1. 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. 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

8. 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)

9. 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

10. 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

11. 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

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

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

14. Describe How to Secure Sponsorships

15. List the steps in securing sponsors
Understand all aspects of the event
Locate companies who may be potential sponsors
Make contact with potential sponsors
Close the deal with the sponsor
Establish a partnership with the sponsor

16. Aspects of the Event 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?

17. Aspects of the Event (continued)
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?

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

19. Make contact with potential sponsors
Write sponsorship proposal
Create fact sheet
Outline benefits
Send out letters requesting to see company representative
Try cold calling on companies
Schedule a meeting with the company

20. Make contact with potential sponsors (continued)
Try to find out who is the decision-maker
Present the proposal
Prove the event aligns with current marketing goals
Follow up after making presentation

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

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

23. Discuss aspects of a sponsorship agreement
Clauses in the sponsorship agreement
Benefits included in the sponsorship agreement
Summarize opportunities for leveraging sponsorships
Explain the sales process and client relations in sponsorships

24. Clauses in the sponsorship agreement
Term: The length of the agreement and financial obligation
Event definition: Clearly and precisely defines the event and leaves to misunderstandings.
Sponsor benefits: Details all benefits the sponsor will be receiving.
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

25. Clauses in the sponsorship agreement (Continued)
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.
Confidentiality: Protect both the sponsor and sponsee.

26. Benefits included 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”?

27. Benefits included in the sponsorship agreement (continued)
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?
What type of signage will appear on television?

28. Benefits included in the sponsorship agreement (continued)
Media package (continued)
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?

29. Benefits included in the sponsorship agreement (continued)
Signage
What type of signage will be available?
Will rotational and virtual signage be used?
What about banners?

30. Benefits included in the sponsorship agreement (continued)
Entertainment
Will luxury boxes, hotel rooms and VIP passes be provided?
Will the sponsor have access to the athletes or stars?

31. Benefits included in the sponsorship agreement (continued)
Merchandise rights
Will there be an area to sell merchandise?
Will logos and trademarks be used?

32. Benefits included in the sponsorship agreement (continued)
In-Kind
Are sponsors willing to provide products?
How much non-cash sponsorship will be provided?

33. Benefits included in the sponsorship agreement (continued)
Internet
Will the entity provide links to corporate websites?
Will possible banner advertisements be provided?

34. Opportunities for leveraging sponsorships
Makes the sponsorship more successful
Spend between $1-$5 on leveraging for every $1 spent of the sponsorship fee
Additional advertising – banners, magazines, radio or television

35. Explain the sales process & client relations in sponsorship
Preapproach
Approach
Determining needs
Feature/benefit presentation
Handling objections
Closing the sale
Suggestion selling
Follow-up

36. 1. Preapproach Everything prior to sale
What the entity wants out of the sponsorship
Inventory
Package prices – exclusivity, box seats, luxury boxes, lodging, transportation, invitations, tents, freebies/giveaways, samples, VIP passes, banners, signage, ad space, access to players/stars, TV or radio spots, public relations or press releases, promotions, entitlement to facility and logos on items
Real cost of sponsorship

37. 1. Preapproach (Continued)
Aspects of the sponsor
Prior events sponsored
Current events being sponsored
Target market
Corporate expectations
Amount company is willing to spend
Aspects of the sponsorship
What is the sponsee willing to offer them?
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 sponsorship value?

38. 2. Approach Arrange a meeting Arrive early Dress professionally
Variety of dates
Correct name
Arrive early
Dress professionally
Introduce yourself
Shake hands firmly
Give business card
Have background information on the sponsor
Know your objectives

39. 3. Determining needs Listen when appropriate Talk when appropriate
Question to determine needs
Verbal & nonverbal feedback
Empathy

40. 4. Feature/benefit presentation
Explain how proposal can fill client’s needs
Focus on the benefits
Get sponsor involved in the sale
Use visuals
Use a logical order
Large to small
National to local

41. 5. Handling objections Anticipate them Can occur at any time
Based on need, product, price or time
Use four step process:
Listen
Acknowledge
Restate
Answer

42. 6. Closing the sale Close when sponsor is ready
Look for buying signals
Summarize major points
Use objections to close sale
Generate an offer
Be flexible with proposal
Bargain, discuss and settle
Discuss fee arrangement
Do not make agreements cannot keep

43. 7. Suggestion selling Lengthen contract – multiple year
Add additional promotional ideas

44. 8. Follow-up Execute contract Thank you letter – sale or no sale
Keep relationship going
Help the sponsor feel they’re getting their money’s worth
Measure, assess & evaluate
Schedule follow-up appointment

45. Evaluate the effectiveness of sponsorships
NC DECA

46. How do businesses assess and measure the success of the sponsorship?
Measure customer awareness.
Measure obtainment of established goals.
Compare sales prior to sponsorship and post sponsorship.
Review corporate accounts, retailers, shelf space, and other store traffic for increases.

47. Assessing and measure the success of the sponsorship (continued)
Look at sales within a specific geographical area where the sponsorship occurred or its viewing area.
Use rate cards containing information on the advertising time or space to determine the value of publicity.
Track the amount of advertising exposure to the public and add up what it would cost the company to simulate those promotional efforts.
Analyze impressions.

48. Why sponsorships fail?
Just paying the sponsorship fee and doing nothing else could result in failure.
Not knowing what is included in the sponsorship agreement.
Business become impatient. It takes time for the association to a particular company or its products with an entity.
Excluding company employees in the sponsorship. The employees should be excited and aware.
Not meeting the demands with staffing and product availability.
Excluding the fans.

49. Ambush marketing Also called parasite marketing.
Official Sponsor
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.

50. The End
Any Questions??????