Transcript Sport sponsorship

Sport sponsorship
Sport Marketing
University of San Francisco
Sport Management
Cohort 07S
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
$185-190 million
$180-185 million
$ 160-165 million
Anheuser-Busch
GM
Coca-Cola
Nike
• Investment breakdown by industry
Sports (69%)
$7.69 billion
Entertainment (10%)
Festivals/Fairs (7%)
Cause marketing (9%)
Arts (5%)
$10.06 billion
$792 million
$991 million
$608 million
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).”
Theoretical framework
1. 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
2. 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.”
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
rights…Clutter 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.
Background
• Used to serve interests of corporate CEO’s (“Let’s
sponsor golf, because I like it.”)
• “Strategic philanthropy”: A company’s long-term
investment in an appropriate cause that does
measurable good in society while enhancing the
company’s reputation with key audiences. 
Evolved to Causal (Cause-related) Marketing.
• Heavy dependence on sponsorship – from high
school to pros
• Creating “win-win” partnership
Stotlar Evaluation model
Please see handout
Sponsorship process
PROSPECTING FOR
SPONSORS &
UNDERSTANDING
SPONSOR NEEDS
BRAINSTORMING &
PLANNING FOR
SPECIFIC
ACTIVATION
(PROPOSAL)
EXECUTION OF
ACTIVATED
COMPONENTS
POST
SPONSORSHIP
EVALUATION
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 stories…etc.
• New product roll-out’s
(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
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,
location…etc)
• Understand psychographics of your fan base (attitudes,
perceptions, beliefs, values, purchase behaviors…etc.) – utilize
past data
• The clearer these info, the clearer your “PLAN OF ATTACK”
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. QSR’s & 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!
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-am’s)  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.
Execution
• Activation: Stotlar’s 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
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.
Post-sponsorship evaluation
Stotlar’s 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 DB…etc.)
• 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
Developing a proposal
See sample USA Taekwondo Sponsorship
Proposal in your Reader for more info and
strucutre.