Promotional Licensing and Sponsorship

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chapter 13

• Promotional Licensing and Sponsorship

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Objectives

• To illustrate the relationship between the sport
  organization and the corporate sponsor
• To provide an understanding of the scope of
  sponsorship and promotional licensing
• To develop a comprehension of the motivations and
  rationale for the use of sponsorship by
  corporations and sport entities

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Sponsorship or Partnership

• A cash or in-kind fee paid by a client to a
  property in return for access to the exploitable
  commercial potential associated with the
  property.
• A winwin situation where the client and the
  property both benefit. It is a partnership where
  both should see economic benefits.

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Sponsorship

• It is the acquisition of rights to affiliate or
  directly associate with a product or event for
  the purpose of deriving benefits related to that
  affiliation or association.
• The sponsor then uses this relationship to
  achieve its promotional objectives or to
  facilitate and support its broader marketing
  objectives.
• The rights derived from this relationship may
  include retail opportunities, purchase of media
  time, entitlement (the inclusion of the sponsor
  name in the event or facility name, such as the
  McDonald's LPGA Championship or the RCA Dome), or
  hospitality.

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Sponsorship Provisions

• The right to use a logo, a name, a trademark, and
  graphic representations signifying the
  purchaser's connection with the product or event
  
• The right to an exclusive association in a
  product or service category
• The right of entitlement to an event or facility
• The right to use various designations or phrases
  in connection with the product, event, or
  facility (official sponsor, official
  supplier, official product, or presented by)
• The right of service or the right to use
  purchaser's product or service in conjunction
  with event or facility
• The right to conduct promotional activities, such
  as contests, advertising campaigns, or
  sales-driven activities, in conjunction with
  sponsorship agreement

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Reasons for Growthin Sport Partnership

• Decreased effectiveness of advertising in print
  and on TV
• Increased interest in sport and leisure time
• Opportunity for two-way communication
• Changing social priorities Statement of
  priorities by sponsor and consumer
• High consumer acceptance life-styled marketing

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Why Sponsorship?

• Lifestyle marketing
• Exclusivity
• Heightened communication
• Publicity

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Ambush Marketing
A planned effort (campaign) by an organization
to associate themselves indirectly with an event
in order to gain at least some of the recognition
and benefits that are associated with being an
official sponsor (see endnote 54 in book)
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Selling the Sponsorship

• Evaluate inventory.
• Establish list price for items in inventory.
• Establish packaging discount policies.
• Determine or recognize real costs of items.
• Determine exclusive items and exclusive product
  areas.
• Initiate sales process.
• Work from larger sponsorship proposals (major
  corps) to smaller proposals and corps.
• Pit competitors to create bidding environment.

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The Partnership Sale

• Know when budget decisions are made.
• Identify and cultivate the decision maker.
• Face to face
• Complementary items
• Make presentation Offer solutions to their
  problems.
• Negotiate Sell from the top down.
• Secure the sale Document terms of the deal.
• Service the sale Underpromise, overdeliver.

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Six-Step Process of Selling Sponsorship

• Identify and arrange meeting with decision maker.
• Hold preliminary meeting Listen more than talk.
• Arrange follow-up meeting.
• Create proposal.
• Hold follow-up meeting for purpose of making
  presentation.
• Negotiate final deal.

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Sponsors Objectives

• To increase public awareness of the company, the
  product, or both
• To alter or reinforce public perception of the
  company
• To identify the company with the particular
  market segments
• To involve the company in the community
• To build goodwill among decision makers
• To generate media benefits
• To achieve sales objectives
• To showcase unique product features,
  technologies, or advantages
• To create an advantage over competitors through
  association or exclusivity
• To gain unique opportunities in terms of
  hospitality and entertainment
• To secure entitlement or naming rights

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Ethical Issues

• Undue influence
• Social responsibility
• Unfair labor practices
• Alcohol sponsorship