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Chapter 9 Sponsorship, Corporate

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1 Chapter 9 Sponsorship, Corporate
Sponsorship, Corporate Partnerships, and the Role of Activation Chapter 9 Sponsorship, Corporate

2 Sponsorship Defined The 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.

3 Table 9.1

4 Sponsorship The rights derived from the sponsor relationship may include the following: Retail opportunities Purchase of media time Entitlement Contests or sweepstakes Endorsements Logo placement on uniforms or apparel Hospitality Website access

5 Activation Defined The 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 manufacturers Decreased effectiveness of advertising in print and television Lower cost and increased exposure compared with traditional advertising (continued)

7 Reasons for Growth in Sport Partnership (continued)
Commercial success of 1984 Los Angeles Olympic Games Increasing number of television channels devoted to sport programming Technological 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 countries Popularity of sport-themed video gaming and fantasy sports Globalization of sport

9 Common Sponsor Objectives
Increase public awareness of the company, the product, or both Alter or reinforce public perception of the company Identify the company with particular market segments Involve the company in the community Build goodwill among decision makers Generate media benefits (continued)

10 Table 9.5

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 opportunity Allow companies to share the total cost of the sponsorship Allow promotion of several product lines within the same corporate structure Enable corporations to use existing business relationships (continued)

17 Ethical Issues in Sponsorship
Questionable athlete behavior and its effect on endorsements Potentially inappropriate sponsors for sport organizations Commercial gambling providers Alcohol manufacturers Junk food manufacturers

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