Benefits of Sponsorship
April 14, 2011 by Tim Wesley
In recent years, corporate sponsorship has become one of the fastest growing types of marketing. Sponsorship can be one of the best means of broadening a company’s competitive edge, image, and credibility if you select and support the events that target your businesses market group.
Some of this growth can be attributed to the growing numbers of small businesses and franchisees beginning to get involved. Before, only large businesses could afford to sponsor as a way to increase profits and community recognition. Now smaller companies are sponsoring everything from local sports teams to community expos. and town clean-ups. Many of these types of sponsorships help companies to project their public profile fairly cheaply.
Experts in the field are now speaking about the broad spectrum of benefits that can be gained by sponsorship besides from just enhancing visibility and image. There are benefits such as differentiating the company from competitors, developing closer relationships with customers, (both existing and new) and showcasing your company’s products and services. These experts conclude that when sponsorships are specific and well thought out they can increase short and long term profits.
Sponsorship is an effective marketing tool not only because it is a great way of reaching a wide range of audiences that can be potential customers, but it’s also a great way to reach decision makers for businesses. Sponsorship of large venues can be particularly beneficial for companies that do business in multiple states or internationally, because sponsorship transcends cultural and language barriers. Many marketers believe corporate sponsorship is the best way to allocate their marketing dollars because it provides them with the chance to gauge their customer’s response immediately, as well as allowing owners and executives to relate with their customers. When set up correctly, sponsorship also gives potential clients the chance to try out products and services first hand. This has always been a very powerful selling tool as it gives the client pride of ownership when they can interact, touch, and feel products.
All sponsors are looking for the widest exposure possible in both print and electronic media because of the increase in public visibility. This is the reason many corporate sponsors are attracted to large sporting events. These types of events attract large numbers of diverse people. The same holds true for smaller business that chose to sponsor their community’s local events.
The mass coverage by the media that you receive as a sponsor is most likely unaffordable if you were to purchase it. This is why your company must maximize the impact of the event by augmenting the media coverage the organizers arrange. Most times sponsorship can generate media coverage that may not have been available normally.
Given the tendency of consumers to associate sponsors with the event they promote, it is important for businesses to carefully choose sponsorships that are suitable for their image. One important factor before your decision to sponsor an event is to research how the event will be perceived. Does it have an up-scale clean image, or is the reputation less than satisfactory? Business should never associate themselves with a cause or event that has the potential to project negative effects on them. Also, organizers should be proactive in providing you with details such as the target audience that can be expected, media coverage plans, (remembering you can promote as well) obligations you have as a sponsor, support the organizers will provide, and a breakdown of what your marketing dollars are buying.
Hospitality and exclusive networking events can be used to meet significant customers and cement business associations. Remember it is always important to consider every opportunity and seek new ways to couple them with your business and marketing needs.
For more information or sponsorship opportunities please contact Tim Wesley Fitness Management and Consulting at 800-714-6067 or twesley@twfmc.com
Tim Wesley is an affiliate consultant of Fitness Management USA Inc., a management consulting and turnaround firm specializing in the fitness and health club industry. With more than 20 years of experience managing clubs of all sizes, Wesley lectures and delivers seminars and workshops on the practical skills required to successfully build teamwork and market fitness programs and products.
