Corporate Concerns in Sponsorship Partnerships

1
Corporate Concerns in Sponsorship Partnerships

• Sport Finance

2
Considering Sponsorships

• 5 major concepts
• Sponsorship objectives
• Good fit between property and brand
• Sponsorship platform
• Ambushing
• Length of commitment

3
Sponsorship Objectives

• SMART
• Measuring items
• Sales figures
• Sales growth
• Media coverage
• Customer awareness/satisfaction
• Sponsor awareness
• Brand awareness
• Brand recall

4
Good Fit

• Two Elements
• Sport image compatible w/desired image of brand
• Target markets of property brand
• Audience w/similar demographic/lifestyle profile
  to target market image congruent w/brand
  viable.
• Dissimilar target profile non-congruent image
  non-viable.
• Property image congruent w/brand but not audience
  unlikely.
• Target audiences are compatible but image
  non-congruent some potential.

5
Good Fit

• Indirect functional based similarity logical
  link between product while spectating, but
  product not essential for event
• Target audience feels comfortable
• Ex. Chicken of the Sea U.S. Synchronized
  Swimming
• 7-11 cycling????????????

6
Sponsorship Platform

• Central theme around event so sponsor can have
  consistent message with different means of
  communication.
• In other words, the sponsorship is the within the
  event.

7
Sponsorship Platform

• Direct sponsorship
• Indirect activation-other costs incurred from
  other promotional activities
• New ideas-not sponsoring event but creating event.

8
Sponsorship Platform

• Media involvement (15-25)
• 3 routes
• Trade-outs (TV, radio, paper, etc)
• Media pay cash to sponsor event in return right
  to sell to other companies
• Secure editorial coverage-satisfy customers not
  sponsor
• Other ways
• Signage, awards, internet, retail promotions,
  licensing

9
Ambush Marketing

• Defined as companys intentional efforts to
  weaken-or ambush-its competitors official
  sponsorship by engaging in promotions and
  advertising that trade off the event or
  propertys goodwill while seeking to confuse the
  buying public as to which company really holds
  the official sponsorship rights

10
Ambush Marketing

• Kodak vs. Fuji 1984 Olympics
• Pepsi vs. Coke NHL
• Sponsors in stadium (swooshes)
• Two goals
• Weaken public perception gain some
  recognition/benefits of associated w/official
  sponsor
• Also.planned effort not exposure-but
  misconception

11
Ambush Strategies

• Sponsorship of broadcast (Final Four broadcast)
• Purchasing air time in and around events (Nike
  World Cup)
• Sponsor entities other than organizing body (Coke
  Cowboys or Reebok and Nike gold shoes)
• Purchasing ad space in close proximity to the
  event venue (Umbro vs. Nike)

12
Ambush Strategies

• Thematic advertising and implied allusion (The
  Sun, England Soccer)
• Prizes suggesting sponsorship (trip to Final
  Four)

13
Countering Ambushing

• Legal---if claiming property rights (using logo),
  hard to determine
• Cost
• Courts favor ambushers
• Market---3 ways
• Comprehensive use of platform
• Well written contracts (web, signs, etc)
• Name and shame

14
Commitment

• Long-term thought to be most effective
• 3 years shortest
• 1st to learn
• 2nd show potential
• 3 see benefits
• BUT
• With long-term if sponsor changes hard to change
  public (Lipton ATP to Ericsson)

15
What To Do????????

• Invest in 3 year plan then review
• Typically 2 reasons you wont renew
• Market conditions/objectives change
• Loss of association of sponsor w/event