The role of event sponsorship and the challenge to sell sponsorship

1. The role of event sponsorship and the challenge to sell sponsorship

We always say no money no talk, budget is one of the key factor when organising events. One of the important jobs of event manager is to seek suitable sponsors to ensure the financial support for the event. Sponsors may provide monetary, materials or person on an event. How to sell event sponsorship or convince a company to provide sponsorship is a great challenge.

Sponsorship is an indirect form of communication with the objective of brand awareness and image (Quester et al., 1998). Sponsorship has become one of the important parts of marketing communication strategy. It is a two-way communication (Harrison and O’Reilly, 2005). In common cases, it involves three actors: the sponsor, agency events and audience. The Sponsor provides monetary support, equipment or person. The event organiser helps to provide an image and awareness, promote its event space for the sponsor. The effect of sponsorship is limited without media. Sponsorship must be integrated with other communication tools such as advertising (Quester and Thompson, 2001) promote brand awareness. The performance of sponsorship will be linking with public relations and marketing.  Moreover, Walliser (2003) stated that the isolated sponsor operations will have a minor influence on visibility, sponsorship complementary with media which allows passing a message to targeted audience, but it cannot replace other traditional communication methods that have a better assessment to measure the effectiveness. The synergy with the media is necessary for a good communication plan (Trendel and Warlop, 2004).

Sponsorship role is to fit the customer’s demand to help to better position the brand and its image. Many companies seek a suitable sponsorship deal and value, events manager should provide the value that the companies need. Different events with different character could be developed a brand image, for example, football reflects an image of popular sport that can be accessed by everyone while tennis reflects an elitist and finer image. However, it is not a necessary that the event must relate to the company’s product. The Hong Kong Marathon was sponsored by Standard Chartered since 1997; it becomes an internationally renowned sporting event nowadays. Banking and sport are totally different in nature. However, through various promotional activities that increase the awareness of customers to the services provided by Standard Chartered and also the success of the Hong Kong Marathon could establish a good image to customers. This international event is also a platform to promote the brand of Standard Chartered to overseas market. (StandardChartered Hong Kong Marathon 2015)

The international circuit of Formula One motor-racing is sponsored by Motor Manufactory Company like Ferrari.

Another famous sponsorship was made by Adidas. Adidas is a German sports goods manufacturer. From 1970, Adidas became the FIFA official sponsor with the ball, and after each session of their World Cup match ball offer. Nike is its keen competitor, in order to fight with Nike; Adidas must implicate more marketing promotions particular when Adidas can obtain exclusive rights and garner the hype associated with its company honour.

How to approach a potential company to offer sponsorship is a great challenge for an event manager. Companies will not give money to you because you are hosting an event, unless they have special need such as last minutes expenses for tax waiving. Another purpose may be the companies have a new product want to increase the exposure and increase product awareness. According to Luke Summerfield, in order to recreate an irresistible Sponsorship Offering, event managers should think the need at the angle of customers.

Firstly, what’s in it for the customer? That is the event could offer what kind of value to the company.

Secondly, what is unique about these sponsorship opportunities over others? That is only this event could offer what a unique that the customer wants.

Thirdly, what kind of return can be found from this sponsorship? That means the effectiveness of the sponsorship.

Finally, does the customer like this event and does the audience fit the target audience? That means the event is fit to either sponsor or its audiences.

After getting all the above information, event managers have to tailor made the sponsorship proposal in order to meet the goals and value that the particular company need. The proposal should be creative and find ways to provide value to the company. A successful proposal could provide a “wow” feeling and deep impress to sponsors, as a result they could accept the ideas. When gaining a sponsorship, it will be like win a victory, however another challenge will be faced that is how to maintain the relationship with the sponsors especially an annually event request sponsorship every year. It is another important issue of sponsorship.

After this event project, I learnt that the goal of sponsorship could help customer to focus their transfer values. It would be a very useful tool for the development and enhancement of brand equity (Chien et al., 2005). It is not easy to gain sponsorship but company also needs this marketing communication tool to promote their products or services. It is a mutually beneficial in market strategy. There are no short cuts to gain sponsorship. Firstly, I will do research for the target sponsor, to know what the company wants, such as an acknowledgement from my company or just for tax waiving. If just for lower the taxation, it will be easier to gain sponsorship. However, a comprehensive research report should also be prepared before go to persuade the customer. If the company has a new product want to introduce to the market, I will sell them the amount of participants and the wide range of attendants. Different kinds of sponsor with different needs, the skilful persuade, heartfelt service, negotiation skill and sometime an out of box idea should be well prepared when go to gain sponsorship. The pivotal is to get trust and commitment of sponsors but it is a great challenge.