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Promotional Licensing and Sponsorship

Promotional Licensing and Sponsorship. Chapter 12. Promotional Licensing and Sponsorship. Factors Influencing the Growth of Sports Sponsorships (197-1990’s): Ban on tobacco and alcohol ads (1997 spent $195 million on sport sponsorships; 95% on motor sports).

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Promotional Licensing and Sponsorship

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  1. Promotional Licensingand Sponsorship Chapter 12

  2. Promotional Licensing and Sponsorship Factors Influencing the Growth of Sports Sponsorships (197-1990’s): • Ban on tobacco and alcohol ads (1997 spent $195 million on sport sponsorships; 95% on motor sports)

  3. Clutter in print and electronic media (5,000 plus selling messages each day) • Increase in TV ad costs (2004m Super Bowl, 1.2 million for a 30 sec ad)

  4. Sport governing bodies accepted the commercialization of sports (1984 Olympics, NCAA)

  5. Sponsorship Theories • Exchange theory • Relationship marketing • Affinity marketing • Ambush marketing • Ethics issues

  6. Examples of Sponsorship Rights • Use of logos, names, trademarks • Exclusive association with an event • Entitlement to an event or facility

  7. Use of designations in connection with an event: official supplier, official sponsor, presented by • Use of purchaser’s product or service in conjunction with the event or facility

  8. Conduct promotional activities in conjunction with the sponsorship agreement (contests, advertising) • Companies acquiring rights (via fees) to affiliate with a product or event to derive benefits

  9. Companies establishing relationships and partnerships with sports teams/leagues to derive benefits.

  10. Sponsorship Benefits to Corporations - ROI - • Life styled marketing-reach consumers via leisure/fun pursuits • Reach specific target audiences • Exclusivity – no competition

  11. Heightened communication • Heightened publicity • Meet corporate sales objectives

  12. Increase public awareness • Positive public perception • Community involvement • Build good will

  13. Generate media opportunities • Generate hospitality and entertainment opportunities • Secure entitlement or naming rights

  14. The Sponsorship Sales Process • Identify sponsorship decision maker • Schedule a meeting with sponsorship decision maker • Listen to needs of corporate sponsor

  15. 4. Arrange follow-up meetings 5. Create a long term relationship 6. Propose a draft that is flexible to change 7. Negotiate and sign an agreement

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