| SPONSORSHIP
– WHY COMPANIES USE IT
Companies use sponsorship
to compliment their advertising, public relations and sales promotion campaigns.
The benefits sponsorship offers are quite different and the medium works
best as part of an integrated marketing and communications effort that
includes the use of all marketing methods. For those looking for
sponsorship, understanding why companies use sponsorship may help in the
development of quality sponsorship proposals.
The following are the
most common reasons companies use sponsorship:
Heighten Visibility
The wide exposure that
events enjoy in the media provides sponsors with vast publicity opportunities.
Shape Consumer Attitudes
Brands with huge ad budgets
and high unaided recall do not need sponsorship to generate visibility.
Instead, they often sponsor for the lifestyle association the sponsored
property represents. They are looking to the event to have the rub-off
effect on their image and ultimately their sales.
Communicate Commitment
To A Particular Lifestyle
The era of the mass audience
is gone. Instead, companies are narrowcasting, tailoring specific messages
to small, targeted segments. Sponsorship is an effective vehicle for this
type of individualized communication. Opportunities are divisible by age,
income, geography and gender. Sponsorship allows companies to hone in on
a niche market without any waste.
Business-To-Business Marketing:
Industry Trade Incentives
Competition for shelf
space is one of the biggest issues facing companies today and many are
using sponsorship to win the battle. A sponsor can offer retailer perks
such as guest appearances and event tickets in exchange for product orders,
and also utilize in-store product displays. Sponsorship of all types can
be used as incentives for wholesalers, retailers, dealers and other intermediaries
in the distribution channel.
Differentiate Product
From Competitors
Sponsorship provides
companies a competitive selling advantage because it offers opportunities
for product category exclusivity and can be used as a platform for creating
currency with customers.
Entertain Clients
Events make great settings
for informal networking. They are unique and desirable, two things that
are absolutely necessary to entice business contacts during non-business
hours.
Merchandising Opportunities
A sports or entertainment
tie-in can bring excitement, color and uniqueness to a point-of-purchase
display and can be merchandised weeks or even months in advance. The opportunity
to have items available as give-always or for sale is valuable because
this type of merchandise is immensely popular with consumers, and can be
used to provide a key point of difference when offered in conjunction with
an in-store promotion.
Showcase Product Attributes
Sponsorship allows companies
to call attention to product benefits. For example, a kart manufacturer
might sponsor a race to show his product in action.
Combat Larger Ad Budgets
of Competitors
The cost-effectiveness
of sponsorship allows small companies to compete with the giants in a industry.
Companies without huge budgets can generate widespread exposure and publicity.
Drive Sales
Companies increasingly
use sponsorship as a hook to drive sales. Many cross-promotion and tie-in
promotion opportunities are available.
Achievement of Multiple
Objectives
Sponsorship offers the
possibility of achieving several goals at once. Most companies expect the
medium to deliver a combination of benefits listed above.
Information in this article
courtesy of IEG,Inc. IEG has a number of sponsorship marketing publications
available. Call 312-944-1727 for details.
END
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