Sponsorship LCG PR2005

Definition Sponsorship involves 2 main activities: An exchange between a sponsor [such as a brand] and a sponsee [such as a sporting event] whereby the latter receives a fee and the former obtains the right to associate itself with the activity sponsored, and (2) The marketing of the association by the sponsor. Both activities are necessary if the sponsorship fee is to be an investment. Shimp, 2003:575 LCG PR2005

5 factors leading to growth of Sponsorship Companies attach names to special events and causes and are therefore able to avoid the clutter inherent in advertising media Sponsorships help companies respond to consumers’ changing media habits. Sponsorships help companies gain approval of various constituencies (incl. stockholders, employees etc) LCG PR2005

5 factors leading to growth of Sponsorship Sponsorship relationships between a brand and an event can serve to enhance a brand’s equity The sponsorship of special events and causes enables marketers to target their communication and promotional efforts to specific geographic regions and/or specific demographic and lifestyle groups. LCG PR2005

Some objectives of Sponsorship A supplement to – but not a substitute for – already operative direct advertising A means of reaching certain specialised markets directly or indirectly associated with the event A beneficial influence on staff relations and morale A means of influencing public corporate image and of increasing awareness of product and corporate identity, logos and symbols LCG PR2005

Evaluation/selection criteria Can the company afford to fulfill the obligation? Is the event or organisation compatible with the company’s values and mission statement? Does the event reach the company’s target audience? Is there enough time before the event to maximise the company’s use of the sponsorship? LCG PR2005

Evaluation/selection criteria Are the organisers of the event experienced and professional? Is the event worthy enough to provide the company with opportunities for publicity? Will the event be televised? Will the sales force support the event and use it to increase sales? Does the event give the company the chance to develop new contacts and create new business opportunities? LCG PR2005

Evaluation/selection criteria Can the company commit to this event on a long-term basis? Is there an opportunity for employee involvement? Is the event compatible with the “identity” of the company’s products? Is it possible to reduce the cash outlay for the company and enhance the marketing appeal of the event by trading off products and in-kind services? Will management support the event? LCG PR2005

Sponsorship strategy wheel Moore (2003:149) Business rationale Sponsorship strategy Competitive audit Sponsorship inventory Best-fit analysis Contract negotiation Implementation/leverage Evaluation LCG PR2005