. Distribution Rights Right to Use Event as a Distribution Outlet
Distribution of Free Samples of Product at Event Venue
Ability to Sell Products at Event Venue

30. Hospitality Areas Facilities to Entertain Selected Individuals
On-Site Hospitality
Luxury Suites
Temporary Facilities
Off-Site Hospitality
Temporary or Leased Facilities

31. Complimentary Advertising
“Free” Advertising for the Sponsor
Often Paid as Part of Rights Fees
Examples
TV Advertisements
Radio Advertisements
Print ad in the Event Program
Mentions by Announcers – PA or Media

32. Free Tickets Admission to the Sponsored Event
Important for Events that Typically Sell Out
May Vary According to Sponsorship Level
High level sponsors receive more free tickets

33. Right to Purchase Additional Tickets
Valuable for Sold Out Events
May be Used Even When Free Tickets Are Not Provided to the Sponsor
May be Bought at Discount if Event Is Not Expected to be Sold Out

34. Link on the Event Web Site
The Ability for Visitors to the Event’s Web Site to Click on an Icon That Will Take Them to the Sponsor’s Web Site
Check out the Web Site for FIFA and the World Cup of Soccer

35. Designation
How the Sponsor Can Refer to Itself in Its Own Marketing Efforts. Examples Include:
Presenting Sponsor
Title Sponsor
Official Sponsor
Marketing Partner
Official Supplier
Regional Supporter

36. Inclusion in Event Promotions
The Event Is Likely to Promote Itself Through Traditional Media. It Is to the Sponsors’ Benefit to Be Identified in the Event’s Advertising and Marketing Efforts
Helps to Reinforce the Relationship between the Sponsor and the Sponsee in the Minds of the Consumers

37. Access to Property Mailing List / Database
Sponsor and Sponsee Likely Have Very Similar Target Markets
Access to Sponsee’s List Will Provide Sponsor with Access to Potential Buyers
Many Properties Have Lists of Ticket Buyers and Members of Fan Clubs

38. Right of First Refusal
Current Sponsor Is Provided Opportunity to Renew Its Sponsorship for the Next Period Prior to the Solicitation of New Sponsors by the Sponsee
Evaluate New Terms; Effectiveness of Existing Sponsorship; Potential Actions by Competitor if Sponsorship Is Terminated

39. Which Components Are Most Valuable?
Drop in Table 4.7 Here

40. Controversial Issues Do Higher Prices Result from Sponsorship?
Do Large Multinational Companies Have an Unfair Advantage?
Sponsorships May Seem Illogical (No Fit)
May Feature Unwholesome Products

41. Closing Capsule
Sponsorship Has Emerged as a Key Element of Many Firms’ IMC Plans
Sponsorship Spending Is Growing, But Only Accounted for Approximately $43.5 Billion (US) in 2008
Most Sponsorship Money Goes to Sports

42. Closing Capsule
Sponsorships Should Benefit Both the Sponsor and the Sponsee – A Win-Win Partnership
Sponsorship Components Should Be Considered Tools That Will Help the Sponsor Achieve Its Objectives
Category Exclusivity and Venue Signage Are Viewed as the Most Important Components