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10-1 Chapter 10 Venue Naming Rights Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

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Presentation on theme: "10-1 Chapter 10 Venue Naming Rights Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin."— Presentation transcript:

1 10-1 Chapter 10 Venue Naming Rights Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2 10-2 Venue Naming Rights Building Sponsorship Sponsor Pays to Have Its Name Attached to a Facility for A Specified Period of Time Many Types of Facilities beyond Sports Also Driven by ROI

3 10-3 Brief Historical Perspective Early Ego-Driven Motives 1973 – Rich Stadium for NFL’s Buffalo Bills ($1.5 million over 25 Years) Percent of US Professional Teams Playing in Venues with Corporate Sponsor –30% in 1997 –69% in 2007

4 10-4 Benefits for Four Constituencies Benefits for the Fans Benefits for the Community at Large Benefits for the Resident Organization Benefits for the Sponsor

5 10-5 Benefits for the Fans – Often Involves New Facility Better Seating Configurations More Amenities Potential for Lower Ticket Prices Better Product Team Retention

6 10-6 Benefits for the Community at Large Provides Jobs Higher Levels of Tourism Lower Taxpayers’ Burden

7 10-7 Benefits for the Resident Organization New Revenue Stream Enhanced Level of Prestige Greater Corporate Interest for Involvement Via Traditional Sponsorship

8 10-8 Benefits for the Sponsor Increased Awareness Improved Image Sustainable Competitive Advantage from the Association with the Venue and Its Resident Organization Hospitality Opportunities Increased Sales

9 10-9 Plan Components Comparable to Traditional Sponsorships Insert Box 10.1 Here

10 10-10 Plan Components Signage –Places like main entrance, gathering areas, scoreboards, concession areas –May Include Virtual Signage Opportunities Logos –On uniforms of participants, service workers, and items such as napkins and cups

11 10-11 A Key Component: Signage Drop in Figure 10.1 Here

12 10-12 Plan Components Advertising – Broadcast and Programs –Many venue naming rights deals include advertising for the building sponsor; these may include radio, TV, and the event program Designation for Leveraging Purposes –A building sponsor often seeks ability to position itself as an “official sponsor” of the venue’s primary resident organization

13 10-13 Plan Components Category Exclusivity –Competitors of the building sponsor may not be allowed any official role with the venue Recognition on Public Address Announcements and Scoreboards –Contract often specifies a minimum number of such acknowledgements during each event that is staged at the venue

14 10-14 Plan Components Hospitality –Provision of an area for entertaining; may include a luxury suite for some (or all) events Complimentary Tickets –Free tickets to events staged at the venue

15 10-15 Plan Components Web Presence –Acknowledgment or even a direct link to the sponsor’s Web site from the venue and the resident organizations’ Web sites Distribution Rights –Ability of sponsor to sell its products at the venue

16 10-16 Plan Components Other Marketing Initiatives –Take orders for products –Accept applications (i.e. credit card company) –Showcase products –Engage in promotional giveaways

17 10-17 Example of Venue Naming Rights Contract Drop in Table 10.1 Here

18 10-18 Key Success Drivers Target Market Fit Ability to Leverage Integration within Sponsor’s IMC Plan Multipurpose Facilities

19 10-19 Target Market Fit Capitalize on Strategic Linkage to Reach the Sponsor’s Target Market Marketer May Need to Consider Venues beyond the Sports Environment

20 10-20 Ability to Leverage Resident Organization May Receive a Significant Amount of Media Exposure Building Sponsor Should Use Leveraging Program as a Means of Capitalizing on that Exposure Leveraging Should Tie the Sponsor to the Resident Organization

21 10-21 Integration within Sponsor’s IMC Plan Sponsorship Fits Other Elements of the Building Sponsor’s Marketing Strategy Sponsorship Is Not a Stand-Alone Promotional Strategy; It Must Work in Harmony with the Other Components of the Sponsor’s Integrated Marketing Communications (IMC) Plan

22 10-22 Multipurpose Facilities Multipurpose Facilities: –Reach a Varied Array of Market Segments –Reduce the Seasonal Variation Regarding the Use of the Venue

23 10-23 Value Determination Drop in Box 10.3 Here

24 10-24 Examples of Sports Venues VenueLocation Total Contract ($US) Years Citi FieldNew York, NY400 20 Reliant StadiumHouston, TX300 30 Philips ArenaAtlanta, GA180 20 Emirates StadiumLondon, England200 13 Lucas Oil StadiumIndianapolis, IN121.5 20 Allianz ArenaMunich, Germany120 15 Air Canada CentreVancouver, Canada 25 20

25 10-25 Opportunities Beyond Sports Examples Include –Hospitals –Educational Facilities –Museums –Performing Arts Centers –Shopping Malls

26 10-26 Measuring the Results Qualitative Assessment Consumer Surveys of Awareness Media Equivalencies

27 10-27 Problems, Concerns and Criticisms Cost Public Reluctance to Embrace Corporate Name Media Resistance to Use Corporate Name

28 10-28 Problems, Concerns and Criticisms Difficult to Measure Sponsorship’s Impact Sponsor Transition (i.e. Merger) Arena Obsolescence Lack of Consistency – Performance of Resident Organization Varies over Time

29 10-29 Problems, Concerns and Criticisms Limited Number of Opportunities Remain in the US Professional Sports Market Teams Move Sponsorship Clutter

30 10-30 Growth Opportunities Some Pro Sports Opportunities in USA Nonsports Environment Secondary Sports Facilities Opportunities Outside of United States

31 10-31 Building Sponsorship? Drop in Figure 10.2 Here

32 10-32 Brokers and Consultants Specialized Agencies that Negotiate Deals that Work for Either the Sponsor or the Sponsee in the Negotiation Process –Work to Get Maximum Revenue for Venue –Work to Get Best Deal for the Sponsor –For Example: Front Row Marketing

33 10-33 Closing Capsule Venue Naming Rights Is Our First Special Case of Sponsorship Primary Emphasis Has Been on Sports Venues, but Other Opportunities Abound It’s Not Just about Attaching a Corporate Name to a Building

34 10-34 Closing Capsule Sponsors Seek Reasonable ROI Focus Is on the Potential Value of the Plan Components and the Sponsorship’s Cost Measuring the Results Is Difficult Done Correctly, Many Parties Will Benefit

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