Chapter 9 Sponsorship, Corporate

1. Chapter 9 Sponsorship, Corporate C H A P T E R 9 Sponsorship, Corporate Partnerships, and the Role of Activation

2. Sponsorship Entitlement Hospitality Positioning Activation terms

3. Sponsorship Defined: • The acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation or association. • Sponsors use their relationship to achieve promotional objectives or to facilitate and support their broader marketing objectives.

4. EXAMPLES: Capital One Bowl Sprite/ NBA All-Star balloting Orlando Magic’s Amway Arena Mattel’s Barbie dolls cheerleading apparel of Oklahoma State University FedEx Cup Staples Center Tostitos Fiesta Bowl

5. Retail Opportunities: are potential profits aligned with being in a business relationship with an entity. Purchase of Media Time: An opportunities to highlight, introduce, promote, advertise, show your product/services. Entitlement: a situation in which you have the right to do or have something. Endorsements: an act of giving one's public approval or support to someone or something. Logo placement on apparel Hospitality: is a sponsorship asset or benefit commonly associated with premier events (Olympics, World Cup, Super Bowl, NBA All-Star WEEKEND & MLB ALL-STAR WEEKEND. BUSINESS DEFINITIONS

7. The rights derived from the sponsor relationship may include the following: • Retail opportunities • Purchase of media time • Entitlement • Contests or sweepstakes • Endorsements • Logo placement on uniforms or apparel • Hospitality • Website access Sponsorship

8. Elements of promotion and communication mix: Advertising Personal selling Publicity Positioning Sales promotion Sponsorship’s PlaceWithin the Marketing Mix

10. EXAMPLES: Quaker State Motor Oil Promotions with NASCAR: Sweepstakes—all expense paid trip to Daytona 500 Hospitality chance to meet Richard Petty On-track advertising Television advertising PROMOTIONAL/COMMUNICATIONS MIX

11. Activation Defined: • The marketing activities that a company conducts to promote its sponsorship. • Activation is commonly referred to as leveraging or bringing a brand to life by creating a variety of means to interact with a target market. • Money spent on activation is over and above the rights fees paid to the sponsored property. • Example: Michael Jordan & Nike

12. Reasons for Growthin Sport Partnership • 1. Decreased effectiveness of advertising in print and television • 2. Commercial success of 1984 Los Angeles Olympic Games • 3. Increasing number of television channels devoted to sport programming • 4. Technological developments leading to the portability of sport through mobile devices • 5. Increasing number of television channels devoted to sport programming • 6. Technological developments leading to the portability of sport through mobile devices

13. The 1984 Olympic Games in Los Angeles was the first privately organized Olympics in history and a landmark in the evolution of corporate sponsorship and promotional licensing though sport. I generated a profit for LAOOC, Peter Ueberroth-President of LAOOC: Limit sponsors to 30 Started term corporate partners Created tremendous global exposure and national exposure. The games were very very profitable Contributions of the 1984 Olympics in Los Angeles

14. Common Sponsor Objectives • Increase public awareness of the company, the product, or both • Alter or reinforce public perception of the company • Identify the company with particular market segments • Involve the company in the community • Build goodwill among decision makers • Generate media benefits • Achieve sales objectives • Showcase unique product features, technologies, or advantages • Create an advantage over competitors through association or exclusivity • Gain unique opportunities in terms of hospitality and entertainment • Secure entitlement or naming rights

15. Sponsor Activation: Creating Interactive Marketing Platforms • Sponsors develop better activation strategies to help consumers build the link between the property and the sponsor. • Social media is quickly becoming a top activation outlet for sponsors: (continued)

16. Figure 9.7

17. 1. Researchcategory and prospect within that category. 2. Schedule meeting with sponsorship decision maker. 3. Hold preliminary meeting; listen more than talk. • Arrange follow-up meeting. 4. Create a marketing partnership proposal. 5. Present proposal in draft form to allow negotiation. 6. Negotiate final deal. 7. Introduce client to activation team. Eight-Step Processof Sponsorship Sales

18. Why do we need to tell a story? Why are they effectives? Stories do the following: Entertain us Inspire us Inform us Persuade us Motivate us Engage us Example: In the 2011 NBA All-Star Game, Blake Griffin jumped over Kia car (Optima) in the Slam Dunk Contest. Griffin won the contest and Kia got millions of new views. It was a great product placement. Creating a Story, Why?

19. TERMS CREATE A STORY THAT CAN BE USED IN A COMMERCIAL. (you will be in a group to record the story and/or present the story) Due next class. ASSIGNMENTS:

20. 1. Create the idea. • 2. Give it your voice. • 3. Use an already done but with your spin. • 4. Keep it simple stupid. • 5. Keep it under a minute.

21. EXAMPLE: