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Sponsorship Management

Sponsorship Management. MKT 3865 Dr. Don Roy. Steps in Sponsorship Management. Define the target audience Set objectives Select the sports property Establish a budget Develop an activation plan Measure effectiveness. Sponsorship Objectives. Create brand awareness

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Sponsorship Management

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  1. Sponsorship Management MKT 3865 Dr. Don Roy

  2. Steps in Sponsorship Management • Define the target audience • Set objectives • Select the sports property • Establish a budget • Develop an activation plan • Measure effectiveness

  3. Sponsorship Objectives • Create brand awareness • Influence brand image or personality • Strengthen client relationships • Stimulate product trial • Increase sales • Generate media exposure

  4. Image is Everything • Sponsorship can shape brand image when: • Brand is new to market > Differentiate from competition • Brand lacks distinctive associations

  5. Sponsorship Budget Components • Rights Fees: Payment of cash or in-kind (e.g., products) for right to use property’s name and logo in sponsor’s marketing activities • Activation Costs: Investments made in advertising, sales promotions, and other forms of marketing communication designed to leverage a sponsor’s association with a property

  6. Leveraging Sponsorship Assets through Activation Soft Drink Sponsor of a MLB Team Source: Adapted from: Lynde, Tim (n.d.), Sponsorships 101, accessed November 5, 2010 at http://www.sponsorships101.com/excerpts/section7.pdf

  7. Activation : Rights Fees Ratio • Activation : Rights Fees ratio measures the level of marketing support a sponsor invests in a sponsorship. • Specifically, how many dollars are spent on activation for advertising, sales promotions, etc., for every dollar spent on rights fees?

  8. Examples • A sponsor spends $35,000 on an ad campaign that promotes a sponsorship it paid $25,000 in rights fees to secure: $35,000 / $25,000 = 1.4:1 Activation / Rights Fees ratio

  9. Industry Averages of Activation to Rights Fees Ratios

  10. What is Activation? Asset No Activation Activation

  11. Sponsorship Measurement Sponsor recognition (recall of official sponsors) Changes in brand awareness levels (using market research) Measurement of brand image or brand personality (using market research) Measurement of brand affinity (liking) Measurement of brand exposure (at event, on television, in media) Changes in Sales

  12. Why Sponsorships End • Unclear expectations • Inadequate budget (for activation) • Change in strategic focus • Change in managerial personnel (relationship)

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