1.07 Explain the concept of sponsorship.

Sponsor A business, person or organization that finances a sports or entertainment entity.

Sponsee The entity (event, sport, athlete, entertainer, or venue) that receives money for product from the sponsor.

Sponsorship The financing of a sports or entertainment entity by a business in return for recognition affiliation.

Sponsorship (continued) Involves money, products or services Marketing exchange With any sport or entertainment entity In-kind sponsorship Forms: Teams Governing bodies Athletes Facilities Event Sport Leagues

Sponsorship (continued) Factors used to determine what to sponsor: Increase in product sales Compatibility and image Tie-in Potential media coverage Exclusivity of competitors Types or levels Title sponsorship Presenting sponsorship

Ambush marketing Also called parasite marketing. Official Sponsor Ambush marketing Also called parasite marketing. Occurs when a company does not pay the fee to be an official sponsor but uses techniques to make the public believe the company is the official sponsor. Is usually associated with major events. Hurts corporate sponsorship because the public is confused about who is the real or official sponsor.

History & Growth of Sponsorship Roman times – gladiators and chariot drivers would wear colors representing specific merchants 17th & 18th centuries – pubs in England sponsored horse races Mid 1800s – local companies sponsored Harvard & Yale rowing teams

History & Growth of Sponsorship (Continued) MLB – first major league sport sponsored by corporations 1970s – change in sponsorship because of ban of tobacco and alcohol ads 1984 – Corporate sponsors of the LA Olympics (limit: 30 sponsors)

Increase in sponsorship Athletes as walking advertisements Ease of targeting a specific market Increase advertising costs Lifestyle sports Live programming of sporting events New media Nontraditional sporting activities Overcrowding of advertising Taxpayers not willing to increase the amount paid for sports

Event Triangle Audience: the potential market Sponsorship is an ongoing partnership. Sponsors: need the entity for public recognition Entity: needs the sponsor for financial assistance

Why companies sponsor entities: Help businesses reach their target market Increase sales Increase market share Inform potential customers about their product Enhance overall goals and objectives Give sponsors the right partner A way to introduce new products Increase public awareness or perception Prevent direct competition through exclusivity Repositioning Psychographics Networking opportunities Exposure and visibility Promote goodwill

Why entities utilize sponsors Financial support In-kind support

How the audience benefits from sponsorships Lower ticket prices Exposure to new products Free samples and give-aways Non-evasive advertising