Promotional Licensing and Sponsorship

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Promotional Licensingand Sponsorship

• Chapter 12

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Promotional Licensing and Sponsorship

• Factors Influencing the Growth of Sports
  Sponsorships (197-1990s)
• Ban on tobacco and alcohol ads (1997 spent 195
  million on sport sponsorships 95 on motor
  sports)

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• Clutter in print and electronic media (5,000 plus
  selling messages each day)
• Increase in TV ad costs (2004m Super Bowl, 1.2
  million for a 30 sec ad)

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• Sport governing bodies accepted the
  commercialization of sports (1984 Olympics, NCAA)

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Sponsorship Theories

• Exchange theory
• Relationship marketing
• Affinity marketing
• Ambush marketing
• Ethics issues

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Examples of Sponsorship Rights

• Use of logos, names, trademarks
• Exclusive association with an event
• Entitlement to an event or facility

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• Use of designations in connection with an event
  official supplier, official sponsor, presented by
• Use of purchasers product or service in
  conjunction with the event or facility

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• Conduct promotional activities in conjunction
  with the sponsorship agreement (contests,
  advertising)
• Companies acquiring rights (via fees) to
  affiliate with a product or event to derive
  benefits

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• Companies establishing relationships and
  partnerships with sports teams/leagues to derive
  benefits.

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Sponsorship Benefits to Corporations - ROI -

• Life styled marketing-reach consumers via
  leisure/fun pursuits
• Reach specific target audiences
• Exclusivity no competition

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• Heightened communication
• Heightened publicity
• Meet corporate sales objectives

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• Increase public awareness
• Positive public perception
• Community involvement
• Build good will

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• Generate media opportunities
• Generate hospitality and entertainment
  opportunities
• Secure entitlement or naming rights

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The Sponsorship Sales Process

• Identify sponsorship decision maker
• Schedule a meeting with sponsorship decision
  maker
• Listen to needs of corporate sponsor

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• 4. Arrange follow-up meetings
• 5. Create a long term relationship
• 6. Propose a draft that is flexible to change
• 7. Negotiate and sign an agreement