1. Sponsorship Management
MKT 3865
Dr. Don Roy

2. Steps in Sponsorship Management
Define the target audience
Set objectives
Select the sports property
Establish a budget
Develop an activation plan
Measure effectiveness

3. Sponsorship Objectives
Create brand awareness
Influence brand image or personality
Strengthen client relationships
Stimulate product trial
Increase sales
Generate media exposure

4. Image is Everything Sponsorship can shape brand image when:
Brand is new to market > Differentiate from competition
Brand lacks distinctive associations

5. Sponsorship Budget Components
Rights Fees: Payment of cash or in-kind (e.g., products) for right to use property’s name and logo in sponsor’s marketing activities
Activation Costs: Investments made in advertising, sales promotions, and other forms of marketing communication designed to leverage a sponsor’s association with a property

6. Leveraging Sponsorship Assets through Activation
Soft Drink Sponsor of a MLB Team
Asset
Activation
Rotational signage for ½ inning per game
Advertise new flavor
Reminder advertising of existing flavors
Pouring rights throughout stadium
Products sold in concessions and in club areas;
“Flavor of the Month” promotion
Lunch for 10 people with General Manager
1) Entertain key retail buyers;
2) Sweepstakes to win insider experience
Sampling opportunities at up to 100 team-related events (including community events)
Sample new or low volume flavors;
Distribute coupons for select flavors or products (e.g., 12-packs)
Pool of 10,000 tickets over course of the season
Employee appreciation event
Ticket giveaway with product purchase
2-for-1 ticket promotion for select games
Source: Adapted from: Lynde, Tim (n.d.), Sponsorships 101, accessed November 5, 2010 at

7. Activation : Rights Fees Ratio
Activation : Rights Fees ratio measures the level of marketing support a sponsor invests in a sponsorship.
Specifically, how many dollars are spent on activation for advertising, sales promotions, etc., for every dollar spent on rights fees?

8. 1.4:1 Activation / Rights Fees ratio
Examples
A sponsor spends $35,000 on an ad campaign that promotes a sponsorship it paid $25,000 in rights fees to secure:
$35,000 / $25,000 =
1.4:1 Activation / Rights Fees ratio

9. Industry Averages of Activation to Rights Fees Ratios

10. What is Activation?
Asset
No Activation
Activation

11. Activate This New sponsor of MTSU athletics Low sponsor recognition
How can Thornton’s activate the sponsorship assets?

12. Sponsorship Measurement
Sponsor recognition (recall of official sponsors)
Changes in brand awareness levels (using market research)
Measurement of brand image or brand personality (using market research)
Measurement of brand affinity (liking)
Measurement of brand exposure (at event, on television, in media)
Changes in Sales

13. Why Sponsorships End Unclear expectations
Inadequate budget (for activation)
Change in strategic focus
Change in managerial personnel (relationship)