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WHY COMPANIES USE SPONSORSHIP

Companies use sponsorships to complement their advertising, public relations and ales promotion campaigns. The benefits sponsorship offers are quite different and the medium works best as a part of an integrated marketing communications effort that includes the use of all marketing methods.

He following are the most common reasons companies use sponsorships:

HEIGHTENS 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 a “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 narrow-casting, 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. Sponsorships 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 setting 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 can bring excitement, color and uniqueness to a point-of-purchase display and can be merchandised for weeks or months in advance. The opportunity to have items available as giveaways 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 smaller companies to compete with the giats in an 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 the benefits listed above.
 

The information in this article is courtesy of IEG, Inc. IEG has a number of sponsorship marketing publications available. Call 312-944-1727 for details.
 
 

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Kart Marketing Group, Inc.
Post Office Box 101
Wheaton, IL 60189 USA
Telephone: 630-653-7368
Fax: 630-653-2637
Email: karting@msn.com

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