1. 3-1 Chapter 3 Introduction to Sponsorship McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

2. 3-2 Sponsorship’s Role Another Promotional Tool for Marketers Sponsorship Should Have a Synergistic Effect on a Marketer’s Promotional Efforts Sponsorship Fits with Promotional Mix Integrated Marketing Communications (IMC)

3. 3-3 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. 3-4 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

5. 3-5 Advertising’s Advantages (Cont’d) Evaluation of Effectiveness –Measures such as CPM Can Be Applied –Measure 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

6. 3-6Sponsorship 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

7. 3-7 Sponsorship’s Advantages Credibility Image Prestige Internal Morale Sales Opportunities Access to Live Audience

8. 3-8 Sponsorship Categories Sports Entertainment, Tours & Attractions Cause-Related Marketing Festival, Fairs & Annual Events The Arts

9. 3-9 Sponsorship Spending by Category (2005) Sports (69%) Entertainment, Tours & Attractions (10%) Cause-Related Marketing (9%) Festival, Fairs & Annual Events (7%) The Arts (5%)

10. 3-10 Sponsorship Spending

11. 3-11 Key Sponsorship Concepts Participants –Sponsor – Party Seeking Association (Fuji) –Sponsee – Property Owner (e.g. FIFA) Linkages –Self-Evident – adidas products used in event –Strategic – Fuji Film and FIFA have similar target markets

12. 3-12 Key Sponsorship Concepts Leveraging – Must Support Sponsorship with Additional Strategic Elements (e.g. 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)

13. 3-13 Re-Visit Types of Sponsorships Traditional Special Cases of Sponsorship –Endorsements – Personality Sponsor –Venue Naming Rights – Building Sponsor –Licensing – Sponsorship Involving Trademark

14. 3-14 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

15. 3-15 Closing Capsule Sponsorship Has Emerged as a Key Element of Many Firms’ IMC Plans Sponsorship Spending Is Growing, But Only Accounted for Approximately $30.4 Billion (US) in 2005 Most Sponsorship Money Goes to Sports