The document discusses various aspects of event sponsorship, including:
- Sponsorship is a business deal where a company provides funding for an event in exchange for marketing benefits like visibility, branding, and goodwill.
- There are different types of sponsorships like event marketing, partner sponsorships, and cause-related marketing. Sponsorships can also be cash-based or provide in-kind products/services.
- Companies seek sponsorships for benefits like increased visibility, brand establishment, goodwill, and customer interactions. Event organizers take sponsorships for easier funding, increased goodwill, and additional brands/exhibitors.
- Effective sponsorship proposals and agreements consider the benefits for both parties, roles and responsibilities,
2. Events are done for entertainment, celebration and promotion, but for any event funds play the most important role in the
happening of events. Funds are generally put by the organizer of the show but we can also generate funds from the market and
that is done through sponsorship. When a company puts his money in event and gets mileage in return that is sponsorship.
Sponsorship is a business deal with two parties one how is organizing the event and the sponsor, for giving money for the event
the sponsor gets mileage in market.
The companies sponsor the event because:-
Market visibility
Establishing there brand
Increasing goodwill
Direct interaction with direct customer
Low risk factor
The event managers take sponsorship for event because;-
Easy availability of funds
Increasing Goodwill
More brands to show people
Sponsorship, on the other hand, is a business relationship. Corporations look for marketing and community relations
opportunities in exchange for money, products or services, and they want corporate recognition for their involvement.
3. Three types of sponsorship:
• Event Marketing (sponsorship of a specific event)
• Partner Sponsorship (a long-term partnership with an organization or program)
• Cause Related Marketing (corporate sponsor promotes a specific cause through the purchase of their product
or service).
Kind of sponsorship
Sponsorship, can be of two type
Cash Sponsorship
When we get liquidity i.e. Cash / Cheque /DD from the sponsor that is cash sponsorship. Here the cash issued by
the sponsor is allotted to the event organizer on the terms decided by both the parties’ i.e. whole amount at the
time of signing of the contract, or partial at the time of signing of the contract and partial at the time of event or
post event etc.
Kind Sponsorship
When the sponsor gives his product or services to the event organizer
that is kind sponsorship. Here the products or the services are given
to the event organizer as per the contract signed by both the parties.
4. What are sponsors are looking
There are many issues that organizations consider before leaping into the world of sponsorship. You will probably want to
create a sponsorship policy to guide you- This policy could include a statement of principle, screening criteria for sponsors
and an administrative process. There is also an enormous amount of work involved in the research, soliciting and maintaining
of sponsorship relationships and it is important for you to have the time and energy to be able to fulfill your promises to the
sponsors.
Ask yourself the following questions before you decide to solicit sponsors:
What are the benefits for our organization?
What risks will there be?
Will associating our organizations with certain corporations affect our credibility?
Is sponsorship appropriate for the nature of the event or program?
Do we have the resources to be able to effectively support the process of securing sponsors?
Do we have liability insurance that would cover us in the event of a problem?
Are there any philosophical or ethical issues that we should consider?
Are there any guidelines or policies that we should put in place?
What type of screening process will we have?
5. Remember that this is a marketing opportunity for corporations and that you need to have something to offer them in return.
Not only do they want to increase the awareness of their brand or product but they also want to enhance their image. When
deciding to sponsor your event or program, corporations will ask themselves "What's in it for us?"
Will sponsoring this event or program increase our sales?
Is there a way for our employees to get involved?
Is there an opportunity for business to business marketing (e.g. a reception)?
Is there a target audience and product fit?
Is there a solid PR campaign in place?
Do we have flexibility?
Are there complimentary tickets or items available?
Where to approach for the sponsorship?
The companies you are approaching for the sponsorship is directly proportionate to the kind and budget of your event.
The first step is to develop a list of prospective sponsors- Think about the nature of your event or program and
consider the following;
Who is going to be attending the event or involved in the program?
What is the age of these participants?
6. The Sponsorship Proposal
The sponsorship proposal must convince a potential sponsor that your event or program is going to meet their business needs.
The proposal to a corporation goes in two steps. First we send them the event proposal, which includes the following
About the event organizer
A brief description about the organizer of the event. If the organizer if old, his history needs to be presented. If the organizer
is new then we have to talk about the people who will manage the event.
About the event
Concept
Date & time of the event
Venue of the event
When we get the response from them then we go to them with the sponsorship proposal, which includes the following
About the event organizer
A brief description about the organizer of the event. If the organizer if old, his history needs to be presented. If the organizer is new
then we have to talk about the people who will manage the event.
About the event
Concept
Date & time of the event
Venue of the event
7. Details of event
A description of who the participants will be from where are they coming, the complete diagrams of the event has to be
there for example is we are organizing a beauty pageant then how many contestant, how many rounds, how many titles
be there etc. if we are organizing a trade fare then who the exhibitors will be there, the layout of the trade fare is to be
given.
A description of who will be attending the event or involved in the program, how many and their demographics
If any celebrity of any other USP of your event is there that needs to be highlighted.
Marketing strategy
A detailed media plan for your event or program
Sponsorship Categories & Offerings
An explanation of sponsorship opportunities (what's in it for them). For example: where their logo and name will be
seen and how big will their logo and name be (on posters, tickets, banners, brochures, booklets, invitations, etc.), if
there will be verbal recognition at the event, on television spots or at a press conference, opportunities for on-site
sampling.
Offerings have to be explicit mentioned with all the categories the categories are as follows;
The categories for the sponsor are created and the sponsorship amount and offerings are decided after analyzing the
marketing visibility and the cost involved in the marketing visibility. The terms decided has to be flexible because
negotiation happens and then the final amount and offering are decided between the event organizer and the
corporation. Few categories are as follows;
8. Title / Main Sponsor
They are the one who gives maximum sponsorship. The name of the event goes to the title / main sponsor. There can be
only one title / main sponsor in the show.The name of title / main sponsor goes in all the marketing materials.
Co sponsor
They are the second highest sponsor in the event. Other then the title of the event his names goes in all the marketing
materials.There can be more then one co sponsor. He is announced as the co sponsor for the show.
Creative
The sample of all the promotion materials has to be given along with the sponsorship proposal.
It needs to be visually appealing and easy to comprehend. Mail your proposal to the individual
that you have already confirmed as being the appropriate contact. Follow up with that individual
every two days from the date of receipt. Be persistent but very pleasant
9. Closing the Deal
Once a corporation has expressed interest in sponsoring your event or program, you will need to move into the negotiation
phase. This type of negotiation can be intense and often will take place face-to-face. When in negotiations, the potential
sponsor may be asking for space for a larger logo or they may want the right to veto other sponsors. You will have to decide if
you are willing or able to provide them with what they are requesting. Once a deal has been reached, make sure that you get it
down in writing, on the letter head of the event, even if it is your local bakery. If the negotiations are not working, do not be
afraid to walk away.
Converting A Sponsorship Into A Partnership
Key issues to consider
• Do the sponsor and event organizer understands each other's objectives and expectations?
• Has consensus been reached on how each party will define the success of its Involvement?
• Is there a mechanism available for the exchange of information? (Each party can sign a non-disclosure agreement
before sharing proprietary information.)
• Has agreement been reached on the roles and responsibilities of everyone involved in each aspect of the event?
10. Measuring and Evaluating Sponsorship Results
Evaluation is often considered the toughest task in sponsorship thought to do because there is no standard unit of
measurement and tough to accept because it can produce a personal report card of success and failure for all of management to
see.
But rather then run away from evaluation the process should be seen as a means for ultimately improving sponsorship
effectiveness and guaranteeing its place in the marketing mix. Whether it is used to figure out what works in the event
marketing provide a persuasive negotiating tool with event properties or corporate cost cutter or just to make us smarter about
our jobs researches and evaluation is a vital part of the sponsorship process.
Selecting A Measurement Technique
The types of measurement that are most appropriate to a sponsorship are a direct function of a sponsorship objective.
For media based sponsorship the process is generally restricted to a simple media evaluation or audit of brand
visibility.
11. Media Evaluation
Specialized firms generally manage Media studies that either conducts the research on a syndicated basis or on a custom basis.
Through precise recording of in focus brand logo visibility a total number of broadcast second can be tallied. Similarly, trailers of
TV and radio broadcast mentions as well as newspaper magazine and billboard messages and billboard message can be folded
into the sponsorship visibility data.
Once tallied formulas are established a media value is then assigned providing a bottom line account of a cost effective
sponsorship- This type of measurement is fast and affordable and results can easily be compared against other sponsors to
produce a relative value of effectiveness. There is some degree of controversy about equating the value of sponsorship visibility
to paid advertising messages and media evaluation have no inherent ability for measuring the impact of ins sponsorship of the
consumer mindset. Therefore they are best when used in conjunction with consumer-based research or when used for
evacuating pure media based sponsorship where no further information is necessary.
12. Incidence Testing
In order to estimate the demography of fans visitors at specific sponsorship venues a simple incidence tally of the most vital
demographics is conducted on site at the venue entrance about every person. Their test serves as the most basic assessment
that an appropriate match between the brand and sponsorship has been made.
On Site Interviews
Where on site activities represent the focus of a sponsorship interviews among event attendees capture the instantaneous
impact on such subject as brand awareness product imagery and future purchase intent. Moreover on site interviews may be
the only means for capture recall of specific marketing activities that occur at an event and other promotions that will fade
quickly from a respondent memory. Most important on site measurement often represent the highest level of impact in terms
of awareness and positive image and thus are useful for determining the upper boundaries for sponsorship results.
13. Re Contract Interviews
While on site interviews often represent the peak impact level, re contract interviews are helpful for evaluating the long-term
impact of sponsorship. Re contact interviews of those intercepted on site can determine retention of sponsorship message,
durable changes in brand perception and actual post event buying behavior. The methodology is particularly valuable in cases
where on site interviews are not possible due to time or other constraints. Follow up interviews can take place at any lime after
an event. For example two to five days after exposure is often used when the immediate impact needs to be tested while a
delay of weeks or even months may be used to test post sponsorship product buying behavior.
Telephone Interviews
Telephone interviews may be conducted with a national regional or local audience and may be completed with a specific event
audience target market or product user group. Telephone interviews provided the most useful information when the center of
impact is on broadcast media and when the sponsorship impact develops slowly over a period time or has little on site
relevance.
14. Qualitative Focus Group
Focus group interviews for sponsorship issues are most helpful in understanding the dynamism between sponsorship and consumer behavior
and are typically implemented when testing a new sponsorship strategy and relevant activities or promotions. Focus group can help to
determine what consumers like and dislike about a sponsorship, what type of program are most appropriate for a brand and its core users, what
consumers expect from a sponsoring company, how a sponsorship can bring a brand closer to its customers and when a sponsorship becomes
too much. Focus group participates are generally recruited from specific event audiences or represents a key target market.
Tracking Studies and Syndicated Research
As the terms implies tracking studies can monitor the effectiveness of sponsorship through time charting growth from sponsorship through
time charting growth from sponsorship origin to peak levels and eventually to a leveling off in consumer awareness and response. Tracking
studies are best utilized for those sponsorship that are on going and are intended to reach a national audience where media coverage will drive
the sponsorship when there is a need to measure general market awareness and where research of core fans is not of any particular
importance- With the exception of some syndicated studies of specific large scale sponsorship most tracking studies do not concentrate on any
one particular event audience or sponsorship and therefore lack detailed feed back .As a result they are best used as periodic checks on
sponsorship performance rather then as a complete evaluation tool.
15. ROI and Predictive Models
The array of evaluation method to choose from and the uncertainty about which measurement techniques are most
appropriate has in spite the quest among sponsorship managers to develop a model for both predicting and evaluating
sponsorship performance. Some research companies ad agencies and corporate sponsors continue to work toward this end but
are such a model feasible?
UncoveringThe Impact
For most quantitative survey research projects (whether conducted on-site or by telephone), the key to the research is to go
beyond recording "snapshot" data, but rather measure the change in data as a result of exposure to sponsorship. In order to
pinpoint change,
a pre-event measure is necessary as a benchmark against
post-event research, (Alternatively, a measure among a
demographically similar control group not exposed to the
sponsorship can provide the data necessary to show change.)
In case, the differences between pre-and post-sponsorship results,
or the differences between tests versus control data, will indicate
the incremental impact by a sponsorship campaign.
16. Individual Event Versus Overall Sponsorship Evaluation
For most organizations with a strong commitment to sponsorship, there is a dual need for both a comparative "across the
board" analysis of sponsorship activities as well as individual program evaluation. Thus, it is recommended that the research
plan incorporate a two-phase structure, addressing both the primary level of objective (affecting all sponsorships) and
secondary levels, which may be more sport, event or venue specific.
WorkingWith Research Firms
The best sponsorship evaluation is that which involves a team effort between sponsorship managers, internal market
research specialists and research firms with in-depth experience in the sponsorship field.
No matter how strong the in-house market research capabilities of a corporation are, all sponsors will require the assistance
of outside suppliers to do at least some of the legwork for the research and evaluation function
The following criteria are important to choosing the right research partner:
Independence and objectivity are the most important qualifications, and any firm involved in the sponsorship research must
be fully disassociated from any event marketing or advertising agency that may have a self-serving interest in the results.
"Who, What, andWhere" to measure, offering case studies of sponsorships and the measurement procedures they have
tested and validated.
.
17. The firm should be knowledgeable in the sport, event or sponsorship being studied and conversant in the terminology
common to the event, in order to provide a level of the trust necessary for honest, in-depth feedback form consumers.
The firm must be well prepared for the special challenges facing data collection on-site, should know how to cover critical
locations at an event site, how to intercept (without annoying) event visitors, and how to pace the data collection because
there is no "second chance" to collect data once an event is over.
Finally, the firm must be experienced in interpreting sponsorship results, know how to interpret what is (and is not) a success
in sponsorship, and most importantly, understand how to turn research data into actionable information for improving the
effectiveness of future endeavors.