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
(continued)
 Involves money,
products or services
 Marketing exchange
 With any sport or
entertainment entity
 In-kind sponsorship
 Forms:
 Teams
 Governing bodies
 Athletes
 Facilities
 Event
 Sport
 Leagues
Chick-fil-a
 Gary Stokan, the game’s executive relies strictly on revenue
from ticket sales and sponsorships.
 “The growth of the game in the overall college
marketplace has really helped us… We’re fortunate that
sales are up this year and certainly having Georgia
helped, but its also the growth of the franchise itself.”
 http://www.chick-fil-
akickoffgame.com/VideoLibrary/Backstage/tabid/120/
Default.aspx
Sponsorship
(continued)
 Factors used to
determine what to
sponsor:
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Increase in product sales
Compatibility and image
Tie-in
Potential media coverage
Exclusivity of
competitors
 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
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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
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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
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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
 Lower ticket prices
 Exposure to new products
 Free samples and give-aways
 Non-evasive advertising