Sponsorship - Starting out in Sponsorships - Peter Taliangis Sponsorship Consultant 0431 417 345


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Sponsorship presentation given at an International Conference.

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  • Who are you getting into bed with….. Know the organisational culture, the type of clients they service and what they do.
  • Mutual benefit - different to direct sponsorship philanthropy. The NPF sector has a range of value to offer business Equality – free to ask questions, make challenge and use you expertise. Not about business dabbling in social change, but NFP harness the natural instinct in people and organisation to make the world a better place. Meaningful – what ever that means to the partners… feeling good, bottom line, social change etc Sustainable – long lasting, not just a quick feel good. Contagious – let other people know about your success.
  • Sponsorship - Starting out in Sponsorships - Peter Taliangis Sponsorship Consultant 0431 417 345

    1. 1. SPONSORSHIPS Peter Taliangis 0431 417 345
    2. 2. <ul><li>Sponsorships v Donations </li></ul><ul><li>Background questions </li></ul><ul><li>Developing a sponsorship proposal </li></ul><ul><li>Costing your sponsorship offer </li></ul><ul><li>Contacting potential sponsors </li></ul><ul><li>Living up to promises </li></ul><ul><li>Evaluating the results </li></ul>Overview
    3. 3. <ul><li>Sponsorships are an agreement whereby the sponsor receives specific benefits in return for an outlay of funds, goods or services. </li></ul><ul><li>Donations are gifts made with no arrangement for specified benefits. </li></ul><ul><li>Sponsorships generally incur GST while donations do not. </li></ul><ul><li>Need to ask does the target company do one or both? </li></ul>Sponsorships v Donations
    4. 4. Characteristics of Sponsorships <ul><li>It’s about building relationships </li></ul><ul><ul><li>Due diligence </li></ul></ul><ul><ul><li>Fluidity </li></ul></ul><ul><ul><li>Potential for growth </li></ul></ul><ul><ul><li>Trust </li></ul></ul><ul><ul><li>Truth </li></ul></ul><ul><ul><li>Faith </li></ul></ul>
    5. 5. Sponsorship Goals <ul><li>Mutual Benefits </li></ul><ul><li>Equality (Two-way Street) </li></ul><ul><li>Meaningful </li></ul><ul><li>Sustainable </li></ul><ul><li>Contagious </li></ul>
    6. 6. What do you want? <ul><li>Cash </li></ul><ul><li>Goods and Services / Contra </li></ul><ul><ul><li>Prizes for Auction/Raffles </li></ul></ul><ul><ul><li>Attendance at functions </li></ul></ul><ul><ul><li>Buy Advertising/Signage </li></ul></ul><ul><ul><li>Buy Seats to Events/Corporate Hospitality </li></ul></ul><ul><li>Advice and Expertise </li></ul><ul><ul><li>Business Advisory Council </li></ul></ul><ul><ul><li>Time (Exchange student/Work Experience) </li></ul></ul>
    7. 7. Whose job is sponsorship? <ul><li>Everyone in your organisation has a role in researching, suggesting, securing and keeping sponsorships. </li></ul><ul><li>It is not the exclusive responsibility of the Sponsorship/Marketing Manager </li></ul>
    8. 8. Where is it managed? <ul><li>National </li></ul><ul><li>State/Regional/National </li></ul><ul><li>Local </li></ul><ul><li>HOW DO THEY MAKE DECISIONS? </li></ul><ul><li>Managed centrally </li></ul><ul><li>By each state/region/store </li></ul>
    9. 9. Who say’s Yes? <ul><li>The CEO/Owner/Chairman/Managing Dir </li></ul><ul><li>National Manager </li></ul><ul><li>State Manager </li></ul><ul><li>Marketing Manager </li></ul><ul><li>Publicity Manager </li></ul><ul><li>Sales Manager </li></ul>
    10. 10. What do they currently support? <ul><li>Research the Sponsor </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Community Welfare </li></ul></ul><ul><ul><li>The Environment </li></ul></ul><ul><ul><li>Youth Development </li></ul></ul><ul><ul><li>Health </li></ul></ul><ul><ul><li>Arts </li></ul></ul>
    11. 11. What don’t they support? <ul><li>More Research </li></ul><ul><ul><li>Individuals </li></ul></ul><ul><ul><li>Political organisations or campaigns </li></ul></ul><ul><ul><li>Arts-based projects </li></ul></ul><ul><ul><li>Journal advertising campaigns </li></ul></ul><ul><ul><li>Motor sports </li></ul></ul><ul><ul><li>Horse-racing </li></ul></ul><ul><ul><li>Gambling projects </li></ul></ul>
    12. 12. What benefits do sponsors want? <ul><li>Unique Opportunity to talk with their customers / target market (s) </li></ul><ul><li>Improve the impact and memorability of the marketing message </li></ul><ul><li>Enhance the relevance of the brand to the target market </li></ul><ul><li>Generate the desire to purchase the brand (Drive Sales) </li></ul>
    13. 13. What benefits do sponsors want? <ul><li>Heighten employee/distributor/ supplier/ client/customer loyalty </li></ul><ul><li>Industry Exclusivity </li></ul><ul><li>Positive publicity/Associations with the Community </li></ul><ul><li>Advertising </li></ul><ul><li>Cross promotion - Product </li></ul><ul><li>Naming Rights </li></ul><ul><li>Hospitality - Events </li></ul>
    14. 14. <ul><li>SWOT Analysis </li></ul><ul><li>Be honest </li></ul><ul><li>Be realistic </li></ul><ul><li>Opportunity cost </li></ul><ul><li>Objectives, must be measurable </li></ul><ul><li>Tailor the format to the potential sponsor </li></ul><ul><li>Never promise media publicity unless its 100% guaranteed </li></ul>Developing a Sponsorship Proposal
    15. 15. What to include in Your Proposal <ul><li>Introductory Letter </li></ul><ul><li>Overview of the event or project </li></ul><ul><li>Details of the media program </li></ul><ul><li>Identification of the target market </li></ul><ul><li>Cost of sponsorship (various levels) </li></ul><ul><li>List of existing sponsors </li></ul><ul><li>Timing </li></ul>
    16. 16. What to include in Your Proposal <ul><li>Comprehensive list of sponsor benefits </li></ul><ul><li>Marketing Exposure </li></ul><ul><li>Attendance </li></ul><ul><li>Sponsorship evaluation strategy </li></ul><ul><li>Historical results (if possible) </li></ul><ul><li>Pictures </li></ul><ul><li>Reviews </li></ul><ul><li>Testimonials </li></ul>
    17. 17. <ul><li>Do not put a dollar value on all your proposed sponsor benefits </li></ul><ul><li>Sponsorship cost should equal: </li></ul><ul><li>Actual Cost + Staffing/Servicing Costs </li></ul><ul><li>Sponsorship should offset your costs </li></ul><ul><li>Never reveal how the money will be spent </li></ul>Determining the cost of Sponsorship
    18. 18. <ul><li>Costs need to include GST implications </li></ul><ul><li>Consider opportunity cost/Goodwill value </li></ul><ul><li>Best time to approach is 6 months prior to the next budget period </li></ul>Determining the cost of Sponsorship
    19. 19. <ul><li>Start by building a relationship </li></ul><ul><ul><li>Newsletter, Invitation, Introduce yourself </li></ul></ul><ul><li>Your target market v their target market </li></ul><ul><ul><li>Are you a natural match? </li></ul></ul><ul><li>Your objectives v their objectives </li></ul><ul><li>Relevance </li></ul><ul><li>Personalise your approach - F2F </li></ul><ul><li>Never just send a letter! </li></ul>Contacting Potential Sponsors
    20. 20. <ul><li>Consider the other sponsors </li></ul><ul><li>Exclusivity - never mention their competitors </li></ul><ul><li>Always have a prepared proposal </li></ul><ul><li>What can the sponsor offer you? </li></ul>Contacting Potential Sponsors
    21. 21. <ul><li>Promise & Deliver A Marketing Benefit That The Potential Sponsor Cannot Obtain Elsewhere </li></ul>CRITICAL POINT
    22. 22. THE ASK? <ul><li>Face to Face </li></ul><ul><li>Who is going to get the best response? </li></ul><ul><li>Show you have done some research </li></ul><ul><li>Prepared to talk to the document </li></ul><ul><li>Prepared to talk with display materials </li></ul><ul><li>Prepared for all responses </li></ul><ul><li>Prepared to ask again </li></ul><ul><li>Listen </li></ul>
    23. 23. Corporate giving in Australia <ul><li>Of the organisations who did not sponsor: </li></ul><ul><li>70% said their resources were placed elsewhere </li></ul><ul><li>31% weren’t asked </li></ul><ul><li>41% hadn’t considered it </li></ul>
    24. 24. Questions the sponsor will ask <ul><li>1. Will the sponsorship drive sales? </li></ul><ul><li>2. Will it enhance or reinforce brand image? </li></ul><ul><li>3. Will it increase awareness of the company's product, brand, or service? </li></ul><ul><li>4. Will it provide retail and trade tie-ins? </li></ul>
    25. 25. Questions the sponsor will ask <ul><li>5. Will it drive volume and long-term profitability? </li></ul><ul><li>6. Will it increase share of the market? </li></ul><ul><li>7. Will it give the company a competitive edge, i.e., exposure in a market the competition is not in? Can it differentiate the product or brand from a competitor's? </li></ul><ul><li>8. Will it provide an avenue for entertaining clients? </li></ul>
    27. 27. <ul><li>Always deliver your promised benefits before you are asked </li></ul><ul><li>Maintain regular sponsor updates, contact </li></ul><ul><li>Be committed to the sponsorship </li></ul><ul><li>Promote the sponsor and the sponsors product at all times </li></ul><ul><li>Acknowledge the sponsor </li></ul><ul><li>Put everything in writing </li></ul><ul><li>Invitations to events </li></ul>Keep Your Promises
    28. 28. CRITICAL POINT <ul><li>Deliver just that little bit more </li></ul>
    29. 29. Which one will they choose? <ul><li>How many attendees can be expected (total exposure of brand/product)? </li></ul><ul><li>Will there be co-sponsors? </li></ul><ul><li>Will the company be lost in a crowd of other sponsors? </li></ul><ul><li>What is the cost relative to the expected return? </li></ul>
    30. 30. Which one will they choose? <ul><li>Is the objective corporate or brand specific? </li></ul><ul><li>Is it a one-time event or a long-term commitment? </li></ul><ul><li>Do the locations and dates fit company needs? </li></ul>
    31. 31. <ul><li>Refer back to your stated objectives </li></ul><ul><li>Were promises delivered? </li></ul><ul><li>Provide results in writing </li></ul><ul><li>Provide photos, press clippings, video </li></ul><ul><li>Always thank the sponsor </li></ul><ul><li>Keep in touch with the sponsor </li></ul><ul><li>Remember, sponsors will be evaluating the sponsorship too </li></ul>Evaluating the Results
    32. 32. Sponsorship evaluation <ul><li>TV or press exposure/impression, which can be compared with the equivalent cost to advertise; </li></ul><ul><li>Survey research (spectators' awareness, image, brand preference); and </li></ul><ul><li>Sales data </li></ul>
    33. 33. Signage Evaluation <ul><li>Venue Type </li></ul><ul><li>Category of Signage </li></ul><ul><li>Location </li></ul><ul><li>Dimensions </li></ul><ul><li>Attendance </li></ul><ul><li>% that will see the sign </li></ul><ul><li>Event Type </li></ul><ul><li>Placement Type </li></ul><ul><li>Additional Attendance </li></ul><ul><li>Source of Additional Attendance </li></ul><ul><li>Lighting </li></ul>
    34. 34. Sponsorship Structure? <ul><li>What hierarchy? </li></ul><ul><ul><li>Platinum, Gold, Silver, Bronze </li></ul></ul><ul><ul><li>Partner, Major, Elite, Sponsors, Support Sponsors </li></ul></ul><ul><ul><li>Naming Right Sponsor, Program Sponsor, Event Sponsor </li></ul></ul>
    35. 35. Platinum $25,000 Company identified with logo by sponsor name in: <ul><li>Television Promos </li></ul><ul><li>METRO Promo cards and Station Banners </li></ul><ul><li>Radio Promos </li></ul><ul><li>Event Program (20,000) </li></ul><ul><li>Journal Newspapers Insert (80,000) </li></ul><ul><li>Promotional Flyer (15,000) </li></ul><ul><li>Festival T Shirt (3,000) </li></ul><ul><li>Festival Poster (5,000) </li></ul><ul><li>Festival Stationery (5,000) </li></ul><ul><li>Red Cross “CrossTies” Newsletter (3,000) </li></ul><ul><li>Press Releases </li></ul><ul><li>Waterfront Festival Web Site with link </li></ul><ul><li>Identified as a Corporate Benefactor of Clara Barton Society </li></ul><ul><li>10 Back-Stage Passes </li></ul><ul><li>10 VIP Parking Space </li></ul><ul><li>Host of Sponsor Pier Party with 30 Tickets </li></ul>
    36. 36. CRITICAL POINT <ul><li>Clear distinction between various sponsorship levels </li></ul>
    37. 37. New trends in sponsorship structures <ul><li>No structure </li></ul><ul><li>Pick and Mix </li></ul>
    38. 38. CRITICAL POINT <ul><li>The Contract </li></ul><ul><li>Everything must be spelt out in black and white in the contract </li></ul>
    39. 39. CRITICAL POINTS <ul><li>Keep your sponsors </li></ul><ul><ul><li>Don’t forget them when they aren’t required </li></ul></ul><ul><ul><li>Share them around </li></ul></ul><ul><ul><li>Get them all involved </li></ul></ul><ul><ul><li>Know the name of their partner, children </li></ul></ul><ul><ul><li>Ring them to say hi! </li></ul></ul><ul><ul><li>Take them out for coffee, lunch </li></ul></ul><ul><ul><li>Ask their opinion </li></ul></ul><ul><ul><li>Make it better next time </li></ul></ul>
    40. 40. <ul><li>Have a sponsorship plan </li></ul><ul><li>Research your potential sponsors </li></ul><ul><li>Don’t limit yourself to cash sponsorships - consider other ways sponsors can help you </li></ul><ul><li>Maintain open communication with sponsors </li></ul><ul><li>Always evaluate and report on the results </li></ul>Summary