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BY Roland Rivera with Darrell Sitarz

Special event sponsorships can bolster a company’s sales and image… or be a total waste of dollars. Here’s a look at the do’s and don’ts of sponsorships.

Every manufacturer and retailer would love to see its name on a big banner at the finish line of a major race event or on the marquee of a trade show. Such exposure is great. It naturally draws participants to your products or into your store, and represents goodwill plus name recognition that can’t otherwise be purchased.

But is it worth the investment? Is that sign or company name attached as a sponsor going to sell more karts, tires or engines? Or is it simply a waste of precious marketing resources, since it may not affect customer purchasing or store traffic?

The question of whether or not a manufacturer or retailer should get involved in sponsoring events usually arises in a manner such as this: Your secretary advises you tat a representative of a special event is on the phone, asking if you would like to become a sponsor.

You’ve always wondered what it took to actually become involved, so you listen to the sales pitch. The next several minutes are spent learning why your company should sponsor the finest, biggest or best-ever event this year. The promoter pours it on about potential exposure, value, etc. You listen, but remain wary and ask the bottom-line question: How much product will it help me sell?

Anyone that has been in business has been approached to get involved in one event or another. For those who have never taken the plunge, know this: sponsoring a special event can be a highly rewarding experience or a very bad one, and several factors can swing the success pendulum one way or the other.

IMPROVING THE ODDS
To increase the odds of a successful sponsorship. a business first needs to decide what it’s looking for in an event. One reason might be that the sponsor can be on site and meet with existing customers or prospect for a few new ones. Strong one-on-one relationships can be built with customers that can only be acquired by interfacing with them in a conducive environment.

Another reason for a company to become involved as a sponsor is to gain visibility within an industry. The mere fact that a company puts forth sponsorship dollars signals to participants and the industry that the company is indeed committed.

Manufacturers whose equipment will be used at an event and for whom the participants are the extreme core market, can also hook up with national, regional or local event sponsorship in conjunction with retailers. In doing so, manufacturers and suppliers can develop marketing partnerships that go well beyond simple supplier/customer relationships.

Wesley Haynes, Vice President of Russell Athletic, believes there are several factors that determine if a marketer should team up with retailers on event sponsorship. “It depends on the size of the markets, the size of the retailers, and most importantly, the scope of the event,” Haynes said. “With larger events, we will become more involved; for smaller grass roots events, there are co-op dollars available for the retailers.

Bill Wright of the Wright Life Group used to run special events. He recognizes the need for the in-person contact that event sponsorship provides in order to spread the word about specialized products within a market. “Special event sponsorship can set you apart from your competitors, or at the very least, put you at the same level,” Wright said.

There are several caveats to event sponsorship. One danger manufacturers and retailers face in sponsorship associations with competition events is negative participant feedback. The simple fact of competition is that more participants will lose at an event than win, and blame for that may be placed on race directors, tech inspectors, promoters, and yes, even event sponsors. But, Wright thinks even such problems present an opportunity to secure loyal customers if handled properly. “If you can take customers who felt negatively about an event and turn them around, it ends up being an asset.”

An event which runs smoothly is one in which sponsors share their knowledge of the event with each other. Everyone should understand that the participants or attendees are not there just to see sponsors’ displays or products. The atmosphere that a well-run event can create – the camaraderie among the exhibitors or competitors, the ability to swap secrets and the opportunity to meet the competition – is what brings people to events and keeps them coming back.

Many manufacturers and retailers have made special event sponsorship a part of their marketing mix. They view sponsorship as a key marketing tool that can generate traffic and go a long way towards enhancing and maintaining a company’s image.

So, should you, as a karting industry manufacturer or retail outlet, invest dollars in such promotional opportunities? If you are confident that the promoters of an event can produce a cost-effective marketing tool with your name attached, can increase your exposure, generate sales and drive store traffic, do it!

If you are unsure as to what will actually transpire at the event, if you do not have some kind of concrete measurement tool (on-site sales, coupons, gift certificates) which track results, spend your money on more traditional forms of advertising.

But just remember how good your company name will look in an event ad, in a promotional brochure and on a sign or banner as attendees enter a show or as competitors cross the finish line.

GETTING INVOLVED WITH SPECIAL EVENTS

Ten Reasons To Do It!

1. To take advantage of a captive audience.
2. To extend your existing media and gain additional exposure.
3. To be a dominant player in that market – especially if it is a smaller specialty niche.
4. For exposure to a highly targeted consumer market.
5. For exposure to a market of high-frequency buyers.
6. To get your employees involved in something exciting.
7. To show your customers appreciation by supporting the sport they love.
8. To distribute product information or coupons.
9. To further customer loyalty.
10. To get a first-hand look at brand preference.

Ten Reasons To Stay Away!

1. If you are just going to pay your sponsor fee and not utilize existing advertising to promote your involvement.
2. If you have no plans to make event information easily available to your customers.
3. If you can’t figure out exactly what your objectives are for the program.
4. If you don’t expect to realize continual sales.
5. If you don’t plan on taking an active role in the event.
6. If you do not have additional resources or staff to devote the time and effort to do it right.
7. If your staff won’t get excited by involvement.
8. If you can’t accept that one of the risks is participant disappointment.
9. If you only equate event sponsorship with traditional advertising methods… they are really quite different.
10. If you are only ready to commit for one year… event sponsorships are long-term partnerships.

About the author: Roland Rivera is press and media coordinator for Triple Crown Sports. Courtesy of Sporting Goods Dealer magazine.

END

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