SEM II 2.02 Sponsorship proposal a. Discuss the need for a sponsorship agreement. b. Explain the purposes of sponsorship agreements. c. Describe the components of a sponsorship agreement. d. Demonstrate procedures for preparing a sponsorship agreement.
What is a Sponsorship Proposal? A suggested marketing exchange with benefits for both the sponsor and event/sport • The sponsor benefits by being able to be associated with the sport or event • The event/sport benefits by receiving funding and/or product
Why is a Sponsorship Proposal Needed? A formal sponsorship proposal: • Shows the professionalism of event organizers • Serves as the basis for discussion among corporate decision makers • Is a way to market the event for sponsorship
Components of a Sponsorship Proposal A sponsorship proposal includes: • Sponsorship objectives – How will the sponsorship benefit the corporation being queried? For maximum results the proposal should show maximum benefit to the sponsor’s institutional goals and objectives. These objectives may be to: 1. Increase product awareness – This results in increased sales of sponsor’s product or services 2. Stamp out competing advertisers – Sponsorship may guarantee that only the sponsor is free to advertise during the event.
Components of a Sponsorship Proposal Continued 3. Reaching new target markets – The sponsorship should match the demographics of the target audience with products or services the sponsor generates. This is called the match-up hypothesis. For example: financial advisor companies sponsor golf tournaments while beer producers sponsor events attended by younger people, i.e. baseball and football • Sponsorship budgets – Without money, the most meaningful objectives will never be met. If the objectives are considered sound, managers will find a way to allocate funds to the sponsorship.
Here are few important factors to consider while preparing a proposal. 1. The sponsorship proposal template should incorporate basic information about your organization. Providing enough information about the target audience and the way you would make them reach the potential sponsor will raise interest in your proposal.
Characteristics of Effective Proposals What is the benefit to the sponsor? • Build brand awareness • Generate sales leads • Build corporate image Who is the audience in attendance? • Match-up hypothesis: Demonstrate that audience demographics are favorable to the sponsor’s goods or services • Generate a list of audience demographics to demonstrate to the sponsor that the audience is receptive to their goods or services (example: Real estate companies do not sponsor rock concerts because teens are not their target audience)
Why will the audience come to the event? • Have a marketing plan • Demonstrate how crowd will be drawn in to the event • Show media plan: number of ads, types of ads, social media How will sponsorship target the audience? Show how sponsor’s brand will be used • T-shirts Signage • Banners Program of events Who are the other sponsors? • Avoid having competitor as co-sponsor • Show how other sponsors do not detract from this sponsor
What are the credentials of the organizer? • Show sponsor that the event will be executed as planned • List relevant event executives and their experience • Show successes of previous events • Identify previous sponsors • Include numbers of attendees to previous events What is the cost? • Last item on proposal • Cost-benefit analysis – Use previous events to show how sponsorship increased sales/raised brand awareness/generated positive publicity
Effective Sponsorship Proposals also: Identify the competition • Show how similar events have helped sponsors • Show how competition is marketing their event and how yours is better Generate ideas to help the sponsor • Innovative ways to maximize benefits per dollar spent • Special activities to promote sponsor’s project • Souvenir sales with sponsor’s brand
Market your event • Include package of images from previous events • Include testimonials from other sponsors, competitors, audience • Include PR and news clippings showing success Focus on benefits to sponsor, not image of event • Sponsorship decisions are based on numbers, not on “feeling good” about the event • Demonstrate how sponsorship will solve problems for the sponsor
Importance of Statistics to Support Claims in Proposals Corporations focus on profits, not community service. Show how sponsoring an event/sport will benefit the corporation’s bottom line. Include: • Before and after sales figures from previous sponsors • Number of sales leads generated by previous sponsors • Number of positive news articles from previous of similar events
Writing a Sponsorship Proposal Basic rules for writing a sponsorship proposal are: • Give yourself plenty of lead time – 6 months for small to medium budgets/one year for large budgets • Keep proposal to one or two pages • Demonstrate benefits to sponsor • Demonstrate return on investment • State contract length and costs to sponsor • Find out to whom the proposal should be addressed and their official title – Spell the names and addresses correctly
Find out the company’s sponsorship criteria – What do they want out of a sponsorship relationship? • Type your proposal, and take care with the layout • Be accurate and precise with your information – Busy people do not want to spend hours reading a proposal, trying to find out what is being offered • Make an appointment to ‘sell’ your proposal in person • Be prepared when making your presentation – Sell the sponsorship