SEM PI – Explain the nature of sponsorship in the sports/event industries

Sponsorship is a Partnership Sponsorship is a partnership with an event, activity, person, or organization. Sponsors give: – money, products, equipment, services, or any combination. Sponsors get: – recognition and affiliation – Suites and tickets

Sponsorship Agreements Agreements Contain: – Costs – Advertising Restrictions – Marketing Opportunities – Target Market

Goals of Sponsorship Public/Community relations – Brand Image Communication with consumers - Target Market**** Recognition – Brand Awareness Increase sales and profits – Promotion Gain “Market Share” – Beat the Competition Enter New Markets - Sell in a new place Introduce new products – Brand Awareness Entertain clients – Public Relations Entertain your employees – Public Relations

Exploiting the Sponsorship Use Sponsorship in: Advertising Merchandise Promotions Commercials Appearances Autograph Signings Contests Freebies

Exclusivity The “official” or only sponsor – Most sponsors will only sponsor an event if they receive exclusivity – Example: You will not find Coke and Pepsi sponsoring the same event

Sponsorship Clutter Sponsors want to reach their target market – Also want to avoid clutter (consumer confusion)

Activity: Lets Go Racin’ Lap 1 – Choose a NASCAR Driver Lap 2 – Determine Sponsor Lap 3 – Decorate car with sponsor logo/colors/number Lap 4 – Determine Cost of Sponsorship Agreement Lap 5 – Determine Conditions of Agreement Lap 6 – Determine the success of the car/driver Lap 7 – Explain the Sponsorship Rationale (Why?) Lap 8 – Find a Driver or Sponsor quote about the Sponsorship Lap 9 – Determine Lesser Sponsors Lap 10 – Victory Lap!

Ambush Marketing A company exposes their products/logo at an event without authorization or payment. – Example: Coke is a sponsor but Pepsi is outside the event handing out free Pepsi tees or coolies – Example: Company employs airplane/blimp to fly over event and advertise their logo/product – Also called Gorilla Marketing – Confuses Consumers embedded&v=v6xqsl39y4I

Ambush Marketing

Subway is not an official Olympic sponsor. Subway uses a variety of Olympic athlete endorsers.

Ambush Marketing

General Motors official sponsors of Detroit Tigers “Ford” Field visible from Comerica Park Seats

Ambush Marketing Bavaria Beer Co. at the 2010 World Cup The company was not an official World Cup Sponsor The women were arrested!

SEM Activity Sponsorships, Endorsements, Naming Rights Students work in pairs to conduct research and provide their findings in a PPT format. Students should provide examples of each of the following: Company Sponsor – 3 Examples Product Sponsor – 3 Examples Endorsements – 3 Examples Naming Rights – 3 Examples Ambush/Gorilla Marketing – 2 Examples Students must show a picture or clip art showing the actual sponsorship.