Sponsorship Component - Essay Example

Marketing Sponsorship Introduction Sponsorship With the help of money, service or product, to support an activity, event or organization is known as sponsorship. It is a new medium of communication mix. Definitions: “The provision of assistance either financial or in kind to an activity by a commercial organization for the purpose of achieving commercial objectives” (Meenaghan, 1983). “The provision of resources (e.g., money, people, equipment) by an organization (the sponsor) directly to an individual, authority or body (the sponsee), to enable the latter to pursue some activity in return for benefits contemplated in terms of the sponsor’ promotion strategy, and which can be expressed in terms of corporate, marketing or media objectives” (Pope, 1998). “A cash and/or in-kind fee paid to a property (typically sports, entertainment, non profit event or organization) in returns for access to the exploitable commercial potential associated with that property” (IEG, 2001). Sponsorship in sports: A sport in terms of industry is a huge market, which is growing day by day. For this growth huge money is required which is done with the help of sponsorship. Sponsorship in sports is essential in now days. It helps to promote the sports and funding to them. It consider as sub part of marketing in sports, which focuses on the promotion activities of sports and its team members. It also helps to promote other services and product thru sports activities. In this, brand name or physical products are getting promoted. The main motive is to provide strategies to sports organization to promote their sports and their team. It helps a sports organization to increase their fans, sales of ticket, recognition in market and enhance the other products related to the sports organization. It helps to increase a status in to market. Even though, it is a unique way to generate indirect revenue by doing endorsements of players, television advertising and many more activities of promotions. This thing helps to reach to target audience. Direct revenue for a sports organization is generated by selling tickets of sports event to public or fan. The higher number fans then revenue will also high. To increase the number of fans for a sports team or sports organization, then well planned promotion is needed. This promotion is done thru the help of sponsorship, which provide money or product or services to sports organization in exchange of brand name of sports organization. Body: Sponsorship Process Step 1: Brand Management All sports teams, as an organization have their own brand and its values. It defines their image and work. Sports organizations should be very transparent about their desires, through which they can explain their brand image to public. In terms of sponsorship, sports organizations as a brand, they concerned with three matters. Appeal to funders: In this, sports organization has to approach a prospective partner, who can provide proper fund to run this. If the sports organization has no brand value or image, then no funders will provide sponsors to an organization. It will count as negative aspect for the organization. Sponsors are always concerned with reputations. Fit with funder: A sport organizations has to meet all terms and conditions of funders. It includes, how a sport organization are getting attentions in market, how they represent their values and its property. If these factors do not meet with the funders then no sponsor will provide to the sport organization. Value: if a sport organization has good brand, then it has big commercial value. For example, two products could be identical, but the product which has good branded then it price will go high than other. The same thing happened with sports organizations. That’s the reason a good brand of a sports organization plays a very vital role to get sponsors. Step 2: Property Identification and Development: Sponsorship is considered as a business partnership between the sponsor and the sponsee. The both parties (sponsor and sponsee) have to add value to each other. The association between them will increase the brand value. That’s why sports organization must fulfill the satisfaction of marketing needs of sponsors, which can be done thru the help of brand or property that controlled or owned by the sports organization. If a sport organization gets a potential sponsor, then it will help to increase the brand position. Even more, it will increase the target audience and employment engagement. The property identification and development process: 1. Indentify all owned properties: National Office of a sport organization Training facility Contracted sports persons National tournaments Regional events Website 2. Assess each owned property in terms of the partner need it may serve: Brand support i. National Office of sport organization ii. Contracted sports person iii. National tournaments Brand exposure i. Contracted sports persons ii. Television coverage agreements iii. Websites Corporate social responsibility i. Youth events ii. Mass participation events Access to target audience i. National tournaments ii. Website iii. Social Media Employee engagement i. Regional/local events ii. Hospitality 3. Understand sport’ participants and followers: Number of people and their age, gender and income, who will participate in or follow sport. Products or brands they may favour. Sports person’s likes and dislikes. Other than sports that attract them. 4. Considering innovations and new opportunities: Audience preferences in terms of spending their pleasure time and money. Ability to adapt new trends in sports. Step 3: Indentifying the Sponsor Target Market: To selling a sponsorship to a sports organization, it requires to understand the prospective partners. Even more, it is important to understand the role of corporate marketing. Corporate marketing has two major keys, first one is to develop the brand and second one is to magnify the marketing to increase sales. Sponsor target market identification process: 1. Create a list of suitable businesses operating in national or regional area A brand image Suitable size and profile Marketing tool that has been already used as sponsorship 2. Estimate the value of property Value of property is determined by the market (such as television rate card) How good in your sports You should attract audience 3. Research the businesses (with help of websites, newspaper and magazines) Products Competitors Services Upcoming events Product releases Marketing strategies Step 4: Matching Product and Sponsor: In this a sports organization has to match their sports and properties with prospective sponsors. Here, a lot of work to be done to matching process. Matching Process 1. Partnership Potential Why you need this? What will be the impact? Are you sufficient for this? 2. Set up a meeting with right person and discuss The specific marketing targets and challenges Past record of sponsorship and its results Planning and budgets of the company Size of sponsorship budget Criteria for sponsorships Package of sponsorships 3. Develop partner specific marketing Understanding the needs of partner Need to understand the marketing strategy on a case by case basic Step 5: Selling the Product: There are important key elements to sale a sponsorship. 1. The pitch: It is an initial stage where the meeting is done with the prospective sponsor. Here, a brief presentation is performed to give the introduction of the product and how it will meet their needs. a. Introduction: A brief layout of sports organization and its participations and background. b. Executive summary: Discuss about the product such as the events, the programs, the competition, the team and many more. It also includes the terms and conditions of sponsorships and its cost. c. Key attributes of the product: Such as how, how many, where and when it will be done. d. How the product will meet their needs: It discuss about what and how will be met the needs of sponsors. e. Components and promotion of sponsorship: information about the package of sponsorship that being offered. Which may includes: Rights to merge sports persons with brand Advertising thru flyers, T-shirts, newspaper, magazine, tickets and many more Television, radio and live online streaming exposures Pre-event promotions with the help of social media, advertsing, websites and many more. Entertainment opportunities like special seating in an event or hospitality, free tickets, meeting with sports persons, celebrity guest and many more. Public seeking opportunities Product placement Online community in social media such as a fan page in facebook, twitter, where fan can follow the team. Web cast right like online streaming Consumer promotion exclusivity Mobile phone games thru in game placement or mobile advertisement Merchandising rights Database access to public or fan to know about sports person and team f. Cost of Package: The cost of sponsorship package should be mentioned with it details. The fee of sponsorship in terms of exchange of rights between sponsors and sponsee Cost of logo, websites and signage cost and cost of all items, which are associated with branding like sport, player, team, venue and many more with the sponsor’ message g. How to move forward: if sponsor is interested then prepare a straight forward plan with important dates to execute the task. 2. Negotiation: It is important stage between sponsors and sponsee. It helps to develop the product or services and maintain the good relationship among the both parties. Its main motive to create a customization in product or services that will present an unique way. The customization can be done with the uniforms of the player, innovative promotion activities thru social media and others possible things that can draw an attention to product or services of sponsor. 3. The close: it is a signing of agreement between both parties. After the mutual understanding between parties for the package, they signed a contact which states the needs and terms of both parties. Step 6: Servicing the Partnership: After singing the contact between both parties, it should be ensured that every detail which have been made in contract are fulfilling by both parties. If the output is good, then the contract can be regenerated or renewal with the mutual understanding between the parties. 1. Ensure you get the sell right: The both parties have to ensure to each others that all promises, assumption and objectives are mentioned in the contract should be fulfilled. 2. Plan with your sponsor: The both should make a plane to execute each and every, tasks and elements in a proper way. 3. Communicate with sponsor: The regular communication between sponsor and sponsee helps to execute the activities properly. 4. Constantly report to the sponsor: The sponsee should keep informing to their sponsor about their activities, what was done and what to do next. 5. Deliver on every element of the contract: Try to deliver every element which are mentioned in the contract, so that the all plans and execution will go successes. 6. Discuss the sponsorship’ performance: The sponsee should keep informing to the sponsor about their performance and developments. The sponsors are county as a stake holder, so you keep informing them. 7. Protect your sponsor from ambush marketing: The sponsee should protect their sponsor from the competitors. Within their power they should prevent from attacking from sponsor’ competitors. In this case sponsee might have to go beyond the contract. 8. Provide through post analysis, while planning for the future: It should be in well documented form, regarding each elements of the agreement was fulfilled and to what extent. An average sponsorship bundle may include; the sponsor purchasing different rights including occasion title or class rights, signage rights, rights to particular designated tokens and logos, rights to utilize the expression "authority," rights to particular occasion promoting, advancements, and distribution considerations, and certain first-alternative rights. The particular rights fluctuate as per the size and nature of the occasion and the specifics of the agreement. This gives an assortment of chances for ambushers to adventure (Mackay, 1990). The sponsorship of sports occasions is a unique type of sponsorship, where globally, 80% of all sponsorship using and 94% of all sponsorship assentions include sport. Organizations can achieve their target bunches in an appealing brandishing setting, whilst in the meantime having the capacity to achieve many observers. This sponsorship of appealing brandishing occasions is viewed as a powerful marketing device. It is viewed as especially powerful for bringing issues to light and enhancing picture. Consequently, more organizations are searching for approaches to captivate with occasion sponsorship. With the sponsorship of occasions getting to be progressively alluring organizations now search for any route conceivable to be connected with uber occasions (Masterman, 2012). As sponsorships ubiquity has expanded, so excessively has rivalry to secure and ensure sponsorship rights. This has implied that throughout the most recent 20 years the act of ambush marketing has come into uber occasions all the more ordinarily; with sponsorship and associations with brandishing occasions getting huge business sponsors cant bear to pass up a major opportunity. At the point when an occasion is as effective as the present day Olympic Games for example it is little ponder that numerous organizations might need to figure out how to exploit the Olympic Games impact, this incorporates looking for elective marketing courses to accomplish all profits without paying extensive expenses for authority sponsor status. This is additionally greatly unmistakable at FIFA World Cups as the rights to secure real occasion sponsorships have gotten more costly, ambushing issues progressively defy the coordinators, to the degree that they now must be ready for marketing guerrillas. What is Ambush Marketing? Ambush marketing is a reasonably new idea in marketing, where research into the subject has turned into a zone of impressive enthusiasm in the course of recent years, as expanding measures of organizations select to consume this revolutionary marketing movement. Despite the fact that much has been composed about "ambush" marketing, respectable equivocalness encompasses this term and its status (Louw, 2012). From the soonest meanings of ambush marketing as a critical term including "unapproved" polishes, has developed not just an acknowledgement of the respectable dubiousness that encompasses the idea additionally a calculated skeleton of ambush marketing that all the more faultlessly reflects the adjusting of sponsors contractual rights against the privileges of non-sponsors to keep up a business sector vicinity throughout an occasion through lawful and aggressive business exercises. Ambush marketing could be comprehensively depicted to incorporate exercises that adventure the exposure quality of an occasion. This might be seen as an endeavor by an organization to take advantage of goodwill or fame of a specific occasion by making an acquaintanceship between itself and the occasion without authorization from the important association and without paying the charges to get official sponsor. In a limited sense, ambush marketing alludes to the immediate deliberations of one gathering to debilitate or assault a contenders official acquaintanceship with a sports association gained through the installment of sponsorship charges. In a more extensive sense, as opposed to such coordinate and deliberate deception, ambush marketing alludes to an organizations endeavor to gain by the goodwill, notoriety, and ubiquity of a specific occasion by making an affiliation without the sanction or assent of the fundamental gatherings. Schmitz clarification is underpinned by who state ambushing methods permit organizations to go around rivals in attaining correspondence goals. At any rate, ambush marketing makes disarray in the customers psyche which may deny the true blue sponsor differences for its speculation. Others, for example, Crompton J (2004: 01) propose that ambushing has likewise been termed parasitic marketing on the grounds that spoilers contend that ambushers are getting support from the host occasion without giving anything in exchange. Crompton (2004: 01) recognizes the open door for ambush marketing exercises emerges in light of the fact that there are typically numerous substances included in the arranging of a donning occasion. These may incorporate an assortment of angles, for example, the media and stock licenses, unique competitors and the general affiliation with the occasion itself, all of which offer potential sponsorship good fortunes. Each of these elements has the right to offer sponsorship. This makes it just about inescapable that there will be clash between contending organizations all of which have authentically paid for sponsorship rights with one of these elements. This multiplication of element sponsorships has been depicted as the greatest test confronting sponsorship as a medium, and undoubtedly maybe the significant giver to sponsor perplexity, an environment in which ambush marketing can flourish (Louw, 2012). Ambushing itself is currently perceived as regular practice in the sports business; it has turned into an exchange methodology to buying authority sponsorship status with a property ( and might be accomplished in an assortment of courses from immediate ambushing exercises, for example, Cunning ambushing which is the immediate assault of a business sector contender, purposefully ambushing their authority sponsorship in an exertion to increase piece of the pie, Cooperative ambushing comprising of the utilization of symbolism or phrasing to make a reference that an association has connections to a wearing occasion without making any particular references to it and the thought of unintentional ambushing where shoppers distinguish non-sponsors as the authority sponsor . In recommending that ambush marketing is a continuum of exercises that differ in the degree to which both lawful and moral breaking points are encroached; the accompanying ambush techniques have been recognized: (1) sponsorship of the media scope of the occasion; (2) sponsorship of a subcategory inside the occasion coupled with forceful advancements; (3) Sponsorship-related commitments to the players pool; (4) engagement in promoting that corresponds with the sponsored occasion; and (5) utilization of incidental ambushing methods that serves as a get just for an extensive variety of exceptionally creative systems to cohort themselves with a specific occasion (Johnson, 2011). These techniques envelop an extensive variety of distinctive activities, including the utilization of concurrent advancements, buy of sub-classification rights, and misappropriation or frauds of trademarks accessible just to authority sponsors, and additionally organizations that promote or run advancements throughout a contenders sponsorship are acknowledged ambushers, especially in the event that they utilize media spots throughout shows of the sponsored occasion. Combating Ambush Marketing With ambush marketing getting to be logically well known, ambushed occasions and authority sponsors are looking progressively more for these ambush open doors to be restricted. The heightening cost of class elite sponsorship alongside poor bundling and presentation to potential sponsors has driven the expansion in ambush marketing movement in the course of recent years (Nufer, 2013). As these sponsorship charges requested by occasions managers increment, advertisers discover the asking costs outside their funding they are compelled to look for correspondence options. It is progressively clear that ambush marketing is working and that it degrades corporate sponsorship of occasions, highlighting that authority sponsors must do whatever conceivable inside their sponsorship understanding of occasions to minimize ambushing open doors. The level headed discussion over ambush marketing is further blurred by inquiries in regards to its legitimateness, on the grounds that "absolutely characterized, it doesnt include generally unlawful exercises as trademark encroachment or assembling of fake products”. Despite the fact that ambushing exercises are continually being considered more important business realism might, about whether, defeat a percentage of the feeling at present connected with the issue of ambush marketing. Meenaghan (1996) (referred to from Crowe and Hoek 2003: 09) pointed out that a hefty portion of the exercises long ago marked ambush marketing, aggressive promoting throughout and around sponsored occasions for instance, are currently seen as genuine exercises. This proposes that occasion holders have acknowledged that the level of brand rivalry that exists in other media is likewise liable to happen in sponsorship and cohorted exercises (Nufer, 2013). Timeline between a Sponsor and a Sponsee We will be considering a hypothetical timeline between two famous brands. One will be the sponsor and another brand will be the sponsee. We are all aware of the famous relationship between the world famous appliance maker Samsung and the famous English football team Chelsea FC. Suppose they have a league 6 months ahead of them. Then the timeline for the league or the event will be set accordingly 6 months before the league – The time of the league will be determined and along with that budget will also be fixed. 3 months before the league – The jerseys for the players will be finalized and probably a photo shoot will be organized for the players and the fans can have a chance to meet them. 1 month before the league – The final ‘A’ team will be announced in an event held with the reports were the players and their coach will get a chance to interact with the media and share their viewpoints of the league ahead. 1 week before the league – finalise on the guest list and send out invitations for the special members to be a part of the inauguration of the league. During the league – Ensure all the members and the guests have a good time and everything is in place. After the league – Send out thank you along with small gift as token of gratitude towards their visit and being a part of the league. Conclusion With game sponsorship viewed as a financially savvy marketing procedure whilst representing around 94% of all sponsorship understandings , it is in doubtlessly organizations who pass up a major opportunity for sponsorship of occasions will go to any methods conceivable to cohort themselves with these worldwide uber occasions. With ambush marketing seen as a reasonably new idea in the course of recent years, it is more than likely its prominence and practice will build in the current monetary atmosphere. As sponsors who pass up a major opportunity for lucrative occasions sponsorship assentions will look to make more approaches to affect the mixed bag of sponsorship substances accessible encompassing wearing occasions. With ambush strategies changing and expanding it is consequently important to survey which strategy is best (official sponsorship or ambushing exercises) utilizing sponsorship review systems. References: Ferrand, Torrigiani, Povill, 2007. 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