How to Attract and Keep Sponsors

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How to Attract and Keep Sponsors

• Canadian Forces Personnel Support Agency 04 May
  2006

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Presentation Overview

• What is Sponsorship Marketing?
• How to Attract Sponsors
• Common Objectives for Involvement in Sponsorship
• Tactics Used by Sponsors to meet Objectives
• Common Criteria Used by Sponsors to Evaluate
  Proposals
• - The Event Management and Marketing
  Institute
• Ensuring a Positive Relationship with the Sponsor
• Components of a Sponsorship Proposal

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What is Sponsorship Marketing?

• Sponsorship Marketing is NOT seeking donations
  from Corporations.
• Sponsorship Marketing is NOT Philanthropy.
• Sponsorship Marketing is NOT a panacea or an
  answer to everything.

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Definition of Sponsorship

• The relationship between a sponsor and a
  property (typically in sports, arts, culture,
  events, entertainment or causes), in which the
  sponsor pays a cash or in-kind fee in return for
  access to the exploitable commercial potential
  associated with the property.
• - International Events Group (IEG)

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Sponsorship Marketing

• Sponsorship Marketing is the packaging of
  opportunities in a way that will provide a
  corporation with the chance to meet its specific
  marketing and corporate objectives in a unique,
  exciting, non-traditional way.

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Common Objectives addressed through Sponsorship

• Sales Objectives
• Image Objectives
• Awareness Objectives
• Employee Involvement Objectives
• Business to Business Objectives
• Competition Blocking Objectives
• -Event Management and Marketing Institute

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Sales Objectives

• Increase sales of a specific brand
• Increase traffic in their stores

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Sales Driving Tactics

• Contests
• Customers eligible to win tickets, merchandise,
  etc. through product purchases
• Cross-Promotions with Co-Sponsors
• Get sponsors working together!
• Product Sampling Showcasing
• Use sponsored event as a platform/venue
• Sales Force Incentive Program
• Link the sponsorship to sales incentives

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Sales Driving Tactics (Contd)

• Donations Program
• Make a donation to the Property with every
  purchase of the sponsors product
• Point of Purchase Displays
• Create shelf noise by placing event related
  displays near specific products

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Image Objectives

• Create or enhance an image of a product
• Improve / Develop Community Relations
• Change an existing Corporate image
• Differentiate themselves from the Competition

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Image Building Tactics

• Careful Sponsorship Selection
• Sponsors will pick opportunities that reflect the
  image of the Company / Product
• Public and Media Relations Campaigns
• PR programs will support sponsorships
• Implementation of Donations Programs
• A Donations element builds a Positive Image

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Awareness Objectives

• Increase the awareness of an existing brand or
  product
• Introduce a new brand or product to the market
• Introduce a new Corporate look to the market

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Awareness Tactics

• Media Advertising
• Buy advertising
• Targeted Advertising
• Posters, schedules, flyers, placed in targeted
  locations
• Pre-Event Contests
• Builds excitement and raises event profile
• In-Store Displays
• Builds customer knowledge of sponsorship

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Awareness Tactics (Contd)

• Merchandising
• Selling or giving away of event branded
  merchandising in stores and at event
• Signage On-Site Off-Site
• Reinforces Consumer awareness of sponsorship
• Product Showcasing/Sampling On-Site
• Allows Attendees to see and try products
• Public Address Announcements On-Site
• Reinforces Attendee awareness of sponsorship

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Business to Business Objectives

• Create opportunities to entertain clients
• Create a new business development opportunity
• Create an awareness of a new product/brand or
  Corporate image aimed at a target group

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Business to Business Tactics

• V.I.P. Opening and Closing Receptions
• V.I.P. Hospitality Rooms/tents, etc.
• Relaxed way to talk business
• Facility Usage Programs
• Unique venues often make good locations to launch
  new products, make major business announcements,
  etc.

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Employee Involvement Objectives

• Increase Employee Satisfaction
• Increase Employee Motivation levels
• Increase Employee Awareness of Corporate
  Initiatives

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Employee Participation Tactics

• Sales / Performance Incentive programs
• Merchandise Giveaways
• Complementary passes / tickets to events
• Employee Only Hospitality Rooms at events
• Behind the Scenes Tours
• Employee Involvement in Selection of the
  Companys Sponsorships

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Competition Blocking Objectives

• Industry exclusivity

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Competition Blocking Tactic

• Securing of Industry Exclusivity

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Common Evaluation Criteria Used by Sponsors

• Understand that different companies use different
  criteria to evaluate opportunities
• Do your Homework / Research!
• Make sure your Proposal addresses the Sponsors
  Evaluation Criteria
• Make sure your Selling Document includes the
  elements that Sponsors are accustomed to finding
  in a proposal

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General Questions Sponsors Ask Themselves

• Does the Opportunity Fit with our Corporate
  Image?
• Will the Opportunity Reach our target market?
• Does the Timing of the Opportunity make sense
  to us?

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Examples of Specific Criteria Used to Evaluate
Opportunities

• Size of the Event
• Local, Regional, National
• Sponsorship Category Available
• Title, Major, Contributing, etc.
• Track record of the Organizer
• Is the Organizer established in Sponsorship?
• Target Market Fit
• Can we reach our target market?

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Examples of Specific Criteria Used to Evaluate
Opportunities (Contd)

• Business/Product tie
• Is there a natural link to our line of business?
• Image Fit
• Does the Opportunity convey the right image?
• Sales Opportunities
• Can the Opportunity help drive sales?
• Media Exposure
• Does the Opportunity get media coverage?

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Examples of Specific Criteria Used to Evaluate
Opportunities (Contd)

• Timing
• Does the Opportunity take place at a good time
  for us?
• Servicing
• Does the Organization have Servicing staff?
• Growth Potential
• Can we Grow this Opportunity?
• Exclusivity
• Can we gain an advantage on the competition?

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Examples of Specific Criteria Used to Evaluate
Opportunities (Contd)

• Traditional Rights and Benefits
• What are the traditional rights benefits being
  offered (signage, passes, recognition, etc.)?
• R.O.I.
• Can we demonstrate to Management a R.O.I.?
• Price
• Can we afford the Rights Fee?
• Can we afford the costs required to Activate
  the Opportunity?

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Keeping Sponsors Ensuring a Positive Sponsor
Relationship

• The Sponsorship Process begins internally before
  any proposal is ever sent to the potential
  sponsor.
• Sponsorship Marketing is NOT simply about the
  Property generating money. Its about creating a
  Win-Win business relationship with a Corporation.

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Ensure Staff understand why Corporations Sponsor
Properties

• Make sure that staff understand what generally
  motivates Sponsors to invest.
• Create an internal Customer Focused
  environment. Take a Customer View.
• Sponsors are Customers. The best customer is the
  one you already have!
• Focus on the Spirit of the Sponsorship
  Agreement not simply the words found in the
  Agreement.

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Preparing Your Organization to Meet its
Obligations to Sponsors

• Ask Yourselves, Does your Organization
• communicate sponsorship obligations to all staff?
• recognize Sponsorship Agreements as legal
  documents?
• have an established approval/review process for
  materials etc. related to the sponsored
  properties?
• have a clear commitment amongst all staff to
  provide outstanding and ongoing service to its
  Sponsors?

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Communicating Obligations

• PRIOR to sending a proposal to a potential
  sponsor, ensure proposals are reviewed internally
  by all impacted staff members.
• PRIOR to signing a formal Agreement, ensure the
  Agreement is circulated and reviewed by all
  impacted staff members.
• Create and distribute to staff Internal
  Obligations Charts which outline the various
  obligations and responsibilities.

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The Sponsorship Servicing Representative

• Consider identifying a main contact person
  responsible for communicating regularly with the
  Sponsor.
• Make it Turn key for the Sponsor
• Regular scheduled Servicing Reports
• On-going conversations concerning objectives of
  Sponsor and Organization
• Quality Control / Quality Assurance
• Ease of Implementation / Management

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The Sponsorship Proposal

• Corporations receive hundreds of proposals each
  week.
• Its a Buyers Market
• Proposals need to Stand Out as exciting and
  unique business opportunities
• Proposals need to be complete and contain Key
  Information
• Proposals need to be received by Potential
  Sponsors in a timely manner

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Components of a Sponsorship Selling Document

• Executive Summary
• Case For Involvement
• Description of Organization
• Description of the Project
• Description of major Support Programs
• The Target Market (Audience)
• The Sponsorship Benefits Package
• The Detailed Communications Program
• The Detailed Budget (Optional)

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Executive Summary

• A summary of the main points of the proposal
• The Organization
• The Project / Location
• The Date of the event/program, etc
• The Target Audience
• The expected Participation levels
• The Impact (National, Regional, local)
• The Overall Scope of the Project (budget)

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Case For Involvement

• A short, general explanation as to why the
  Potential Sponsor should
• consider investing in the property
• consider actively participating in the Shaping
  of the property
• consider actively promoting its involvement with
  this property

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Description of the Organization

• An informative section which gives a brief
  overview of the Organization, its mandate and its
  operations.
• Let the Potential Sponsor know Who You Are and
  What Youre About.

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Description of the Project

• A brief overview of the Product Offering.
• Its vision
• Its objectives
• Its major support activities
• Programs, events, etc.

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The Sponsorship Benefits Package

• A clear and detailed outline of the marketing /
  communications rights and benefits offered.
• Levels of Sponsorship Available (Title,
  Presenting, Major, etc.)
• Standard deliverables (advertising, brochures,
  posters, flyers, etc.)
• Corporate Benefits- those benefits that address
  Sponsors Corporate Objectives

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The Communications Program

• An outline of the Product Offerings major
  communications objectives
• A look at the Target Markets
• An outline of the Communications Plan
• A summary of the Communications budget

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The Detailed Budget

• Including this section is sometimes considered to
  be Optional by Properties
• The Budget illustrates to potential sponsors the
  financial commitment to the overall project by
  the Property
• The Budget can illustrate where the Property is
  emphasizing its investments (i.e. programs,
  promotion, event coordination, etc.)

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The Communications Program

• Sponsorships are often viewed as Communications
  Opportunities.
• A clearly articulated Communications Program can
  often enhance the Sponsorship Proposal
• Executive Summary
• Audience Identification
• Overall Communications Objectives
• The Communications Plan

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The Communications Plan

• Advertising
• Objective (s)
• Action Plan for each stated objective
• A) Audience
• B) Activity
• C) Dates
• D) Sponsor Tie-in
• Advertising Budget (by stated Activity)

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Communications Plan (Contd)

• Promotion
• Objective (s)
• Action Plan for each stated objective
• A) Audience
• B) Activity
• C) Dates
• D) Sponsor Tie-in
• Promotion Budget (by stated Activity)

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Communications Plan (Contd)

• Public / Media Relations
• Objective (s)
• Action Plan for each stated objective
• A) Audience
• B) Activity
• C) Dates
• D) Sponsor Tie-in
• Public/Media Relations Budget (by Activity)

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Questions And Comments