PowerPoint

to accompany

Chapter 7

Sponsorship
 Outcomes
On completion of this chapter you will be
assessed on the following elements:

 Determine sponsorship requirements and

opportunities
 Source sponsorship
 Service sponsors

© 2011 Lynn van der Wagen

 Sponsorship

For some sponsors like Cadbury Schweppes, the decision to

invest in an event is a natural one. Andrew Kelly, the company’s
sponsorship manager, explains: ‘Cadbury Schweppes is the
leading supplier of drinks and confectionery in the golf market in
Australia and the Cadbury Schweppes Australian PGA
Championship is the leading professional golf tournament in
Australia so it’s a perfect fit.’
Source: queenslandevents.com.au

© 2011 Lynn van der Wagen

 Sponsorship

Conrad Jupiters likes to boost its brand’s own glamour quotient

by linking it with that of another glittering name – the Magic
Millions Carnival. Public Relations Manager, Donna
Campbell, reveals what naming rights-sponsorship can
offer the company that traditional advertising cannot: ‘It’s
specifically aimed at our target audience, not just in
Australia but in Asia, which is a key market for us.’
Source: queenslandevents.com.au

© 2011 Lynn van der Wagen

 Fit between sponsor and event
 Discuss the following events and identify one sponsor
that would fit well with the event concept and image and
one that would not. For example, a motor magazine
would not sponsor a food and wine festival as readily as
a wine producer
 Rock music festival
 Fashion Show
 Comrades Marathon
 Soccer match

© 2011 Lynn Van der Wagen

 Sponsorship
 Most large organisations have long-term
strategic plans for sponsorship that are
closely linked with their marketing plans.
 Most large organisations also have
policies with regard to sponsorship and for
this reason will reject a
request from a fringe arts
festival, for example, if this
is not consistent with their
marketing plan and policy
to support a sporting code

© 2011 Lynn Van der Wagen

 Sponsorship
 If a straightforward donation is made to an event, without
strings attached (no logo, publicity, etc.), this is known as
philanthropy or patronage
 When seeking assistance for an event, it is important to
identify whether the request is for a donation or a
sponsorship arrangement.

© 2011 Lynn Van der Wagen

Definition
Sponsorship
 A ‘partnership’ between an organisation
and another organisation or event in
which the sponsor publicly endorses an
activity and ties its reputation with that of
the organisation or event being sponsored

Source: www.murdoch.edu.au/cwisad/glossary.html

© 2011 Lynn Van der Wagen

Definition
Sponsorship
 Sponsorship is a business relationship
between a provider of funds, resources or
services and an individual, event or
organisation which offers in return some
rights and association that may be used
for commercial advantage
Source: www.sponsorship.co.uk

© 2011 Lynn Van der Wagen

Definition
Patronage
 The key distinction between sponsorship
and patronage is that no commercial
advantage is sought or expected in return
for the support of a patron or donor

Source: www.sponsorship.co.uk

© 2011 Lynn Van der Wagen

 Potential sponsors
 Potential sponsors can include:
 individuals
 private companies
 government agencies
 industry associations
 educational institutions

© 2011 Lynn Van der Wagen

 Coverage
 Sponsorship may cover:
 naming rights for events or event venues
 media coverage (e.g. a particular channel always
broadcasting a particular series or event creating viewer
loyalty)
 staging or performances costs
 telecommunications expenses (e.g. providing
communications equipment and service for the event)
 IT support (e.g. scoring)

© 2011 Lynn Van der Wagen

 Coverage
 Sponsorship may cover (cont.):
 overall sponsorship of the event (e.g. agricultural
conference sponsorship)
 physical items (e.g.prizes)
 food and beverage (e.g. morning and afternoon teas)
 travel for performers, artists or athletes
 entertainment (e.g. National Anthem, new talent)

© 2011 Lynn Van der Wagen

 Coverage
 Sponsorship may cover (cont.):
 speaker sessions (e.g. supporting topical research such as
organic food)
 ongoing organisational activities (e.g. annual publications)
 one-off promotional activities or projects

© 2011 Lynn Van der Wagen

 Determine sponsorship
requirements and
opportunities
 First, establish the amount of financial
assistance needed;
 Secondly, identify items, activities or
projects that may have sponsor appeal;
 Then only is it possible to identify potential
sponsors.

© 2011 Lynn Van der Wagen

 Motives
 When approaching potential sponsors, address motivational
factor(s) to spark the sponsor’s interest.
 Motives for Sponsoring events fall into 5 major categories:
 broad corporate and social objectives (community
involvement, linking company to success)
 product/brand related objectives (promote a product)
 sales objectives (sales force prospecting for new customer or
strengthening existing relationships)
 media coverage (media coverage(thanking sponsor in
public)branded clothing, publicity activities)
 corporate hospitality (corporate suites for current or
prospective clients or key staff as an incentive)
© 2011 Lynn Van der Wagen
 Source Sponsorship:
proposal
 Proposal should outline the benefits to the
sponsor and associated costs.
 Timelines for sponsorship negotiation are
generally significant.
 3 – 5 years should be allowed for locking in
major sponsor, keep constant contact to
maintain their interest in the proposal.
 Agreement to the deal concludes with signing
a written contract with commitment by both.
© 2011 Lynn Van der Wagen
 Implementation
 Finalisation of the sponsorship agreement has to occur
before any of the following can be panned and
implemented:
 printing brochures and posters
 developing a website
 ticketing
 merchandising
 staff training
 signage
 catering and hospitality

© 2011 Lynn Van der Wagen

 VIK
 In many cases, however, sponsorship is provided as
‘value in kind’. This means that the sponsor provides its
goods and services free as part of the sponsorship
arrangement. For example, air travel could be sponsored
by Virgin, vehicles provided by Holden and advertising
could be underwritten by Fairfax Publications. A value is
placed on this contribution and this value must be
reflected in the event budget even though there is no
cash contribution
 Sometimes this is also known as a ‘contra’ deal

© 2011 Lynn Van der Wagen

 Naming rights
 Primary sponsor of an event is often able
to obtain naming rights: Coca –Cola pop
stars, Cape Argus Race,

© 2011 Lynn Van der Wagen

 Levels of sponsorship
 There are ways in which sponsorship packages can be
developed to meet the needs of different types of
sponsor; for example there could be six levels: platinum,
gold, silver, bronze, trade and special sponsorship
 Each level costs a certain amount and the benefits are
commensurate with the sponsorship level
 A gold level sponsor would expect significant profiling,
media exposure, etc. while a bronze sponsor might
simply provide a brochure for all conference attendees
and may be given the attendance list for future direct
mail activities

© 2011 Lynn Van der Wagen

Process
Plan the sponsorship
program/target potential sponsors


Develop specific, measurable
sponsorship objectives


Negotiate and finalise the
sponsorship plan


Implement the sponsorship plan


Evaluate the success of the
sponsorship plan


Provide feedback to the sponsor

© 2011 Lynn Van der Wagen

 Sponsorship evaluation
 There are numerous sponsorship evaluation methods,
including:
 value of ‘free’ TV or radio exposure (measured as minutes
x advertising rates)
 column centimetres in the press (publicity)
 geographic scope of media reach (number and location of
media exposure, such as five country radio stations)

© 2011 Lynn Van der Wagen

 Sponsorship evaluation
 There are numerous sponsorship evaluation methods,
including: (cont.)
 spectator demographics
 sponsor name recall surveys
 product awareness surveys
 alliance with other sponsors (value of business generated)
 increased product sales post-event
 success of hospitality provided
 analysis of corporate image (need pre- and post-event
surveys)

© 2011 Lynn Van der Wagen

 Sponsorship evaluation
 Research is generally
undertaken by a professional
market research organisation in
order to produce reliable and
valid statistical information
for reporting

© 2011 Lynn Van der Wagen

 Merchandising
 Merchandise is
increasingly popular with
event spectators and
audiences. Big shows sell
CDs, soft toys, caps, pens,

posters, mouse pads and

any number of other
merchandising products.
At sports events people
buy hats, T-shirts, pins
and stickers. The event
audience wants a tangible
reminder of their event
experience

© 2011 Lynn Van der Wagen

 Summary
 Sponsorship is a partnership arrangement between the
event organiser and the sponsor organisation
 Both parties have expectations of this relationship and
these need to be clarified before operational planning
begins. Developing marketing and publicity objectives as
part of the sponsorship plan provides the opportunity to
evaluate the success of the event from the sponsor’s
perspective

© 2011 Lynn Van der Wagen

Event Management, Edition 3; © 2007 Merilynn Van Der Wagen
© 2011 Lynn Van der Wagen