BASICS OF SPORTS SPONSORSHIP part-2

Effectiveness of sponsorship: -

When it comes to measuring the impact of sponsorship its quite difficult or sometimes it’s impossible. The outcome that is influenced by the sponsorship for example the total number of sales done cannot really measured, there could be other factors that could directly or indirectly affect.

Though it is difficult to find the effectiveness of sponsorship many of the authors have outlined the criteria that should be met initially.

FIT:-

The fit between sponsor & sponsored entity is required to achieve sponsorship objective, for eg if the sponsoring company is the one that deals with building AI interface for IT professionals to increase there productivity and sponsored entity is the children’s sports event, sponsorship objectives cannot be reached if the objective of the sponsoring company is the brand awareness since the participants are children’s and only spectator that will be present are parents, staff members etc.

Hence the fit is very important between sponsor and sponsoring entity.

ACTIVATION:-

Activation of sponsorship is very critical in order to achieve positive outcomes of sponsorship. This is where many of the sports managers, sponsors or sponsored entity overlook.

Activation of sponsorship is basically the additional marketing efforts taken by using various marketing tools. So sponsorship benefits cannot be ripe until it is activated with participation of all the entities involved.

For eg. If there’s a sponsoring entity who deals with sports energy drink, a proper activation could be done by putting up booths where a celebrity athlete walks-in and does give away signed items or they can give discount coupons on bulk purchase that could be used in near future.

Many times, sponsors budget is limited and there’s a limitation to it where they cannot afford to invest beyond sponsorship payment at all. In this case new media channels specially, social media provides with further chance of sponsorship activation opportunities.

?Though Meenaghan (1991) proposed following 5 approaches where effectiveness of sponsorship can be measured.

1)?Level of media exposure achieved

2)?Level of audience awareness of sponsorship i.e., before and after sponsorship.

3)?Increase in Sales.

4)?Audience feedback.

5)?Cost-Benefit analysis.

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Achieving Effectiveness of Sponsorship Campaign:-

There is always a place where sponsors can go beyond to achieve maximum effectiveness right from the sponsorship deal is made.

In 2000 Aaker & Joachimsthaler identified 7 ways where sponsor can achieve its effectiveness.

1)?Communication:- ?A successful sponsorship strategy communicates the brand image of the sponsor, its value proposition & what response it requires from the audience.

2)?Purpose:- A sponsor must actively seek out the types of sponsorship that aligns to its sponsorship objectives, a good sponsorship strategy cannot simply rely on what is being offered.

3)?Fit:- The sponsor must ensure there is a strong fit between its brand image & the image of the sports events, or an individual or to the team it sponsors.

4)?Commitment :- Longer term sponsorship relationship?are always recommended for successful sponsorship. Also if possible a sponsor should always seek out exclusive sponsorship agreements in order to reduce clutter and achieve competitive advantage.

5)?Visibility:- Awareness is one of the major objectives of sponsorship, therefore a sponsor should seek opportunities that generates the greatest publicity & brand exposure.

6)?Returns:- A sponsor must define what its an acceptable return on its sponsorship investment. It could be either increase in sales or lead developed or may be awareness etc.

7)?Control:- The final step suggests that a sponsor must actively manage its sponsorship programs. Proper activation programs must be executed to reap sponsorship benefits even after the completion of sponsored events.

In Summary we have covered Effectiveness of sponsorship, how we can measure its effectiveness? And how we can achieve an effective sponsorship campaign?

Next week we shall cover the risk associated with sponsorship.

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