Introduction
In today’s cluttered marketing environment simply
airing your commercial on television or radio will not assure success.
Today’s market place is too segmented. Because of that segmentation, it has
become necessary to find ways of reaching the public that go beyond the
‘traditional.’ It was becoming increasingly expensive to reach people and
increasingly tough to break through the “jungle of jingles”.
What is Sponsorship?
There are numerous definitions of the word sponsorship,
at one time, sponsorship might once have even been defined as supporting an
event that would not be commercially viable and self financing without the
sponsorship. Nowadays theorists offer definitions such as:
‘The support of an activity or an event from which the
sponsor expects to derive a tangible benefit.’ (David Wragg 1994)
‘Sponsorship is the provision of support by a person or
company for some independent activity (usually related to sports or the
arts, although the field is widening) not directly linked to the person’s of
company’s normal business, but support from which the sponsor hopes to
benefit.’ (R. Turner, 1987).
Research into the understanding of sponsorship has been
carried out by David Wragg in which he identifies that a high proportion of
managers do not know what sponsorship is, what it can or can’t do, or what
it should cost. He states, ‘there are many organisers of sponsored events
who genuinely believe that companies sponsor because it is a nice thing to
do.’ The results of his research give evidence that most companies have no
idea in fact why they sponsor. In summary, he identifies that this is
largely because the sponsorship is either an act of self indulgence, the end
result of political or municipal coercion or simply for corporate
hospitality. The most worrying of Wragg’s findings is that, ‘unfortunately
the belief that companies sponsor the chairman’s of chief executives hobby
has more than a grain of truth to it. The problem with this is that if the
marketing or PR people cannot understand the justification behind a
sponsorship, they can hardly be expected to convince their colleagues in
other disciplines.
Major benefits of Sponsorship
Corporations now spend over $5 billion on Sponsorship.
That represents a ten fold increase in only a decade. Why, among all the
tools available to marketers-sales promotions, direct mail, public relations
and ‘traditional’ advertising has sponsorship grown at such a rapid rate?
The main benefit of sponsorship is that it develops its
own uniqueness that is not transferable. A good example of this is Richard
Branson’s efforts to promote his Virgin Airways by record breaking attempt
on the Blue Riband Trans Atlantic Record achieving enormously publicity when
he sank close to the finish line. This was worth $123 million at ratecard,
against a sponsorship of only $½ million. This is undoubtedly an extreme
case but it demonstrates that sponsorship should no longer be regarded as
‘entertainment’ or ‘good will’ but moreover as an effective and powerful
marketing tool.
What the experts say
Used strategically, sponsorships and lifestyle
campaigns can cut through the marketplace and communicate your message
directly to whichever demographic groups you choose. (Schreiber, A 1994)
Sponsorship can pave the way before a company starts
selling in a new territory and it can prepare a market for a new product
launch because research shows that the more people have heard of a company’s
name, the more they will like it. And sponsorship can make a firm and active
part of a local community; ideal for instance if it is opening a new branch
and useful on an ongoing basis too-it may attract better staff if it has a
good local image through sponsorship. (Turner, S 1987)
If you have a bank of mature products that is selling
steadily but with little product information, the newspapers will not be
writing about your brand or product. Advertising will help but if you want
to benefit from the editorial mentions, a good sponsorship programme could
be one way to enhance this. (Wragg, D 1994)
Sponsorship is good for internal staff involvement.
They return to their department with new ideas and approaches hopefully
stimulated by the experience of working on a project team trying to produce
commercial benefit out of an activity that often involves working with non
commercially orientated organisations. (cited from Sleight, S 1996)
‘Charitable events prove we’re truly in the hospitality
business. (Calder, 1995)
Some of the objectives of special events in community
programs are to maintain or enhance community approval, correct possible
misconceptions about the sponsor’s organization, present the company s a
good employer, and inform the community of the volume of the company’s local
purchases.’
Approaching Sponsors
There are some Do's and Don'ts to remember when approaching a company some
of which are listed below:
- All letters should be typed and always address
your letter to a named person phone up the company and ask who deals with
sponsorship/marketing
- Show what you can offer the sponsor in return
for their investment
- Always give a figure of how much sponsorship is
required and what it will be used for - state who will benefit
- Depending on the size of the proposal it may be
worthwhile to ask a local dignitary or sporting celebrity with ties to
your locality/club/sport to support your scheme. This could be through
introductions to potential sponsors or through the associated increased
media interest
- Initial letters should be no more than one page
long
- A more detailed breakdown of your proposal
should be available on request. This should include: a detailed CV of your
own or your organisations RELEVANTsporting history and achievements; a comprehensive breakdown of all the
costs and full details of what you can offer any potential sponsor
- Contact your local papers/radio stations and
ask for help in publicising your case. The local paper could print an open
letter to potential sponsors
- Find would be sponsors through Yellow Pages and
your local Chamber of Commerce. The "Hollis Sponsorship and Donations
Yearbook" is a valuable reference source
- If any of your fellow sportsmen have found a
sponsor, ask them for help and advice on how to attract funding
- Ask the advice of a local businessperson: they
could help point you to a local company who may be interested, or to an
individual who supports your sport
- Target companies with a history of sponsorship
and/or ties with your sport (also consider their competitors)
- Where possible alter your standard letter to
appeal to specific companies
In general, companies are more inclined to give to perceived "good causes"
e.g. youth, education, the disabled or disadvantaged
- Have one person co-ordinating all sponsorship
proposals - this person should be available on the phone during working
hours
- Always follow up your initial contact, either
by letter or preferably by phone. Even if the response is negative. Be
prepared to ask sporting equipment manufacturers for free or reduced price
products
- Perseverance is
likely to be the key
