SRM 435 Exam Two

Step 7: Close the Deal (Sport Sponsorship Sales)

- A multiple-year agreement with escalating rights fees - A discounted fee in exchange for promotional commitment - A co-op arrangement with a vendor, supplier, or sibling brand - Shared fees with another internal budget source - Referral rebates - A performance-based agreement - A partial cash, trade, or in-kind agreement

Step 1: Identify the Prospect (Sport Sponsorship Sales)

- Generate relevant sponsorship research (do your homework) - Generate sponsor prospect leads - Understand sponsor intelligence - Use existing sponsors to become new prospects - Ask current sponsors for referrals - Seek new business developments

Four outcomes of brand associations

- Good memories - Differentiation - Motivation - Good feelings

Step 4: Schedule a Product-Sampling Experience (Sport Sponsorship Sales)

Example: Take them to the school (JMU) to prove what a great fan base there is

Licensed-Property Protection (Promotional Merits of Sport Licensing)

Identification of licensable property i.e. JMU Identity System

Step 9: Complete an Evaluation and Provide Feedback (Sport Sponsorship Sales)

Proof of performance

Execution/Implementation (Sport Sponsorship Activation)

Sponsorship execution relates to the sponsor's role in activating the agreed-on sponsorship

Strategic brand communication process (Sport Brand Communications)

Step 1: Conduct a situational analysis (i.e. a SWOT) Step 2: Set objectives Step 3: Select the target market Step 4: Craft the message Step 5: Select the appropriate media Step 6: Evaluate the effectiveness of the advertising • Perfect illustration of the strategic brand communication process: Mean Joe Greene endorsing Coca-Cola

Using brand associations to craft a message (Sport Brand Communications)

There are two common sources of brand associations: attributes and benefits. Attributes are the features of a particular brand. Benefits represent the meaning and value that consumers attach to the product. All the items listed on this slide can be used to create positive brand associations with sport consumers: ATTRIBUTES: Success - perhaps the easiest way to motivate people to consume a product is to promote that the team will be successful. Star players - research has shown that the presence of star players on a team can contribute to its overall attractiveness. As a result, these star players are frequently featured in advertisements. Head coach - the head coach is often a central component in the communication plan of the team. However, just like using star players in advertisements, using coaches can also be tricky. Stadium or arena - the stadium experience has become increasingly important to fostering positive associations with the team brand. Logo design - the San Jose Sharks revolutionized the way team marks were used to create associations. They involved the community in coming up with its nickname and logo, as well as developing a visual identity that many promotion programs could be built around. Product delivery - another theme that teams can stress is the entertainment value offered by the sport product. Tradition - of course, tradition associated with a sport brand can be an important source for stimulating and nurturing positive brand associations. Management - research has shown that a consumer's trust in an organization is helpful in creating a long-term relationship and loyalty. A perfect example is Mark Cuban of the Dallas Mavericks. BENEFITS: Fan identification - ultimately, identification with a team or sport brand fulfills a sport consumer's need to affiliate with something successful or desirable. Escape - research has demonstrated how sport can provide people an important escape from their daily routines. And escape doesn't just mean attending a sporting event. Can you remember a time when you procrastinated by researching your statistics of your favorite team's players? Nostalgia - sport has the unique ability to satisfy people's need to remember enjoyable experiences of the past. Pride in place - where you're from will usually dictate which teams you follow, because they represent your area. For example, most of you are familiar this skit from SNL. These skits poked fun at Bears fans, but rather than offending the fans, the skits made them feel special and even more proud of where they are from. Peer-group acceptance - it has often been suggested that the products a consumer chooses offer important social signals to peers. If sport consumers that friends and family accept their following of a particular team, they will view everything about the team more favorably.

Step 5: Design Follow-Up Procedures (Sport Sponsorship Sales)

• "I'd like the opportunity to share with you how our property can help attract more new car buyers into your dealerships to test-drive your new Lexus vehicles next September" • Sponsorship presentation essentials: - Maximize first impressions - Create a theme - Keep it customized - Keep it snappy - maintain a flow and be well rehearsed - Ask questions and listen for objections - Wrap up and suggest next step, making the offer - Follow up immediately after the presentation with a written timeline that includes responsibilities and a proposed date for the next step

Advantages & Disadvantages for Licensor (Promotional Merits of Sport Licensing)

• Advantages: - Able to expand into new markets and penetrate existing markets - Able to generate heightened awareness of the sports entity and potentially increase its equity • Disadvantages: - May lose some control over the elements of the marketing mix (e.g., product quality may be inferior or price reductions may be offered frequently)

Advantages & Disadvantages for Licensee (Promotional Merits of Sport Licensing)

• Advantages: - Positive association with the sports entity - Greater levels of brand awareness - Saving the time and money normally required to build high levels of brand equity - Initial distribution with retailers and potentially expanded and improved shelf space - Ability to charge higher prices Disadvantages: - The athlete, team, league, or sport may fall into disfavor

Promotion Through Licensing (Promotional Merits of Sport Licensing)

• Allows you to... - Creating brand awareness and appeal - Penetrating existing consumer markets - Pursuing new markets < Female consumers < Youth market < Global marketplace • Joint-use agreements - two or more rights holders allow their marks to appear together on merchandise or other items of commercial value (i.e. NCAA Final Four all different logos OR Disney with Yankees shirt) • Explore new licensed-product categories • Five fastest areas of licensing: infant apparel, school supplies, domestic, office supplies, apparel

Sponsorship Management (Sport Sponsorship Fundamentals)

• Before you sign up for a sponsorship, you must have a clear sponsorship philosophy and policies (Bad if you decide to sponsor with JMU just because you love the Dukes but its not actually good for your company) • Sponsorship philosophy: company expansion, increasing rights fees and activation costs, evolving corporate goals, and the need for ROI • Sponsorship policy: - Program responsibility- once sponsorship gets signed, who handles what? - Inventory availability- know everything that's possible inventory - Prospect compatibility- when company's don't want to sponsor with someone and associate with them (i.e. JMU and alcohol) - Proposal suitability- does it cover their needs? - Acquisition imitability- not easily imitated by other companies - Program accountability- their goals and objectives

Setting Sponsorship Objectives (Sport Sponsorship Fundamentals)

• Corporation-related objectives: - Increase public awareness of the company and its products - Enhance company image - Alter public perception - Become involved with the community - Build business relations and goodwill - Enhance staff relations and motivation • Product- or brand-related objectives: - Increase awareness within target market - Identify and build image within target market (positioning) - Block the competition - Increase sales and market share

Sales Process: Eduselling (Sport Sponsorship Sales)

• Eduselling is a solution to the frequent criticism that corporate customers are told, but usually not instructed, how best to utilize a sponsorship and its entitlements. • Sequential Steps: Step One - Identify the prospect Step Two - Prepare "how-to" guides Step Three - Partner with the prospect Step Four - Schedule a product sampling experience Step Five - Design follow-up procedures Step Six - Make the offer Step Seven - Close the deal Step Eight - Complete aftermarketing sales and follow-up Step Nine - Complete an evaluation and provide feedback

Sponsorship Trends (Sport Sponsorship Fundamentals)

• Everyone's doing it • Less is more • Increased sponsorship activation spending • Performance-based deals • Technology and the pursuit of content

(Sport Sponsorship Activation)

• Everything that happens after contract is signed • Both parties need to be involved • 8th step in eduselling

Sponsorship Activation (Sport Sponsorship Activation)

• Execution/Implementation • Leveraging • Fulfillment

Fulfillment (Sport Sponsorship Activation)

• Fulfillment is a property-managed activation plan that honors contractually obligated components of the sponsorship agreement • Sponsorship fulfillment staff • Managing sponsorship fulfillment • Reporting on sponsorship fulfillment - Introduction or executive summary - Participant information - On-site exposure - Off-site exposure - Advertising and editorial media exposure - Property-tracked promotional results

In the Sport Sponsorship Beginning (Sport Sponsorship Fundamentals)

• History: Goes back to the days of gladiators (representing themselves) • Significant Occurrence: 1984 Summer Olympics

Step 3: Partner With the Prospect (Sport Sponsorship Sales)

• Initial contact --> Send 1-page sport sponsorship proposal brief --> Informal meeting • Immediate goal is to build a relationship, not make an immediate sale so make it brief and do more listening than talking

Leveraging (Sport Sponsorship Activation)

• Key to maximizing sponsorship value: • Hospitality or on-site hosting • One-on-one marketing (easier to get your message out) • Thematic advertising (i.e. Fed Ex banner with NBA logo, message was all foreign, so global leader) • Branded content - video: Gatorade and VR w/Bryce Harper • Retail promotion (i.e. Dicks with team USA banner) • Awareness promotion (using sports properties as a way of getting new products out there) - there's cost for this • Sponsorship leveraging expenditures

Licensing as a Promotional Tool (Promotional Merits of Sport Licensing)

• Licensing is the act of granting a second party permission to use a mark, name, symbol, or likeness • Terms: - Licensor - sport org in position of marks (i.e. JMU) - Licensee - company asking permission to use marks (i.e. making JMU shirts) - Royalty - money that licensor gets from licensee / percentage back to licensor from what licensee makes (usually 6-10%) • CLC = Collegiate Licensing Company • A licensing program allows the opportunity to: - Establish a presence in the marketplace - Generate revenue - Trademark protection = "R" at corner means it is a registered trademark

Making the final decision (Sport Brand Communications)

• Making the final decision: so how do we choose the best combination of media to communicate our message? - Potential reach of the medium - Time the advertisement runs - Advertising budget

Modes of Brand Communication (Sport Brand Communications)

• Mass-media advertising - Television - Product placement - Radio - Newspapers - Magazines - Outdoor Media

Step 6: Make the Offer (Sport Sponsorship Sales)

• Proposal - No more than three pages - Can be submitted electronically or hard copy - Includes: < Introductory paragraph < Highlights of the inventory items' relevance to the prospect's needs < Fee structure < Call to action (i.e. request a meeting to close the deal) • Increase prospect's interest • Demonstrate ROI

Sponsorship Sales Force continued... (Sport Sponsorship Sales)

• Questions to ask if you're considering to make a deal with a company like Learfield: • Considerations for sport organizations wishing to outsource include: - What are our internal goals? - What are the organization's core competencies? - What can an outside vendor do that we cannot? - What kind of relationship with the vendor is most appropriate? - How will we deal with personnel concerns? - What are the costs? - Will control be lost by the organization? - Are there any conflicts of interests? - Will community relations or business relations be damaged? - Are there other financial concerns? • Considerations for sponsorship agencies include: - Sport property's image - Influence - Patron base - Profit potential

Sponsorship Renewal/Discontinuance (Sport Sponsorship Activation)

• Reasons why sponsorships may not be renewed: - Lack of activation - Overlooking due diligence - Emphasizing short-term relationships - Insufficient staffing - Product category competition - Lack of internal support -Failure to communicate the real value of the sponsorship

Step 8: Complete Aftermarket Sales and Follow-Up (Sport Sponsorship Sales)

• Service after the sale • Activation and fulfillment

What is Sponsorship? (Sport Sponsorship Fundamentals)

• Sponsorship is a commercial agreement between two parties, of which one is a sport property, to exchange as well as promote their mutual resources and interests. • It doesn't matter what level of sports, you will always see sponsorships. • Mutually beneficial for rights holder (sports organizations) and rights buyer (company's and corporations): - Marketing objectives (rights buyer) (rights buyer allows company to reach its objectives) - Exclusivity (rights buyer): no other competing org. can be a sponsor (i.e. JMU- Sprint is official wireless provider)) - Offset rising costs (rights holder) - Promotional opportunities (rights holder) (Pepsi in Martin's spell out Dukes) • Difference between sponsorships and advertising

Sponsorship Sales Force (Sport Sponsorship Sales)

• Sport sponsorship sales can be handled by: - Internal sources - External sources - Combination of both • Growing popularity of external sources

(Promotional Merits of Sport Licensing)

• Sports licensing brings in almost $25 billion - example: player-looking marshmellows, Yankees grass seeds, Yankee duct tape, NY Giants cup holder, etc.

Research and Evaluation (Sport Sponsorship Activation)

• Step 9 in eduselling • on separate sheet - reporting on sponsorship fulfillment - document to prove it (Sponsorship Proof of Performance Report) - Common sport sponsorship evaluation methods ^ introduction or executive summary ^ participant information ^ on-site exposure ^ off-site exposure ^ advertising and editorial media exposure ^ property-track promotional results (i.e. samples) • Evaluation Methods: - Sponsor exposure evaluation: how much value did you get for your sponsorship - Sponsor awareness, image, and affinity evaluation - Sponsor sales evaluation

Importance of a Strategic Focus (Sport Brand Communications)

• Strategic brand communications -Considers all customer groups -Accounts for the fact that brands change over time -It maintains the same voice over time

Promotion of the Licensing Program (Promotional Merits of Sport Licensing)

• Success boils down to licensing management program • Licensing Management - Licensee recruitment < Licensing program literature < Trade show networking - Maximizing licensee relations - Licensee preparation and responsiveness < Cleveland Cavaliers

Sport Promotion and the Internet (E-Commerce as a Promotional Tool)

• The facts: - U.S. e-commerce sales was estimated to reach over $394 billion in sales in 2016 - 8.3% of total retail spending took place online

Web Content (E-Commerce as a Promotional Tool)

• The five C's of creating content and keeping the fans coming back for more: - Change - should update website all the time - Choice - for people visiting website - Community - creating it - Cool - make a website that's cool (like innovating features) - Customize - like accounts • Fan interaction • Personalization - Identification - video: Mmm, computer cookies - Differentiation - Customizing - Permission Marketing

Step 2: Prepare How-To Guides (Sport Sponsorship Sales)

• The guide should include: - Property description - Audience profile - Key benefits (being a sponsor, what do you get?) - Media partners and anticipated coverage - Sponsor roster and testimonial - Contact information (if they're looking to become sponsor)

Sponsorship Platforms (Sport Sponsorship Fundamentals)

• Types of sponsorship: - Governing-body: NFL, NBA, NCAA - Team: *Creates a better link* - Athlete: endorsement deal - Media-channel: commercials when watching Superbowl - Facility - Event - Sport-specific: Bank of America is the official sponsor for baseball

Extending the Boundaries of the Stadium (E-Commerce as a Promotional Tool)

• Webcasts • Ticketing - bar coding • Loyalty Cards • Virtual Advertising