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Chapter 9 Sponsorship, Corporate

9

Sponsorship, Corporate Partnerships, and the Role of Activation

C H A P T E R

Objectives

  • To illustrate the relationship between the sport property and the corporate partner
  • To demonstrate the importance of fit and the use of exclusivity between the sponsor and the property

(continued)

Objectives (continued)

  • To develop a comprehension of the motivations and rationale for the use of sponsorship by corporations and sport entities
  • To convey the importance of activation to engage the target market while simultaneously bringing the brand to life

Sponsorship Defined

  • The acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation or association.
  • Sponsors use their relationship to achieve promotional objectives or to facilitate and support their broader marketing objectives.

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Table 9.1

Sponsorship

  • The rights derived from the sponsor relationship may include the following:
  • Retail opportunities
  • Purchase of media time
  • Entitlement
  • Contests or sweepstakes
  • Endorsements
  • Logo placement on uniforms or apparel
  • Hospitality
  • Website access

Sponsorship’s Place
Within the Marketing Mix

  • Sponsorship activities are integrated within the sport event or organization.
  • Sponsorship activities are composed of a variety of marketing and promotional components.

(continued)

Sponsorship’s Place
Within the Marketing Mix (continued)

  • Elements of promotion and communication mix:
  • Advertising
  • Personal selling
  • Publicity
  • Positioning
  • Sales promotion

Figure 9.1

Activation Defined

  • The marketing activities that a company conducts to promote its sponsorship.
  • Activation is commonly referred to as leveraging or bringing a brand to life by creating a variety of means to interact with a target market.
  • Money spent on activation is over and above the rights fees paid to the sponsored property.

Reasons for Growth
in Sport Partnership

  • Shift in marketing spends by tobacco and alcohol manufacturers
  • Decreased effectiveness of advertising in print and television
  • Lower cost and increased exposure compared with traditional advertising

(continued)

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Reasons for Growth
in Sport Partnership (continued)

  • Commercial success of 1984 Los Angeles Olympic Games
  • Increasing number of television channels devoted to sport programming
  • Technological developments leading to the portability of sport through mobile devices

(continued)

Reasons for Growth
in Sport Partnership (continued)

  • Emergence of new sport offerings and the importing of programming from other countries
  • Popularity of sport-themed video gaming and fantasy sports
  • Globalization of sport

Figure 9.4

Table 9.4

What Does
Sport Sponsorship Offer?

  • Shift in sponsor objectives from traditional philanthropy or entertaining the interests of a sponsor’s corporate executives to demonstrating significant business-related ROI or ROO

Common Sponsor Objectives

  • Increase public awareness of the company, the product, or both
  • Alter or reinforce public perception of the company
  • Identify the company with particular market segments
  • Involve the company in the community
  • Build goodwill among decision makers
  • Generate media benefits

(continued)

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Common Sponsor Objectives (continued)

  • Achieve sales objectives
  • Showcase unique product features, technologies, or advantages
  • Create an advantage over competitors through association or exclusivity
  • Gain unique opportunities in terms of hospitality and entertainment
  • Secure entitlement or naming rights

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Table 9.5

Figure 9.6

Sponsor Activation: Creating Interactive Marketing Platforms

  • Sponsors and properties face the challenge of developing better activation strategies to help consumers build the link between the property and the sponsor.
  • Social media is quickly becoming a top activation outlet for sponsors:

(continued)

Sponsor Activation: Creating Interactive Marketing Platforms (continued)

  • Keep commercialization to a minimum
  • Cap the frequency of sponsor messaging
  • Offer consumer engagement

Figure 9.7

Selling the Sponsorship

  • Make comprehensive list of inventory.
  • Establish list price for items in inventory.
  • Conduct research of sponsorships sold in the market and identify prospects that would be likely to have an interest.
  • Establish packaging discount policies.
  • Determine or recognize real costs of items.

(continued)

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Selling the Sponsorship (continued)

  • Establish sales strategy.
  • Initiate sales process.
  • Work from larger sponsorship proposals (major corporations) to smaller proposals and corporations.
  • Pit competitors to create bidding environment.

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Eight-Step Process
of Sponsorship Sales

  • Research category and prospect within that category.
  • Schedule meeting with sponsorship decision maker.
  • Hold preliminary meeting; listen more than talk.
  • Arrange follow-up meeting.

(continued)

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Eight-Step Process of Sponsorship Sales (continued)

  • Create a marketing partnership proposal.
  • Present proposal in draft form to allow negotiation.
  • Negotiate final deal.
  • Introduce client to activation team.

Co-Op Sponsorship Agreements

  • The joining together of two or more entities to capitalize on a sponsorship or licensing opportunity
  • Allow companies to share the total cost of the sponsorship
  • Allow promotion of several product lines within the same corporate structure
  • Enable corporations to use existing business relationships

(continued)

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Co-Op Sponsorship Agreements (continued)

  • Enable newer or smaller corporations with something to offer to leverage the strength and position of a larger or more established corporation to gain the sponsorship and a position of advantage over competitors
  • Allow testing of a relationship when future opportunities are under consideration

Creating a Compelling Story
for Sponsors

  • Determine your objectives.
  • Identify your appropriate assets.
  • Consider a variety of platforms to achieve the desired objectives.
  • Design an engaging activation platform.
  • Create a delivery system that capitalizes on the opportunity for storytelling.

Ethical Issues in Sponsorship

  • Questionable athlete behavior and its effect on endorsements
  • Potentially inappropriate sponsors for sport organizations
  • Commercial gambling providers
  • Alcohol manufacturers
  • Junk food manufacturers

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