Chapter 6
Pre-event Evaluation:
The Assessment of
Sponsorship
Opportunities
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
6-1
Pre-event Evaluation
• An Effort to Evaluate Sponsorship
Opportunities with the Goal of Identifying
the Best Opportunities for Investment
While Rejecting Those that Are Unlikely to
Produce an Adequate Return on the
Sponsorship Investment
• Recall Earlier Premise that Sponsorship
Motives Have Evolved to Focus on ROI
6-2
Reasons for Increased
Emphasis on Pre-event Evaluation
• Mass (Untargeted) Solicitations for Sponsors
• Increased Emphasis on ROI
• Increased Cost of Sponsorship
• Increased Number of Sponsorship Opportunities
• Increased Opportunities Beyond Sports
• Better Descriptions of Sponsor/Sponsee Target Markets
6-3
Mass (Untargeted) Solicitations
for Sponsors
• More Sponsees Using Less Selective
Methods to Contact Prospective Sponsors
• No Real Effort to Match the Two Entities
• Risk
– Rejecting a good opportunity out-of-hand
– Investing in a poorly conceived opportunity
6-4
Increased Emphasis on ROI
• Prospective Sponsors Will Weigh the Cost
of Sponsorship Against the Benefits
• Specific Marketing Objectives Associated
with the Sponsorship Investment
• Pre-event Evaluation Represents an Effort
to Estimate the Value of the Anticipated
Results before Investing in a Sponsorship
6-5
Increased Cost of Sponsorship
• Rights Fees for Major Events Have
Experience an Upward Trend
• World Cup of Soccer Sponsorship: $17.5
Million in 1994; $100 - $125 Million in 2010
• Also Need to Consider Cost of Leveraging
6-6
Increased Number
of Sponsorship Opportunities
• Properties Increasing Their Number of Sponsors
• Properties Adding New Sponsorship Levels
• Properties Seeking Sponsors for First Time
• New Events Seeking Sponsors
• Sponsors Seeking International Opportunities
6-7
Increased Number of Opportunities
Beyond Sports
• Causes
– McDonald’s & Muscular Dystrophy Association
• Entertainment, Tours & Attractions
– American Express & the Eagles Concert
• Festivals, Fairs & Annual Events
– J2O & the London Comedy Festival
6-8
Increased Number of Opportunities
Beyond Sports
• Arts
– Boeing & the Seattle Art Museum
• Associations & Membership Organizations
– J.D. Power and Associates & Detroit Chapter
of the American Marketing Association
6-9
Better Descriptions of Sponsee’s and
Sponsor’s Target Markets
• More Information Available
• Better Defined Small Target Markets
• Better Targeting Available When Prospect
Engages in Pre-event Evaluation
6-10
When Are Pre-event
Evaluations Needed?
• When Existing Contracts Expire
• When New Opportunities Emerge
– Property Initiates Sponsorship Program
– Existing Sponsors of Property Drop Out
– Property Increases Number of Sponsors
– New Property Emerges and Seeks Sponsors
• When a Marketer Decides to Seek
Sponsorship Opportunity for First Time
6-11
Evaluation by the
Potential Sponsor
• Identify Corporate Marketing Objectives
• Delineate & Prioritize Specific
Sponsorship-based Objectives
• Identify Set of Evaluation Criteria
• Assign Weight to Each Criterion in Model
• Rate Each Criterion (for Each Alternative)
• Select/Reject Opportunities Based on the
Systematic Evaluation of Each Alternative
6-12
Identify Corporate
Marketing Objectives
• What Do We Want to Achieve with Our
Marketing Strategy?
• Examples:
– Increase Awareness
– Enhanced Consumer Perception
– Strengthen Brand Loyalty
– Increase Sales
– Attain Positive Public Relations & Publicity
6-13
Delineate & Prioritize
Specific Sponsorship Objectives
• What Do We Want to Achieve with Our
Sponsorship Strategy? What Priorities?
• Possible Sponsorship Priorities
– (3) Increase Awareness
– (4) Enhanced Consumer Perception
– (2) Strengthen Brand Loyalty
– (1) Increase Sales
– (5) Attain Positive Public Relations & Publicity
6-14
Identify Set of Evaluation Criteria
• Identify A Broad Set of Evaluation Criteria
Drop Box 6.2 in Here
6-15
Identify Set of Evaluation Criteria
• Break Each Criterion Down into More
Specific Evaluation Criteria; For Example:
• Budget Considerations
– Affordability
– Cost Effectiveness
– Tax Benefits
6-16
Assign Weight to Each
Broad Criterion in Model
• Weights Should Reflect the Relative Level
of Importance of All Criteria to Be Used in
the Evaluation Process
• Common to Use 100 Point Basis for
Allocation Purposes
• Other Basis Can Be Used if Desired
6-17
Assign Weight to Each
Broad Criterion in Model
• Consider the Following 3-Criteria Model
Using a 100 Point Basis
– Target Market Considerations (60)
– Budget Considerations (30)
– Event Management (10)
6-18
Reallocate Weights to Each
Specific Criterion in the Model
• For Each Broad Criterion, One or More
Specific Criteria Will Be Used in the
Evaluation Process
• Each Specific Criterion Will Be Assigned a
Weight that Reflects Its Importance in the
Assessment of the Broad Criterion in
Which It Is Listed
6-19
Reallocate Weights to Each
Specific Criterion in Model
• Instead of a 100 Point Basis, the Basis Is
the Number of Points Assigned to Each
Broad Category
• In the Previous Hypothetical Model, the
Points Were Allocated As Follows:
– Target Market Considerations (60)
– Budget Considerations (30)
– Event Management (10)
6-20
Reallocate Weights to Each
Specific Criterion in Model
• In This Hypothetical Model, Assume that
the 60 Points Allocated to Target Market
Considerations Are Reallocated As Below:
• Target Market Considerations
(60)
– Geographic Media Coverage
– International Coverage
– National Coverage
– Demographic Fit
– Size (Reach)
10
2
8
30
10
6-21
Rate Each Criterion
• Using An Appropriate Measurement Scale,
Each Criterion Is Rated on Its Merits
• Most Scales Use Between 5 and 9 Points in
Order to Allow Adequate Discrimination
• Generally, a Negative Evaluation Is Assigned
a Lower Number; a Positive Evaluation Is
Assigned a Number at the High End of Scale
6-22
Rate Each Criterion
• Consider a 9-Point Scale Where -4 Is a
Poor Rating and +4 Is an Excellent Rating;
the Scale Has a Midpoint of Zero.
• Each Criterion Can Now Be Rated on the
9-Point Scale
6-23
Rate Each Criterion
• Consider an Example Where Coca-Cola Is
Considering Renewal of Its Sponsorship
with FIFA and the World Cup of Soccer
• Criterion
• Target Market Considerations
–
–
–
–
–
Geographic Media Coverage
International Coverage
National Coverage
Demographic Fit
Size (Reach)
Weight
Rating
(60)
10
2
8
30
10
+4
+4
+1
+3
+4
6-24
Complete the Ratings Process
• Multiply Each Rating by the Weight for the
Corresponding Criterion
• Criterion
• Target Market Considerations
–
–
–
–
–
Geographic Media Coverage
International Coverage
National Coverage
Demographic Fit
Size (Reach)
Weight
Rating
W*R
(60)
10
2
8
30
10
+4
+4
+1
+3
+4
40
8
8
90
40
6-25
Sum Results for All Criteria
• Result Will Be a Single Grand Total
• Maximum Possible Points for Any Model
Equals the Aggregate Weight Total Times
the Best Rating for Each Criterion
• In this Example: 100 * 4 = 400
6-26
Applying the Results
• Use the Same Model to Compare Each
Alternative Sponsorship Being Considered
• Can Compare the Results of One
Alternative to Another
• Can Compare the Results to an
Established Benchmark
6-27
Applying the Results
• Drop in Table 6.4 Here
6-28
Overview of the Process
• Drop in Figure 6.1 Here
6-29
Sponsee Applications
• Allows the Sponsee to Evaluate Its Own
Proposal from the Prospective Sponsor’s
Perspective
• Understand Prospect’s Priorities
• Can Help Sponsee Decide Which
Components to Offer in Its Proposal
6-30
Closing Capsule
• Prospects Have Many Opportunities from
Which They Can Choose
• The Increase in Opportunities and a Major
Focus on ROI by Prospective Sponsors
Have Led to Greater Emphasis on Preevent Evaluation
6-31
Closing Capsule
• Systematic Pre-event Evaluation Should
Increase the Likelihood that the Sponsorship
Will Achieve the Objectives Sought by the
Sponsor
• More Independent Consultants that Can
Help the Prospect with Pre-event Evaluation
– Sponsorium - http://www.sponsor.com/home.jsf
6-32
Closing Capsule
• Fewer Sponsorships Should Fail
• Fewer Failures = Higher Renewal Rates
6-33