6.02 Describe How to Secure Sponsorships

List the steps in securing sponsors

1. Understand all aspects of the event2. Locate companies who may be

potential sponsors3. Make contact with potential

sponsors4. Close the deal with the sponsor5. Establish a partnership with the

sponsor

Aspects of the EventWho is the audience?What are the demographics, geographics, psychographics, and behavioral response of the audience?How would a corporate sponsor benefit by partnering with the event?

Aspects of the Event (continued)

What media has already been put in place (radio, television, newspaper)?What is the total cost of the event? What percentage of the total cost will be covered by the sponsor(s)?How many sponsors are needed?

Locate companies who may be potential sponsors

Review trade journalsResearch similar events to see who has previously sponsoredResearch potential sponsors – profile, budgetary and promotional cyclesDecide who would be the best sponsor for the product

Make contact with potential sponsors

Write sponsorship proposalCreate fact sheetOutline benefits

Send out letters requesting to see company representativeTry cold calling on companiesSchedule a meeting with the company

Make contact with potential sponsors (continued)

Try to find out who is the decision-makerPresent the proposalProve the event aligns with current marketing goalsFollow up after making presentation

Close the deal with the sponsor

Negotiate the final contractAcquire a signed sponsorship agreement

Establish a partnership with the sponsor

Discuss leveraging with the sponsorFulfill the contract

Discuss aspects of a sponsorship agreement

1. Clauses in the sponsorship agreement

2. Benefits included in the sponsorship agreement

3. Summarize opportunities for leveraging sponsorships

4. Explain the sales process and client relations in sponsorships

Clauses in the sponsorship agreement

Term: The length of the agreement and financial obligationEvent definition: Clearly and precisely defines the event and leaves to misunderstandings.Sponsor benefits: Details all benefits the sponsor will be receiving.Sponsor obligations: Details what is due the entity, which includes but is not limited to: fees paid, in-kind, and any other obligations to be fulfilled by the sponsor

Clauses in the sponsorship agreement (Continued)

Indemnity and insurance: Make sure everyone involved is protected from things that could go wrong. Indemnity is exemption from incurred liabilities, loss or penalties for damages. Insurance is the instrument used to protect the promoter.Confidentiality: Protect both the sponsor and sponsee.

Benefits included in the sponsorship agreement

Exclusivity:Are companies willing to pay a higher fee to keep competitors from participating?Can the sponsee use phrases such as “official sponsor” or “presented by”?

Benefits included in the sponsorship agreement

(continued)

Media packageExactly what type of coverage will be provided?How much airtime will be provided?Will sponsors need to purchase additional media coverage?Will there be vignettes?What type of signage will appear on television?

Benefits included in the sponsorship agreement

(continued)

Media package (continued)Will ad space be provided?Will the sponsor’s name and logo be included on information sent out about the event?Will the sponsor be able to conduct contests or advertising campaigns?

Benefits included in the sponsorship agreement

(continued)

SignageWhat type of signage will be available?Will rotational and virtual signage be used?What about banners?

Benefits included in the sponsorship agreement

(continued)

EntertainmentWill luxury boxes, hotel rooms and VIP passes be provided?Will the sponsor have access to the athletes or stars?

Benefits included in the sponsorship agreement

(continued)

Merchandise rightsWill there be an area to sell merchandise?Will logos and trademarks be used?

Benefits included in the sponsorship agreement

(continued)

In-KindAre sponsors willing to provide products?How much non-cash sponsorship will be provided?

Benefits included in the sponsorship agreement

(continued)

InternetWill the entity provide links to corporate websites?Will possible banner advertisements be provided?

Opportunities for leveraging sponsorships

Makes the sponsorship more successfulSpend between $1-$5 on leveraging for every $1 spent of the sponsorship feeAdditional advertising – banners, magazines, radio or television

Explain the sales process & client

relations in sponsorship

1. Preapproach2. Approach3. Determining needs4. Feature/benefit presentation5. Handling objections6. Closing the sale7. Suggestion selling8. Follow-up

1. PreapproachEverything prior to sale

What the entity wants out of the sponsorshipInventoryPackage prices – exclusivity, box seats, luxury boxes, lodging, transportation, invitations, tents, freebies/giveaways, samples, VIP passes, banners, signage, ad space, access to players/stars, TV or radio spots, public relations or press releases, promotions, entitlement to facility and logos on itemsReal cost of sponsorship

1. Preapproach (Continued)

Aspects of the sponsor

Prior events sponsoredCurrent events being sponsoredTarget marketCorporate expectationsAmount company is willing to spend

Aspects of the sponsorship

What is the sponsee willing to offer them?Will more than one sponsorship package be offered?How will the company benefit from the sponsorship package?How is the sponsee willing to help track sponsorship value?

2. ApproachArrange a meeting

Variety of datesCorrect name

Arrive earlyDress professionallyIntroduce yourselfShake hands firmlyGive business card

Have background information on the sponsorKnow your objectives

3. Determining needsListen when appropriateTalk when appropriateQuestion to determine needsVerbal & nonverbal feedbackEmpathy

4. Feature/benefit presentation

Explain how proposal can fill client’s needsFocus on the benefitsGet sponsor involved in the saleUse visualsUse a logical order

Large to smallNational to local

5. Handling objectionsAnticipate themCan occur at any timeBased on need, product, price or timeUse four step process:

1. Listen2. Acknowledge3. Restate4. Answer

6. Closing the saleClose when sponsor is readyLook for buying signalsSummarize major pointsUse objections to close saleGenerate an offerBe flexible with proposalBargain, discuss and settleDiscuss fee arrangementDo not make agreements cannot keep

7. Suggestion sellingLengthen contract – multiple yearAdd additional promotional ideas

8. Follow-upExecute contractThank you letter – sale or no saleKeep relationship goingHelp the sponsor feel they’re getting their money’s worthMeasure, assess & evaluateSchedule follow-up appointment