Sponsorship

Question 1

Sponsorship with (promotion mix):

Answer 1

personal selling, advertising, publicity, incentives (sale promotions) all five interrelated

Question 2

Sponsorship platform

Answer 2

the central theme around which the sponsor can develop a consistent promotional message

Question 3

Why is platform important

Answer 3

the sponsorship doesn’t offer a direct message as to why a brand should be purchased, need to amplify the message to audience, sponsorship alone will not translate to sales

Question 4

Leveraging the sponsorship platform - two basic costs

Answer 4

direct sponsorship investment, indirect activation of the sponsorship

Question 5

Leveraging the sponsorship platform - media involvement

Answer 5

extent of anticipated media involvement prominent in negations, media coverage key to brands seeking increased awareness or image enhancement

Question 6

3 ways to pursue media coverage

Answer 6

negotiate trade outs with TV/radio/newspaper, media pays to sponsor event one exchange for rights to sell other sponsorships, secure editorial coverage

Question 7

Securing editorial coverage

Answer 7

properties buy the block of time from the network then sell ad time, the property purchases advertising time in exchange for title credits and mentions in promotions

Question 8

Platform elements

Answer 8

signage, awards, internet, retail promotions, personalized service, licensing

Question 9

Sponsorship commitment

Answer 9

need to establish linkages, long term relationships may leave legacies, 3 year min recommended

Question 10

2 reasons why sponsors don’t renew

Answer 10

sponsorship management or market conditions may change, reduction in impact of sponsorhip

Question 11

Alcohol sponsorship and sports and recreation

Answer 11

sport fans drink beer/beer drinkers like sport, max beer consumption and sports participation peak 18-29, seen as lesser evil than tobacco

Question 12

Packaging sponsor

Answer 12

title sponsor, presenting sponsor, official sponsor, official supplier

Question 13

Title sponsor

Answer 13

name integrated into the event, has input into organization of the event, can result in increased costs

Question 14

Presenting sponsor

Answer 14

usually pay half to quarter what title sponsor pays, given rights to associate within a specific product category, will try to narrow categories to increase the number of possible sponsors

Question 15

Official sponsor

Answer 15

pay 10% title fee, part of product categories not reserved by presenting sponsors, allows smaller companies with fewer $$$ to have sponsorship opportunity

Question 16

Official supplier

Answer 16

do not have obvious link to event, offer goods and services to organization staging the event

Question 17

Pricing sponsorships

Answer 17

Using hierarchy of types of benefit packages allows potential sponsors to choose level of investment, Potential sponsors usually presented top-level package first, Acceptability of the price will depend on other sponsorship opportunities available, Do not price individual elements of a pricing package as will allow sponsor to try to cut out parts, Most of fee (65%) should be paid up front

Question 18

Issues addressed in sponsorship agreement (look at slides for examples)

Answer 18

official status, sponsorship fee, title rights, tv exposure, public relations and media exposure, logo use, signage, ad rights, athlete use, hospitality rights, point of sale promotion, direct mail lists, product sampling, legal liability, future options

Question 19

Measuring sponsorship impacts - media equivalencies

Answer 19

duration of TV coverage (verbal and visual mentions), duration of radio mentions, press coverage (measured in column inches)

Question 20

Measuring sponsorship impacts - media coverage weight to reflect

Answer 20

relative attractiveness of different types of media coverage, quality of media coverage, amount of clutter

Question 21

Measuring sponsorship impacts - often inflated

Answer 21

article length equated with advertising space, full rate card value is assumed when few companies actually pay full price, assumes that time of exposure adds up to equivalent commercial spot

Question 22

Impact of sponsorship awareness issues

Answer 22

recall is often faulty, market leaders given credit for sponsoring