Presentation on theme: "Chapter 9 Sponsorship, Corporate"— Presentation transcript:
1 Chapter 9 Sponsorship, Corporate Sponsorship, Corporate Partnerships, and the Role of ActivationChapter 9 Sponsorship, Corporate
2 Sponsorship DefinedThe acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation or association.Sponsors use their relationship to achieve promotional objectives or to facilitate and support their broader marketing objectives.
4 SponsorshipThe rights derived from the sponsor relationship may include the following:Retail opportunitiesPurchase of media timeEntitlementContests or sweepstakesEndorsementsLogo placement on uniforms or apparelHospitalityWebsite access
5 Activation DefinedThe marketing activities that a company conducts to promote its sponsorship.Activation is commonly referred to as leveraging or bringing a brand to life by creating a variety of means to interact with a target market.Money spent on activation is over and above the rights fees paid to the sponsored property.
6 Reasons for Growth in Sport Partnership Shift in marketing spends by tobacco and alcohol manufacturersDecreased effectiveness of advertising in print and televisionLower cost and increased exposure compared with traditional advertising(continued)
7 Reasons for Growth in Sport Partnership (continued) Commercial success of 1984 Los Angeles Olympic GamesIncreasing number of television channels devoted to sport programmingTechnological developments leading to the portability of sport through mobile devices(continued)
8 Reasons for Growth in Sport Partnership (continued) Emergence of new sport offerings and the importing of programming from other countriesPopularity of sport-themed video gaming and fantasy sportsGlobalization of sport
9 Common Sponsor Objectives Increase public awareness of the company, the product, or bothAlter or reinforce public perception of the companyIdentify the company with particular market segmentsInvolve the company in the communityBuild goodwill among decision makersGenerate media benefits(continued)
11 Sponsor Activation: Creating Interactive Marketing Platforms Sponsors and properties face the challenge of developing better activation strategies to help consumers build the link between the property and the sponsor.Social media is quickly becoming a top activation outlet for sponsors:(continued)
12 Selling the Sponsorship Make comprehensive list of inventory.Establish list price for items in inventory.Conduct research of sponsorships sold in the market and identify prospects that would be likely to have an interest.Establish packaging discount policies.Determine or recognize real costs of items.(continued)
13 Selling the Sponsorship (continued) Establish sales strategy.Initiate sales process.Work from larger sponsorship proposals (major corporations) to smaller proposals and corporations.Pit competitors to create bidding environment.
14 Eight-Step Process of Sponsorship Sales Research category and prospect within that category.Schedule meeting with sponsorship decision maker.Hold preliminary meeting; listen more than talk.Arrange follow-up meeting.(continued)
15 Eight-Step Process of Sponsorship Sales (continued) Create a marketing partnership proposal.Present proposal in draft form to allow negotiation.Negotiate final deal.Introduce client to activation team.
16 Co-Op Sponsorship Agreements The joining together of two or more entities to capitalize on a sponsorship or licensing opportunityAllow companies to share the total cost of the sponsorshipAllow promotion of several product lines within the same corporate structureEnable corporations to use existing business relationships(continued)
17 Ethical Issues in Sponsorship Questionable athlete behavior and its effect on endorsementsPotentially inappropriate sponsors for sport organizationsCommercial gambling providersAlcohol manufacturersJunk food manufacturers