“Coca-Cola is the world’s most recognizable trademark,” said the director of sports marketing, Coca-Cola USA. “However, if you did a survey on the streets of Chicago and asked people what was more important to them, Coca-Cola or the Chicago Bulls, nine out of 10 would probably say the Bulls. We accept that and try to borrow that equity by becoming their sponsor.”
Miller Lite’s sponsorship of pro beach volleyball is another example of an image-driven tie. By becoming synonymous with beach volleyball, the brand is identified with a lifestyle emulated by its young adult target market. “Consumer attitudes are the hardest thing to change,” said a Miller marketing executive. “And the more our brand is part of events that are part of a consumer’s lifestyle, the more we can affect his or her attitude toward the product.”
3. 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. They segment markets along geographic, ethnic, psychographic and demographic lines. Sponsorship allows companies to hone in on a niche market without any waste.
4. Business-to-business marketing: incenting the trade Competition for shelf space is one of the biggest issues facing companies today and many are using sponsorship to win the battle. For example, many of the companies sponsoring stock car racing do so to offer retailers perks such as driver appearances at stores and event tickets in exchange for incremental case orders and in-store product displays. Sponsorship of all types can be used to incent wholesalers, retailers, dealers and other intermediaries in the distribution channel.
5. Differentiate product from competitors This objective is what is driving much of the sponsorship by service industries like banking, insurance and telecommunications. Sponsorship provides companies a competitive selling advantage because it offers opportunities for category exclusivity and can be used as a platform for creating currency with customers. Sponsors take the rights associated with their properties and make them work for the customer to help achieve their needs and objectives, for example, a discount on tickets or a pit pass to a NASCAR race. It is a value-added promotion that the competition can not duplicate.
6. Entertain clients Many companies sponsor for hospitality opportunities. For example, golf tournament sponsors offer their key clients pro-am spots, giving sponsors the opportunity to spend a few hours with important customers and solidify business relationships. Events make great settings for this informal networking. They are unique and desirable, two things that are absolutely necessary to entice a business contact to join you during non-business hours.
7. Merchandising opportunities As consumer buying decisions are increasingly being made in-store (80 percent of all product choices are now made at the retail level), marketers need to have relevant promotions for consumers at the point of purchase. A sports or entertainment tie can bring excitement, color and uniqueness to a p-o-p display and can be merchandised 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.
8. Showcase product attributes Sponsorship allows companies to call attention to product benefits. For example, tire manufacturers sponsor auto racing to demonstrate their product in action.
9. Combat larger ad budgets of competitors The cost-effectiveness of sponsorship relative to traditional media advertising allows smaller companies to compete with the giants of their industry. Mercury Communications could not match rival British Telecom’s mighty media budget and used sponsorship of the U.K.’s Prince’s Trust charity and a Royal Academy of Arts exhibit to build awareness, increase sales and strip market share from its only competitor. Mercury tied its phone cards to both sponsorships. The company donated a portion of each Mercury Prince’s Trust affinity card sale to the charity; it also commissioned artists to design Pop Art cards that coincided with the Royal Academy exhibit.
From IEG’s Complete Guide to Sponsorship http://www.amazon.ca/exec/obidos/ASIN/0944807135/702-6963144-0526434
