Session Seven

1
Session Seven

• Epictetus, 55-155 AD
• What concerns me is not the way things are but,
  rather, the way people think things are.

2
Sales steps to take during tight financial times

• Go outside your normal contacts
• Explore recession resistant categories (fuel,
  utilities, telcos, pharms, consumer staples,
  senior products)
• Make 5 extra calls a day
• Ask for referrals
• Offer creative financing
• Treat customers as partners
• Write your goals
• Be a consultative salesperson
• Keep in touch with former sponsors
• Dont get discouraged

3
Know the recession survival statistics

• McGraw-Hill has researched each recession. Their
  conclusion? Companies that CUT marketing dollars
  during a recession not only lost market share but
  had to spend twice as much when they came out of
  the recession to REGAIN their original share!

4
Estimated promotion marketing for 2008

• 350 billion!!!!

5
Sell benefits, not features

• DONT say posters, flyers, banners, blah,
  blah, blah
• RATHER a variety of marketing collateral that
  reaches a diverse market, reinforcing your
  branding strategy and helping you achieve your
  marketing objectives

6
And, dont dwell on branding

• Sponsors are savvy
• Sponsors want more
• Sponsors want a return on their investment (ROI)
• Sponsors are just as interested in intangibles as
  they are tangibles
• Sponsors want to be treated as partners

7
Who do you talk to?

• President
• Vice President of
• Marketing
• Public Relations
• Human Resources
• Brand management
• Product management
• Sales
• Advertising
• Multicultural marketing
• Sponsorship
• Brand managers
• Product managers
• Business owner

8
And, do your homework BEFORE you call!

• God bless Google (or Yahoo or any of your
  favorite search engines) research the potential
  sponsor
• Spot the need
• Match need to your resources
• Ask for the order
• Make the sale!

9
Understand the sponsor

• Know their
• Business
• Competition
• Budget cycle
• Market share
• Past experiences with sponsorship
• In short, be a consultative salesperson

10
Listening leads to understanding

• Terms your buyer knows
• ROI
• ROO
• ROE
• ROMI

11
Success highlights during a recession

• 1930s PG didnt lay off people- invented the
  concept of branding-started first radio soap
  opera Advertising Age launched, Business Week
  launched
• 1970s Charles Scwab founds discount brokerage
  
• 1980s Ted Turner founded CNN MTV launched
  miles based loyalty programs started generic
  products are launched Home Depot opens its first
  store
• 1991 Sales of SUVs ROSE!
• 2001 Wikipedia was conceived first iPod
  introduced

12
Why this information?

• You need it for your sales calls!
• Advice to sponsors
• Dont cut the budget
• Maintain or increase strong launches
• Beware of discounting
• Go with the flow
• You cant go wrong with diversion (and that,
  folks, is us!)

13
Why this information?

• You need it for your sales calls!
• Advice to sponsors
• Dont cut the budget
• Maintain or increase strong launches
• Beware of discounting
• Go with the flow
• You cant go wrong with diversion (and that,
  folks, is us!)

14
Creative negotiating options

• Cash first
• Cash plus barter
• Barter
• Shared sponsorships
• Creative financing (terms/credit cards)
• Converting barter to cash
• Media sales partners
• L-O-N-G lead time

15
Creative negotiating options

• Cash first
• Cash plus barter
• Barter
• Shared sponsorships
• Creative financing (terms/credit cards)
• Converting barter to cash
• Media sales partners
• L-O-N-G lead time

16
Events benefits checklist

• SPONSOR BENEFITS CHECKLIST
• _____ Radio commercials
• _____ Newspaper advertising
• _____ Television
• _____ Transit (bus and rail) cards
• _____ Metro brochures
• _____ Booth
• _____ Participation in ________________
• _____ Volunteer recognition
• _____ Banners
• _____ Hospitality
• _____ Customers
• _____ Clients
• _____ Staff
• _____ Employees
• _____ Sampling
• _____ Product sales
• _____ Audio announcements
• _____ On-site signage

17
Process

• Go through this BEFORE you talk investment
• Remember the definition of sponsorship
• An investment, in cash and/or in kind, in return
  for access to exploitable business potential
  associated with an event or highly publicized
  entity.

18
Adapting Sales Strategies for a Recession
(Correction/Downturn) whatever!

• This weeks findings
• In general no one knows what to call this!
• Two communities .. Holland, MI and Philadelphia,
  PA
• Yes, No, Maybe, I dont know
• (take your pick)

19
Selling single events

• Two ways to sell
• Horizontally title, presenting, associate,
  official product
• Vertically the childrens area, the seniors
  area, the teen area, the stage, the
  port-a-potties, etc.

20
Selling multiple events

• Rubiks Cube
• Again, you can sell either horizontally buy all
  and get __________________
• OR
• Vertically pieces
• OR
• Vertically own one of the events
• I prefer horizontally because

21
Selling multiple day events

• This is beyond a Rubiks Cube!
• Step one try to sell all
• Step two sell half (first half, second, half,
  every other)
• Step three sell clusters (3, 6, etc.)
• Step four sell one
• Now, for the Rubiks Cube
• Sell all vertical would be sponsor the food
  court, etc.
• Then vertical clusters, on down to the one only

22
Selling value

• Remember, benefits, benefits, benefits! Use the
  What Sponsors Want List as your source for
  benefits orientation
• Increase sales
• Corporate hospitality
• Introduce a new product
• Expand use of current products
• Sampling
• Asset/category exclusivity
• Employee incentives
• Customer incentives
• Trade incentives
• Product branding
• Differentiation from the competition
• Association with a particular lifestyle
• Heighten visibility
• Shape consumer attitudes
• Entertainment
• Cross promotion with other sponsors

23
Cost vs. investment pricing

• Key thing to remember the COST of an activity
  is IRRELEVANT to your buyer!
• The buyer is interested in the VALUE of what they
  receive in the way of BENEFITS to them!

24
13 Factors affecting sponsorship decisions

• Benefits
• Timing
• Budget
• Personnel
• Market conditions
• Customers perceptions of your offering
• Other sponsors
• Category exclusivity
• Merchandising opportunities
• Hospitality opportunities
• Event history
• Sales opportunities
• Cross marketing opportunities

25
13 Traits of good salespeople

• Passion
• Knowledge about the buyer
• Creativity
• Constant networking
• Constantly seeking new contacts
• A good listener
• Empathy
• Determination
• Confidence
• Self-esteem
• Ego
• Tenacity
• Written goals

26
13 Reasons Salespeople Dont Succeed

• Not making enough calls
• Not following through
• Not listening
• Not starting every day with a plan
• Not describing benefits clearly
• Not asking for the order often enough
• Negatively prejudging a prospects ability to buy
• Not dealing with objections
• Ignoring the power of a positive attitude
• Not changing and growing
• Lack of focus on priorities
• Failure to work harder and smarter
• Egotistical

27
How to read the annual report

• Here are the items you should be looking for
• Vision or mission statement
• Strategies (and tactics) for achieving 1
• Principal lines of business
• Target markets
• Challenges/problems
• Success measurements
• Competitive advantage
• Profit increases/decreases
• Gross profit margins

28
Lucky 13 bits of advice

• Believe you have already succeeded when you walk
  in the door
• Have written goals
• Have a sales plan (ties in with 2)
• Go the extra mile
• Be willing to negotiate
• Be willing to walk away
• Have a personal mission statement
• Deliver 110
• Take responsibility for your actions
• Replace negative statements with positive
  statements
• Allow yourself to make mistakes none of us is
  perfect!
• Always ask yourself what is the worst that can
  happen
• Be honest with your sponsors and yourself

29
Know the trends

• Need to know these in order to tie your
  sponsorship offering into the needs of the
  sponsor
• More unique assets
• Customization/personalization
• Localization/grassroots marketing
• Unique exclusivity
• Interactive/experiential opportunities

30
Trends (continued)

• Opportunity to leverage with other sponsors
  (sponsor summit)
• Opportunity to leverage with other suppliers
• Flexibility
• Virtual experience (Wii)
• Social networking (YouTube, Craigs List,
  Facebook, MySpace, Blogs ,
  Podcasts, Twittering)
• Lower cost-per-touch

31
Trends (continued)

• Emphasis on lifetime value of a customer
• Measurement (ROI, ROE, ROO, ROMI)
• Marketing to seniors
• Healthy and natural foods
• Anything African (spices, Shea butter, etc.)
• Anything green organic, environmentally
  sensitive, etc.

32
Trends (continued)

• Sleep and stress-reducing aids
• Specialized events (vertical)
• Think globally, act locally (side note
  International travelers)
• Greater creativity
• Consumercentric
• Psychographics

33
Whats not a trend

• Packages
• All things to all people/large, generic events
• Demographics
• Branding as the key sales approach
• Clutter
• Centralization
• One size fits all

34
More sales ammunition

• Youve got the trends now some statistics (from
  PROMO January 2008)
• 30 plan to spend more on events and 42 expect
  to hold steady (IEG says 40 will spend more)
• 30 spent 100K to 499K in 2007
• 27 allocated 1-5 million
• 30 devote 25 or MORE of total marketing budgets
  to event sponsorship

35
One major irritant of event marketing

• Ambush marketing
• Or, as better said by Michael Lynch VISA
• Parasitic marketing
• HOWEVER

36
Still the Promo survey

• 30 admit to ambushing!
• And
• 26 have been ambushed!
• I dont like it but
• The Ambush Marketing Toolkit is available
  through McGraw-Hill Book Co. (Kim Skildum-Reid)
  if you must
• To my way of thinking its dishonest and unfair
  
• for everyone

37
More from the Promo survey

• Sponsors measure impact by sales, intent to
  purchase, brand preference altered and amount of
  time engaged with product
• Marketing activities tied to events included
  sweepstakes, contests, data collection, sampling,
  coupon distribution, local advertising and radio
  tie-in

38
Interestingly

• The IEG survey people are still interested in
  branding and demographics!
• And, IEG says
• 46 determine their budget 4Q
• 25 3Q
• 9 2Q
• 20 1Q

39
How to do that

• Must follow the 12 steps
• Take inventory
• Establish media and retail partners
• Develop sponsorship offerings
• Research partners
• Make contact
• Set appointment

40
continued

• Be creative on the sales call
• Ask for the order
• Keep the sponsor in the loop
• Involve the sponsor in the event
• Provide post-event report (ROI, etc.)
• Renew for next year

41
Positive aspects of Recession

• Media will be more willing to work with you (they
  need you and your assets) this is good for you
• Competitors are cutting budgets you will stand
  out this is good for your sponsors
• Staying in front of your customers indicates you
  are a survivor good for sponsors

42
Please remember this

• Sponsorship is THE BEST MARKETING TOOL to use in
  an economic downturn because it provides the
  greatest return on investment based on cost per
  thousand (CPM)

43
Sell smart sell confidently

• Believe that what you have has value
• Then, you have to prove it!
• Thats where pricing comes in on two levels
• Being confident that you are pricing your
  sponsorship offerings fairly
• Providing a post event report that accurately
  reflects the ROI of the event

44
Pricing First

• Some rules no packages
• Work with the events benefit checklist
• Know the value of those benefits
• Develop your offerings based on CPM (cost per
  thousand)
• Be flexible

45
Pricing First

• Some rules no packages
• Work with the events benefit checklist
• Know the value of those benefits
• Develop your offerings based on CPM (cost per
  thousand)
• Be flexible

46
values to use based on CPM

• Posters 35
• Flyers/Bag Stuffers 50
• Banners 1.50
• Table Tents 75
• On Site Banners 100
• Payroll Stuffers 75
• Radio/TV/Print Rate card
• Tickets, gaited events Face value
• Tickets, backs 75
• Booth Space Rate Card
• What else?

47
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What does this mean?

• You know the value of what you are selling
• You can VALIDATE the value
• You can BELIEVE the value
• You can have confidence in yourself that it is
  being presented properly

49
Categories

• Title
• Presenting
• Associate
• Official product
• Vertical sponsorship
• Cheapskate! ?

50
10 Basic Rules for Success

• Believe that you have already succeeded
• Replace negative statements with positive phrases
• Take responsibility for your actions
• Always set written goals
• Think positively
• Formulate a personal mission statement
• Always ask what is the worst that could happen?
• Allow yourself to make mistakes
• Strive to be the best you can be
• No one was born great we can CHOOSE success

51
The Eagle A man once found an eagle's egg and put
it in a nest of a barnyard hen. The eaglet
hatched with the brood of chicks and grew up with
them. All his life the eagle did what the
barnyard chicks did, thinking he was a barnyard
chicken. He scratched the earth for worms and
insects. He clucked and cackled. And he would
thrash his wings and fly a few feet into the air.
Years passed and the eagle grew very old. One
day he saw a magnificent bird above him in the
cloudless sky. It glided in graceful majesty
among the powerful wind currents, with scarcely a
beat of its strong golden wings. The old eagle
looked up in awe. "Who's that?" he asked.
"That's the eagle, the king of the birds," said
his neighbor. "He belongs to the sky. We belong
to the earth. We're chickens." So the eagle
lived and died a chicken, for that's what he
thought he was.
52
Closing words of advice

• Eliminate negative thoughts
• Know your property
• Be tenacious
• Start early
• Be willing to negotiate
• Read, read, read
• Research, research, research