Sponsorship Development

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    • 00:10

      LISA DELPY NEIROTTI: Hi.I'm Dr. Lisa Delpy Neirotti from the George WashingtonUniversity, Associate Professor of Sport Management and Tourismand co-author of the Ultimate Guide to Sports Marketing.Today, we're going to be talking about researchwriting and selling a sponsorship proposal.With over $50 billion in the market allocated

    • 00:30

      LISA DELPY NEIROTTI [continued]: to sponsorship, it's important for sports, events, teams,organizations to really understandhow to write an effective sponsorship proposal.Because we all survive on sponsorship money.Understanding what you have to offersponsors in terms of your target audienceas well as the benefits, and then

    • 00:50

      LISA DELPY NEIROTTI [continued]: how to present that most effectivelyis vital to your success.Sponsorships are valuable to companiesfor different reasons.Most importantly, to engage and connectwith customers in a receptive environment like sports.Passionate fans are more likely to support a sponsor's brand

    • 01:11

      LISA DELPY NEIROTTI [continued]: over a competitor.[Sponsorship Objectives]The most common sponsorship objectives include,brand awareness, image enhancement though association.For example, the Olympic games areknown for the best athletes in the world.And through association, Olympic sponsors

    • 01:32

      LISA DELPY NEIROTTI [continued]: are also considered world class.Sponsors are looking for increased sales,unique hospitality or environmental experience.Again, such as the Olympic games or Final Four.NCAA sponsors are the only ones who really receive ticketsand hotel access to the Final Four

    • 01:53

      LISA DELPY NEIROTTI [continued]: other than the participating teams.Opportunities for consumer researchis another reason companies sponsor, as well as,employee recruitment, retention, or incentive.For example, if a company has a suite,they invite their employees to the suite

    • 02:15

      LISA DELPY NEIROTTI [continued]: usually through incentives, or contest, or for best employeeof the month.If they are interviewing candidates,they can also extend an invitation to the suite.So this is very important.And then another reason is employee engagement.Special Olympics uses this where companies

    • 02:38

      LISA DELPY NEIROTTI [continued]: who sponsor bring their employees outto participate in Special Olympics.And it's like a team building activity.And finally, some just sponsor so their competitorswon't sponsor-- do not have a chancethrough category exclusivity.

    • 02:58

      LISA DELPY NEIROTTI [continued]: [Researching Sponsorships]So let's walk through the steps of how do you actuallysell a sponsorship.First, you have to research the prestigeand history of your event.For example, the Olympics have a long history.1896 is the first modern Olympic games.And the symbol is one of the most recognized

    • 03:19

      LISA DELPY NEIROTTI [continued]: trademarks in the world.The Marine Corps Marathon is another historied eventlike the New York Marathon, comparedto a new event that would be a little bit harder to sell.What are the demographics of your spectators?Who are they?How many are they?Male, female, young, old, millenniums?

    • 03:41

      LISA DELPY NEIROTTI [continued]: And it's not just people who show up at your eventor participate in the event, but who hears about the event,watches the event.You have to think about all the touch pointsthat a company will receive through their sponsorship.If you send out a message through a email blast,or you're going to write about it on your social media pages,

    • 04:05

      LISA DELPY NEIROTTI [continued]: these are all touch points that the sponsors will have.But they want to know how many people they're reaching.And then what are the benefits?The tangible benefits that you can offer a sponsorthrough impressions, from signage, on the field,or in the concourse, different sweepstakesand promotions, the hospitality, the sales opportunities.All of these are benefits.

    • 04:26

      LISA DELPY NEIROTTI [continued]: So you really have to know what youhave to sell from the impressions and the numberof people to the tangible benefits.You also have to know everything possible about the company youare prospecting.Who are they trying to reach?What are marketing strategies?Are they opening a new office in the city where you're located?

    • 04:47

      LISA DELPY NEIROTTI [continued]: What other properties do they sponsor?How does their business run?This is most important.How do they make money?So Visa.They make money by first people getting a Visa cardthen encouraging them to swipe their Visa card,and actually trying to swipe it so much that they build upa credit on their card.

    • 05:09

      LISA DELPY NEIROTTI [continued]: And so the company is making intereston the balance left on the card.So they want to sponsor events that peoplewill be buying merchandise, they'll be staying in hotels,eating at restaurants.So that's the kind of event that Visa would like to sponsor.Gatorade.They have a policy they only sponsor

    • 05:30

      LISA DELPY NEIROTTI [continued]: events that make people sweat because Gatoradeis an electrolyte.So replenishing people after they've had a heavy workout.They won't be sponsoring chess, for example.They also sponsor educational workshops for coaches.Because if coaches learn about the value of Gatorade,

    • 05:50

      LISA DELPY NEIROTTI [continued]: that's a benefit.Because maybe then they will tell their athletesto drink Gatorade.You should also figure out who the decision makers are.Everybody says, I'm just going to go to the president.Well, they often do not have as much power you think.It's the marketing directors and also the financebecause it's a team decision about how much money they're

    • 06:14

      LISA DELPY NEIROTTI [continued]: going to invest in sponsorship, and gettinga return on investment from that sponsorship.What can you offer a sponsor that they can't get elsewhere?What is your unique selling proposition?Again, is it access to exclusive ticketsthat are hard to come by?For example, the Final Four.Is it going into the locker room before the game

    • 06:38

      LISA DELPY NEIROTTI [continued]: and actually listening to the pregame peptalk from the coach?This is what Coca Cola offers to their sweepstakes winnerswith the Denver Broncos.Is it the shared attributes?Swifter, Higher, Stronger is the Olympic motto.Is that what your company wants to associate with?

    • 06:59

      LISA DELPY NEIROTTI [continued]: Also, we want to look at, is thisa better value than just an advertisement in the WashingtonPost?So you could spend $10,000 with a general ad,but it reaches a mass audience.Or are you targeting a specific audience?And so this is more a value to you

    • 07:19

      LISA DELPY NEIROTTI [continued]: because the money that you're spendingmay not be as big of audience, but it's your audiencethat you really want to reach.Demonstrate how your event is unique in positionto company above the clutter.[Sponsorship Format]You also have to write your sponsorship proposalin an effective format.

    • 07:41

      LISA DELPY NEIROTTI [continued]: For example, starting with a overview thatdescribes the event from A to Z. Companiesneed to know what are all the things thathappen at this event.Is there a pre-event VIP reception?Is there any trade show associated with it?And then is there an award show afterwards

    • 08:02

      LISA DELPY NEIROTTI [continued]: where corporate representative could attend and presentthe awards?Is there a charity involved?And they also want to know, who's organizing this?Is it a reputable group that's organizing this?Is it a first time event?Is it an established event?So all of these items need to be described right up frontin the overview.

    • 08:22

      LISA DELPY NEIROTTI [continued]: Then a quick facts-- kind of just a summaryof what you kind of discussed in the overview.So what is it?Where is it?When is it?Who is it?Why?And it could be just in that bullet pointed fashion.Then go into the demographics.Who are you going to reach?

    • 08:42

      LISA DELPY NEIROTTI [continued]: You have to say, who's going to be hearing about the event,learning about it from different marketing outreachopportunities, and then who's going to be in the stadiumor at the event, participating, as well as, watching.And there's various different types of sports events.

    • 09:02

      LISA DELPY NEIROTTI [continued]: Some that are more participatory such as,marathons, and then some that aremore spectators for example, professionals events.And so you need to explain both who'swatching, who's participating, and thenwho's learning about it through the market outreach.

    • 09:22

      LISA DELPY NEIROTTI [continued]: Then go into the listing all the benefits.What would the sponsor receive?There's different benefits for different sponsorship levels.For example, title sponsor would receive more benefitsthan associate sponsor.And finally, you need to share information about fees.There's different opinions about this.Some say don't put the fee in there.

    • 09:44

      LISA DELPY NEIROTTI [continued]: Some say put the fee in there.But industry standard is that you at least give themsome ballpark about what you're looking for.And everybody understands that it's negotiable.[Key Sponsor Levels]The most common sponsorship levelsare title sponsor, such as FedEx Cup, or presenting sponsor,The Military Bowl presented by Northrop Grumman.

    • 10:04

      LISA DELPY NEIROTTI [continued]: Some people have those title and presenting.Personally, I think that's a little overkill.And you have one title sponsor and one presenting,but you can have numerous associate sponsors.And they each have a specific category.So you'll have a beverage category,you'll have a clothing category, you'll have a food category.

    • 10:26

      LISA DELPY NEIROTTI [continued]: And each of those categories will talkabout next can be subdivided.You also have in-kind providers.And these are ones that don't provide cash,but they provide necessary services or supplies.And for the Olympic and World Cup sponsors,you have differentiation between international sponsors

    • 10:46

      LISA DELPY NEIROTTI [continued]: and national sponsors.National sponsors can use the marksacross all 206 countries participatingin the Olympic games, or all the countries participatingin the World Cup.Most sponsorships typically have a product category exclusivity.Now, you could sell the beverage category.But you need to make sure that you're getting a premium

    • 11:08

      LISA DELPY NEIROTTI [continued]: price if you just give them the entire beveragecategory versus breaking it up and asking,well are you interested in the soda?Isotonic or sport drink?Water?Fruit juice?Malted, which is beer, wine, or distilled.And then there's also the coffee and tea.So you could see that if you just

    • 11:29

      LISA DELPY NEIROTTI [continued]: offer a beverage category versus askingwhat part of the beverage category,you may be missing some sponsor dollars.[Sponsorship Benefits]Now, breaking down the sponsorship benefits.We talked about title right.So the company's name or actuallybe included in the title of the event.

    • 11:51

      LISA DELPY NEIROTTI [continued]: Then if you have any media coveragebeyond just press releases being sent out,you should include that.So if your events going to be on ESPN or on CBSmake sure that you explain how many minutes or whenit's going to be aired.Also, if it's going to be streamed online.That's most popular now if you're

    • 12:12

      LISA DELPY NEIROTTI [continued]: going to be pushing it through YouTubeor some other online channel.Mention if your company's name and logois going to be included on press releases or registrationpacket.How about on tickets?Or-- and also on your website with a link backto the sponsor's website.There's LED signage within the arena or stadium, program

    • 12:36

      LISA DELPY NEIROTTI [continued]: advertisements, video scoreboards advertisements,opportunity for the corporate representativeto present awards.And what about for races?You can have the company name and logoincluded on the race bibs or on the shirts thatare given to every one.There's often trade show or sponsor villages

    • 12:56

      LISA DELPY NEIROTTI [continued]: that they're called where there's booth space for productdisplay.Many sponsors also set up experiential marketingactivities where tennis events youcan go and swing a tennis racquetand see how fast you hit that ball.Or kick a soccer ball, and you get a piece of paperthat shows your time and of course, the corporate sponsors

    • 13:17

      LISA DELPY NEIROTTI [continued]: logo is there with your time.But you may set that-- you may hang it upin your office or your bedroom, so other peoplewill be seeing the logo of the corporate sponsor.And as we've discussed before, hospitality is so important,especially for premier events.And sponsors receive event tickets.They have access to VIP parking.

    • 13:39

      LISA DELPY NEIROTTI [continued]: They have access to pregame hospitality.So these are all important benefits.[Additional Benefits]Almost all sponsorship proposals include,market research opportunities, first right of refusal,meaning that once you're contract is expiring,you have the right to negotiate before any other company.Event evaluation report, so the organizing committee should

    • 14:03

      LISA DELPY NEIROTTI [continued]: give you a wrap up of how much media exposure you received,how many people attended the event,so you could make a good decision whether you'regoing to renew or not.And then there is access to event mailing listor their database for a promotion, or sweepstakes,or just an advertisement.And then product category exclusivity is important.

    • 14:24

      LISA DELPY NEIROTTI [continued]: [Seeking In Kind Investments]When seeking in kind investments it'sbest that you specify exactly what product or serviceyou're looking for.And then value that at wholesale cost.But in terms of airline tickets, if you want 10 of them,

    • 14:46

      LISA DELPY NEIROTTI [continued]: it's better to state that versus saying you need $5,000 worthor airline tickets.Because as we all know, if you purchase an airline ticketlate it could be $1,000 or it could be $5,000.So it's important that you specify what exactly you need.Same thing with t-shirts.If you need 1,000 t-shirts, it's betterto say that than to say you need $500 worth of t-shirts.

    • 15:09

      LISA DELPY NEIROTTI [continued]: And it goes along the same way with shoes or any other itemsthat you're seeking.Other examples of items and servicesthat you can barter in exchange for sponsorshipis waste management.You can go to a recycling company.In terms of satellite parking and shuttle buses,

    • 15:30

      LISA DELPY NEIROTTI [continued]: coordinate with a shopping mall.T-shirts.You could obviously work with a sporting good company.A power generators.You can work with the air and heating company.So those are just some examples of in kind goodsand where you can negotiate and barter with.Ultimately, research and persistence

    • 15:50

      LISA DELPY NEIROTTI [continued]: is key to any sponsorship.Again, understand the business objectives.What does the company need?And how can your sponsorship help them achieve that?Tailor to the company's needs.Ideally, before writing any sponsorship proposal,you will meet with a corporate representative,and ask them about their marketing strategies.

    • 16:16

      LISA DELPY NEIROTTI [continued]: Explain what your opportunity is and how your opportunity canfit into their marketing plan.And then go back and let's just say the company said,we really just want brand exposure.So then maybe you want to reduce some of the hospitalitybenefits and give them more signage within the stadiumsand more online banner ads.

    • 16:39

      LISA DELPY NEIROTTI [continued]: And just reduce some of the other benefits.If you don't have that opportunityto meet with a representative in person,then do is much online research as you canin terms of looking at their annual reports,looking at press releases, doing a Google search on the company,and just learning as much as you can about their marketing

    • 17:01

      LISA DELPY NEIROTTI [continued]: strategies.You may read an article about the CMO talkingabout how they want to reach more youth,and your event has a target audience of youth.Then that would be a great opportunity for the two of youto match up for a mutual benefit.Always think about how you can help the company,

    • 17:24

      LISA DELPY NEIROTTI [continued]: and don't focus on how the company can help you.They really unfortunately don't care so much about your eventas they want to just partner with youfor the benefit of the company.And just keep that in mind when you'representing your opportunity.It's a give to get philosophy that you should focus on.Always follow up by telephone within 10 days

    • 17:47

      LISA DELPY NEIROTTI [continued]: of sending your proposal.Many companies put on their calendarwhen they received a proposal.And if you don't follow up, they feelthat you were just sending it outto as many companies as possible without really targeting them.So it's important to do your follow up and bedue diligent about that.Also if you receive no, you can ask why?

    • 18:09

      LISA DELPY NEIROTTI [continued]: I encourage you to invite the company out to your event,so they can experience it firsthand.Keep in touch with them.And then if they say no this time, there's always next year.[Conclusion]In summary, research your event or team,

    • 18:29

      LISA DELPY NEIROTTI [continued]: so you know what you have to sellas well as the company in which you are pitching to make surethe two demographics match, and that it will be a mutuallybeneficial partnership.Always under promise and over deliver.And service the sponsors so they will renew their sponsorshipwhen the contract expires.

    • 18:49

      LISA DELPY NEIROTTI [continued]: Thank you for the opportunity to share some of the key conceptsin writing sponsorship proposals.And I wish you the best of luck.

Sponsorship Development

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Professor Lisa Delpy Neirotti describes a step-by-step approach to securing corporate partnerships. She explains the perspectives of both the recipient and the corporation, with a focus on developing a mutually beneficial relationship.

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Sponsorship Development

Professor Lisa Delpy Neirotti describes a step-by-step approach to securing corporate partnerships. She explains the perspectives of both the recipient and the corporation, with a focus on developing a mutually beneficial relationship.

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