Sponsorship
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Sponsor-A person, organization or business
that gives money or donates products and
services to another person, org, or event in
exchange for public recognition.
Reasons for Sponsorship
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To increase sales
To compete in a saturated area
To be identified w/ an event
To introduce a new product to a large audience
 To earn goodwill of the audience
 To show commitment to the community
 Enter new markets
 Enhance company’s image
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Sponsors monitor the value of their
investments, and want a good return.
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Return is the profit the sponsor earns from its
support of an athlete or team.
 Example…A vet clinic would like to see increase in
patients due to sponsoring a team.
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Businesses watch returns since costs can be
HIGH!
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Niche Marketing-involves researching a target
market to determine the specific items a small
group will buy.
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Businesses must understand both the large target
market AND the smaller niche market for each event
they sponsor.
Common Niche Markets
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Women and men in different age groups
 12-24, 25-34, 34-44 etc…
 Different ethnic groups
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Auto Racing
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#1 sport for fan loyalty, also most loyal fans to their
sponsors
Value is added to the sponsors return when they are
mentioned in a race.
Young men age 12-34 is one of the most sought
after markets today.
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Sponsors are trying very hard to attract this group
through extreme sports
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ESPN started the X Games in 1995
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Very pleased with their popularity
250,000 teens attended in
Who are they going after?
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Young market that doesn't enjoy sports like baseball
and football.
Soft-drink makers, tech businesses, and clothing
businesses are main sponsors
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Sponsors come in all sizes and budgets.
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Few businesses can afford to sponsor major league
sports, but newer sports offer attractive
opportunities for small businesses
Affinity Sports-Niche markets whose
participants are as passionate about their sport
as those of more traditional sports.
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Bass fishing
Rope jumping
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20th Century saw a backlash against sponsors
by tobacco and alcohol businesses.
Multistate Tobacco Settlement 1998
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Tobacco sponsorship is prohibited for concerts,
events which participants are under 18, or for
football, baseball, soccer, and hockey.
Tobacco sponsorship is limited to one event and one
brand per year per business
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Promotion-Publicizing or advertising a
product, service, or event with the goal of
selling it.
Purpose is to make the consumer want it
 People MUST know about a product in order to buy
it
 Promotion leads to selling
 Promotion serves both the buyer and seller of the
promo
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Attracting new markets and keeping old ones
are equally important
Goal is to find new customers or persuade regulars
to buy more
 Promotion is a critical stage in winning new
customers
 Maintaining customer satisfaction, loyalty, and
repeat business is also a goal of promotion
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Before spending a cent, a company must know
what it wants to accomplish.
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1st…Target must be decided. Then research the five
elements of market segmentation (demographics,
psychographic, geographic, product usage, and
benefits derived)
This is to make sure the product and market suit
each other.
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Company must decide on the message it wants
to send.
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Does it want to persuade to try a new product?
Inform customers about new features existing
product?
Create new attitude about existing product?
Or just broaden awareness?
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Company must decide what it wants
consumers to do.
Trying a new product, coming to certain store
or event, or buying more of something they
already buy.
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Promotional Plan or Promotional Mix has 4
elements:
Personal Selling
 Advertising
 Publicity
 Sales Promotion
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Personal Selling is an in-person, face-to-face
communication between a seller and a
customer.
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Example…Vendor and business buyer. A rep for a
sportswear manufacturer and manager of a college
bookstore.
Retail store clerk and customer
Telemarketers
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Advantages
Opportunity for seller to overcome any hesitation
from the buyer
 Seller can offer more info
 Can compare with similar product
 Or personal experiences w/ the product
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Often human interaction will make the sale.
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Even if the sale is not made, customers will return in
the future if they are treated courteously.
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Advertising is paid communication between
the product maker or seller and the audience.
Effective advertising
Clearly explain the benefits of a good product.
 Even the best advertising wont bring customers back
to a bad product.
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 Toy commercials during morning cartoons
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Advertising can occur almost anywhere!
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Publicity is any free notice about a product,
service, or event.
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Articles in newspapers or magazines
“sound bites” on television or radio
Newspapers front page stories about Lance
Armstrong’s victory over cancer
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Promoted interest in the race
Free promotion not only to Armstrong but the race,
other racers, and to bicycle related businesses who
were quoted in the article.
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Publicity also means just keeping your name,
event, or organization in public view.
Press releases,
 Speeches
 Volunteer work
 Donations other than sponsorships
 Letters to the editor
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Sales promotion is any action or
communication that will encourage a consumer
to buy a product.
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Usually short term specials
 Limited time memberships
 Giveaways
 Coupons
 Items with company’s name on it
 Free samples