Transcript Chapter 1

Chapter 8
Developing and Selling
the Sponsorship
Proposal
McGraw-Hill/Irwin
8-1
©2007 The McGraw-Hill Companies, All Rights Reserved
Preliminary Actions
• Prospecting – Finding Potential Sponsors
• Gather Information
– On Prospects
– On Prospects’ Target Markets
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Sponsorship Proposal
• Must Match the Proposal to the Needs of
the Prospective Sponsor
• Effort to Link Prospect and the Property
• It Is a Sales Tool
• It Is a Basis for Beginning Negotiations
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Elements of
a Sponsorship Proposal
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Introduction
• A Written Handshake
• Create Positive Impression
• Help Get the Proposal Read by Prospect
• Basic Information
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History of the Event
• When Was Event First Staged
• Has the Title Changed Over Its Life
• Who Are the Participants
• Any CRM Overlay
• Media Coverage
• Rudimentary Financial Information (Optional)
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Plan Components
• What Will the Sponsor Get from the
Sponsee in Return for Its Commitment
• Customize – Boilerplate Proposals Do Not
Work
• Offer Components Such as: Category
Exclusivity, Signage, Hospitality, etc.
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Value Enhancements
• Ways in Which the Sponsee Will Help the
Sponsor Achieve Its Objectives
• Examples:
– Leveraging Opportunities
– Cross-Promotion Opportunities
– Protection Against Ambush Marketing
– Postevent Research Regarding Effectiveness
– Fulfillment Report
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Terms
• Rights Fees
– Cash
– VIK
• Timelines
– Single Payment Due
– Payment Schedule for Lengthy Contracts
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Executive Summary
• May Be at Beginning or End of Proposal
• Capture the Key Elements
• Important because Not All Executives Will
Take the Time to Read the Entire Proposal
• May Be the Basis for Rejection
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Prospect Specification
• Some Large Companies Receive a Large
Number of Sponsorship Proposals
• They May Have Staff Whose Primary Task
Is to Identify the Good and Bad Proposals
• These Companies Often Have a
Standardized Format That Must Be Used
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A Harsh Reality
• It Has Been Reported that Less than 10%
of the Proposals Submitted to Prospects
Are Given Serious Consideration
• Less than 1% of All of the Proposals
Receive Funding from the Prospect
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Selling the Sponsorship
• Convert the Prospect into a Customer
• Typical Business-to-Business (B2B)
Marketing Strategies and Tactics
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Selling the Sponsorship
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Negotiating the Deal
Proposal Represents an Offer by Sponsee
Prospect Likely to Issue Counteroffer
Need Mutual Understanding
– What Do I (the Sponsee) Have to Offer?
– What Does the Prospect Need?
– What Adjustments to Proposal Are Needed?
• Close the Deal
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Closing the Deal
• Typical Closing Techniques
• Examples:
– Added Inducement Close (e.g. more signage)
– Standing Room Only (SRO) (other prospects)
– Balance Sheet Approach (list pros and cons)
– Alternative Decision Approach (Want A or B?)
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Customer Relationship
Management
• Focus on Customer Retention
• Focus on Sponsor Satisfaction and the
Resolution of Problems
• Focus on Communication
• Focus on Continuation of Relationship
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Closing Capsule
• Task Is to Convert A Prospect into a
Sponsor
• Key Element is the Sponsorship Proposal
• Will Likely Involve Meaningful Negotiations
• Focus on Sponsor Retention
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