Low Understanding The Transfer O Sponsorship example essay topic

SPONSORSHIP MANAGEMENT PRESENTED BY: JULIUS TABLE OF CONTENT 1. What is Sponsorship? 2. What is Management? 3. What are the Management's Functions?

4. What is Sponsorship Management? 5. Know the Game: understand what sponsorships can do and cannot do 6. The Passion Connection 7. How does sponsorship really enhance brand building?

8. Understand leverage 9. Measurement 10. Case Study What is sponsorship?' As a marketer, why wouldn't you use sponsorship? What better medium is there? With sponsorship, you already have a loyal, passionate consumer following of whatever that sponsorship is, whether it's music or football or sailing-you already have a connection with the consumer.

So if the fan that has the passion for something is the same person that is your customer, why would you not borrow some of that equity and use that as the essence of an idea around which to build your communication 'Chris Weil, Momentum Worldwide Sponsorship is a multi-faceted strategic brand building and marketing tool, which allows a company or brand to associate with a relevant marketing asset (e.g. sport event, social cause, issues or passion), and leverage that association for the mutual benefit of all stakeholders. Sponsorship is a heaven sent opportunity that allows consumer to experience the brand. Sponsorship "embraces" the consumers while advertising "wave at them". If there is any brand building effort that provides a sustainable competitive advantage, it is sponsorship. The value of sponsorship is being enhanced rapidly and key events and organisations are able to choose from a wide range of potential sponsors and attract high rights fees.

Prime factors in the rise of sponsorship fees are the globalization of communications, new technology of cable and satellite broadcasting, the internet and digital communications and the growing aspirations of societies for leisure and information. Sponsorship is changing too, and it now figures as part of mainstream marketing. For example, sports sponsorship is increasingly referred too now as sports marketing. What is management? Management can be defined as an act of controlling, delegating, supervising, directing, and galvanizing both human resources and other resources together towards achieving an organizational goals and objectives. Management is defined in the International Dictionary of management (Johansen et al 1990 p. 178) as the effective use and coordination of resources such as capital, plant, materials and labour to achieve defined objectives with maximum efficiency.

Functions of Management Management has five major key roles in an organization, namely; o Planning Controlling Directing Delegating o Supervising What is sponsorship management? Sponsorship management can be seen as act of promotional / advertisement strategies towards aggressive marketing communication for an organization brands or products for the target audience, via creating more awareness to capture more consumers for such products. (i.e. sales turnover). Sponsorship is a medium in its own right and is the part of the marketing mix which can truly engage the target audience. Sponsorship embraces activity at all levels of performance - from the highest elite levels to grass roots community activities. Some sponsors seek to raise their profile or enhance perceptions of their products through providing support for international and national events. Companies spend considerable sums of money annually to acquire and exploit sponsorship rights giving them exposure to audiences running into millions.

Others prefer to support activities at a local community level, including development programmes for youngsters and for the disadvantaged. Happily, more and more sponsors now have integrated sponsorship programmes that include all levels, from elite performance to community based. How does sponsorship work? Objectives of Companies Sponsoring Sport 1. Sponsors are still under- utilizing sponsorship's potential as an internal marketing tool. 2.

Sponsorships are increasingly being used as a sales driving tool. 3. An increase in the use of sponsorships to create goodwill & loyalty illustrate how sponsorship leveraging is becoming increasingly customer focused - they need a personal experience of the brand for it to affect brand loyalty. 4. Community Involvement - increasing pressure on companies to demonstrate their corporate and social responsibility credentials Datasheet objective of company sponsoring sports. Sponsorship's role A. As a brand builder, sponsorship builds: 1.

Awareness and attention 2. Identity, positioning and personality 3. Brand associations 4. Differentiation 5.

Brand loyalty. Sponsorship builds Business by: 1. Direct and indirect sales 2. Energizing and staff 3.

Motivating the trade 4. Relationship marketing 5. Experiential marketing Sponsorship as an integral part of the Events Marketing Mix. Category or event, which has had a similar below the line spend invested in its management and compare the results of your sponsorship to that of the benchmark. This then gives you an indication on how effectively the main flaw of that method is that you cannot provide any tangible numeric proof that the sponsorship provided a return on investment. Methods for measuring return on investment vary from sponsorship to sponsorship - normally each element or activity is measured individually and by a different method. o Establish and document quantifiable marketing and / or communications objectives to be achieved through the support of the event or conference. o Conduct qualitative and quantitative research and analysis to establish that the property has the capability to deliver the required marketing and communication objectives. o Measure your target audience actions / opinions due to their being influenced by the sponsorship -not if they merely attended or saw the event.

Did they purchase your product? Do they intend to? o Measure the amount of publicity received and takes particular note of whether your key messages were accurately transmitted to your target audience. Compare effective media exposure received to the cost of similar exposure via conventional advertising. o Measure changes in corporate brand and product image. Measure increases in brand, company or product awareness within the target audience. Identify relationships resulting from the property and the resulting benefits to the sponsor. Identify employee benefits that accrued to the company through the sponsorship. o Sales figure analysis can identify sales attributed to promotions associated with the sponsorship. o After every event makes a habit of writing down everything that worked, everything that didn't and identifies ways of improving the program.

These Improvements can then be incorporated in to the next years Business Plan. o The evaluation should result in a cost benefit analysis where all costs are total led and that figure subtracted from the benefits received. This will provide an indication of whether the activity was a profit driver or a cost centre. The result should then be compared to an industry benchmark. o A benchmark in ordinance surveying is quoted as 'a fixed point of refere nce for use in leveling'. Sponsorship benchmarking is where you select the most successful sponsorship property of a similar your sponsorship has been managed. For example, if you are an Olympic sponsor you could compare against the most successful sponsor (with a similar budget to yours), and compare all outcomes including awareness levels, sales, media clips etc. o You would get a very good idea of how your sponsorship management compares.

Benchmarking establishes a basis for setting measurable performance targets, and gives you a point of reference to strive for when setting objectives in your Business Plan. Making the comparison generally improves the level of performance of your Project Manager and gives quantifiable points of reference to compare with. Sponsorship, when used as a marketing or communications tool, must be subject to the same accountability as the use of advertising or public relations. This requires: o Setting of relevant quantifiable objective so Establishment of acceptable methods of Evaluation Undertaking ongoing research and analysis o Measuring actual Return on Investment in Dollar term so Comparison of results to established Benchmarks National companies, while still actively involved in sponsorship, will seek to justify expenditure based on these criteria, therefore proposals should address these points in the first instance! The Passion Connection What could make a man throw his wife through the window while watching a football match, without giving it much thought The theory of endless love: passion I can't do without Basis for passion " Why are you so passionate about me?' 1. Because you make me very excited 2.

Because you get my adrenalin pumping 3. Because, because... Because, I am just passionate about you The soccer example Fanatics-Passionate about their football-Football is about the most important thing in their lives-They would prefer to watch live but they most often watch match broadcasts Casuals-Football occupies a smaller space in their lives-They watch football occasionally-They are more interested in the periphery issues like the lifestyles of the footballers How does sponsorship really build brands? Understand the brand DNA Every brand has it's own distinct DNA-Brand essence (Virgin = iconoclasm, Nike = excelling, IBM = magic you can Trust, Sony = digital dream kids, ) -Core identity-Value proposition-Personality-Values Understand the property DNA What is the essence of rugby, soccer, gospel music, the Olympics? -Core identity-Personality-Image Brand fit+TM fit (passion) = sweet spot Brand fit + TM fit (passion) Formula 1 Brand DNA X TM passion = Ideal property Property DNA Never invest in any property that does not match with your brand or with your target market, no matter what you spend to leverage such a property; the chances of success are low Understanding the transfer o Sponsorship works by equity transfer; the equity of the property is transferred to the brand and vice versa (works both ways) o A consumer's existing memory about a property is linked to the memory of the sponsoring brando If the equity of the property is already overdrawn then the sponsoring brand is buying a liability Formula 2 o Property Assets - Property Liabilities = Property Equity Brand Assets - Brand Liabilities = Brand Equity Never overestimate the strength of the property (brand) or underestimate the weakness of the property (brand). Recognize them and account for them as appropriate.

Marketing opportunities: Olympics What is leveraging? o Leveraging is not Leveraging is not intrusion o Leveraging is enhancing the customer's experienceMeasurementWhat has sponsorship contributed? o Good measurement starts at the objective setting stage. o Establish pre-sponsorship benchmarks against which results will be compare do Do not use the sponsorship agency managing your sponsorships for your measurement so Measurement strategies would depend on what objectives are agreed from the start-Visibility Research-Communication Effectiveness Research-Loyalty-Propensity to Purchase Case Study: Guinness Rugby World Cup 1999 Objectives o Increase market leadership in key territories o Grow consumption among existing drinkers in major markets- England and Ireland Recruit new drinkers and achieve incremental volume growth in key growth markets- France, Australia, New Zealand, South Africa and Canada Reinforce Guinness positioning as world class global brand through association with a high profile eventPassiono World's fourth largest sporting even to Broadcast to 135 countries Guinness core TM, male adult from legal drinking age up to 34 years are passionate about the game Sponsorship Objectives Inject energy, promote newsworthiness and contemporize the brando TOMA awareness and to be perceived as dominant sponsor associated with the even to Create one consistent global identity and image Motivate partners and staff to use the property Exploit with the sense of fun and passionStructureo Two global team leaders, steering group from key market so Budget from 40 countries with group providing budget for creative development, concept, coordination and hospitality o Tool kit of sponsorship manual, CI, PR templates was produced centrallyBroadcasto Negotiated local broadcast in Britain, Ireland, SA, Canada and Eurosport o Brand enhanced the viewers' experience (stings produced according to each team- black screen for All Black, cockerel for France- humorous rendition created a bond with Guinness) o Guinness achieved 94% awareness in the UK as sponsor Signage and Presence Marketing Perimeter boards at all matches, additional branding at training grounds, media centers, press conference so Guinness UK bought key outdoor sites around the match venuesPromotionso Trade promotions in over 5,000 pubs in the Uk Guinness Rugby merchandising at points of sale 3 drinks for the price of two one hour before selected matches o Pubs in the vicinity of venues gave free foam hat for every four pinto In pack game card distributed for prizes PRo Generate interesting challenges and interest Diary column so Trade PR (match day tickets, etc) o Guinness Media Club Guinness World Cup GuideHospitalityo Entertain key trade contacts and staff Over 2,000 guests entertained and hosted in hospitality pavilions Internal activation o Match day tickets to staff Global newsletter distribution with promo activities Guinness Rugby World Cup Ambassador so Ex-players to serve as World Cup ambassador so Used at trade events, staff events, etcWebsiteo Guinness created website o Elements of broadcast could be downloaded as screen saver so Average visit to website lasted 9 minutesResultso Increased consumption in priority markets (GB = 17%, Fr = 37%, Australia = 20%, SA = 24%) o 94% prompted awareness in GB, post activity Guinness was the most dominant sponsor of the Games Positive results in reinforcing brand essence, injecting energy, promoting newsworthiness and co temporizing the brandConclusiono Principles must be applied consistently over time Message must be consistent with brand essence o Measure, measure, measure.