Sponsorship Management Lecture 4: - Researching from Sponsor’s Perspective Leo Kwan BA/IVE(TY)

1. Sponsorship ManagementLecture 4:- Researching from Sponsor’s PerspectiveLeo KwanBA/IVE(TY) Date : Oct 2010 TSING YI 青衣

2. 1. Introduction to SM 5. Develop sponsorship package 12. Implementation 2. Role of sponsorship in marketing 6. Develop sponsorship proposal 13. Measurement and Evaluate Effectiveness 3. Types of sponsorship 7. Prepare cover letter 4. Research for Potential sponsor and selection 8. Making a successful approach 9. Creative approach to sponsorship 10. Selling the proposal 11. Managing sponsorship relationship

3. Lecture Objectives: • Explain How to research sponsor’s needs. • How to discover how your sponsor's mind operates. • Explain why ongoing sponsorship research is important. • Understand what is important and valuable to sponsors. • Stages in developing the event sponsorship strategy. Reference: Bruce E. Skinner and Vladimir and Rukavina. Event Sponsorships. New York: John Wiley & Sons, 2003.

4. How to select a sponsor? From the initiator’s (beneficiary organization) view point

5. Develop An Information Bank • Contacts • Library Telephone Directories, Web • Newspapers • Local Business Bodies • Annual Reports • House Programs

6. CONTACTS • Working with your board, "Friends" organisations, and in-house people, make a list of all business contacts, including people with whom you do business, people recently met, and anyone who has previously offered support of any kind.

7. LIBRARY, Telephone directories, Web • Telephone directories, reference books, business periodicals and magazines. • Looks for news about sponsorship and identify the companies.

8. NEWSPAPERS • Look out for advertisements, particularly those which are corporate rather than product-orientated. These give a very clear indication of how companies wish to be perceived, and reveal who is prepared to spend money on image-building. Sponsorship announcements are sometimes made in the press. In the business pages, look out for companies opening in new markets or diversifying. From newspaper, you can discover that Cheung Kong Holding Ltd of Li Ka Shing has set up a fund called 1881 to sponsor arts display.

9. LOCAL BUSINESS BODIES • Chambers of Commerce holds overseas directories and directories of companies doing business in Hong Kong. • Collect the directories obtained at various trade shows at HKCEC. Hong Kong Jewelleries Business Directory 2009

10. Potential Sponsors from TDC list Australian Electrical and Electronic Manufacturer's Association LtdChina Electronic Components AssociationChina Electronic Production Equipment Industry AssociationEuropean Electronic Component Manufacturers AssociationElectronic Exporters GroupElectronics Representatives Association of United States of America Electronics & Computer Software Export Promotion Council of IndiaHong Kong Critical Components Manufacturers AssociationHong Kong Electronic Industries AssociationKorea Semiconductor Industry AssociationHong Kong Chapter - Society for Information Display………………… Sponsors: Reference: Official Web Site of TDC

11. ANNUAL REPORTS • Although such a report may not contain specific information on sponsorship or PR spends, a certain amount can be gleaned from the style of the document. Glossy, well-designed documents are indicative of a company prepared to invest money in communicating something in a stylish manner. Annual reports also contain information on a company's aims, objectives and financial position.

12. HOUSE PROGRAMS • Many arts groups now have corporate membership schemes, one of the benefits of which is being listed in the house program. Such schemes usually have different levels of membership according to the size of donations. Many museums and galleries produce annual reports which also list corporate donors. All such documents provide a list of companies with a tradition of associating themselves with the arts, together with an indication of the level of that commitment.

13. Six Keys to researching Your Sponsors • Read about your sponsors in annual reports and other documents, and be sure to use the best research tool of all – the Web • Always try to meet your sponsors in person and to see their sponsorships through their eyes. • To further research your potential sponsors, set up “informational interview.” Reference: Official Web Site of Sino Group

14. Six Keys to researching Your Sponsors Identify their interests • Learn the interest of your sponsors – family, sports, education, hobbies, and so on – get into the sponsor’s mind. • Never stop researching the businesses of your sponsors. • Match the demographics of your event with those of your potential sponsor. • (p.52 of textbook) Reference: Official Web Site of Sino Group

15. Selecting Target Sponsors 1. Review the current level of marketing and PR activities of the potential sponsor.

16. Selecting Target Sponsors 2. Who is their target audience.

17. Selecting Target Sponsors 3.Is the nature of business controversial?

18. Selecting Target Sponsors 4. How local are they to you?

19. Selecting Target Sponsors 5. Do you have personal contacts within the company? 6. Are they financially healthy?

20. How to Select the initiators (the beneficiary organizations) to sponsor? From the sponsor’s viewpoint. (Let’s look at the strategic directions of one of the largest sponsors in Hong Kong – The Hong Kong Jockey Club)

21. Look at how Hong Kong Jockey Club wanted to spend its money on sponsorship HKJC’s policy in 20XX

22. Extracts from the policy of HKJC

25. Strategic Directions • Maintain and strengthen trust in HKJC through systematic engagement and involvement with key stakeholders. • Develop a clear definition of social responsibility and get accepted and support from key stakeholders (humanize) • Foster marketplace understanding and acceptance of HKJC and its role in a regulated betting environment. • Instill more emotional impact into communications about charitable giving in order to drive home: • How the Club is improving HK life • What stake various audiences have in the Club’s continuing success

26. Communications Framework • In building a strategic communications platform and tailoring it for each stakeholder group, we should categorize activities into 3 areas: • Education – building awareness and understanding. • Empowerment – the Jockey Club as a catalyst and ‘charitable supply chain manager. • Involvement – active participation • Two forms of engagement • Passive (image advertising Internet and direct mail) • Active (proactive media outreach; speeches; forums; councils; participation) In view of Jockey Club’s framework, if your were the art organization, how would you design your sponsorship package to increase your chance of being sponsored? __________________________ __________________________ __________________________ __________________________

27. Charitable Giving • The HKJC approaches to charitable giving is impressive: • Easy-to-understand criteria • Accountability on the part of recipients • Community involvement in deciding who should receive a grant • Desire to share the money • Further enhancement on: • Processes to involve members, employees, and community leaders in dialogue on where some of the money could be spent. • Transfer of skills from HKJC to charities in addition to financial support. • Focus on measurable results in a few areas to clarify for key stakeholders why they should care about HKJC donations. • Use advertising to bring to life the human dimensions of HKJC support for important causes.

28. Charitable Giving (cont’d) • Launch charitable “supply chain” initiative • Develop CEO speaking and media opportunities to communicate the charitable supply chain concept. • Develop collateral materials. • Create “services in kind” program that involves employees, employees’ families, and possibly members of the Jockey Club. • Offer employees paid time off to volunteer in HKJC- funded causes Implications to the art organization: _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________

29. Conclusion • Wants of sponsored parties: • What is the current level of marketing activities of HKJC? • Who is their target audience? • Is the nature of business controversial? • How local are they to us? • What is their current financial performance like? • Do we have have personal contacts within the company? • Wants of the sponsoror (HKJC): • systematic engagement and involvement with key stakeholders. • Education – building awareness and understanding. • Empowerment – the Jockey Club as a catalyst and ‘charitable supply chain manager. • Involvement – active participation in form of its CEO, staff and even members. • Solid plan of media exposure.

30. If the proposed sponsorship plan meets the wants of both parties, it will be a successful partnership.

31. End of Lecture 4