Sponsorship

Introduction

In today’s cluttered marketing environment simply airing your commercial on television or radio will not assure success. Today’s market place is too segmented. Because of that segmentation, it has become necessary to find ways of reaching the public that go beyond the ‘traditional.’ It was becoming increasingly expensive to reach people and increasingly tough to break through the “jungle of jingles”. 

What is Sponsorship?

There are numerous definitions of the word sponsorship, at one time, sponsorship might once have even been defined as supporting an event that would not be commercially viable and self financing without the sponsorship. Nowadays theorists offer definitions such as:

‘The support of an activity or an event from which the sponsor expects to derive a tangible benefit.’ (David Wragg 1994)

‘Sponsorship is the provision of support by a person or company for some independent activity (usually related to sports or the arts, although the field is widening) not directly linked to the person’s of company’s normal business, but support from which the sponsor hopes to benefit.’ (R. Turner, 1987).

Research into the understanding of sponsorship has been carried out by David Wragg in which he identifies that a high proportion of managers do not know what sponsorship is, what it can or can’t do, or what it should cost. He states, ‘there are many organisers of sponsored events who genuinely believe that companies sponsor because it is a nice thing to do.’ The results of his research give evidence that most companies have no idea in fact why they sponsor. In summary, he identifies that this is largely because the sponsorship is either an act of self indulgence, the end result of political or municipal coercion or simply for corporate hospitality. The most worrying of Wragg’s findings is that, ‘unfortunately the belief that companies sponsor the chairman’s of chief executives hobby has more than a grain of truth to it. The problem with this is that if the marketing or PR people cannot understand the justification behind a sponsorship, they can hardly be expected to convince their colleagues in other disciplines.

Major benefits of Sponsorship

Corporations now spend over $5 billion on Sponsorship. That represents a ten fold increase in only a decade. Why, among all the tools available to marketers-sales promotions, direct mail, public relations and ‘traditional’ advertising has sponsorship grown at such a rapid rate?

The main benefit of sponsorship is that it develops its own uniqueness that is not transferable. A good example of this is Richard Branson’s efforts to promote his Virgin Airways by record breaking attempt on the Blue Riband Trans Atlantic Record achieving enormously publicity when he sank close to the finish line. This was worth $123 million at ratecard, against a sponsorship of only $½ million. This is undoubtedly an extreme case but it demonstrates that sponsorship should no longer be regarded as ‘entertainment’ or ‘good will’ but moreover as an effective and powerful marketing tool.

What the experts say

Used strategically, sponsorships and lifestyle campaigns can cut through the marketplace and communicate your message directly to whichever demographic groups you choose. (Schreiber, A 1994)

Sponsorship can pave the way before a company starts selling in a new territory and it can prepare a market for a new product launch because research shows that the more people have heard of a company’s name, the more they will like it. And sponsorship can make a firm and active part of a local community; ideal for instance if it is opening a new branch and useful on an ongoing basis too-it may attract better staff if it has a good local image through sponsorship. (Turner, S 1987)

If you have a bank of mature products that is selling steadily but with little product information, the newspapers will not be writing about your brand or product. Advertising will help but if you want to benefit from the editorial mentions, a good sponsorship programme could be one way to enhance this. (Wragg, D 1994)

Sponsorship is good for internal staff involvement. They return to their department with new ideas and approaches hopefully stimulated by the experience of working on a project team trying to produce commercial benefit out of an activity that often involves working with non commercially orientated organisations. (cited from Sleight, S 1996)

‘Charitable events prove we’re truly in the hospitality business. (Calder, 1995)

Some of the objectives of special events in community programs are to maintain or enhance community approval, correct possible misconceptions about the sponsor’s organization, present the company s a good employer, and inform the community of the volume of the company’s local purchases.’

Approaching Sponsors

There are some Do's and Don'ts to remember when approaching a company some of which are listed below:

• All letters should be typed and always address your letter to a named person phone up the company and ask who deals with sponsorship/marketing
• Show what you can offer the sponsor in return for their investment
• Always give a figure of how much sponsorship is required and what it will be used for - state who will benefit
• Depending on the size of the proposal it may be worthwhile to ask a local dignitary or sporting celebrity with ties to your locality/club/sport to support your scheme. This could be through introductions to potential sponsors or through the associated increased media interest
• Initial letters should be no more than one page long
• A more detailed breakdown of your proposal should be available on request. This should include: a detailed CV of your own or your organisations RELEVANTsporting history and achievements; a comprehensive breakdown of all the costs and full details of what you can offer any potential sponsor
• Contact your local papers/radio stations and ask for help in publicising your case. The local paper could print an open letter to potential sponsors
• Find would be sponsors through Yellow Pages and your local Chamber of Commerce. The "Hollis Sponsorship and Donations Yearbook" is a valuable reference source
• If any of your fellow sportsmen have found a sponsor, ask them for help and advice on how to attract funding
• Ask the advice of a local businessperson: they could help point you to a local company who may be interested, or to an individual who supports your sport
• Target companies with a history of sponsorship and/or ties with your sport (also consider their competitors)
• Where possible alter your standard letter to appeal to specific companies
  In general, companies are more inclined to give to perceived "good causes" e.g. youth, education, the disabled or disadvantaged
• Have one person co-ordinating all sponsorship proposals - this person should be available on the phone during working hours
• Always follow up your initial contact, either by letter or preferably by phone. Even if the response is negative. Be prepared to ask sporting equipment manufacturers for free or reduced price products
• Perseverance is likely to be the key

Planning an Event

A carefully setup facility is necessary to make your event run smoothly. When using a facility for the first time, ask for setup recommendations for your event. See if you can visit the site when it is setup for a similar event.

Timing and crowd movement must be considered before planning. Allow for easy traffic patterns, busy areas and quiet areas. Noisy areas, such as main halls and dining areas, should be located away from lounge areas and seminar rooms. Sales demonstrations and exhibitors should be located in a high-traffic area. If you have more than one facility or location, it is important to consider the logistics and politics of placement.

An important element of a well-organized facility is posting signs in strategic locations to prevent confusion. Post sufficient signs outside to direct traffic to your location. The signs should be large, clean and concise. Most important, they must be visible.

For outdoor events, check areas for obstacles and holes and remove all debris. Find the most level and open area in which to setup. If there are any areas of potential danger, mark these areas very clearly.

Do not overlook sufficient wastebaskets or trash can quantities, especially if food is being served. Trash removal needs to be attended to before, during and after the event.

Look at every facet of your event, then decide what you need to accommodate. A well-planned layout is more than half the battle in making your facility work for you and making your event a success!

Renting Equipment for events

Planners, caterers and designers generally know where to go for rental supplies, since they tend to use these products frequently. Professional planners also have a good handle on the quantity and specific type of equipment necessary for entertaining. Often it's advisable to let them take care of the rentals, order what's needed, count the supplies when they arrive, break them down with a supplier, you will need to bear a few points in mind.

1. Don't overlook the rentals in a structuring your party budget; they often make up a full third of the total expense of the event.
2. Take the time to look at the range of possibilities and prices available. A plate, can cost as little as 60 cents or as much as ten dollars to rent. Know what your priorities are in setting the table.
3. Figure out exactly what you need. There are many extras you might not think that are used by the kitchen and waitstaff. Be sure you consult the food and beverage providers to determine specifically what's needed.
4. Determine a head count and order accordingly. Have extra table settings available, through, just in case additional guests arrive or china and glassware are broken.
5. Deal with a reputable supplier who can meet your needs. Look at the portfolio merchandise available, make sure you are getting quality merchandise, select what you need, and make sure it's available in the quantities you need at the time of your event.
6. Order early and arrange for early delivery. You have a better chance of getting what you want if you order well in advance, especially during heavy party periods. If possible, have the merchandise delivered a day or two in advance to check for chips, cracks, and proper, functioning of all equipment. See if what you got, is what you order. Take a complete inventory of the stock when it arrives.
7. Arrange for setup and breakdown. Some companies will do the setting up and cleaning up for you. Inquire. Be sure to specify when you want the merchandise removed if breakdown isn't included. Staff at you site will need to know.
8. Get a contract and read the fine print. Know exactly what merchandise you have ordered, the quantities you're paying for and what services are provided. Be specific about charges, for renting the merchandise as well as breakage fees and be clear about deposits and payment schedules.

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