Download BCIT Session Two Textbook chap13

chapter
13
Promotional Licensing
and Sponsorship
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
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 win–win situation where the client and the
property both benefit. It is a partnership
where both should see economic benefits.
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.
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
Reasons for Growth
in 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”
Why Sponsorship?
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Lifestyle marketing
Exclusivity
Heightened communication
Publicity
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)
Selling the Sponsorship
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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.
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.
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.
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
Ethical Issues
• Undue influence
• Social responsibility
– Unfair labor practices
– Alcohol sponsorship