Chapter 13

The BAD - Ambush Marketing

"A planned effort / campaign by an organization to associate themselves indirectly with an event in order to gain at least some of the recognition and benefits that are associated with being an official sponsor"

The GOOD - Affinity Marketing

-"An individual's levels of cohesiveness, social bonding, identification, and conformity to the norms and standards of a particular reference group" *Credit cards / Rewards programs *Donation to affiliated entities

Sponsorship

-A cash or in-kind "fee" paid by a client to a property in return for access to the commercial potential associated with the property. -A win-win situation where the client and the property both benefit. *It is a partnership where both should see economic benefits.

After the Sale: A.I.M.

-Activation *Additional investment in promotions and activity by the sponsor *Expands and builds on inventory acquired by sponsor -Integration *Partnership marketing succeeds because the whole becomes greater than the sum of the parts *But the synergy doesn't work if not experienced together -Measurement *Are the sponsor's goals measurable?

Reasons for Growthin Sport Partnership

-Decreased effectiveness of advertising in print and on TV -Increased interest in sport and leisure time -Opportunity for two-way communication -Changing social priorities: Statement of priorities by sponsor and consumer -High consumer acceptance "life-styled marketing"

Selling the Sponsorship

-Evaluate inventory *Establish price for items in inventory *Establish packaging discount policies -Determine REAL costs * Build in sponsorship servicing costs -Determine where you will offer EXCLUSIVITY -Plan your sales process and get started -Work larger to smaller proposals -Competitors may need to be made aware of discussions

Why Sponsorship?

-Lifestyle marketing -Exclusivity -Heightened communication -Publicity

Co-Op Sponsorships

-The joining together of two or more entities to capitalize on a sponsorship / promotional opportunity. *Shared costs *Multiple or complementary product lines +Existing business relationships *Leverage large & small partners *"Pass-through" Rights

Sponsorship Provisions

-The right to use a logo, a name, a trademark, and graphic representations signifying the purchaser's connection with the product or event -The right to an exclusive association in a product or service category The right of entitlement to an event or facility -The right to use various designations or phrases in connection with the product, event, or facility *official sponsor, official supplier, official product, or presented by -The right of service or the right to use purchaser's product or service in conjunction with event or facility -The right to conduct promotional activities, such as contests, advertising campaigns, or sales-driven activities, in conjunction with sponsorship agreement

The Partnership Sale

1. Ensure you are meeting with the decision maker. 2. The 80% Rule: Listen 80% of the time and gather valuable information. 3. Arrange a follow-up meeting. 4. Deliver your proposal as a partner, not a salesperson. 5. Allow for modifications to the proposal to address any changes. 6. Shoot to close ONLY when there are no more objections or obstacles.

Promotion

Licensing Advertising Personal Selling Publicity SPONSORSHIP

E-Marketing Opportunities for Sponsorships

Not dependent on existing traditional inventory Does not have to take place during a game Does not have to happen at the venue Does not take inventory away from radio and television Only limited by the creativity of the content

Sponsorship Objectives

ON SLIDE

Evaluating Sponsorship Effectiveness

Return on investment (ROI) = Revenue-generated or sponsorship fee. Examples: $50/$1 = 50 to 1 ratio $1,000,000/$10,000 = 100 to 1 ratio For every dollar spent $100 was made Return on Sponsorship (objective): *Increased exposure or awareness *Enhanced image

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.

Sponsorship

The rights derived from this relationship may include: -retail opportunities -purchase of media time -entitlement -hospitality