Management

Topic 6 Sponsorships and partnerships

PR0307 Campaign Management

Lecture Objectives

 To introduce concepts of sponsorship, philanthropy and partnerships

 To identify trends in sponsorship

 To demonstrate how to research and develop a sponsorship proposal

 To consider appropriate evaluation of sponsorships and partnerships

McDonald’s and children’s hospitals

 https://www.mcdonalds.com.sg/our-stories/a-ready- sanctuary/

 http://perth.perthcitytosurf.com/

Sponsorship in Australia

$3.2 billion is spent by Australian businesses each year on not-for-profits (ABS 2006-7)

4% of public relations budgets is spent on sponsorship

Biggest sponsors: manufacturing industries

Biggest donors: property and business sectors

Most money funds community service and welfare organisations and activity.

Sponsorship Statistics

Definitions of Sponsorship

 “Sponsorship is an investment in sport, the arts, a community event, individual, venue, broadcast, institution, program or cause which yields a commercial return for the sponsor” (Grey & Skildum-Reid 1999)

 “Sponsorship is the purchase of the right to associate the sponsor’s name, products or services with the sponsored organisation's service, product or activity in return for negotiated benefits” (Harrison 2003).

Rio Tinto: Example of Partnership

 The Fund was not a grants scheme, but a partnership program.

 The aim was to develop joint venture projects and community actions that will help the community to respond with imagination and flexibility to the challenges facing Western Australia and take advantage of emerging opportunities

 It facilitated the further development of positive and enduring relationships with our key stakeholders in Western Australia.

(Rio Tinto, WA Futures Fund)

Community investment

 http://www.riotinto.com/ironore/community-investment- 9610.aspx

The Corporate Citizen Concept

Corporate Social…

Responsibility

Performance

Responsiveness

Emphasises:

Obligation, Accountability (good for the corporate image)

Outcomes, Results (good for both)

Action, Activity (good for the community)

 http://www.artgallery.wa.gov.au/support-us/gallery- sponsors.asp

Trends in Sponsorship in Australia

 Competitive environment: arts, sports, medical science, education, welfare

 Business objectives: reputation as good corporate citizen (93%), network (83%), communication, employee development, development of local/regional communities (78%), Australian society, Australian arts and culture (ABAF 2004)

 Rise in advertising costs in 1990s – led to greater investment in sponsorship

 Shift towards community investment and

corporate citizenship

Planning: Internal Issues

 Effective sponsorships take time, research and resources

 Internal publics need ownership of sponsoring arrangements

 Sponsorship strategy: the process of obtaining and maintaining sponsors

 Who is responsible for finding and servicing sponsors?

Planning: What Can You Offer?

 Know your organisation (mission, objectives, values); publics (all stakeholders, including staff and board); and all your events, sites and public relations activities

 Benefits for sponsors:

 Publics: overlap in target publics

 Objectives: rarer, but very powerful

 Attributes: can reinforce association between your values and theirs

Finding sponsors

 Desktop research: websites, annual reports, public relations documents

 Who are their publics?

 What might their objectives be (key messages)

 What do they already sponsor?

Approaching Murdoch University

 Your organisation clearly matches our mission, vision and values.

 A partnership with your organisation would increase awareness of our courses and/or research expertise with prospective students or research partners.

 A partnership with your organisation would increase awareness of our courses, research expertise, business expertise and/or capacity with key stakeholder groups and / or specific demographic and geographical groups that will help us to realise our strategic objectives

Sponsors for Perth Fashion Festival

 http://www.telstraperthfashionfestival.com.au/partners

Steps In Successful Sponsorship Seeking

1. Develop a suitable package with customised benefits & appropriate offer

2. Identify potential sponsors

3. Research information on shortlisted targets

4. Prepare persuasive proposals

5. Meet with targets

6. Service the agreement

7. Renew agreements & strengthen relationships

Sponsorship Proposals

 Need to use corporate language eg invest rather than support

 Tailor to the specific organisation

 Offer choice of sponsorship arrangements

 Be succinct and avoid irrelevant information

 Supply a cover letter

Structure of Proposal

 Cover letter

 Overview

 Opportunities for sponsor

 Event/property details

 Research

 Publics

 List of benefits

 Investments

 Documentation and evaluation

Results and Evaluation

 Ongoing relationship and trust (‘exceed expectations’)

 Documentation: remember to allocate this in your budget

 Evaluation is different from results (e.g. press cuttings) in that it should offer some sort of comment or analysis; annual debrief

 Next time…

Risks with sponsorship?

 For the organisation sponsoring?

 For the organisation being sponsored?

Further Reading

www.healthway.wa.gov.au

http://www.lotterywest.wa.gov.au/grants

The End

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