5.03 Discuss the use and importance of Sponsorships and Endorsements

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5.03 Discuss the use and importance of
Sponsorships and Endorsements
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SPONSOR

• A business, person, organization, that finances a
  sports or entertainment entity
• Financing can be in the form of money, products,
  equipment, services, or any combination of the
  four

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SPONSORSHIP

• Financing of a sports or entertainment entity
  (athlete, team, concert, or event) by a business
  in return for recognition affiliation

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Reasons for Sponsoring SEM Events

• Increase sales and profits through affiliation
• Increase market share for existing products and
  services
• Introduce new products or services
• Increase brand awareness and company image

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Reasons for Sponsoring SEM Events

• Enter and reach new target markets
• Build and maintain relationships with customers
• Build and maintain goodwill within the community

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Reasons for Sponsoring SEM Events

• Entertain clients, employees, or potential
  customers
• Entertain existing customers, potential
  customers, or employees and their families

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Types of Sponsorships

• Barter Sponsorships company doesnt pay for the
  sponsorship solely with monetary compensation
• Also referred to as in-kind
• Example Sponsoring a little league team
  company pays for equipment and uniforms in return
  for their name/logo on the teams uniforms

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Types of Sponsorships

• Endorsements also called testimonials are
  personal recommendations regarding the use or
  quality of a good or service
• Consumers are more likely to purchase a good or
  service if a celebrity endorses it
• For example, Dennis Franz using Nextel phones in
  commercial

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Types of Sponsorships

• Naming rights contractual agreements between a
  sponsor and a venue or event
• Company or organization will sponsor a sports or
  entertainment facility or event
• In return, company or organizations logo will
  appear in affiliation with the facility or event

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Types of Sponsorships

• Naming rights
• Examples include
• Fed-Ex Orange Bowl in Miami
• Coca-Cola 600 at Lowes Motor Speedway

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Personal Services Agreement

• Are contracts between a company and a celebrity
• for the endorsement of a good or service

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Personal Services Agreement Obligations May
Include

• Hours the celebrity has been contracted
• Does the celebrity have the right to refuse an
  engagement?
• How far in advance must engagement be scheduled?
• Is there a minimum/maximum amount of time a
  celebrity must spend at any single event?

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Personal Services Agreement Obligations may
Include

• What type of travel and hotel accommodations will
  be provided?
• What affect does immoral conduct by the celebrity
  have on the agreement?
• Is the contract related to the overall
  achievement of the celebrity?