Sponsorship

 Sponsor-A person, organization or business that gives money or donates products and services to another person, org, or event in exchange for public recognition.  Reasons for Sponsorship  To increase sales  To compete in a saturated area  To be identified w/ an event

 To introduce a new product to a large audience  To earn goodwill of the audience  To show commitment to the community  Enter new markets  Enhance company’s image

 Sponsors monitor the value of their investments, and want a good return.  Return is the profit the sponsor earns from its support of an athlete or team.  Example…A vet clinic would like to see increase in patients due to sponsoring a team.  Businesses watch returns since costs can be HIGH!

 Niche Marketing-involves researching a target market to determine the specific items a small group will buy.  Businesses must understand both the large target market AND the smaller niche market for each event they sponsor.  Common Niche Markets  Women and men in different age groups  12-24, 25-34, etc…  Different ethnic groups

 Auto Racing  #1 sport for fan loyalty, also most loyal fans to their sponsors  Value is added to the sponsors return when they are mentioned in a race.  Young men age is one of the most sought after markets today.  Sponsors are trying very hard to attract this group through extreme sports

 ESPN started the X Games in 1995  Very pleased with their popularity  250,000 teens attended in  Who are they going after?  Young market that doesn't enjoy sports like baseball and football.  Soft-drink makers, tech businesses, and clothing businesses are main sponsors

 Sponsors come in all sizes and budgets.  Few businesses can afford to sponsor major league sports, but newer sports offer attractive opportunities for small businesses  Affinity Sports-Niche markets whose participants are as passionate about their sport as those of more traditional sports.  Bass fishing  Rope jumping

 20 th Century saw a backlash against sponsors by tobacco and alcohol businesses.  Multistate Tobacco Settlement 1998  Tobacco sponsorship is prohibited for concerts, events which participants are under 18, or for football, baseball, soccer, and hockey.  Tobacco sponsorship is limited to one event and one brand per year per business

 Promotion-Publicizing or advertising a product, service, or event with the goal of selling it.  Purpose is to make the consumer want it  People MUST know about a product in order to buy it  Promotion leads to selling  Promotion serves both the buyer and seller of the promo

 Attracting new markets and keeping old ones are equally important  Goal is to find new customers or persuade regulars to buy more  Promotion is a critical stage in winning new customers  Maintaining customer satisfaction, loyalty, and repeat business is also a goal of promotion

 Before spending a cent, a company must know what it wants to accomplish.  1 st …Target must be decided. Then research the five elements of market segmentation (demographics, psychographic, geographic, product usage, and benefits derived)  This is to make sure the product and market suit each other.

 Company must decide on the message it wants to send.  Does it want to persuade to try a new product?  Inform customers about new features existing product?  Create new attitude about existing product?  Or just broaden awareness?

 Company must decide what it wants consumers to do.  Trying a new product, coming to certain store or event, or buying more of something they already buy.

 Promotional Plan or Promotional Mix has 4 elements:  Personal Selling  Advertising  Publicity  Sales Promotion

 Personal Selling is an in-person, face-to-face communication between a seller and a customer.  Example…Vendor and business buyer. A rep for a sportswear manufacturer and manager of a college bookstore.  Retail store clerk and customer  Telemarketers

 Advantages  Opportunity for seller to overcome any hesitation from the buyer  Seller can offer more info  Can compare with similar product  Or personal experiences w/ the product  Often human interaction will make the sale.  Even if the sale is not made, customers will return in the future if they are treated courteously.

 Advertising is paid communication between the product maker or seller and the audience.  Effective advertising  Clearly explain the benefits of a good product.  Even the best advertising wont bring customers back to a bad product.  Toy commercials during morning cartoons  Advertising can occur almost anywhere!

 Publicity is any free notice about a product, service, or event.  Articles in newspapers or magazines  “sound bites” on television or radio  Newspapers front page stories about Lance Armstrong’s victory over cancer  Promoted interest in the race  Free promotion not only to Armstrong but the race, other racers, and to bicycle related businesses who were quoted in the article.

 Publicity also means just keeping your name, event, or organization in public view.  Press releases,  Speeches  Volunteer work  Donations other than sponsorships  Letters to the editor

 Sales promotion is any action or communication that will encourage a consumer to buy a product.  Usually short term specials  Limited time memberships  Giveaways  Coupons  Items with company’s name on it  Free samples