Sports Sponsorship: Perspectives, Motives, Objectives

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Sports Sponsorship Perspectives, Motives,
Objectives
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What is Sports Sponsorship?

• Def. Sponsorship
• When a company pays a cash and/or in-kind fee to
  a property in return for access to the
  exploitable commercial potential associated with
  that property
• Part of Marketing through Sport Properties
• Part of communication strategy through Sport
  Properties
• Globally 38 billion spent on corporate sport
  marketing
• 12 Projected Increase in 2007(North American
  Companies)
• Outpacing the estimated lt4 growth in sales
  promotion and advertising

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Why Sponsorship?

• Seller Perspective
• Secure broadcast and advertising exposure
• Creatively bundle tickets and advertising
• Enhanced patron experiences
• New source of revenue to offset rising costs

Pepsi Ten Buck Tuesdays
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Why Sponsorship?

• Buyer perspective
• Unique positioning opportunity
• Cutting through the clutter
• Emotional connection with consumers
• Relevant
• Experiential
• Sport appeals to diverse consumer groups
• Business-to-Consumer (B-2-C)
• Business-to-Business (B-2-B)
• Optimally, sponsorship represents a promotion
  sales solution!

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Sponsorship Trends

• Sellers are Buying Buyers are Selling
• Properties as sponsors
• Secondary marketers
• Creative Financing
• Co-ops and Co-sponsors
• Industry Maturation Sophistication
• Sponsorship philosophy and policy

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Sponsorship Philosophy Policy

• Results Orientation
• Return-on-investment (ROI)
• Return-on-objective (ROO)
• Servicing
• Less is More
• Activation
• Embedded activation
• Added activation
• ROI will almost always go up when the property
  focuses on activation because activation is the
  substance of the relationship. Tony Shiller,
  Paragon Marketing

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Most Important Sponsorship Objectives(IEG
Sponsor Report, March 12, 2007)
                                               
                                                  
                                                  
                                 
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The FedEx Sponsorship Portfolio Model
Consists of five distinct categories of
corporate marketing objectives
Key Targets
Revenue
Hometown
Hospitality
Leadership
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Creatively Financing Sponsorship

• Multiple year agreements w/escalating rights fees
  
• Discount fee in exchange for promotional
  commitment
• Co-op arrangement w/vendor, supplier, or brand
• Referral rebates

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Sponsorship Activation

• Generating Media Traffic Awareness
• Hospitality
• Creating On-site Programs
• One-on-one/Hosting
• Sampling
• Branded content
• Retail Campaign Execution
• Devising Internal Sales Tool(s)

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Optimizing Sport Sponsorship

• Purpose driven
• Mutual benefit
• Start smallthink big
• Identify hidden treasures

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Back to the Olympic Partners

• Atos Origin
• Coca-Cola
• General Electric
• Manulife
• Johnson Johnson
• Kodak
• Lenovo
• McDonalds
• Omega (Swatch Group)
• Panasonic
• Samsung
• Visa

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In your groups

• Pick on and identify at least one form of
  activation this company did with the Olympics.

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Practical Challenges
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Identifying SponsorProspects

• Look For/Demonstrate Audience Fit/Relevancy
• Audience Research
• Demographics
• Psychographics
• Sponsor Recognition/Recall
• Loyalty To/Attitude Toward Sponsors
• Loyalty To/Attitude Toward Property

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Determine Who To Contact

• Sponsorship/Sports Marketing Manager
• Marketing/Advertising Manager
• Public/Community Relations Manager
• Brand Manager/Business Unit Manager
• Owner/President
• Account Manager at Sponsors Agency
• Foundation/Corporate Giving Manager

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Be Street Smart In Generating Leads to Sell
Sponsorship

• New Product Launches
• Classifieds Whos Hiring?
• Intros by Current Sponsors
• Marketing/Business Events and Publications

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Mine Entire Category At Once

• Length of decision-making process does not allow
  for approaching companies one at a time
• Inform prospects that you have also contacted
  their competitors

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Sponsorship Fact

• Your Profit Is In Your Renewal
• Sponsorship Is About More Than Benefits
• Sponsors Renew Based On Servicing

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Key Takeaways To Focus On

• Provide turnkey activation platforms
• Define success in advance
• Educate your audience
• Incent activation
• Facilitate cross-promotions

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Post-Fulfillment Reports

• After the sponsorship is before the sponsorship!
• Must be an ongoing process.
• Institutionalize regular meetings with sponsor to
  discuss recent research and future services.
• Best renewal tool at your disposal.