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:
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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
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
• 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
• In-kind support
How the audience benefits
from sponsorships
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Lower ticket prices
Exposure to new products
Free samples and give-aways
Non-evasive advertising