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Sport sponsorship

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Sport sponsorship Sport Marketing University of San Francisco Sport Management Cohort 07S Intro $11.4 billion market in north America & $28 billion worldwide (IEG ... – PowerPoint PPT presentation

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Title: Sport sponsorship


1
Sport sponsorship
  • Sport Marketing
  • University of San Francisco
  • Sport Management
  • Cohort 07S

2
Intro
  • 11.4 billion market in north America 28
    billion worldwide (IEG, 2004)
  • 10 of sponsoring companies receive 1,300
    proposals/year (Seaver, 2004)
  • Top spending corporations (IEG, 2004)
  • 250-255 million PepsiCo
  • 240-245 million Anheuser-Busch
  • 185-190 million GM
  • 180-185 million Coca-Cola
  • 160-165 million Nike
  • Investment breakdown by industry
  • Sports (69) 7.69 billion
  • Entertainment (10) 10.06 billion
  • Festivals/Fairs (7) 792 million
  • Cause marketing (9) 991 million
  • Arts (5) 608 million

3
Sponsorship
  • a cash and/or in-kind fee paid to a property in
    return for access to the exploitable commercial
    potential associated with that property (Ukman,
    2004)
  • Sport sponsorship, in its essence, is based on
    a mutual exchange between a sport entity and a
    corporation (Copeland et al. 1996).

4
Theoretical framework
  • Social Exchange Theory (Emerson Cook, 1978)
  • Based on central premise that the exchange of
    social and material goods is a fundamental form
    of human interactions. Focused on how interaction
    patterns are shaped by power relationships
    between individuals and the resulting efforts to
    achieve balance in exchange relations a
    symbiotic relationship
  • Theory of inequity (Adams, 1963)
  • Whenever two individuals exchange anything,
    there is the possibility that one or both of them
    will that the exchange was inequitable.
    Therefore, inequity for a person in the
    relationship occurs whenever he or she perceives
    that the ratio of his or her outcomes to inputs
    are unequal.
  • 3. Reciprocal Theory
  • Customers will seek a reciprocal relationship
    with a select group of sellers from whom they
    will purchase products and services. Customers
    expect to pay for value, but customer loyalty can
    only occur when the two parties perceive that the
    value exchange between them is equal.

5
Growth impetus
  • the ability to reach consumers in a less
    cluttered environment than traditional
    advertising (Cordiner, 2002).
  • Advertising exposed to over 5,000 messages per
    day.
  • Sport may also be over-saturated!
  • Cluttered with title sponsors, presenting
    sponsors, supporting sponsors, cam sponsors,
    official product sponsors, pouring rights,
    licensing rights, naming rightsClutter and
    dilution are in direct opposition to what
    sponsors want.
  • Many sponsors are now seeking alternatives
    action or extreme sports, fantasy sports, or
    Fewer, better, bigger or Less is more
    approach to reduce clutter.

6
Background
  • Used to serve interests of corporate CEOs
    (Lets sponsor golf, because I like it.)
  • Strategic philanthropy A companys long-term
    investment in an appropriate cause that does
    measurable good in society while enhancing the
    companys reputation with key audiences. ?
    Evolved to Causal (Cause-related) Marketing.
  • Heavy dependence on sponsorship from high
    school to pros
  • Creating win-win partnership

7
Stotlar Evaluation model
Please see handout
8
Sponsorship process
BRAINSTORMING PLANNING FOR SPECIFIC
ACTIVATION (PROPOSAL)
  • PROSPECTING FOR SPONSORS UNDERSTANDING SPONSOR
    NEEDS

EXECUTION OF ACTIVATED COMPONENTS
POST SPONSORSHIP EVALUATION
9
Prospecting for sponsors
  • (1) RESEARCH! (WSJ, trade publications, Yellow
    Pages, local Chamber of Com.)
  • Business trends
  • Industry health (ex. Airline vs. gasoline)
  • Past sponsors new kids on the block
  • (2) GENERATE A LIST OF COMPANIES RANK THE
    POTENTIAL
  • (3) INVESTIGATE POTENTIAL SPONSORS (Websites,
    Annual Report)
  • Company profiles
  • Ownership status
  • Brand literature positioning, features
    benefits, messages or storiesetc.
  • New product roll-outs
  • (4) ESTABLISH THE CORRECT POINT OF ACCESS
  • Start with local, then corporate HQ.
  • Both local and HQ must endorse and support the
    prospect of sponsorship

10
Identifying sponsor needs
  • (1) KEY CONCEPT
  • Is there a fit between what I can offer and
    what the sponsor needs? Finding that perfect FIT
    is essential!
  • (2) NEED FOR SPONSOR CRITERIA FOR EVALUATION OF
    SPONSORSHIP PROPOSAL?
  • Increasingly stringent ROI accountability!!
  • (ex. Coke 1 how many cases?, A-B Does it
    sell beer?)
  • (3) IDENTIFY UNDERSTAND WHAT YOU HAVE!
  • Crystallize your demographic profile (age,
    gender, income, locationetc)
  • Understand psychographics of your fan base
    (attitudes, perceptions, beliefs, values,
    purchase behaviorsetc.) utilize past data
  • The clearer these info, the clearer your PLAN OF
    ATTACK

11
Identifying sponsor needs
  • (4) LEARN ABOUT SPONSOR NEEDS ( objectives)
  • a.We NEED to let consumers know about our new
    product / brand. ? AWARENESS OBJECTIVES (ex.
    Nike vs. LG)
  • b. We NEED to upgrade the impressions held by
    consumers about our company. ? IMAGE OBJECTIVES
    (ex. Wal-Mart apparel ad in Vogue K-Mart PGA)
  • c. We NEED to boost our revenues (sales
    volume). SALES OBJECTIVES
  • Drive traffic at retail (ex. QSRs car
    dealers)
  • Product sampling (ex. Food beverage brands)
  • New consumer data base (ex. service industry)
  • Incremental volume (ex. vending programs at
    schools or event merchandise sales)
  • BOTTOMLINE! Sales-driven objectives are No.1
    NEEDS for sponsors!

12
Identifying sponsor needs
  • d. We NEED to entertain potential and current
    clients in order to open new businesses and
    retain current accounts. NEED to something to
    enhance business relationships with them.
    HOSPITALITY OBJECTIVES (ex. Corporate suites and
    tents or pro-ams) ? mostly sales-driven as well.
  • e. We NEED to minimize the impact of recent
    lay-offs and/or reward the model employees.
    EMPLOYEE MORALE OBJECTIVES (ex. POSCO 2002
    World Cup, PGA Shell Houston Open)
  • (5) IDENTIFY THE FIT AND ATTACK POTENTIAL
    SPONSORS!
  • Convince how and why the fit is there.
  • If your sponsorship can satisfy multiple
    objectives (the more the merrier), your pitch has
    a better chance. However, focus on 1-2 KEY
    sponsor needs and address them fully.

13
Execution
  • Activation Stotlars model
  • Cross promotion
  • Among the most powerful and popular activation
    methods, as they can grant marketers access to
    new distribution channels and spread out
    proportional costs across multiple partners.
  • (Ex. NBA Sprite 7-Eleven prior to the All
    Star Game)
  • Cause-related marketing
  • 83 of consumers developed a more positive
    impression of companies engaged in CRM (Ex.
    Coaches vs. Cancer for Jimmy V. Foundation)
  • Grassroots programs
  • Brings marketing to a local or regional community

14
Post-sponsorship evaluation
  • INCREASED EMPHASIS ON R-O-I (ACCOUNTABILITY)
  • Easier to retain current sponsors than to start
    from scratch again.
  • Honest and accurate assessment of the exchange
    theory can lead to long-term partnerships.
  • Can also be used as a recruiting tool for future
    sponsors.

15
Post-sponsorship evaluation
  • Stotlars Evaluation Protocol (2004)
  • QUANTITATIE APPROACH
  • Event demographics
  • Recall (unaided) / Recognition (aided) Surveys
  • Top of Mind (TOP) Research (pre, during, post
    event)
  • Market Share Measures (pre, during, post event)
  • Incremental customers (pre post)
  • Promotional measures (ex. Coupons, liquidation,
    downloads, sales incentives, new DBetc.)
  • Employee Morale Survey
  • Qualitative Evaluation Protocol (Choi Stotlar
    2006)
  • A NEW PERSPECTIVE
  • LG Action Sports Championship
  • On-site COMPARISON of activated components vs.
    consumer findings
  • Photo Journaling method

16
Developing a proposal
  • See sample USA Taekwondo Sponsorship Proposal in
    your Reader for more info and strucutre.
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