Sponsorship Creativity: New Approaches, Concepts, and Ideas

1. Why are we here today?To talk about sponsorship creativity … ideas, concepts, new approaches, bundling,resources, sampling, i-phone apps, other ideas

2. But first, trends • Expanded measurements • Experiential marketing • Activation • Lifetime value of a customer • Asset exclusivity • Cross promotions • Partnership • Longer relations (3+ years) • Longer buying cycle • Greater demands from sponsors • Slower payment cycle • Growth of smaller sponsorships

3. Question #1 Which of the following have you experienced this year? Check all that apply • Longer relations • Longer buying cycle • Greater demands from sponsors • Slower payment cycle • Fewer large sponsors

4. Next, you need to know why companies sponsor • Drive sales/traffic • Heighten visibility • Differentiate your product from competitors • Obtain positive publicity • Enhance good corporate citizen role • Merchandising opportunities • Sell/sample products/services directly • Contribute to community economic development

5. Why companies sponsor (continued) • Shape consumer attitudes • Business-to-business marketing • Showcase product attributes • Enhance quality of life for employees • Entertain clients • Communicate commitment to a particular lifestyle • Combat larger ad budgets of competitors • Achievement of multiple objectives

6. Overriding reason in today’s environment? Sales! Sales! Sales!

7. So, where to start with the client! Let’s start with this assumption … the sponsor is interested, you have a meeting … ok, now what! The other assumption? You have researched the sponsor and know what they do and you have some ideas on what to offer to achieve their objectives!

8. Starting the process! DON’T start with the sales pitch Rather, go through the questioning/interview process

9. Question #2 Which of these questions do you ask on a sales call? • What are your current marketing problems? • What sponsorships have worked for you in the past? • What applications have you used? • What do you want to achieve with your sponsorship (your objectives)? • What marketing has been effective during this economic downturn?

10. Why these questions? They help you develop a plan! And, it is up to you to be creative! Let’s take a couple of case histories!

11. Oceanfest 2010 • Event history • 2010 obstacles • Sandsculpting • Usually one per sculpture • Creative idea? Four for one

12. Creative ideas • Banks • Coffee companies • Auto dealers • Newspapers • Radio stations • Pet stores

13. i-phone apps 1.  Sponsorships on mobile applications can be customized to each individual need.  A sponsor can "own" the entire app with a logo on the front splash page, or "own" a specific section of the app, like the schedule, for example. 2.  Sponsorships can contain a link to a sponsor's web site, putting their information right in the hands of consumers when they are on the go. 3.  Applications are flexible and can be reused every year, allowing different sponsors each year 4.  Similar to a web site, content can be added to an application specific to a sponsor's needs. 5.  If geo-location on a map is used (a mobile "you are here"), sponsor's logos can be placed on a map so guests can locate their booth while at the festival. 6.  Of course, apps can be used to sell tickets, merchandise, etc. And, you can find out how to do this at this year’s IFEA convention ‘cuz these folks will be there! JacAPPS …248-353-9030

14. Sponsorship components • Media (radio/TV/print) • Social media (Internet) • Hospitality • Collateral • Database development • Display space And the list can go on and on …

15. Activation - get them to … • Articulate their objectives and understand the opportunities • Commit their resources • Target the audience before, during and after the event • Share responsibility for innovation and creativity • Attend the event • Take advantage of all benefits offered • Evaluate the event

16. Activation elements • Media • PR • Internal communications/personnel • Hospitality (trade/consumer/employees) • Social Media • Sampling • Contests (register to win) • Experiential opportunities • Pre-event activities • Co-sponsorship/partnering • Post-event activities

17. Question #3 … rank the activation elements that are used by your sponsors … #1 being most used, #5 least • Sampling • On-site experiences • Social media (i-phone, Internet, Twitter, etc.) • Contests • Partnering with another sponsor

18. Activation Oversights • Unused internal assets – could they be bringing more resources to the table? • Not negotiating the most appropriate benefits needed for the sponsor’s goals • Not using all the benefits offered • Taking a one-size-fits-all approach • Missing the opportunity to create a personal dialog with customers • Not seeking partners to expand and broaden the consumer experience • Not supported by all divisions internally • No pre-determined measurements for success

19. Measurement elements • Sales • Audience count • Surveys/polls • Publicity/media impressions • Advertising space • Product sales/sampling • Image skew – changes in attitude and perceptions

20. Types of measurements • Return on Investment (ROI) • Return on Equity (ROE) • Return on Objective(s) (ROO) • Return on Marketing Investment (ROMI)

21. Return on Investment This should be 3:1 and is based on the measured marketing value of all the elements as compared to the initial investment

22. Return on Equity Measurement of the recognition and ownership value sponsors build through sponsorship longevity … after 3 years sponsors have an equity position

23. Return on Objectives This is an analysis of the return that is generated from objectives (where sales are not immediately closed) such as demonstrations, live presentations, product sampling, customer meetings, hospitality, etc.

24. Return on Marketing Investment • Measuring the dollars of revenue (or market share, contribution margin or other desired outputs) for every dollar of marketing spend. • Determining other less tangible aspects of marketing effectiveness such as the incremental value of marketing as it pertains to increased brand awareness, consideration or purchase intent.

25. How do your sponsors compare to these statistics? • Only 21% of sponsors spend more than one percent of a sponsorship’s total budget on research to determine impact. • The amount of sponsors who spent nothing on concurrent or post-sponsorship analysis dropped from 42% to 31%. • Nearly half of all sponsors spend less than one percent (1%) of a deal’s budget on evaluation.

26. How can you sell more? • Eliminate negative thoughts • Know your property • Be tenacious • Start early • Be willing to negotiate • Read, read, read • Research, research, research • Become a consultative salesperson

27. Question #4 … which of the following measurements do you use (list all that pertain? • ROI • ROE • ROO • ROMI • Something else!

28. Steps to sales success • Believe you have already succeeded when you walk in the door • Have written goals • Have a sales plan (ties in with #2) • Go the extra mile • Be willing to negotiate • Be willing to walk away • Have a personal mission statement • Deliver 110% • Take responsibility for your actions • Replace negative statements with positive statements • Allow yourself to make mistakes … none of us is perfect! • Always ask yourself … what is the worst that can happen • Be honest … with your sponsors and yourself • Attend the IFEA convention in September!

29. Summary What did we learn today? What questions do you have?

30. Come to the IFEA convention! St. Louis, MO September 15-17, 2010 Bruce Erley and I will be doing a tag team seminar … come prepared to learn AND have fun!

31. Conclusion You can’t learn it in one hour!  Questions? Feel free to call me 732 946 2711/cell 732 241 1144 sylvia@ifea.com And …