Sponsorship Flashcards
Sponsorship with (promotion mix):
personal selling, advertising, publicity, incentives (sale promotions) all five interrelated
Sponsorship platform
the central theme around which the sponsor can develop a consistent promotional message
Why is platform important
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
Leveraging the sponsorship platform - two basic costs
direct sponsorship investment, indirect activation of the sponsorship
Leveraging the sponsorship platform - media involvement
extent of anticipated media involvement prominent in negations, media coverage key to brands seeking increased awareness or image enhancement
3 ways to pursue media coverage
negotiate trade outs with TV/radio/newspaper, media pays to sponsor event one exchange for rights to sell other sponsorships, secure editorial coverage
Securing editorial coverage
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
Platform elements
signage, awards, internet, retail promotions, personalized service, licensing
Sponsorship commitment
need to establish linkages, long term relationships may leave legacies, 3 year min recommended
2 reasons why sponsors don’t renew
sponsorship management or market conditions may change, reduction in impact of sponsorhip
Alcohol sponsorship and sports and recreation
sport fans drink beer/beer drinkers like sport, max beer consumption and sports participation peak 18-29, seen as lesser evil than tobacco
Packaging sponsor
title sponsor, presenting sponsor, official sponsor, official supplier
Title sponsor
name integrated into the event, has input into organization of the event, can result in increased costs
Presenting sponsor
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
Official sponsor
pay 10% title fee, part of product categories not reserved by presenting sponsors, allows smaller companies with fewer $$$ to have sponsorship opportunity
Official supplier
do not have obvious link to event, offer goods and services to organization staging the event
Pricing sponsorships
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
Issues addressed in sponsorship agreement (look at slides for examples)
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
Measuring sponsorship impacts - media equivalencies
duration of TV coverage (verbal and visual mentions), duration of radio mentions, press coverage (measured in column inches)
Measuring sponsorship impacts - media coverage weight to reflect
relative attractiveness of different types of media coverage, quality of media coverage, amount of clutter
Measuring sponsorship impacts - often inflated
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
Impact of sponsorship awareness issues
recall is often faulty, market leaders given credit for sponsoring
