Sponsorship Management

MKT 3865Dr. Don Roy

Steps in Sponsorship Management

1) Define the target audience2) Set objectives3) Select the sports property4) Establish a budget5) Develop an activation plan6) Measure effectiveness

Sponsorship Objectives

1. Create brand awareness2. Influence brand image or personality

3. Strengthen client relationships4. Stimulate product trial5. Increase sales6. Generate media exposure

Image is Everything

• Sponsorship can shape brand image when:

1. Brand is new to market > Differentiate from competition

2. Brand lacks distinctive associations

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

Leveraging Sponsorship Assets through Activation

Asset ActivationRotational signage for ½ inning per game 1) Advertise new flavor

2) Reminder advertising of existing flavors

Pouring rights throughout stadium 1) Products sold in concessions and in club areas;2) “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)

1) Sample new or low volume flavors; 2) Distribute coupons for select flavors or products

(e.g., 12-packs)Pool of 10,000 tickets over course of the season 1) Employee appreciation event

2) Ticket giveaway with product purchase3) 2-for-1 ticket promotion for select games

Source: Adapted from: Lynde, Tim (n.d.), Sponsorships 101, accessed November 5, 2010 at http://www.sponsorships101.com/excerpts/section7.pdf

Soft Drink Sponsor of a MLB Team

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?

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

Industry Averages of Activation to Rights Fees Ratios

14%

43%

21%

15%

8%

0%5%

10%15%20%25%30%35%40%45%

% of Sponsors

0 to 1 1 to 1 2 to 1 3 to 1 4 to 1 ormore

Activation:Rights Fees Ratio

What is Activation?

Asset

No Activation

Activation

Activate This

• New sponsor of MTSU athletics

• Low sponsor recognition

• How can Thornton’s activate the sponsorship assets?

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

Why Sponsorships End

• Unclear expectations

• Inadequate budget (for activation)

• Change in strategic focus

• Change in managerial personnel (relationship)