1.07

Employ sales-promotion activities to inform or remind customers of

business/product

Explain the nature of SPONSORSHIP in SEM industries

What is Sponsorship?

• Sponsorship:– Providing financial or other support to a

sport/event in exchange for recognition– Two or more parties benefit from the

arrangement in the form of a partnership – Sponsors want recognition & affiliation

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 = their target market

Sponsorships for Small vs. Large OrganizationsSmall Organization Sponsorships Large Organization Sponsorships

• May not spend the time to develop good sponsorship programs

• May provide unrealistic deadlines

• Limited staff

• May have more difficulty communicating with the sponsors

• Tend to develop poor relationships with sponsors

• May have staff or be able to hire consultants to develop a good sponsor program

• Better program organization

• Good communication with sponsors

• May have unrealistic expectations about their event

• Sponsors have more confidence in giving money to large organizations

BENEFITS of Sponsorships

• Public and Community relations = Increase of Brand Image

• Brand recognition directly with your Target Market

• Sales and profits through affiliation & brand awareness

• Market Share and/or introduce new products– Enter new markets

RISKS of Sponsorships

• Loosing Streak• Too many sponsors at one event• Could create a bad image and your associated with it

– Example: Super Bowl wardrobe malfunction in 2003

• Could encounter Ambush Marketing– Ambush marketing is when a company will expose their products/logo at

an event without authorization or payment LEGALLY– Goal of ambush marketers is to encourage fans to view it as a sponsor– Example: Coke is a sponsor but Pepsi is outside the event handing out

free Pepsi tees or coolies

EXCLUSIVITY in Sponsorships

• When a business purchases the rights to be the only one of its kind to sponsor a sport entity– Example: You will not find Coca-Cola and Pepsi sponsoring

the same event

PARTNERSHIPS

• Relationship between sponsor and sponsee– Communication and develop partnership– Ongoing dialogue to expand relationship

• Both parties benefit

Sponsorship Contracts

SPONSORSHIP PROPOSAL: includes information about cost,marketing opportunities, audience demographics, conflicts and

time parameters

Formal contract: spells out exactly what each party will do(Avoid legal conflict)

Why Should EXPLOIT your Sponsorship

EXPLOITING THE SPONSORSHIP = ADVERTISING YOUR SPONSORSHIP

– If a business spends all of their marketing budget on

sponsorship fees = No money left over to advertise the

sponsorship

– If target market is not aware of sponsorship, then

sponsorship is wasted money!

Sponsorship Car Activity

• Find a Racing Car (NASCAR) and identify • Driver and number of the car• Major sponsor• Minor sponsors• How many sponsors did you find on one car?