What is Sponsorship Marketing?

Sponsorship marketing is typically done for promotional purposes, to generate publicity, or to obtain access to a wider audience than your budget can afford.  Although you may think of corporate sponsorship’s as in-kind donations, that’s not longer the case.  It‘s a booming $11 billion dollar industry according to IEG’s 2004 industry report.

Sponsorship marketing is done financially or through the provision of products or services to support an event, activity, person, or organization where two or more parties benefit from the arrangement.  The key to building successful sponsorship programs is to match the correct products or services with the people who want to purchase them.

Benefits of Building a Sponsorship Marketing Program

• Low cost way to create visibility and traffic for an organization.
• Increased marketing dollars to stretch limited budgets.
• Inexpensive way to increase sales.
• Increased loyalty through consistent brand building.
• Increased pr/media exposure.
• Exciting employees and incenting sales representatives.

How it Works

What attracts a sponsor is “eye balls”.  The more people or targeted impressions you can deliver to a sponsor, the more money or services you will be able to attract.  It’s that simple.

Any organization can start a marketing sponsorship program.  Of course the success of it depends on: what your organization does, who your customers are, and how you structure the exposure for the sponsor.

Organizations Most Attractive to Sponsors

Still not sure if it’s worth devoting time or money to building a sponsorship program?  Then, check out the top five industries, according to IEG, that companies with sponsorship dollars are looking to spend them with:

• Sporting events or venues
• Travel or Entertainment Organizations
• Educational or Non-Profit organizations
• Art Related Organizations
• Web based businesses or organizations with highly visited websites

Getting Started-Seven Steps to Building a Sponsor Program

1. Define your product / service

Be as specific as possible about what your organization has to offer. While your organization’s activities are the main product, other products or services can also be considered as offerings to sponsors including: sales materials, uniforms, preferential booking of facilities or discount rates.

2. Define the Target Market

A sponsorship marketing strategy will only by successful if it is aimed at the appropriate group of people. You can quickly identify your target market by looking at your current customers and considering common factors that they share.

- Demographics age, sex, marital status, occupation, ethnic groups, religion, education, etc

- Psychographics behavioral groups such as skiers, skateboarders, families

- Geographic location (local, regional, national)

3. Set Your Objectives

A clear, documented idea of what it is your organization is trying to achieve is needed.

Do you want to have your brochure costs covered by a sponsor, increase your advertising buys, or maybe have the cost of your next special event covered?

4. Develop a Marketing Strategy

When your objectives are clear, the next step is to develop a marketing strategy to help achieve those objectives.

If you want to have your next brochure costs covered you strategy may revolve around selling advertising in it.  If, on the other hand, you want to cover the cost of your next special event, you need to use different strategies such as emphasizing how the sponsor will be represented at your organization, in promotional materials, and advertising.  Remember, the more people you can deliver to a sponsor, the more valuable they will find your program.  Use whatever means it takes to do that: newsletters, signs, radio or TV spots, press releases, website, etc.

5. Develop an Action Plan

Once you know what you want to do, it’s time to actually do it!  The key to a good action plan is to outline the activities to be achieved—assign people to get the tasks done and make sure to set a realistic deadline.  Don’t forget to set up a reporting process so you know what’s done and what might need extra attention.

6. Build your Sponsor Packet

The Sponsor Packet is what you will use to communicate your sponsor program to prospects.  In its most basic format, a Sponsor Packet would include:

a)     Description of who you are and what you do

b)    Description of the target market you can deliver to sponsors

1. I.    E.g. 25 – 35 year old family heads of households

c)     Summary of your marketing objectives

1. I.    E.g. To expand marketing exposure

d)    Marketing strategies

1. I.    E.g. Online and offline Sweepstakes

e)     e). Action plan

1. I.    E.g. Develop online and offline entry forms and promotional flyers to be distributed by sponsor.  Promote will begin 4 weeks ahead of the giveaway through radio ads, press releases, and local search engine marketing.

7. Package it.

You’ll be asking a lot from your sponsors so make sure your presentation represents you well.  Be accurate and concise with your content.  If possible try to have it professionally printed and include photographs to enhance presentation. The use of special paper and covers can also enhance the presentation.

Put It To Work

After you’ve completed your sponsor packet, it’s time to put it to work.

1. Company’s.  Determine the company’s best suited as a sponsor to your organization.  Create a contact list that includes as much information as possible.

2. People. Find out who you should address the sponsorship proposal to (usually the Marketing Manager and include their proper title and position. Ensure you have the correct spelling.

3. Contact.  Speak briefly with them on the phone to let them know you will be sending a proposal.

4. Timing.  Present your sponsor packet proposal well in advance. Businesses budget for sponsorship annually. They can also take a while to approve sponsorship proposals, particularly if they have to be cleared by the General Manager or Board of Directors.

5. Follow up. Allow a week after you have sent a proposal before making a follow up call. The

sponsor may not be able to answer at that stage. However, it provides an opportunity for them to ask any questions. Offer to come into their office to speak to them if they so desire. Ask them when you could expect to receive an answer.

6. Reporting. Once a sponsorship has been negotiated and secured, ensure you keep in regular contact with your sponsor. A letter or phone call once a month letting them know about your organization and how the sponsorship is going is good practice. Send any material that may be of interest to them – newsletters, any promotional material or photographs involving promotion of the sponsor.

To see some sponsorship templates, visit myMarketingGuide.com

One-Minute Marketing Makeover

There can be big gains from small tweaks to your marketing plan.  There are two types of marketing plan audits.  The first is the comprehensive which should occur at least one a year and then there are the “mini” audits which should happen at minimum every quarter.

The “mini” marketing audit is stripped down to the bare essentials and the goal is to create a task list which can be done quickly and easily and yield results right away.

Mini Marketing Audit Questions

1. What initiatives and key messages generated the greatest number of leads, media placements, or sales in the last 2 years?

2. Which marketing channel (website, email, text message, pay-per-click, radio, TV) netted the most revenue for the lowest investment?

3. Who is your target audience (describe them) and has that changed due to economic conditions, pricing considerations, or new product and/or service offerings?

4. Who are your most valuable customers?  How and where do they purchase your product or service offering?

5. What are your competitor’s offerings and are you tasked with increasing market share, stakeholder satisfaction, $ revenue, or all of the above?

6. What are your organization’s short-term and long-term strategic goals?

7. What in-house vs. outsourced resources do you have available?

8. Are you on-target with your marketing budget, over budget, or under budget?  Why?  Do adjustments need to be made?

9. Are there any upcoming deadlines, events, or projects that might require you to alter your marketing plans in the next 3-4 months?

10. Have you taken advantage of trying out new marketing methods (internet advertising, media relations, email newsletters, mobile marketing, website marketing) to gauge their effectiveness?  What percentage of your marketing budget could you set aside to explore new options (usually about 5-10% of a budget)?

Sample Task List

Mini Marketing Audit Answers and Task List

Best Campaigns to do again: Summer 2008, Winter 2009

Best marketing message: Go BOGO (Buy One Get One Free) for the highest redemption rate and increased sales.

Best ROI marketing channels: website, email newsletters, text message campaigns, media relations/press releases & media kit, co-op advertising program, custom loyalty program.

Least ROI channels/not able to track effectiveness: radio, TV, outdoor billboards

Target audience: 25-45 households with kids (families) within a 2 hour radius of our location.  Current economic conditions indicate that this audience may be watching their dollars closer and spending less.  To keep sales up, we should look to expanding our demographic to include the baby boomer age group and expand to web sales

Most valuable customers: local customers looking to support us.  Need to keep them happy and coming back more.

Competitors: offer similar offerings.  We try to differentiate by talking about our expanded service and support, monthly payment plans, and testimonials.

Marketing goals: increase revenue by 5% in the next quarter.

Organization short term goal: reduce overhead by 5%

Organization long term goal: increase profitability by 5%.

In-house vs. outsourced: loss of one staff member means we will need to outsource more marketing functions in the next 1-2 months while we look for another staff member.  Will need to find one or multiple companies to assist us in everyday marketing tasks including: graphic design, ad placement, email newsletter copywriting, design, and sending, press release copyrighting, etc.

Marketing budget: we are under budget because we were not able to complete one of the campaigns from last quarter due to technology set-up issues.  Will try to complete that project this quarter or reallocate the funds to a different campaign.

Upcoming events: within 2 months we will launch a new product that should appeal to a younger more web savvy consumer.  We may need to shuffle some of the budget and timelines to get this launched.

New marketing channel test: would like to start an internet advertising campaign on Google, Yahoo, and MSN.  Need to find a company to help us implement this.  Tie this to the new product launch.  Will try 2-3 months with a budget of $5,000.

Comment Policy – play nice and no spam

It started simply enough…nice spam.  A few comments here, a few positive reviews there, then all of a sudden–lots of useless and seemingly spam links to sites I would never want to promote on my blog.  So, as of this first Monday in the New Year, I am announcing my personal war against comment spam.

Here’s just a few ways to get your comments removed from my blog:

• Your name is a bunch of keywords that do not tell me who you are but what  you are pushing.
• Comments that simply say “nice site” are not going to last long and may get your IP address banned.
• Links in the body of the comment.
• Signing off with a link.

How to post comments:

• write something acceptable-whether you agree with me or not.

• I have a comment form please use it to ask me questions unrelated to my post.
• Please stay on topic.
• Submitting lots of good comments over a period of time (not all at once) is a good way to get my attention and have me want to link to you.

Once again, thanks for reading and your support (for those that are actually reading and not spam bots).

10 Most Popular Tweets of 2009

2009 has been an interesting year for marketing.  Social media seems to have quickly created a place for itself, even while marketers are still trying to figure it out.  That’s why I thought it would be interesting to track just what topics received the most attention from my Twitter postings at http://www.twitter.com/srufo . Personally, I still love the “Martini Marketing” article.

Top 10 news stories clicked by Twitter readers in the past year.

Text Message Campaign Ideas

Although text messaging campaigns for businesses may seem like the hottest new thing, I’ve been creating campaigns for almost 4 years now (wow time flies).  In that time, I’ve been lucky to be a part of some very successful promotions.  From giveaways to contests to interactive surveys. So, I thought in this post I would share some of my favorite (and more successful) promotion ideas:

Alerts, Offers, Contests and Coupons

Sending  a special offer text message is a great way to fill unsold or slow time slots. Then, keep customers coming back using follow up texts, plus increase sales in off-times. Send text alerts with special promotions or digital coupons to customers who have opted-in to receive them.  The software  can even pick a selected number of winners for a contest or sweepstakes.

Sports/Events Trivia Sweepstakes

Ask text message trivia questions for recipients to win prizes.  Just promote your keyword in your other advertising or even at live events.

Text for Lodging Deals

Offer customers upon arrival three days of special text offers.  Use this special feature to help cross sell different profit centers at your resort or other business for food service, spas, rentals, and more.

Text In Food & Beverage Orders

Make it fast and easy for customer’s to eat and drink.  Promote your keyword for people to text food and beverage orders from their seat or table, for delivery or pick-up.

Ok, so you might be ready to move past the basics.  If so, these advanced options might be something for you to consider.

Mobile Video

Develop mobile video teasers, trailers, viral video and more. Don’t forget to deliver video sized for users’ phones.

Mobile Images & Wallpaper

Offer your customers the added value of free wallpaper with your branded content and logo. Keep your imagery appropriate for your target audience.

Mobile Ringtones

Likewise, offer your customers added value of free ringtones, audio quotes from company spokesperson, radio DJs and more.

What about you?  Do you have mobile, text message, or SMS campaigns that worked for you that you would like to share?  Please do.  Or, if something here caught your eye and you would like to learn more, just let me know.

Good Marketing Meeting Kick Off

Need to get those creative juices flowing to come up with something cool and exciting for your brand?  Check out this funny video.

Eric O\’Shea – TV Commercials

Twouble with Twitters

This has to be one of the funniest videos.

25 Things I Hate About Facebook

There Is No Excuse for a Legitimate Company to Spam

Somehow, a few years ago, the health club I used to frequent called Scioto Reserve Golf and Fitness, Powell, OH got my email address.  Most likely from the application form.

Now, I never gave them permission to email me anything other than membership info.  However, one day I started getting “What’s New” and “Special Offers” and other marketing/promotional emails.  Sometimes multiple emails in the same day.  All from different email addresses.  Sometimes, not even Scioto Reserve domain addresses.  The emails were poorly designed and highlighted events and things I had no interest in.

Here’s two examples:

Note-this email was almost 44 inches long!

Click to enlarge

Click to enlarge

Since I was a paying customer, I didn’t mind getting a few emails from them once in awhile.  But, not multiple emails every week.  Especially when I didn’t ask for them to begin with.  And, it seemed that my address was being passed around the Club.  After a few months of this, I had enough.  I started emailing each email sender a request to remove me from their list, since there was no way to do it in the actual emails (first strike against them).  Many of the emails were returned that the sending email was not a valid email (second strike)!

Finally (at least I thought at the time), I had enough and called the club manager.  At this point, I also cancelled my membership.  I figured if this is how they handled their business practices, what short-cuts were they taking with the rest of the club?  The Club Manager said she would make sure the emails were stopped.  Were they?  Of course not.

Instead, I got more emails.  Including from other health clubs in there management group MarqueeClubGroup.com (third strike).  That was the last straw.  It was time to take it up a notch.  I went ahead and contacted the spam lists and the website administrator.  Results?  Nothing.  Emails kept coming.

Eventually, I get an email from the Head Golf Pro at Scioto Reserve, Chris Casto.  My “remove me now” email actually got through!  He said he’ take care of it.  After he intercedes, most of the emails stop.  There were a few stragglers, but I sent them on to him and he gets them stopped.  Until…today.

Today another email arrived.  This time from the club’s management company.  “Great”, I think, “it’s starting all over again”.

Here’s what I received:

From: Kinsale Golf And Fitness Club [mailto:gsmith@marqueeclubgroup.com]
Sent: Tuesday, August 18, 2009 4:50 PM
To: Rufo Samantha
Subject: Kinsale Golf/Social Test Drive

Just a Reminder:  You have not signed up for your Kinsale Test Drive!!

What is this?This is a way for you to Join as a Golf or Social Member with NO Initiation at Kinsale Golf and Fitness Club. 
This is a Fantastic Opportunity that must be acted on NOW before time runs out.Your Test Drive would start as soon as you
want but you have to get it started before September 1, 2009 to qualify.  Your Test Drive would last for 10 months and you
would have all the benefits of your Golf or Social membership during your Test Drive.There is only ONE Risk to you.....the
risk you will miss this opportunity if you don't act NOW.
Call Membership Services at 740-881-6500 for all the details today

Since I can’t get any satisfaction from this organization, I at least wanted to pass on the experience and provide a few take-aways for other businesses currently doing or contemplating email marketing:

1. Let ‘em go.

Once a customer has decided to leave, ask if there’s anything you can do to keep them, if not, let them go.  Begging, pleading, and discounting might work, but not for long.  Once the relationship sours, learn from it and do your best to make sure not to do the same things to your other customers.

2. Act like a business.

Email marketing may have been new 15 years ago, but it is not anymore.  That means if you are going to do it as a business, make it worthwhile and follow the rules.  No excuses!

-First, use correct list management with ways for people to subscribe and unsubscribe immediately.

-Second, only send to people that have given you permission to send to them.

-Third, use your business domain to send emails.  Not Hotmail, AOL, or Gmail.

-Fourth, only send an email if you have something to say.

-Fifth, watch how often you send emails.  More than one email in a day is too much.  And, more than 2 emails in a week will probably make people mad.

3. Get it together.

If marketing has one message and sales another, don’t send two emails in one day to the same address.  Combine the message, schedule different times, or segment the lists.  Just because people may be in different departments is no excuse not to get it together when it comes to marketing.

4. Get professional help.

If you are not sure how to effectively manage an email marketing program, get professional help.  Not only will professional help you increase your open and click-thru rates but we can decrease the number of unhappy unsubscribers.

Social Media Revolution Video