ADV 205 Lecture 14 Outline of Current Lecture I Sponsorships Current Lecture Sponsorships A relationship between a marketer and a property in which the marketer pays a cash or in kind fee in return for access to the exploitable commercial potential associated with the property Another promotional tool for marketers Sponsorship should have a synergistic effect on a marketer s promotional efforts Fits within the promotional mix Integrated marketing communications IMC Sponsorship is NOT advertising EVOLOTION OF SPONSORSHIP MOTIVES o Early sponsorships were ego driven o Focus shifted to philanthropic motives o Most sponsorships today focus on ROI Advertising Advantages Persuasive message Standardization Guaranteed Size of Audience Reached Turnkey Evaluation of effectiveness Key Sponsorship conceps Participants Linkages Types of Sponsorships Traditional straight forward association Special Cases of Sponsorship o Endorsements personality sponsor o Venue Naming rights building sponsor o Licensing sponsorship involving trademark Driving Sales These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Sustainable competitive advantage via the association with sponsee visa over mastercard no presence at world cup Merchandizing opportunities selling coca cola products at Olympics Shape consumer attitudes firestone after negative PR indy 500 Overcome advertising restrictions bans against tobacco advertising Cut through advertising clutter not competing with broadcast advertising Reach small segments and niches small specialized properties local festivals Improve Image Attain positive PR support viewed as helping the sponsee Viewed as a good corporate citizen contribution to a popular sponsee o Especially for causes for local events Shape consumer attitudes o Reach new target market o Selected property portrays different image Philanthropy o Donations viewed favorably by public Create greater awareness Increased visibility o Ability to reach more potential customers o Mass reach to introduce new product o Mass reach to inform of new brand name Provide hospitality opportunities Entertain customers prospects and suppliers reinforce relationships Opportunity to attend event tickets parking Provision of various amenities TV monitors restrooms Enhance Employee Morale Entertain Employees Sense of Pride Employee involvement Sponsorship components category exclusivity A guarantee that the sponsor s competitor will not be aloud to become involved with the sponsee Pepsi cola is a sponsor of the world cup of cricket Category exclusivity provides assurance that coca cola will not be involved in any official capacity Distribution rights Right to use event as a distribution outlet Distribution of free samples of product at event venue Ability to sell products at event venue Designation How the sponsor can refer to itself in its own marketing efforts EX o Presenting sponsor o Title sponsor o Official sponsor o Marketing partner o Official Supplier o Regional supporter Inclusion in sponsee promotions The sponsee is likely to promote itself through traditional media it is to the sponsors benefit to be identified in the events advertising marketing efforts Helps to reinforce the relationship between the sponsor and the sponsee in the minds of the consumers Rights of First refusal Once have sponsorship renew for next period prior to solicitation of new sponsors by the sponsee o Evaluate new terms effectiveness of existing sponsorships Ambush Marketing promotional strategy whereby a nonsponsor attempts to capitalize on the popularity prestige of a property by giving the false impression that it is a sponsor Often used by competitots of the properties official sponsors WHY o High cost of rights fees o It has been shown to work o Consumers not offended by ambushers o Attitude within industry may be changing category exclusivity may prevent company from being an official sponsor Piracy is illegal Infringements on the intellectual property rights of the events or property Making an overt claim to be officially associated with the event or property when such an association does not exist Other dilution strategies Purchase tickets to the event distribute tickets use as contest prizes Confusion technique duplicate effort of an actual sponsor Create own event similar event that appeals to