6.02 Describe

How to Secure

Sponsorships

List the steps in

securing sponsors

1. Understand all aspects of the event

2. Locate companies who may be potential sponsors

3. Make contact with potential sponsors

4. Close the deal with the sponsor

5. Establish a partnership with the sponsor

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?

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?

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

Make contact with potential sponsors

Write sponsorship proposalCreate fact sheet

Outline benefits

Send out letters requesting to see company representative

Try cold calling on companies

Schedule a meeting with the company

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

Close the deal with the

sponsor

Negotiate the final contract

Acquire a signed sponsorship agreement

Establish a partnership

with the sponsor

Discuss leveraging with the sponsor

Fulfill the contract

Discuss aspects of a

sponsorship agreement

1. Clauses in the sponsorship agreement

2. Benefits included in the sponsorship agreement

3. Summarize opportunities for leveraging sponsorships

4. Explain the sales process and client relations in sponsorships

Clauses in the sponsorship

agreementTerm: The length of the agreement and financial obligation

Event definition: Clearly and precisely defines the event and leaves to 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

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.

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”?

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?

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?

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?

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?

Benefits included in the

sponsorship agreement (continued)

Merchandise rights

Will there be an area to sell merchandise?

Will logos and trademarks be used?

Benefits included in the

sponsorship agreement (continued)

In-Kind

Are sponsors willing to provide products?

How much non-cash sponsorship will be provided?

Benefits included in the

sponsorship agreement (continued)

Internet

Will the entity provide links to corporate websites?

Will possible banner advertisements be provided?

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

Explain the sales process &

client relations in

sponsorship1. Preapproach

2. Approach

3. Determining needs

4. Feature/benefit presentation

5. Handling objections

6. Closing the sale

7. Suggestion selling

8. Follow-up

1. PreapproachEverything 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

1. Preapproach (Continued)

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?

2. ApproachArrange 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

3. Determining needsListen when appropriate

Talk when appropriate

Question to determine needs

Verbal & nonverbal feedback

Empathy

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 orderLarge to small

National to local

5. Handling objectionsAnticipate them

Can occur at any time

Based on need, product, price or time

Use four step process:1. Listen

2. Acknowledge

3. Restate

4. Answer

6. Closing the saleClose when sponsor is ready

Look for buying signals

Summarize major points

Use objections to close sale

Generate an offer

Be flexible with proposal

Bargain, discuss and settle

Discuss fee arrangement

Do not make agreements cannot keep

7. Suggestion selling

Lengthen contract – multiple year

Add additional promotional ideas

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