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Copyright © 2009 Nelson Education Ltd. All rights reserved.1 Building Successful Sport Sponsorships Chapter 12 Chapter 12.

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Presentation on theme: "Copyright © 2009 Nelson Education Ltd. All rights reserved.1 Building Successful Sport Sponsorships Chapter 12 Chapter 12."— Presentation transcript:

1 Copyright © 2009 Nelson Education Ltd. All rights reserved.1 Building Successful Sport Sponsorships Chapter 12 Chapter 12

2 Copyright © 2009 Nelson Education Ltd. All rights reserved. OBJECTIVES Learn the steps in the sports sponsorship processLearn the steps in the sports sponsorship process Know the various elements of a sport propertyKnow the various elements of a sport property Understand the benefits of sponsorship to a potential companyUnderstand the benefits of sponsorship to a potential company Understand key success factorsUnderstand key success factors Identify best sponsorship practicesIdentify best sponsorship practices

3 Copyright © 2009 Nelson Education Ltd. All rights reserved.3 A MODEL FOR SPORT SPONSORSHIP SUCCESS Four Step Approach: 1.Pre-sponsorship practices 2.Negotiations 3.Sponsorship life 4.Sponsorship termination

4 Copyright © 2009 Nelson Education Ltd. All rights reserved.4 PRE-SPONSORSHIP PRACTICES Pre-sponsorship practices involves: Establishing the pre-requisites for future successEstablishing the pre-requisites for future success Developing the sport organization’s propertiesDeveloping the sport organization’s properties AndAnd associated hospitality events

5 Copyright © 2009 Nelson Education Ltd. All rights reserved.5 ORGANIZATIONAL CAPACITY A Sport organization must assess its capacityA Sport organization must assess its capacity Research involves:Research involves:  Info on the sport  Info on fans/spectators  Info on media coverage  Info on competitors  Restrictions from leagues/government

6 Copyright © 2009 Nelson Education Ltd. All rights reserved.6 PLANNING Sponsorship plan consists of:  Identifying properties available within the sport organization  Categories of sponsorship offered  Sponsorship budget

7 Copyright © 2009 Nelson Education Ltd. All rights reserved.7 PLANNING Properties Available ProgramsPrograms EventsEvents MerchandisingMerchandising

8 Copyright © 2009 Nelson Education Ltd. All rights reserved.8 PLANNING Sponsorship Categories:  Title Sponsor  Major Sponsor  Co-Sponsor  Presenting Sponsor  Sub-Sponsor  Supplier

9 Copyright © 2009 Nelson Education Ltd. All rights reserved.9 PLANNING Sponsorship Budget It’s important to know the expenses the sponsee will incur in providing the sponsorship packageIt’s important to know the expenses the sponsee will incur in providing the sponsorship package Know what the competitors are offeringKnow what the competitors are offering Research potential SponsorsResearch potential Sponsors

10 Copyright © 2009 Nelson Education Ltd. All rights reserved.10 NEGOTIATIONS There must be a fit between the sponsors’ and the sponsee’s objectives and brands.There must be a fit between the sponsors’ and the sponsee’s objectives and brands. The sport organization should prioritize a long term contract over higher sponsorship dollars and use legal expertise throughout the process.The sport organization should prioritize a long term contract over higher sponsorship dollars and use legal expertise throughout the process.

11 Copyright © 2009 Nelson Education Ltd. All rights reserved.11 FIT Through image, associations, or objectives, the fit must be clear to both parties.Through image, associations, or objectives, the fit must be clear to both parties.

12 Copyright © 2009 Nelson Education Ltd. All rights reserved.12 LEVERAGING COMMITMENT Leveraging activities happen later on in the process, but should be talked about in the negotiation stage.Leveraging activities happen later on in the process, but should be talked about in the negotiation stage. Offering ways a company can benefit from the sponsee.Offering ways a company can benefit from the sponsee.

13 Copyright © 2009 Nelson Education Ltd. All rights reserved.13 SPONSORSHIP CONTRACT Checklist: Status of sponsorStatus of sponsor Event signageEvent signage Advertising creditsAdvertising credits Sponsorship feeSponsorship fee Merchandising rightsMerchandising rights LiabilitiesLiabilities Ownership of TV rightsOwnership of TV rights PR and personal appearancesPR and personal appearances Future OptionsFuture Options TrademarksTrademarks

14 Copyright © 2009 Nelson Education Ltd. All rights reserved.14 SPONSORSHIP LIFE Sponsee must dedicate someone to service the sponsorship and develop the relationshipSponsee must dedicate someone to service the sponsorship and develop the relationship Sponsee collaborates with sponsor and comes up with leveraging tactics during an eventSponsee collaborates with sponsor and comes up with leveraging tactics during an event Implement an evaluation plan measuring the effectiveness of the sponsorshipImplement an evaluation plan measuring the effectiveness of the sponsorship

15 Copyright © 2009 Nelson Education Ltd. All rights reserved.15 MEASURING ROI Tangible benefitsTangible benefits Intangible BenefitsIntangible Benefits

16 Copyright © 2009 Nelson Education Ltd. All rights reserved.16 MEASURING ROI 4 Types of measurement to assess ROI of sponsorship: 1.Activity 2.Attitudinal research 3.Benchmark sponsorship program 4.Sponsorship efficiency

17 Copyright © 2009 Nelson Education Ltd. All rights reserved.17 IMPLEMENTING LEVERAGING TOOLS Some leveraging tactics:  Sponsor name used as official team name  Official sponsee poster, weblink and website  Front cover of event program  On-site product sampling

18 Copyright © 2009 Nelson Education Ltd. All rights reserved.18 EFFECTIVENESS OF TACTICS Measure the awareness and attitudes of consumersMeasure the awareness and attitudes of consumers Measure media coverageMeasure media coverage Measure salesMeasure sales ImageImage Motivation of employees of sponsorMotivation of employees of sponsor Hospitality effectivenessHospitality effectiveness

19 Copyright © 2009 Nelson Education Ltd. All rights reserved.19 SPONSORSHIP TERMINATION Well in advance of the termination date, the sponsee should know whether the sponsor wishes to renew the deal or notWell in advance of the termination date, the sponsee should know whether the sponsor wishes to renew the deal or not.

20 Copyright © 2009 Nelson Education Ltd. All rights reserved.20 BEST PRACTICES IN CANADIAN SPORT SPONSORSHIP 1.Building relationships 2.Understanding each other’s objectives and needs 3.Professionalism 4.Community involvement 5.Quality of product/success 6.Sponsorship evaluation 7.Deliver more than expected 8.television/media support

21 Copyright © 2009 Nelson Education Ltd. All rights reserved. Questions?

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