Events_Sponsorship_A_Framework_for_Effi.pdf

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226 [email protected]

‘Events Sponsorship: A Framework for Efficient

Management’

Prof. Marios Sotiriadis, PhD

Visiting Professor/Researcher

Department of Transport Economics, Logistics and Tourism,

University of South Africa (UNISA),

Club One, cnrDely and Albert Street, Hazelwood

PO Box 392, UNISA, 0003, Pretoria, South Africa

Tel: +27(0) 12433-4699

E-mail: [email protected] / [email protected]

Abstract

During the last two decades the events industry emerged and the corporate sector fully recognized the

tourist and promotional value of events. Event sponsorship is one of the most challenging topics to beaddressed by event organisers and managers. The aim of this paper is twofold: (i) to examine the main

issues in the business relationship between event organisations and sponsors, and to highlight the

factors determining a mutually beneficial partnership; and (ii) to suggest a framework for efficient

event sponsorship management. The paper discusses the benefits that event organisations can attract

from reciprocal partnerships with sponsors. It argues the need for sponsorship policies to guide

decision making by event organisers and sponsors, and the need to develop strategies to manage event

– sponsor relationships and achieve positive and enduring relationships with sponsors, and outlines the

sequential stages in developing a sponsorship strategy. Finally, it discusses the management of event

sponsorship and proposes a framework for efficient management. It concludes by formulating a series

of recommendations for event organisers and managers in rendering the interrelationship between

events and sponsors a mutually beneficial partnership.

Keywords: Events, Sponsors, Marketing and Financial Perspectives, Partnership, Management

Framework.

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1. Introduction

Events perform a powerful role in tourism industry. During the last two decades the events industry

emerged and the business sector fully recognized the economic, tourist and promotional value of

events (Bowdin et al, 2011). Nowadays there is no doubt that the events industry is facing a series of

challenges. There is a number of important perspectives - i.e. government, corporate sector; and

community - that have implications for event managers in planning, managing and delivery of events.

From an event organisation’s perspective, sponsorships are fast becoming business partnerships that

offer resources beyond money (Getz, 1997; Crompton, 1994).It is estimated (e.g. Goldblatt, 2008;

Masterman, 2007; Crompton, 1994) that event sponsorship is one of the most challenging topics to be

addressed by event organisers / managers. Over the past decade, there has been an important increase

in literature relating to sponsorship (Masterman, 2007; Jeffries-Fox, 2005; Grey & Skildum, 2003;

Skinner & Rukavina, 2003; Geldard & Sinclair, 2002), indicating the increasingly significance of the

topic. This paper examines the event – sponsorship interrelationship. It begins with a definition of

events, the main stakeholders involved and a brief presentation of corporate / business perspective. In

the following section the main issues of sponsorship – i.e. definition, determining factors and the two

perspectives of sponsorship as a marketing tool and as a source of income / revenue generation - are

outlined. In the next section the partnership between event organisations and sponsors is discussed, by

exploring the benefits that event organizers and sponsors seek and the prerequisites / factors

determining the reciprocal success. In the fifth section a framework of managing event sponsorship is

presented by highlighting the policies, strategies and actions needed for successful event sponsorship.

The paper concludes by providing a series of recommendations for efficient and mutually beneficial

partnership between event organisers and sponsors.

2.Events Management: Stakeholders and Corporate Perspective

It is worth pointing out that there is no a universal, standardized definition of events. The term ‘event’

may be viewed in a variety of ways. According to Getz (1997, p. 4) ‘events are temporary occurrences,

either planned or unplanned. They have a finite length, and for planned events this is usually fixed and

publicized. People know and expect that events end, and this fact provides a major part of their appeal.

When it is over, you cannot experience it again. True, many events are periodic, but each one has a

unique ambience created by the combination of its length, setting, management (i.e., its program,

staffing, and design), and those in attendance.’ Bowdin et al (2011, p. 17) suggested as more

appropriate the definition of The Accepted Practices Exchange (APEX) Industry Glossary of terms.

According to APEX, an event is, ‘an organized occasion such as a meeting, convention, exhibition,

special event, gala dinner, etc. An event is often composed of several different yet related functions.’ A

principle applying to all events is that they are temporary and every event is unique, stemming from

the blend of management, program, setting, and people. People and organisations with a legitimate


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interest in the outcomes of an event are known as stakeholders (Getz &Andersson, 2010). Who are the

main stakeholders in the field of events?The stakeholders involved in events, their role as well as their

impact / benefit are shown in Table 1.

(Here appears Table 1)

Events are attracting the involvement and support of the corporate, government and community sector.

It is no longer sufficient for an event to meet just the needs of its audience. It must also embrace a

plethora of other requirements, including government regulations, media requirements, sponsors’ needs

and community expectations (Getz & Andersson, 2010; Andersson & Getz, 2008). One of the main

tasks of event management is to identify the range of stakeholders in an event and manage their

individual needs, which will sometimes overlap and conflict (Bowdin et al, 2011; Andersson & Getz,

2008). There are various perspectives to consider events, namely government, destination,

community/social, environmental, and corporate (organizers/business). Our interest focuses on the

latter - i.e. corporate/business perspective - and Table 2 presents the corporate actors involved in events

and their respective role and goals.


The following section examines the issues related to sponsors and sponsorship.

3. Sponsors and Sponsorship

The last two decades have seen enormous increases in sponsorship and a corresponding change in the

way that sponsors perceive events (Masterman, 2007; Skinner & Rukavina, 2003). There has been a

shift many large companies from approaching sponsorship as primarily public relations tool generating

community goodwill, to regarding it as an important part of the integrated marketing communications

approach (Pike, 2008). Major businesses invest large amounts in event sponsorship and devote

additional resources to supporting their sponsorships in order to achieve corporate and marketing

goals. What is important is that sponsors must be seen as partners in events (Bodwin et al., 2011;

Goldblatt, 2008; Getz, 1997). The International Chamber of Commerce International Code on

Sponsorship (ICC, 2003, p. 2) defines sponsorship as: ‘any commercial agreement by which a sponsor,

for the mutual benefits of the sponsor and sponsored party, contractually provides financing or other

support in order to establish an association between the sponsor’s image, brands or products and a


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sponsorship property in return for rights to promote this association and/or for the granting of certain

agreed direct or indirect benefits.’(cited in Bowdin et al, 2011, p. 442). A range of trends inf luence the

growing worldwide interest in sponsorship, including the following factors (Bowdin et al., 2011; Hinch

& Higham 2004;Shone& Parry, 2004; Duncan 2002; Getz, 1997; Crompton, 1994):

sociocultural factors: e.g. popularity of events as leisure experiences, unique social

environments, growing interest in sports and arts;

business: e.g. globalization and commercialization of sports, reduced firm’s promotional

budget, imperative for efficiency;

marketing and media: proliferation of brands, products and services, need for brand

awareness, change in marketing itself with the shift away from simple transactions to

relationships, seek for effective methods and tools, etc.

In this context, the event managers’ task of making strategic decisions about an event’s portfolio of

sponsors become even more critical as sponsorship matures as a marketing medium. All these

environmental trends underline the need for event organisers / managers to perform an integrated and

comprehensive analysis of the sponsorship environment. Authors (e.g. Rowley & Williams, 2008;

Jeffries-Fox, 2005;Walle, 1995; Crompton, 1994)suggested that the role of sponsorship is twofold,

namely a communication tool and a source of income, as it is briefly outlined hereafter.

3.1 Marketing perspective: sponsorship as a communications tool

Sponsorship has become a critical element in the integrated marketing communication mix of many

businesses and organisations (Goldblatt, 2008; Duncan, 2002). Sponsorship is now a commonly used

component of the marketing communications mix and among the different types of media / tools, it is

considered to be one of the most powerful media now used to communicate and form relationships

with stakeholders and target markets (Pike, 2008; Grey & Skildum-Reid, 2003). Creating a successful

event or gaining event sponsorship means establishing a reciprocal relationship between the

organisation providing the sponsorship (corporate, media and/or government) and the event. However,

it also means an emotional connection must be made with those consumers targeted by both the event

and its sponsors (Nadav et al, 2010; Cornwell et al, 2005). This three-way relationship, which

underpins the success of sponsorship, is called the ‘trinity of sponsor, event and audience’ (Bowdin et

al, 2011, p. 443-444). Sponsors use events to emotionally tie their product or service to a market

segment that identifies with the event and consequently identifies with the sponsor’s product.

3.2 Financial perspective: sponsorship as a source of income

Few event organizations have the luxury of guaranteed and sustained revenue to fund their events.

Most have to work hard to acquire necessary resources and manage them efficiently. One of the

sources of income is sponsorship (Jeffries-Fox, 2005; Getz, 1997). Sponsorship, either provided as

cash or in-kind support (i.e. products or services offered free of charge; in other words, sponsorship


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paid for in services supplied by the sponsor, such as air travel or accommodation if the sponsor is an

airline or hotel chain), is central to the revenue and resources of events (Bowdin et al., 2011; Shone &

Parry, 2004; Skinner & Rukavina, 2003).Event managers are usually actively engaged in tasks such as

identifying potential sponsors, preparing sponsorship proposals and managing their ongoing

relationships with sponsors, as event sponsorship is a large part of event management.The main

management task is to attain mutual benefits for both the event organiser and sponsor.

It is worth stressing that the two perspectives are simultaneously truefor both parties involved: (i)

sponsorship is a communications tool for sponsors and a marketing variable for event organisations; it

is used by both of them for integrated marketing communication purposes; and (ii) sponsorship is a

source of income for event organisations and an investment for sponsors. Obviously this fact

constitutes a positive and favourable factor determining a common ground for mutual aims and

actions, a cooperation platform within a business partnership.

4. Events and Sponsors: A Business Partnership

Literature (e.g. Nadav, Smith, &Canberg, 2010; Sunshine, Backman, & Backman, 1995; Crompton,

1994) suggested that part of ensuring the success of the event’s sponsorship strategy is in deeper

understanding the range of benefits available to sponsor partners, not just the benefits to be accrued by

the event.What is a partnership? It is an arrangement in which parties agree to cooperate to advance

their mutual interests. In the most frequently associated instance of the term, a partnership is formed

between one or more businesses in which partners (organisation managers) cooperate to achieve

business aims(Mowery, Oxley & Silverman, 1996). Partnerships exist within, and across, sectors; all

types of organizations may partner together to increase the likelihood of each achieving their mission

and to amplify their reach. A typical example of partnership is a strategic alliance, that is an agreement

between two or more parties to pursue a set of agreed upon objectives need while remaining

independent organizations.

4.1 Potential benefits for event organizers and sponsors

Sponsorships are pursued by events and purchased by corporations, media and government based on a

thorough assessment of the benefits to be derived. Event managers must therefore obtain a good

knowledge of the full range of potential benefits that a sponsorship will bring to their event and their

sponsors so they can customise their strategies. The following Figure 1 shows the exchange

relationship between events and the sponsorship partners, as suggested by Crompton (1994).

(Here appears Figure 1)

In a similar approach, Getz (1997) suggested the need forcreating sponsorship platforms; in other


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words, events must be viewed and managed as marketable products in order to succeed at sponsorship.

The ‘platform’ consist of one or more bases upon which sponsor s can build on-site plus

‘augmented‘programs. The usual platforms are the entire event and sub-components, but the

organisation itself can be a platform, especially if it has an events portfolio. Getz (1997, p. 221-222)

provided a framework for understanding and developing event sponsorship: On one hand, the sponsors

provide to the event cash, in-kind donations, enhanced marketing and expertise. On the other hand, in

exchange they expect gain the following benefits: visibility, merchandising, hospitality, use of brand

name, data on customers, and equity in event. The usual platforms are the entire event and sub-

components. This system must be balanced and mutually beneficial to sponsors, organizers, and

participants or it will cause problems. Event managers should systematically audit their organization

and events to identify and value platforms and potential benefits to offer, and then target them to either

general types of sponsors or to specific companies. For many events, sponsorship brings a valuable

opportunity for long-term business partnerships that assist in growing not only the event but also theaudience numbers. However, event organisations have to fully understand the management

implications of attracting business partners (Geldard & Sinclair, 2003; Walle, 1995).

4.2 Sponsors’ marketing benefits

An appreciation of the sponsorship effects on event attendees helps to understand the engagement of

businesses and organizations with events. Knowledge and familiarity with a corporate or product

brand, as well as attitudinal and behavioural effects have been linked with event sponsorship. The

sponsor’s investment assisting a festival or sport is believed to create goodwill among attendees, which

in turn influences their attitude and behaviour towards the sponsor’s brand (Rowley & Williams, 2008;

Roy & Cornwell, 2004; Meenagham, 2001). There is an array of marketing benefits of event

sponsorship gained by corporate sponsors, including the following (Bowdin et al, 2011; Getz, 1997):

access to specific niche/target markets; corporate brand image creation/enhancement; building brand

awareness for an organisation and its services/products; influencing consumer attitudes about a product

or service brand; associating a product or service with particular lifestyle; improving relationships with

distribution channel members; achieving product sales and merchandising opportunities;

demonstrating product attributes; and creating goodwill and a climate of consent for an organisation’s

activities.

4.3 Leveraging the sponsorship investmentIt is well documented that sponsorship is an investment (see e.g. Goldblatt, 2008; Masterman, 2007;

Jeffries-Fox, 2005). To fully capitalise on a sponsorship investment, most business and organisations

develop a leveraging strategy (i.e. adding value to the investment) or a range of marketing activities

that extend the sponsorship benefits well beyond the event’s promised offer. Clearly some additional

benefits might be gained from leveraging a sponsorship in target markets with higher levels of event

knowledge – ‘involved’ or ‘highly active’ event consumers are more likely to make an effort to process


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a sponsor’s message (Roy & Cornwell, 2004).That’s why most corporate businesses put an emphasis

on leveraging the sponsorship investment. Literature(see e.g.Bowdin et al, 2011; Gwinner & Bennet,

2007; Cornwell et al, 2006;) suggested a series of factors contributing to a successful leveraging of a

sponsorship, including: dedicated internal marketing strategy, intensive consumer-branding campaign,

dedicated business-to-business marketing campaign, and careful analysis of the fit between the event

organisation and the sponsor’s market (Soteriades & Dimou, 2011).As for the latter, it is worth

stressing thatfit has been defined as the extent of the congruence between the sponsor’s products and

markets and the events. Some studies (e.g. Gwinner & Bennet, 2007; Cornwell et al, 2006) showed

that the greater the fit between sponsor and the event, the more effective the sponsorship will be for

both parties. The ‘fit’ phenomenon leads to significant elements and results, including: good brand

cohesiveness, strong event identification, favourable attitude towards the sponsor, high goodwill, and

purchase intentions.

From the above discussion the author estimates that arises a need to suggest a framework for efficientmanagement of event sponsorship. This framework is presented hereafter.

5. Event Sponsorship: A Management Framework

Just as most corporate will establish a sponsorship policy to guide their decision making, Grey &

Skildum-Reid (2003) strongly recommended that all events seeking sponsorship design a policy to

guide their actions. A policy must lead to a strategy formulation and implementation as well as to the

appropriate management plans.

5.1 Event sponsorship strategy

A strategy means knowing the direction in which the organisation is headed, which also applies to the

event’s sponsorship (Soteriades & Dimou, 2011; Okumus, Altinay, & Chathoth, 2010). Developing an

event sponsorship strategy is a very important task. It will have an interactive relationship with the

event’s marketing strategy, and event managers will need to be creative about how to can integrate the

sponsor’s brand with the event’s marketing plans. For event organisers / managers, this involves

thinking about event attendees / consumers and the fit they might have with corporate brands. It also

involves considering the attributes and values of the event and companies that might share those

values, the blend of sponsors who together might create a close-knit sponsor family and brainstorming

the kinds of partnerships that will grow the event – in other words, enhancing the fit (Bowdin et al,2011). The stages / steps in developing the event sponsorship strategy are illustrated in Figure 2.


Following to the strategy formulation is the stage of implementation consisting of: preparing and

presenting sponsorship proposals, undertaking the sponsorship screening process, and negotiating


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event sponsorship contracts. Once sponsorship has been secured with an agreement, it must be

effectively managed in order to ensure that the benefits that were promised are delivered (Masterman,

2007; Geldard & Sinclair, 2002).

5.2 Managing sponsorships

A sponsorship management plan is essential for successful events, allowing the efficient management

of marketing needs listed in the sponsorship agreement and to build a quality, long-lasting relationship

with event’s sponsors. Ef fective management of sponsorship agreements involves effective

relationships between two parties, built on a strong foundation of communication, commitment and

trust. Geldard &Sinclair(2002) provided a number of suggestions and techniques for effective

sponsorship management, used in ensuring managing sponsorship relations, namely: fully understand

the sponsor’s needs, one written form (contract), motivate events organisation’s staff about the

sponsorship; acknowledge the sponsor at every opportunity, sponsorship launch, media monitoring, proper communication techniques.In other terms, there is a need for sponsorship management plans to

service sponsors.Furthermore, there is a need for monitoring, evaluation and feedback, i.e. the

assessment of the overall impact of the partnership. This task constitutes a shared responsibility of the

event organisation and its sponsor. Jeffries-Fox (2005) estimated that there are two components to

measurement and assessment, namely: (i) the evaluation of partnership’s effec tiveness and how the

sponsor and event have contributed to; and (ii) the measurement of the consumer-related marketing

objectives set by the sponsor. While most events seek some feedback from their sponsors about

effectiveness of their sponsorship management, much more efforts need to be devoted to measuring the

consumer effects of sponsorship. The most common method used is market research.

Based upon the above presented analysis it appears possible to suggest a framework for efficient

management of event sponsorship; in other terms, a framework for a reciprocally beneficial

partnership between event organisations and sponsors. The starting point/cornerstone of this approach

is a mutual understanding of marketing and management needs of both parties involved. The main

steps in determining a management framework for event sponsorship are based on a rational sequence

of steps (Soteriades & Dimou, 2011; Okumus et al, 2010) consisting of policy, strategy (formulation

and implementation), and management of event sponsorship; these stages are briefly presented in Table

3.


The components of the suggested framework are better illustrated into Figure 3.



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It is clear that the above proposed management framework is taking into account the key factors

determining and influencing the event sponsorship’s management. It equally highlights the mutual

interest of both parties – event organisations and corporate business – involved in sponsorship and

simultaneously focusing on two perspectives, namely: marketing (event’s marketing – sponsor’s

integrated communications) and financial (source of income for event – investment for sponsor).

Obviously the event sponsorship must be effectively managed in order to ensure that: (i) the benefits

that were promised are properly delivered; and (ii) positive and enduring relations are developed with

sponsors. One of the critical tasks of management is the assessment of achieved outcomes. This

involves evaluating the partnership’s effectiveness and the mutual and separate contribution of sponsor

and event organisation. As it might be observed in Table 3, this assessment encompasses two

components to measurement and assessment: (i) the effectiveness of sponsorship management; and (ii)

a final evaluation of sponsorship marketing outcomes through a market research.

6.Conclusions: Summary and Recommendations

Sponsorship is now a commonly used component of the integrated marketing communications of many

businesses and organisations. Influences on sponsorship growth worldwide can be found in the

business and marketing environment and in the diversity of consumer and stakeholder benefits that

sponsorships create. From an event organisation’s perspective, sponsorship represents a significant

potential source of revenue. Furthermore, sponsorships are fast becoming business partnerships that

offer resources beyond money. In this paperthe topic of sponsorship has been discussed and the key

issues in managing event sponsorships were explored. The study has provided insights in

understanding the benefits for events and sponsors and has considered the stages in developing the

event sponsorship strategy and the management of sponsorships. Finally, the article has proposed a

framework for efficient management of event sponsorship taking into consideration the marketing and

financial perspectives and the key factors determining a successful partnership. The author estimates

that this framework illustrates the need for understanding, developing and applying a management

approach for obtaining strategic benefits for event organisations and sponsors.

In concluding this paper it is worth formulating a series of recommendations and suggestions to event

organisers and managers in order to render this business partnership effective and mutually beneficial.

It is estimated that a crucial issue is to fully analyse and apprehend the potential costs and benefits of

sponsorship to event organizers and sponsors. It is equally necessary to build attractive sponsorship platforms / proposals into the event organization that provide corporate sector/sponsors with benefits

linked to visibility, networking, and effective integrated communications. To succeed in attracting and

keeping the sponsorship agreements, event organisers must thoughtfully develop policies and

strategies, providing a clear framework for both events and sponsors to decide on the appropriateness

of potential business partnerships. Before looking for potential sponsors the event organisation should

determine the event benefits available for sale and a clear management plan. These two elements


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constitute a very good starting point for seeking sponsorship / business partnership. Furthermore, event

managers have to develop a sponsorship plan including consideration of mutual benefit and risks, the

‘fit’ between event and sponsor. It is strongly recommended that the sponsorship proposal must be

based on comprehensive research of the benefits that the event creates for sponsors and the potential

sponsor. Relationships with sponsors should ideally be on a long-term partnership basis. Additionally,

event organizations must cultivate mutually beneficial relationships and help sponsors get the most

value for their investment, a higher leverage. It is also suggested that a balanced portfolio of sponsors

should be attained; including cash, in-kind, and media benefits; and sponsors must be used to augment

the marketing reach of the event. Finally, the events sponsorship agreements must be properly

managed so that commitments made to sponsors are met and there is a need to perform market and

impact research to assess outcomes and to demonstrate benefits to sponsors. All these elements must

be integral components of an adequate event sponsorship management plan.

References

Andersson, T., & Getz, D. (2008). Stakeholder management: strategies of festivals. Journal of

Convention & Event Tourism, 9, 199-220.

Bowdin, G., Allen, J., O'Toole, W., Harris R., & McDonnell, I. (2011). Events management , 3rd edn.

Oxford: Elsevier Butterworth-Heinemann.

Cornwell, T., Humphreys, M., Maguire, A., Weeks, C., & Tellegen, C. (2006). Sponsorship linked

marketing: the role of articulation in memory. Journal of Consumer Research, 33(3), 312-321.

Cornwell, T., Weeks, C., & Roy, D. (2005). Sponsorship-linked marketing: opening the black box.

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Crompton, J. (1994). Benefits and risks associated with sponsorship of major events. Festival

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Duncan, T. (2002). IMC: Using advertising and promotion to build brands. Boston: McGraw-Hill

Irwin.

Geldard, E., & Sinclair, L. (2002).The sponsorship manual: sponsorship made easy , 2nd edn. Victoria,

Australia: Sponsorship Unit.

Getz, D. (1997). Event management & event tourism. New York: Cognizant Communication

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Grey, A. M., & Skildum-Reid, K. (2003).The sponsorship seeker’s toolkit .2nd edn. Sydney: McGraw-

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Masterman, G. (2007). Sponsorship for a return on investment . Oxford: Butterworth-Heinemann.

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Nadav, S., Smith, W.W., & Canberg, A. (2010).Examining corporate sponsorship of charitable events

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sponsorship. Psychology and Marketing, 21(3), 185-207.

Rowley, J., & Williams, C. (2008).The impact of brand sponsorship of music festivals. Marketing

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Watt, D.C. (1998). Event management in leisure and tourism. Harlow: Longman.


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Tables

Table 1.Event and Stakeholders: Role to and Benefit from Events

Table 1 presents the roles to events, as well as the benefits and impacts from events for the various

stakeholders involved in this field

Stakeholders Role to Events Benefit from Events

1. Host organisation Participation / support Participation / support

2. Participants and spectators Participation / support Entertainment / reward

3. Host community Context Impacts

4. Co-workers Labour / support Payment / reward

5. Media Promotion Editorial / advertising6. Sponsors Money/in-kind Acknowledgement

Source: Retrieved from Bowdin et al., 2011; Getz & Andersson, 2010; Andersson & Getz, 2008.

Table 2. Events – The Corporate Perspective

This table presents in a synoptic way the corporate perspective to events, i.e. the business actors

involved in events and sponsorships, as well as their respective role and aims.

Corporate Actors Involved Role & Goals

(1)Organizers: events are organized by:

1.1. Private sector Marketing purposes; Attractions and image makers.

1.2. Government agencies and public-private

groups

To foster sports, health, or social integration;

appreciation and participation; to create jobs.

1.3. Non- profit or ‘voluntary’ sector To attract revenue and support for multiple

community benefits.

(2) Sponsors and Other Partners Provide money and grants in return for specific

benefits.

(3) Customers: Audience Marketing orientation. Pay for the event experience.


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Table 3. Managing Event Sponsorship: Stages, Tasks and Outcomes

Table 3 summarizes the various stages in developing a strategy and in managing event sponsorship

with the respective tasks and outcomes.

Stages Tasks Outcomes

1. Event sponsorship

strategy formulation

1.1 Profiling the event’s audience Determine the target markets

1.2 Establishing the offering of event Event’s assets / benefits offered

to sponsors

1.3 Building the event sponsorship

list

Establish a list of potential

sponsors

1.4 Matching event’s benefits with

potential sponsors

Sponsorship fit / mutual interest

2. Implementation of

sponsorship strategy

2.1 Preparing sponsorship proposals Present draft proposals

2.2 Undertaking the sponsorship

screening process

Select a short list of sponsors

2.3 Negotiating event sponsorshipcontracts

Sponsorship agreements

3. Managing Event

Sponsorship

Effective sponsorship management of

marketing needs listed in the

sponsorship agreement

A sponsorship management plan

to service sponsors

Managing sponsorship relations Implement the appropriate

techniques

Assessment of the overall impact of

the partnership

Feedback on effectiveness of

managementMeasuring the consumer-related

marketing objectives set by the

sponsor (i.e. consumer effects of

sponsorship)


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Figures

Figure 1. Exchange relationship in event sponsorship

This figure illustrates the rationale of exchange relationship between event organisations and

businesses in sponsorship, as suggested by Crompton (1994).

Source: Crompton, 1994

EVENT ORGANISATION

seeks:

- Financial investment

- In-kind services

- Marketing & media expertise

- Event brand enhancement

- Product and service offers for event

attendees.

BUSINESS

seeks:

- Increased brand awareness

- Brand image enhancement

- Product trial and service exposure

- Sales or hospitality opportunities

- Market interactivity.


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Figure 2. Event Sponsorship Strategy: Steps

Figure 2 illustrates the four stages / steps to be followed in developing and formulating an event

sponsorship strategy.

Profiling the event audience (the

target markets)

Establishing the event’s offering

(event’s assets / benefits offered to

sponsors)

Building the event sponsorship list

(establish a list of potential

sponsors)

Matching event benefits with

potential sponsors (fit / mutual

interest)


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Vol 20, No. 10;Oct 2013


Figure 3. Event Sponsorship: a Management Framework

Figure 3 depicts the various components of the suggested framework for efficient managing of a

mutually beneficial partnership in the field of event sponsorship.

Evaluation & Feedback

EVENTS

Financial & Marketing Concerns

(seeking for funds / income)

CORPORATE / SPONSORS

Marketing Communications &

Investment

(seeking for promotion)

Ma

r

k

e

t

i

n

g

Fi

n

a

n

c

i

a

l

Event Sponsorship Management

(1) Policy: guiding decision making and

actions.

(2) Strategy: knowing the desirable direction

to go.

(3) Management: efficiently organising and

directing sponsorship agreements.

BUSINESS PARTNERSHIP

E

f

f

i

c

i

e

n

c

y

Documents

Events_Sponsorship_A_Framework_for_Effi.pdf