SEM I 1 07 Sponsorships Define Sponsorship Sponsorship

SEM I 1. 07 Sponsorships

Define Sponsorship • Sponsorship: underwriting an event for the purpose of gaining a positive association for a brand with the participants and/or attendees • Often considered a partnership between event and sponsor – Sponsor wants affiliation with event, entity or individual

Sponsorships Big Organizations Small Organizations – Major Events – Major Activation – Major Ad Budgets – Better organizational skills – Sponsors are more confident in and give more $ to bigger events -Smaller Events -Small/No Activation -Small/No Ad Budgets -Limited staff to communicate with sponsor - Tend to develop poor relationships with sponsors - Events tend to draw less attention

Explain benefits of sponsorship • Increase sales and profits through affiliation and brand awareness • Introduce new good or service • Be identified directly with an event in which target market is interested and watching • Earn goodwill of audience by showing commitment to community • Entertain clients, employees, potential customers • Enhance company image through Public/Community Relations • Enter new/niche markets Explain Successful Sponsorships • The key to building successful sponsorship programs is to match the correct products or services with the people who want to purchase them = TARGET MARKET!!!!!

Premium Sponsorships • Entitlements: one major sponsor for an event (ex: Sprint for NASCAR) • Facility Entitlements: company purchases promotional rights to entire stadium (ex: BB&T for the Dash) • Product Exclusivity: only one product in a category is granted sponsorship (ex: Food Lion is the only grocery sponsor for the ACC)

How Sponsorships Are Formed Generate leads Contact potential sponsors Create sponsorship proposal

Information for Sponsorship Proposals Information about the event Audience demographics Cost/cost person reached Length of contract Media coverage Marketing opportunities Sponsorship benefits **ENDS WITH FORMAL/ LEGAL CONTRACT

Risks of Sponsorships • Loosing streak or failed event • Too many sponsors at one event (clutter, confusing) • Could create a bad image at event…and that negative is forever tied to your brand • Ambush Marketing (next slide) Why Sponsorships Fail • • • No budget for activation Not long-term No measurable objectives Insufficient staffing No local extensions Not exploited (advertised/promoted)

Ambush Marketing • Giving the appearance of being associated with an event without paying a sponsorship fee