Transcript 6.01 Explain the concept of sponsorship.

6.01 Explain the concept
of sponsorship.
Sponsor
• A business, person or organization that
finances a sports or entertainment
entity.
Sponsee
• The entity (event, sport, athlete,
entertainer, or venue) that receives
money for product from the sponsor.
Sponsorship
The financing of a sports or entertainment entity
by a business in return for recognition affiliation.
Sponsorship
• Involves money,
products or services
• Marketing exchange
• With any sport or
entertainment entity
• In-kind sponsorship
(continued)
• Forms:
–
–
–
–
–
–
–
Teams
Governing bodies
Athletes
Facilities
Event
Sport
Leagues
Sponsorship
• Factors used to
determine what to
sponsor:
– Increase in product
sales
– Compatibility and
image
– Tie-in
– Potential media
coverage
– Exclusivity of
competitors
(continued)
• Types or levels
– Title sponsorship
– Presenting
sponsorship
Examples of Factors
•
Tie-ins:
–
–
•
Potential Media Coverage & Recognition Available
–
•
Powerade is considering being the presenting sponsor of the local
YMCA 5K road race.
One of the determining factors is exclusivity of beverage sales at the
local YMCA.
Availability of signage around the track at a national meet or around the
racetrack.
Exclusivity of competitors
–
–
–
–
Exclusivity is when the company is guaranteed to be the only sponsor
in a particular category that is linked with the event or venue.
Divisions of the sponsoring company may also be ensured exclusivity.
Exclusive sponsors are usually entitled to use logos or slogans
associated with the event.
It is better for the sponsor to have a broad exclusivity category since
more competitors could be eliminated from becoming sponsors.
History & Growth of
Sponsorship
• Roman times – gladiators and chariot
drivers would wear colors representing
specific merchants
• 17th & 18th centuries – pubs in England
sponsored horse races
• Mid 1800s – local companies sponsored
Harvard & Yale rowing teams
History & Growth of
Sponsorship (Continued)
• MLB – first major league sport
sponsored by corporations
• 1970s – change in sponsorship
because of ban of tobacco and
alcohol ads (Ex: RJ Reynolds)
• 1984 – Corporate sponsors of the
LA Olympics (limit: 30 sponsors)
Increase in sponsorship
• Athletes as walking
advertisements
• Ease of targeting a
specific market
• Increase advertising
costs
• Lifestyle sports
• Live programming of
sporting events
• New media
• Nontraditional sporting
activities
• Overcrowding of
advertising
• Taxpayers not
willing to increase
the amount paid for
sports
Event Triangle
Audience: the
potential market
Entity:
needs the
sponsor for
financial
assistance
Sponsorship
is an
ongoing
partnership.
Sponsors:
need the
entity for
public
recognition
Why companies sponsor
entities:
• Help businesses reach
their target market
• Increase sales
• Increase market share
• Inform potential
customers about their
product
• Enhance overall goals
and objectives
• Give sponsors the right
partner
• A way to introduce new
products
• Increase public awareness
or perception
• Prevent direct competition
through exclusivity
• Repositioning
• Psychographics
• Networking opportunities
• Exposure and visibility
• Promote goodwill
Why entities utilize
sponsors
• Financial support
– Represented by actual cash sponsorship dollars
• In-kind support
– Occurs when a company does not finance an
event with actual cash sponsorships
– A company will provide products, equipment,
services in return for their affiliation with the
sports or entertainment entity
– Also called barter sponsorship
How the audience benefits
from sponsorships
•
•
•
•
Lower ticket prices
Exposure to new products
Free samples and give-aways
Non-evasive advertising
Assignment
Using a real life sports or entertainment
example, illustrate your own event triangle.
You may use magazines or hand draw your
pictures. You must also explain why each
part goes together.