6.02 Describe How to Secure Sponsorships

1. 6.02 Describe How to Secure Sponsorships

2. List the steps in securing sponsors • Understand all aspects of the event • Locate companies who may be potential sponsors • Make contact with potential sponsors • Close the deal with the sponsor • Establish a partnership with the sponsor

3. Aspects of the Event • Who is the audience? • What are the demographics, geographics, psychographics, and behavioral response of the audience? • How would a corporate sponsor benefit by partnering with the event?

4. Aspects of the Event (continued) • What media has already been put in place (radio, television, newspaper)? • What is the total cost of the event? What percentage of the total cost will be covered by the sponsor(s)? • How many sponsors are needed?

5. Locate companies who may be potential sponsors • Review trade journals • Research similar events to see who has previously sponsored • Research potential sponsors – profile, budgetary and promotional cycles • Decide who would be the best sponsor for the product

6. Quiz Preview • One way to identify companies who may be potential sponsors is to: • A. Research multi-purpose facilities. • B. Review trade journals. • C. Survey your neighborhood. • D. Watch infomercials. • Roy cold calls retailers within his city asking for the name of the store managers. Roy is attempting to identify the: • A. Decision Maker. • B. Gross sales. • C. Number of employees. • D. Shift Supervisors.

7. Unit 6 Project Part 4 • You have been hired to replace a failed marketing director for a professional sports team/group. • The owner of the organization is upset that sales and sponsorship is down from years past. Part of the employment agreement is that you are to find 3 new major sponsorships in the next 2 months or you will meet the same fate as the previous marketing director. • Slide 10: Aspects of the Event • Who is the audience? • What are the demographics, geographics, psychographics, and behavioral response of the audience? • How would a corporate sponsor benefit by partnering with the event? • What media has already been put in place (radio, television, newspaper)? • What is the total cost of the event? What percentage of the total cost will be covered by the sponsor(s)? • How many sponsors are needed? • Slide 11: Potential Back-Up Sponsors • Pick a product, service, or financial need that a sponsor can help with based on your original 3 sponsor picks. Ex: Say Chick-fil-A was contracted to exclusively provide chicken and related chicken products at games but it fell through, my back ups would be Bojangles, KFC, and Pop Eyes. • List the 3 back up sponsors and state why you chose each of them, how they could benefit your event, and what would be a risk associated with them? • Continue along with Unit 6 Project Part 3. Complete and submit to Edmodo by the end of class.

8. Make contact with potential sponsors • Write sponsorship proposal • Create fact sheet • Outline benefits • Send out letters requesting to see company representative • Try cold calling on companies (aka Cold Canvassing) • Schedule a meeting with the company

9. Make contact with potential sponsors (continued) • Try to find out who is the decision-maker • Present the proposal • Prove the event aligns with current marketing goals • Follow up after making presentation

10. Close the deal with the sponsor • Negotiate the final contract • Acquire a signed sponsorship agreement

11. Establish a partnership with the sponsor • Discuss leveraging with the sponsor • Fulfill the contract

12. Quiz Preview • One step in securing sponsors is to: • A. Avoid collaborating with other companies. • B. Establish a partnership with the sponsor. • C. Identify facility managers. • D. List competitors. • In closing the deal with the sponsor, the sponsee should: • A. Acquire a signature. • B. Hire an attorney. • C. Outline the agreement. • D. Prepare a press release. • The FINAL step in securing a sponsor is to: • A. Determine the audience. • B. Establish a partnership with the sponsor. • C. Locate potential sponsors. • D. Select promotional items. • Tony is trying to make contact with potential sponsors. He is using a phone book to call businesses. Which method is Tony using? • A. Cold canvassing • B. Endless chain • C. Following up • D. Leveraging

13. Unit 6 Project Part 5 • You have been hired to replace a failed marketing director for a professional sports team/group. • The owner of the organization is upset that sales and sponsorship is down from years past. Part of the employment agreement is that you are to find 3 new major sponsorships in the next 2 months or you will meet the same fate as the previous marketing director. • Slide 12: Make Contact with Sponsors • You are to write a Sponsorship Proposal in Word. Create a link to it. • The proposal should contain the following: • Team name Heading at the top with address • Opening statement creating interest • State 5 facts about the team (bullet format) • State 5 benefits the sponsor would have from sponsorship (bullet format) • Tell how their company aligns with your marketing goals • Closing statement and express your interest in meeting with them • Signature (your name, position, contact info) • Slide 13: Close the Deal • List 5 things you would demand in a contract with this sponsor. • List 5 things you are willing to be flexible with in a contract with this sponsor. • Continue along with Unit 6 Project Part 4. Complete and submit to Edmodo by the end of class.

14. Discuss aspects of a sponsorship agreement • Clauses in the sponsorship agreement • Benefits included in the sponsorship agreement • Summarize opportunities for leveraging sponsorships • Explain the sales process and client relations in sponsorships

15. Clauses in the sponsorship agreement • Term: The length of the agreement and financial obligation • Event definition: Clearly and precisely defines the event and leaves no misunderstandings. • Sponsor benefits: Details all benefits the sponsor will be receiving. • Sponsor obligations: Details what is due the entity, which includes but is not limited to: fees paid, in-kind, and any other obligations to be fulfilled by the sponsor

16. Clauses in the sponsorship agreement (Continued) • Indemnity and insurance: Make sure everyone involved is protected from things that could go wrong. Indemnity is exemption from incurred liabilities, loss or penalties for damages. Insurance is the instrument used to protect the promoter. • Confidentiality: Protect both the sponsor and sponsee.

17. Benefits included in the sponsorship agreement • Exclusivity: • Are companies willing to pay a higher fee to keep competitors from participating? • Can the sponsee use phrases such as “official sponsor” or “presented by”?

18. Benefits included in the sponsorship agreement (continued) • Media package • Exactly what type of coverage will be provided? • How much airtime will be provided? • Will sponsors need to purchase additional media coverage? • Will there be vignettes? • What type of signage will appear on television?

19. Benefits included in the sponsorship agreement (continued) • Media package (continued) • Will ad space be provided? • Will the sponsor’s name and logo be included on information sent out about the event? • Will the sponsor be able to conduct contests or advertising campaigns?

20. Benefits included in the sponsorship agreement (continued) • Signage • What type of signage will be available? • Will rotational and virtual signage be used? • What about banners?

21. Benefits included in the sponsorship agreement (continued) • Entertainment • Will luxury boxes, hotel rooms and VIP passes be provided? • Will the sponsor have access to the athletes or stars?

22. Benefits included in the sponsorship agreement (continued) • Merchandise rights • Will there be an area to sell merchandise? • Will logos and trademarks be used?

23. Benefits included in the sponsorship agreement (continued) • In-Kind • Are sponsors willing to provide products? • How much non-cash sponsorship will be provided?

24. Benefits included in the sponsorship agreement (continued) • Internet • Will the entity provide links to corporate websites? • Will possible banner advertisements be provided?

25. Quiz Preview • Luxury boxes, access to celebrities and VIP passes are components of the: • A. Employee Discounts. • B. Exclusion packages. • C. Merchandise Inventory. • D. Sponsorship packages. • Athletic Plus has agreed to sponsor a baseball team. Which clause in the agreement details what the sponsor will be receiving? • A. Sponsor benefits • B. Sponsor features • C. Sponsor obligations • D. Sponsor terms • A clause in the sponsorship agreement that clearly defines the event is known as the: • A. Event definition. • B. Introduction. • C. Recommendations. • D. Terms. • Access to celebrities, luxury boxes and VIP passes are which types of benefits included in the sponsorship agreement? • A. Entertainment • B. Exclusivity • C. Media • D. Signage • Pepsi is the only official carbonated beverage of the Atlantic Coast Conference. This is a benefit included in the sponsorship agreement known as: • A. Exclusivity. • B. Inclusion. • C. In-kind. • D. Signage.

26. Unit 6 Project Part 6 • You have been hired to replace a failed marketing director for a professional sports team/group. • The owner of the organization is upset that sales and sponsorship is down from years past. Part of the employment agreement is that you are to find 3 new major sponsorships in the next 2 months or you will meet the same fate as the previous marketing director. • Slide 14: Clauses in Sponsorship Agreement • State the Term of the agreement • Define the Event • State 3 Sponsor Benefits • State 3 Sponsor Obligations • State whether insurance will be provided to the sponsor • How will you protect the sponsors privacy and information? • Slide 15: Benefits in Sponsorship Agreement • Will Exclusivity be allowed? • What type of Media Package is offered? • Where will their Signage be placed? • Will they be allowed access to Entertainment luxuries? • Are they any Merchandising Rights? • Are they any In Kind deals? • Will there be Internet perks? • Continue along with Unit 6 Project Part 5. Complete and submit to Edmodo by the end of class.

27. Opportunities for leveraging sponsorships • Makes the sponsorship more successful • Spend between $1-$5 on leveraging for every $1 spent of the sponsorship fee • Additional advertising – banners, magazines, radio or television • Examples of leveraging: • A discounted ticket to an event with the proof of purchase of a product. • Point-of-purchase displays or better shelf space. • Two companies joining together creating a special deal for customers when they utilize both companies. Example: Marriott offers a discounted room rate when using a Visa credit card.

28. Explain the sales process & client relations in sponsorship • Preapproach • Approach • Determining needs • Feature/benefit presentation • Handling objections • Closing the sale • Suggestion selling • Follow-up

29. 1. Preapproach • Everything prior to sale • What the entity wants out of the sponsorship • Inventory • Package prices – exclusivity, box seats, luxury boxes, lodging, transportation, invitations, tents, freebies/giveaways, samples, VIP passes, banners, signage, ad space, access to players/stars, TV or radio spots, public relations or press releases, promotions, entitlement to facility and logos on items • Real cost of sponsorship

30. Aspects of the sponsor Prior events sponsored Current events being sponsored Target market Corporate expectations Amount company is willing to spend Aspects of the sponsorship What is the sponsee willing to offer them? Will more than one sponsorship package be offered? How will the company benefit from the sponsorship package? How is the sponsee willing to help track sponsorship value? 1. Preapproach (Continued)

31. Arrange a meeting Variety of dates Correct name Arrive early Dress professionally Introduce yourself Shake hands firmly Give business card Have background information on the sponsor Know your objectives 2. Approach

32. 3. Determining needs • Listen when appropriate • Talk when appropriate • Question to determine needs • Verbal & nonverbal feedback • Empathy

33. 4. Feature/benefit presentation • Explain how proposal can fill client’s needs • Focus on the benefits • Get sponsor involved in the sale • Use visuals • Use a logical order • Large to small • National to local

34. Quiz Preview • National Car Rental offering patrons a discounted weekly rate when using their VISA card is an example of: • A. Canvassing. • B. Determining needs. • C. Leveraging. • D. Partnering. • The FIRST step in the sales process is: • A. Approach. • B. Canvassing. • C. Cold calling. • D. Preapproach. • After a meeting has been arranged with a potential sponsor, the sponsee should collect: • A. Background information on the sponsor. • B. Information related to insurance needs. • C. Sample data. • D. Sample products. • Focusing on the sponsors’ benefits and getting the sponsors involved occurs during which phase of the sales process? • A. Approach • B. Feature benefit presentation • C. Handling objections • D. Pre-approach • "This football helmet has extra padding for protection. It also has a very sturdy face mask to provide more protection." The salesperson is: • A. Determining needs. • B. Handling objections. • C. Presenting features/benefits. • D. Suggestion selling.

35. Unit 6 Project Part 7 • You have been hired to replace a failed marketing director for a professional sports team/group. • The owner of the organization is upset that sales and sponsorship is down from years past. Part of the employment agreement is that you are to find 3 new major sponsorships in the next 2 months or you will meet the same fate as the previous marketing director. • Slide 16: Leverage Opportunities • Come up with 3 Leverage Opportunities that your fans could benefit from using any of your sponsors. • Come up with 2 Joint Leverage Opportunities that your new sponsors could work together on to benefit themselves as well as fans. • Continue along with Unit 6 Part 6. Complete and submit to Edmodo by the end of class.

36. 5. Handling objections • Anticipate them • Can occur at any time • Based on need, product, price or time • Use four step process: • Listen • Acknowledge • Restate • Answer

37. 6. Closing the sale • Close when sponsor is ready • Look for buying signals • Summarize major points • Use objections to close sale • Generate an offer • Be flexible with proposal • Let the sponsor think of it as a rough copy with the ability to be changed. Have different levels of sponsorships available to the sponsor. • Bargain, discuss and settle • Discuss fee arrangement • Do not make agreements cannot keep

38. 7. Suggestion selling • Lengthen contract – multiple year • Add additional promotional ideas

39. 8. Follow-up • Execute contract • Thank you letter – sale or no sale • Keep relationship going • Help the sponsor feel they’re getting their money’s worth • Measure, assess & evaluate • Schedule follow-up appointment

40. Quiz Preview • Listen, acknowledge, restate, and answer are the four steps in: • A. Closing the sale. • B. Determining needs. • C. Handling objections. • D. Suggestion selling. • The final phase in the sales process is: • A. Closing the sale. • B. Determining needs. • C. Follow-up. • D. Suggestion selling. • The audience benefits from sponsorships through: • A. Evasive advertising. • B. Exposure to new products. • C. Higher ticket prices. • D. Internet pop-ups. • For every $1 spent on the sponsorship fee, sponsors should spend how much on leveraging? • A. Between $1 and $5 • B. Between $5 and $10 • C. Between $10 and $15 • D. Between $15 and $20 • What should the salesperson do to be sure the customer is ready to close the sale? • A. Look for buying signals • B. Research your customer • C. Review your notes • D. Try to shake hands

41. Unit 6 Project Part 8 • You have been hired to replace a failed marketing director for a professional sports team/group. • The owner of the organization is upset that sales and sponsorship is down from years past. Part of the employment agreement is that you are to find 3 new major sponsorships in the next 2 months or you will meet the same fate as the previous marketing director. • Slide 17: Handling Objections • You are to come up with 3 possible scenarios that could cause friction between you, the sponsee, and a new sponsor. • For each of the three scenarios you are to create 2 remedies for the potential altercation. • Continue along with Unit 6 Project Part 7. Complete and submit to Edmodo by the end of class.