Sponsorship. Sponsor-A person, organization or business that gives money or donates products and...
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Transcript of Sponsorship. Sponsor-A person, organization or business that gives money or donates products and...
Sponsor
Sponsor-A person, organization or business that gives money or donates products and services to another person, org, or event in exchange for public recognition.
Reasons for Sponsorship To increase sales To compete in a saturated area To be identified w/ an event
Sponsors Continued
To introduce a new product to a large audience
To earn goodwill of the audience To show commitment to the community Enter new markets Enhance company’s image
Need for Profit
Sponsors monitor the value of their investments, and want a good return. Return is the profit the sponsor earns from its
support of an athlete or team. Example…A vet clinic would like to see increase
in patients due to sponsoring a team. Businesses watch returns since costs can
be HIGH!
Sponsorship in Niche Markets
Niche Marketing-involves researching a target market to determine the specific items a small group will buy. Businesses must understand both the large
target market AND the smaller niche market for each event they sponsor.
Common Niche Markets Women and men in different age groups
12-24, 25-34, 34-44 etc… Different ethnic groups
Examples of Niche Markets
Auto Racing #1 sport for fan loyalty, also most loyal fans
to their sponsors Value is added to the sponsors return when
they are mentioned in a race. Young men age 12-34 is one of the most
sought after markets today. Sponsors are trying very hard to attract this
group through extreme sports
Continued
ESPN started the X Games in 1995 Very pleased with their popularity 250,000 teens attended in
Who are they going after? Young market that doesn't enjoy sports like
baseball and football. Soft-drink makers, tech businesses, and
clothing businesses are main sponsors
Can Anyone Sponsor Anything?
Sponsors come in all sizes and budgets. Few businesses can afford to sponsor major
league sports, but newer sports offer attractive opportunities for small businesses
Affinity Sports-Niche markets whose participants are as passionate about their sport as those of more traditional sports. Bass fishing Rope jumping
Loss of Sponsors
20th Century saw a backlash against sponsors by tobacco and alcohol businesses.
Multistate Tobacco Settlement 1998 Tobacco sponsorship is prohibited for concerts,
events which participants are under 18, or for football, baseball, soccer, and hockey.
Tobacco sponsorship is limited to one event and one brand per year per business
Chapter 4.3-Promotion
Promotion-Publicizing or advertising a product, service, or event with the goal of selling it. Purpose is to make the consumer want it People MUST know about a product in order to
buy it Promotion leads to selling Promotion serves both the buyer and seller of
the promo
Promotion Targets
Attracting new markets and keeping old ones are equally important Goal is to find new customers or persuade
regulars to buy more Promotion is a critical stage in winning new
customers Maintaining customer satisfaction, loyalty, and
repeat business is also a goal of promotion
Promotion Objectives
Before spending a cent, a company must know what it wants to accomplish. 1st…Target must be decided. Then research
the five elements of market segmentation (demographics, psychographic, geographic, product usage, and benefits derived)
This is to make sure the product and market suit each other.
Next…
Company must decide on the message it wants to send. Does it want to persuade to try a new
product? Inform customers about new features existing
product? Create new attitude about existing product? Or just broaden awareness?
Finally…
Company must decide what it wants consumers to do.
Trying a new product, coming to certain store or event, or buying more of something they already buy.
Promotional Tools
Promotional Plan or Promotional Mix has 4 elements: Personal Selling Advertising Publicity Sales Promotion
Personal Selling
Personal Selling is an in-person, face-to-face communication between a seller and a customer. Example…Vendor and business buyer. A rep
for a sportswear manufacturer and manager of a college bookstore.
Retail store clerk and customer Telemarketers
Personal Selling Cont.…
Advantages Opportunity for seller to overcome any
hesitation from the buyer Seller can offer more info Can compare with similar product Or personal experiences w/ the product
Often human interaction will make the sale. Even if the sale is not made, customers will
return in the future if they are treated courteously.
Advertising
Advertising is paid communication between the product maker or seller and the audience.
Effective advertising Clearly explain the benefits of a good
product. Even the best advertising wont bring
customers back to a bad product. Toy commercials during morning cartoons
Advertising can occur almost anywhere!
Publicity
Publicity is any free notice about a product, service, or event. Articles in newspapers or magazines “sound bites” on television or radio
Newspapers front page stories about Lance Armstrong’s victory over cancer Promoted interest in the race Free promotion not only to Armstrong but the
race, other racers, and to bicycle related businesses who were quoted in the article.
Publicity Continued
Publicity also means just keeping your name, event, or organization in public view. Press releases, Speeches Volunteer work Donations other than sponsorships Letters to the editor