Friday, March 10, 2006

Sponsorship Marketing

Why should you sponsor?Because it is a friendly way of “advertising”. If we like what you sponsor then we are more likely to like you and what you sell. And if we like you we are more likely to buy from you.

What should you sponsor?So pick your cause – a charity, social issue or community group.
Pick an event – a fundraiser, community event or gala.
Pick a group – a business association, team or social group.

From a marketing point of view – the question is, will the people who participate reward you with enough referrals, business or good will? Some of this payback is long term. So one of the extenuating circumstances is – do you support this cause enough to lose money on it in the short term?

For example: I sponsored my daughter’s soccer team. Did I expect a full return on my investment? No – not really. I needed less than one sale to pay back. I was happy to support my daughter and proud to appear as a sponsor. If I got business from it that would have been a bonus.

Sometimes you sponsor just for the exposure. For years I was a wine sponsor at the Chamber of Commerce President’s Gala – a black tie affair. I did not expect business from it – just recognition and prestige.

Here are my sponsorship criteria: (A no for any one will disqualify the sponsorship)
1. Relative cost to exposure.
2. Target audience relative to my best prospects.
3. Number of sponsors and my relative exposure.
4. Do the other sponsors lift my profile?

Relative cost to exposure$500 for exposure to 10,000 is far better then $100 for exposure to 200 – all else being equal.

Target audience relative to my best prospectsMy best prospects for my seminars are business owners of mid-size companies. So, 100 business owners are a better return than 1,000 front line customer service reps or 10,000 students.

Number of sponsors and my relative exposureBeing one sponsor among three is much better then being among 20 sponsors.

Do the other sponsors lift my profile?
If the other sponsors make me look bigger or more impressive by being associated with them, that helps me. For example, I would rather be a sponsor along with Microsoft, Chase Manhattan Bank, Accenture, Coke, and McDonalds than to be associated with a group of sponsors like Unknown Consultants, Everyday Franchise and Local Taxi Cab.

Should you sponsor?

Who should you sponsor? That is the more important question for you.

Sponsor and enjoy

George Torok

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