LAP Teaching Guidesembaldwin.weebly.com/uploads/3/8/0/5/38057993/lap_127.pdf4) It’s important that you provide this service, but it sure isn’t cheap. 5) Think about all the money

Selling Sponsorships

Make the Match

Matching events and sponsorsWin-win if the match is right

Striking the deal

Photo by U.S. Embassy Jakarta, Indonesia

Productcc Performance Indicator: PM:013LAPLeadership, Attitude, Performance ...making learning pay!

Selling LAP 127 Performance Indicator: SE:321

Teaching Guide

LAP-SE-127-SP ©2013, MBA Research and Curriculum Center® Make the Match 2

ACKNOWLEDGMENTS

LAP development requires the leadership and active participation of many individuals—instructors, writers, editors, and others. Spe-cial credit is due the following individuals for their contributions to this LAP:

Original Developer: Sarah Bartlett Borich

Final Editing: April J. Miller

Field Test Coordination: Theresa Vozenilek

Production Manager: Mary Carlisi

Production Assistance: Sarah Fedner

Graphics: Christopher C. Burke

Produced and distributed by MBAResearch, a non-profit research and development center, 1375 King Ave., P.O. Box 12279, Columbus, Ohio 43212-0279 Ph: (614) 486-6708. ©2013, by MBA Research and Curriculum Center, Columbus, Ohio.

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TABLE OF CONTENTS 4 So What?

Rationale for studying how to sell sponsorships

4-17 Discussion Guide An outline of the content in the student booklet of LAP-SE-127—Make the Match (Selling Sponsorships). In addition, discussion questions have been included throughout the content to build classroom discussion/interaction.

4-17 Presentation Slides Optional visual support for the LAP can be obtained in graphics presentation soft-ware. The slides to be shown are num-bered within the discussion guide.

17 The Gray Zone An ethical dilemma associated with selling sponsorships.

18 Directions for Activities Directions are provided for four activities that reinforce the lesson. Two of the activi-ties are designed for completion by an individual student, while the other two provide preparation and process informa-tion for group completion.

19 Individual Activity 1: Students match situations with actual benefits that sport/event marketers offer potential sponsors.

21 Individual Activity 2: Students re-search a potential sponsor and write a role-play selling a sponsorship to that company.

18 Group Activity 1: Small groups of stu-dents spend 15-20 minutes identifying and listing potential sponsors or spon-sorship categories.

18 Group Activity 2: Large groups of students prepare sponsorship presentations.

24-26 Total Recall Key Answers to the Total Recall questions found in the student booklet on pages 5 and 8

27-28 Practice Test A two-part test covering main aspects of LAP; 17 short-answer questions and a case study to evaluate skills. The short-answer part of the test can be used as a guide for note taking, as a formative test, as a sum-mative test, etc.

29-32 Practice Test Key Answers to the short-answer questions and the rating scale for the test activity found in the Practice Test

33-37 Posttest A two-part test consisting of 25 multiple- choice questions and a skill-related activity that assess student understanding of and skill in selling sponsorships.

38-42 Posttest Key Descriptive answers to the multiple-choice questions and the rating scale for the test activity found in the Posttest

43 Posttest Grader A listing of correct responses to the multiple-choice questions

44 Glossary Definitions of words defined in the LAP and other words with which students may not be familiar

45-46 Questionnaires Student and teacher questionnaires that can be sent to MBAResearch to improve the LAP


Performance Indicator: Sell sport/event sponsorships (SE:321)

OBJECTIVES

A – Explain why sponsors and sport/event organizers form partnerships.

B – Demonstrate procedures for selling sponsorships. 1-3

DISCUSSION GUIDE OBJECTIVE A (Slides 1-3)

(Slide 4)

• So What? (Why learn how to sell sport/event sponsorships?)

A. You know how to make a sale.

B. You understand the basics of sport/event sponsorships.

C. If you get a job as a sport/event marketer, you’ll be ready to step right up and start selling sponsorships—right?

D. Selling sponsorships is one of the most difficult aspects of a sport/event marketer’s job, as well as one of the most crucial.

DISCUSSION #1: Ask students to discuss why they think selling sponsorships is one of the most difficult and crucial aspects of a sport/event marketer’s job.

1. There’s a big difference between selling sponsorships and selling tickets!

DISCUSSION #2: Ask students what they think the differences are between selling sponsorships and selling tickets.

2. Although ticket sales are a revenue source, they aren’t enough to support a sport/event organization.

a. Sponsorship money is needed to make the sport/event all that it can be.

b. Unfortunately, that sponsorship money has to be sought out—it doesn’t just magically appear.

E. Let’s take an in-depth look at what you need to do for your sport/event to sell sponsorships successfully.

(Slide 5)

• Why sport/event organizations need sponsors

A. Before you begin the process of selling sponsorships, you must take the time to determine what your organization needs to gain from the partnership.


DISCUSSION GUIDE (Obj. A, cont’d) B. Main benefits of sponsorship most sport/event organizations are looking for:

1. Fees

a. Most sport/event organizations want or need the money from the fees sponsors pay to enter into the partnership.

b. For hallmark sport events and professional leagues, sponsorship fees can generate millions and millions of dollars.

DISCUSSION #3: Ask students to identify hallmark sport events that rely heavily on sponsorship dollars. (Examples include the Super Bowl, the Olympics, and professional league All-Star Games and Weekends.)

c. For smaller events, especially ones that are free to the public, sponsorship fees are (of course) much more modest but can be just as (if not more) critical to the event’s financial success.

DISCUSSION #4: Ask students to identify smaller events that rely heavily on sponsorship dollars. (Examples include Little League, community softball tour-naments, and charity fundraisers.)

d. It’s important to look for prospective sponsors that you know can afford to pay your fee.

2. Value in kind

a. Another benefit most sport/event organizations seek from partnerships with spon-sors is lower costs on the goods and services they need.

b. Example:

1) You are working for a baseball team.

2) Before every home game, your team provides visiting coaches, scouts, members of the media, and other important guests a meal in what’s called “the press din-ing room.”

3) You usually serve sandwiches from Subway or have food brought in from the catering company down the street.

4) It’s important that you provide this service, but it sure isn’t cheap.

5) Think about all the money you’d be saving if only you could get that food for free. You can!

6) By offering Subway or the caterer a sponsorship in which it can pay part of or its entire fee by providing food for the press dining room, you create a win-win situation.


DISCUSSION GUIDE (Obj. A, cont’d) 7) Adding a sign to the outfield advertising the caterer or renaming the seventh-

inning stretch the “Subway Seventh-Inning Stretch” costs you a lot less than buying all of that food.

c. These types of arrangements are known as value in kind (VIK).

DISCUSSION #5: Ask students to think of more examples of VIK arrangements. They may be able to identify some examples they’ve heard about in the past, or they may come up with some ideas of their own.

d. VIK arrangements can be very beneficial to sport/event organizations, but you must be careful.

e. When looking for VIK sponsors, keep in mind that the deal is only worthwhile if you’re receiving high-quality goods or services that you would have purchased regardless of the sponsorship agreement.

3. Exploitation

a. Sport/Event organizations are looking for extra advertising and promotion when they create sponsorships.

b. When sponsors enter into a partnership with you, they will do more than just pay for the sponsorship fee.

c. Smart sponsors know that they need to exploit the sponsorship as well.

d. Exploitation refers to a sponsor’s investment in advertising and promoting the organization or event above and beyond the basic partnership.

1) Advertising in stores, in newspapers, on the Internet, on the radio, and on television

2) Offering special promotions designed around the sponsorship

DISCUSSION #6: Ask students to identify examples of sponsorship exploitation they have seen in the past. What types of promotion did they see? Do they think it raised awareness for the event and/or sponsor?

e. All this extra marketing boosts consumer awareness of both the sponsor and the sport/event organization, benefiting both.

f. To maximize the effectiveness of the partnership, most sponsors will spend anywhere from $1.20 to $3 on exploitation for every $1 they spend on the sponsorship fee.

g. It’s important to look for prospective sponsors who understand and are committed to exploiting the agreement.


DISCUSSION GUIDE (Obj. A, cont’d) C. Call a meeting before you begin the sponsorship sales process, and make sure everyone in

your sport/event organization agrees on what your priorities are in searching for sponsors.

(Slide 6)

• Why sponsors need sport/event organizations

A. Sponsors enter into partnerships with sport/event organizations for a variety of reasons, and they place varying values on each reason.

B. As a sport/event marketer selling sponsorships, your job is to:

1. First understand what those reasons are

2. Then determine their specific value to each prospective sponsor you approach

C. Main reasons why sponsors partner with sport/event organizations:

1. Increasing sales

a. Almost every sponsor’s ultimate goal is to sell more of its product.

b. Because of the relationship it forms with a sport/event organization, increased sales are a possibility.

2. Increasing awareness

a. Sponsors are always looking to heighten consumer awareness of their corporate or brand name and their products.

b. Partnering with sport/event organizations is an extremely effective way to achieve that goal.

c. Research shows that sponsorship leads to higher levels of consumer awareness than traditional forms of advertising.

DISCUSSION #7: Ask students to identify companies, brands, and products that they associate with sports and events. Do they agree that sponsorships lead to higher levels of consumer awareness than advertising?

3. Enhancing public relations

a. Most sponsors are trying to either create or maintain a certain image.

b. Associating with a sport/event organization helps them do so.

c. Keep in mind that sponsors are looking for sport entities that display the same char-acteristics and qualities that they want consumers to associate with their products.

d. For example, luxury car makers like to associate with sports that consumers view as “classy,” such as golf or sailing.


DISCUSSION GUIDE (Obj. A, cont’d)

DISCUSSION #8: Ask students to identify more examples of companies sponsor-ing sports and events that align with their desired image. (For example, Moun-tain Dew often sponsors “extreme” sports such as the X-Games to support its edgy image.)

(Slide 7)

4. Meeting/Beating the competition

a. Many times, sponsors will enter into partnerships with sport/event organizations simply because they know that if they don’t, their competitors will.

b. You will find that this motivation can help you sell sponsorships to companies in highly competitive industries.

5. Enhancing relationship marketing

a. One way that sponsors try to increase their business is to establish relationships with their current and prospective clients.

b. Games and events provide a great way for them to spend time with those clients outside an office setting.

c. The special treatment that sponsors receive from the sport/event organization can also make a favorable impression on the guests they bring to the event.

d. Some sponsors are also trying to establish a relationship with the community.

1) If you are selling sponsorships for a charity event, these prospective sponsors should be at the top of your list.

6. Reaching target markets

a. Sponsoring games and events is one of the easiest ways a company can reach a specific target market.

b. Fans of certain sports and events tend to have similar interests, so sponsorship allows a company to reach a large market segment all at once.

• Knowing what sponsors hope to achieve by entering into a partnership with your sport/event organization is important, but it’s only the beginning.

A. You must know how to meet those needs with specific benefits.

(Slide 8)

B. Some of the actual benefits prospective sponsors will be looking for include:

1. Product positioning

a. Sponsors love this benefit.

b. It simply means you will use or make their products available at your game or event.


DISCUSSION GUIDE (Obj. A, cont’d) c. Examples:

1) If Coke is your sponsor, all your concession stands will serve Coke.

2) If Reebok is your sponsor, all your athletes will wear Reebok gear.

2. Advertising

a. Advertising opportunities abound at games and events.

b. You name it, and you can turn it into a way to plug your sponsors’ names.

1) Signs near the playing area

2) PA announcements

3) Logos on the scoreboard

4) Promotions during intermission

c. Before you begin contacting potential sponsors, your marketing team should make a complete and detailed list of all the advertising opportunities you’ll be able to provide.

3. Public relations

a. When the media covers a game or event, the public tends to view its stories as more believable and less biased than other sources, such as advertisements.

b. And if a sponsor chooses to become the title sponsor of the event, the media will mention its name a great number of times, providing a great deal of exposure.

c. Examples:

1) The Allstate Sugar Bowl

2) The BMW PGA Championship

DISCUSSION #9: Ask students to list as many events with title sponsors as they can. Do they feel the media exposure that title sponsors receive is more believ-able and less biased than other sources such as advertisements?

(Slide 9)

4. Hospitality opportunities

a. Hospitality is the key to relationship marketing at games and events.

b. When sponsors can treat their clients and special guests, they can make the sale faster.

c. Examples:

1) Premium seating in a luxury box

2) Exclusive private parties

3) The opportunity to meet athletes or celebrities


DISCUSSION GUIDE (Obj. A, cont’d) d. If your sport/event organization has great opportunities for hospitality, make

sure your list of prospective sponsors includes several large, business-to-business companies.

1) These are companies that sell their products to other businesses rather than to the general public.

2) These companies tend to make bigger deals that involve more money.

3) They rely more heavily on relationship marketing than other companies do.

5. Exclusivity

a. Sponsors are willing to pay a lot for the right to be the exclusive provider of their product for your sport/event organization.

b. In an intensively competitive market, offering potential sponsors an environment that is free from the competition is one of the best ways to sell them on the partnership.

6. “Ownership”

a. When a game or event acquires too many sponsors, the audience can get overloaded with messages and start to tune everything out.

DISCUSSION #10: Ask students if they have ever felt “overloaded” with sponsor-ship messages at a game or event. Where were they? What was the experience like?

b. Prospective sponsors want assurance that they won’t get “lost in the crowd,” so it’s a good idea to offer them some sort of ownership in the event.

c. Example:

1) If you are presenting a sponsorship opportunity to Burger King, you could offer components such as:

i) “The Burger King Player of the Game”

ii) “The Burger King Halftime Show”

(Slide 10)

7. Sales and sampling opportunities

a. Sponsors are attracted to the benefit of being able to set up their own booth or table at the game or event in order to:

1) Demonstrate their products

2) Pass out coupons

3) Provide samples or taste tests


DISCUSSION GUIDE (Obj. A, cont’d) 8. Fundraising opportunities

a. Many potential sponsors are looking for ways to connect with and give back to the community.

b. Sponsorship provides a way for them to highlight their special causes and raise money for the charities they support.

C. It’s important to know exactly what your sport/event organization has to offer in terms of actual benefits before you begin the sponsorship sales process.

D. A good way to start is to create a standard package of benefits that you can then customize for each prospect.

OBJECTIVE B (Slide 11)

(Slide 12)

• How to sell sport/event sponsorships successfully:

A. Research and target your potential sponsors.

1. You already have a lot of this step completed by knowing your event and what it has to offer.

DISCUSSION #11: Ask students to explain how knowing your event and what it has to offer helps you get an idea of who your potential sponsors are.

2. But out of all the potential sponsors out there, how do you know which specific companies you should contact?

3. You’ll need to do a bit more research.

(Slide 13)

4. You can find a wealth of information about companies by looking through:

a. Industry-specific trade magazines

b. Business periodicals such as The Wall Street Journal or Bloomberg Businessweek

c. Websites such as www.hoovers.com or www.ipl.org (the Internet Public Library)

d. The companies’ own websites as well as their annual reports

(Slide 14)

5. So what kind of information are you looking for?

a. Try to determine as much as you can about the company’s customer base.

1) Does it match the same demographic characteristics of your fans?


DISCUSSION GUIDE (Obj. B, cont’d) b. Research the company’s sponsorship history, if it has one.

1) What other sports or events does it currently sponsor or did it sponsor in the past?

2) Find out what sports or events the company’s competitors sponsor as well.

c. And pay close attention to the company’s financial status.

1) Would it make a sound business partner for your organization?

2) Do its products make it a good candidate for a VIK arrangement?

d. The answers to all these questions should help you narrow down the list of potential sponsors to contact.

(Slide 15)

B. Tailor the sponsorship package for each specific prospect.

1. The research you conducted in Step One should help you understand what specific benefits the prospective sponsor will value the most.

2. Take your standard sponsorship package and make alterations according to your prospective sponsor’s values, adding and deleting benefits as necessary.

3. Let’s say you have established and priced four basic levels of sponsorship:

a. Title sponsorship

1) The most expensive level

2) One sponsor whose name will become part of the event name (such as the Sprint Cup Racing Series)

b. Presenting sponsorship

1) Similar to title sponsorship, except the sponsor’s name comes after the event name (such as The Grand Ole Opry presented by Cracker Barrel Country Store)

2) May have more than one presenting sponsor

c. Exclusive sponsorship

1) Also called “official partners” or “official suppliers”

2) Exclusive only to their specific category (soft drink, credit card, financial services, etc.)

DISCUSSION #12: Ask students to brainstorm and come up with as many differ-ent sport/event sponsorship categories as possible within a specific time limit.

d. Nonexclusive sponsorship

1) Sponsors share category with other sponsors

2) Works well for small, community events such as Little League


DISCUSSION GUIDE (Obj. B, cont’d) e. Each of these levels has a certain package of benefits attached.

f. Based on your prospective sponsor’s marketing needs and financial status, you can start with one of these levels of sponsorship and go from there.

g. Example—if you are approaching Pepsi about becoming your exclusive soft drink sponsor, you may want to place more emphasis on product positioning and sampling opportunities than on hospitality or public relations.

h. Remember that every sponsor is different, so every sponsorship package should be as well.

(Slide 16)

C. Present the sponsorship opportunity.

1. Now you have a sponsorship proposal that’s perfectly suited to your prospective spon-sor’s needs.

2. Make the initial contact with the company, and ask for a face-to-face meeting with the decision makers you’ll need to convince.

a. The best way to present a sponsorship opportunity is in person.

b. Only send your materials through the mail if you absolutely cannot get a meeting.

3. When you do get a face-to-face opportunity, it’s crucial that you show up fully prepared to make your presentation.

4. Basic outline to follow for your verbal presentation:

a. Create interest in your organization or event.

1) In five minutes or fewer, make the case for why your organization or event is extraordinary.

2) This is when you should “brag” a little about your organization and the top-notch product you provide to the public.

i) Paint an exciting picture for the prospective sponsor about who you are and why your event is so wonderful.

3) Give some vital statistics, too, regarding the success of your event(s) in the past.

4) You might want to include some positive quotes about the event from attendees or media coverage.

b. Create interest in the sponsorship opportunity.

1) In five minutes or fewer, give an overview of the sponsorship opportunities your organization or event provides, as well as the demographic characteristics of your fan base.


DISCUSSION GUIDE (Obj. B, cont’d) 2) Reinforce the benefits of sponsorship with your organization by providing

examples of your past sponsors’ success with you.

i) It’s always a good idea to include a quote or testimonial from them if possible.

c. Give event details.

1) In fewer than 10 minutes, give a detailed description of your event, including when and where it will be.

2) And don’t just talk about the event—show the event!

3) Provide the decision makers with pictures, maps, schedules, and any other visual aids that will help illustrate your words.

DISCUSSION #13: Ask students for more ideas on how they could creatively show the event to the prospective sponsor, rather than just talk about it.

d. Explain how the prospective sponsor can get involved.

1) This is the heart of your presentation.

2) Present the decision makers with the sponsorship package you have specifically tailored for their company.

3) Show them how your proposal aligns with their objectives and provides solutions to their marketing needs.

4) Remember to emphasize the benefits of sponsorship, which go far beyond the actual tangible components you’re offering.

5) Try to keep this portion of your presentation around 10 minutes or fewer.

e. Ask for the sale.

1) Your presentation should conclude with a call to action.

2) If your prospective sponsor is ready to jump on board, great!

i) Schedule a time for your attorneys to get together to work out the details of the sponsorship contract.

3) But if your prospective sponsor isn’t ready to make a decision on the spot (which is common), assure the decision makers that you’ll be willing to change the pro-posal if they can identify ways it can better suit their needs.

4) Always leave one of your business cards with each person at the meeting.

5. Your verbal presentation to the decision makers is only half the battle.

a. It’s also crucial that you leave a packet of information behind when you leave the meeting so the decision makers can review your proposal.


DISCUSSION GUIDE (Obj. B, cont’d) 1) The packet should restate all the highlights of your presentation.

2) Include extra copies of the visual aids you used.

3) Keep it relatively simple.

4) Organize the information in the same sequence you used in your verbal presentation.

5) A video may be appropriate as well, but only if it is short.

6. Additional tips for a sponsorship presentation that avoids potential pitfalls:

a. Make sure you have everything set up in the conference room before the meeting begins.

1) Decision makers aren’t interested in watching you:

i) Boot up your computer

ii) Shuffle through your handouts while they wait for you to start

b. Never take the presentation past 30 minutes.

DISCUSSION #14: Ask students why they think it is a bad idea to make a sponsor-ship presentation that lasts longer than 30 minutes.

1) Even if you have a great deal of information you’d like to include, you will not be able to hold the decision makers’ attention or interest past the half-hour point.

c. Bring a small gift for each of the decision makers, such as an event T-shirt or cap.

d. Practice makes perfect.

1) Rehearse your presentation beforehand so you can smooth out any of the rough parts before the real thing.

e. Stand still as you’re speaking.

f. Make eye contact with each of the decision makers throughout your presentation.

g. Try to avoid verbal pauses, such as “uh” and “um.”

h. Speak slowly.

i. Be prepared to answer questions.

1) Encourage the decision makers to make the presentation interactive, asking questions and adding their thoughts throughout.

2) It’s a great way for you to evaluate how they’re reacting to the proposal.

3) If you’re asked a question you can’t answer, be honest and say so.

i) Tell the decision makers you’ll get the answer for them within the next business day.


DISCUSSION GUIDE (Obj. B, cont’d) (Slide 17)

D. Revise the proposal, if necessary.

1. After you’ve made your presentation and gotten feedback from your prospective spon-sor, you’ll be able to fine tune the proposal even further.

2. Then, ask the decision makers if you can return and present the revised proposal to them in person.

a. Don’t repeat the entire presentation—just the parts where you made changes.

b. Be prepared to answer more questions as well as to make more revisions on the spot, if necessary.

c. At this point, you want to close the deal.

d. If the prospective sponsor seems ready to say yes, offer to send them a letter of agreement that summarizes the proposal.

e. You won’t be able to iron out every bit of the negotiations yourself.

f. Both parties will use attorneys to draft an official sponsorship contract, but a letter of agreement gets the deal underway.

3. Sometimes, the prospective sponsor will still need more time to think about the pro-posal before making a decision.

a. If this is the case, don’t be discouraged.

b. Use your time to create and present sponsorship proposals for even more prospective sponsors.

c. The more proposals you make, the greater your chances for sales success.


DISCUSSION GUIDE (cont’d) (Slide 18)

• The Gray Zone

A. Category exclusivity is one of the top benefits sponsors want from their partnerships with sport/event organizations.

1. Sponsors are willing to pay top dollar for the right to position their products in a compe-tition-free environment.

B. But the concept of exclusivity can be a tricky one and can create some tough situations for sport/event marketers selling sponsorships.

C. Let’s say you are working on a sponsorship deal with Chevrolet.

1. Your proposal offers the company the opportunity to be the “official automobile manu-facturer” of your event.

2. Chevy signs the deal, and then a few weeks later, you get a hot lead on Budget Rent-a-Car Company.

a. Apparently this company is interested in sponsoring your event as well.

b. Budget Rent-a-Car Company provides a wide variety of rental cars to its customers, including Chevrolets, but also including Hondas, Toyotas, Saturns, and many other brands of automobiles.

D. Since Budget is a car rental company and Chevrolet is a car manufacturer, their sponsor-ships fall into two separate categories.

E. When Chevy signed the sponsorship contract, its attorneys did not request any limitations or restrictions in any other categories, so you’re free to form a partnership with Budget as well.

F. When executives from Chevy settle down into their seats at your event, they’re shocked to see their signage right next to Budget signage that features their competitors’ automobiles!

G. When they confront you, you remind them that they still have exclusivity in their own category and that they did not request any specific restrictions for rental car company sponsorships.

H. It’s just business, right?

I. You didn’t break any laws or violate any sponsorship agreements.

J. But were your actions ethical?

K. What should you have done in this situation?


DIRECTIONS TO THE INSTRUCTOR Individual Activities

These activities are designed to reinforce individual student understanding and skill development in selling sport/event sponsorships. Read the two exercises, and select the one that better meets the individual’s needs.

1. Duplicate the handout Selling Benefits on page 19. When the student has completed the activity, give her/him a copy of the answer guide on page 20.

2. Duplicate the handout Researching Your Target Sponsors on page 21. When the student has completed the activity, give him/her a copy of the rating scale on page 22.

Group Activities

These activities are designed to provide group reinforcement and skill development in selling sport/event sponsorships. Read the two activities, and select the one better suited to the group’s needs.

1. Preparation: Choose any sport/event you like. On the board, list all the benefits that the event can provide to sponsors (refer to the core narrative, if necessary).

Process: Divide the class into groups of three or four students each. Explain that each group is selling sponsorships for this sport/event. Ask each group to spend 15–20 minutes identifying and listing potential sponsors or sponsorship categories. When they’re fin-ished, ask each group to present its ideas to the class.

2. Preparation: Duplicate a copy of the rating scale found on page 23—one per student.

Process: Divide the class in half. Assign each group a different team, league, or event to sell sponsorships for, or let them choose their own. Ask each group to choose a potential sponsor they would like to make a presentation to. Give them enough time to prepare a sponsorship presentation following the steps listed in the core narrative. Ask each group to present its sponsorship proposal to the other half of the class as if they were the deci-sion makers from the potential sponsor company. The “potential sponsors” should use the rating scale to critique the other group’s presentation.


SELLING BENEFITS Directions: For each of the following situations, choose which benefit you’re offering to the

potential sponsor. Some may have more than one possible answer. Record your answers on a separate sheet of paper.

Product positioning Fundraising Advertising

Sales and sampling opportunities Public relations

“Ownership” Hospitality opportunities

Exclusivity

1. Your sponsorship proposal to iPod offers the company the opportunity to create an “iPod Station” in the venue that allows fans to charge their iPods and other electronic devices.

2. You offer State Farm Insurance the opportunity to become title sponsor of your event. Now when the event gets media coverage, reporters will refer to it as “The State Farm Basketball Classic.”

3. By accepting your sponsorship proposal, Google is now the only Internet search engine affili-ated with your event.

4. Your sponsorship proposal to Volkswagen includes several signs near the playing surface that feature its company’s name and logo, as well as photographs of its automobiles.

5. By sponsoring your team, Pepsi ensures that all your concession stands will serve its soft drinks instead of Coke’s. Every time fans go to the concession stands, they will see Pepsi products.

6. You offer the local newspaper the opportunity to sponsor your team, and since they are running a series of special articles on the stray pet population, you include in your proposal the opportunity for them to place donation containers by the entrances to support the city’s shelter.

7. Microsoft is a company that relies heavily on business-to-business sales. You offer them their own suite at your venue, complete with full catering service and locker room passes, as part of your sponsorship proposal to them.

8. The Olive Garden doesn’t want to get “lost in the crowd” of other sponsors at your event, so you offer them the opportunity to present one player each game with “The Olive Garden Player of the Game Award.”

9. As part of your sponsorship deal with Nike, the players in your league will wear Nike gear at all games, instead of Reebok or Adidas. Every fan that attends the game or watches on televi-sion will see the Nike equipment being used.

10. As part of your sponsorship proposal, you offer Visa the opportunity to set up tables in your venue for fans to apply for credit cards.


SELLING BENEFITS—ANSWER GUIDE

Product positioning Fundraising Advertising

Sales and sampling opportunities Public relations

“Ownership” Hospitality opportunities

Exclusivity

1. Your sponsorship proposal to iPod offers the company the opportunity to create an “iPod Station” in the venue that allows fans to charge their iPods and other electronic devices. Sales and sampling opportunities

2. You offer State Farm Insurance the opportunity to become title sponsor of your event. Now when the event gets media coverage, reporters will refer to it as “The State Farm Basketball Classic.” Public relations (could also be “Ownership”)

3. By accepting your sponsorship proposal, Google is now the only Internet search engine affili-ated with your event. Exclusivity

4. Your sponsorship proposal to Volkswagen includes several signs near the playing surface that feature its company’s name and logo, as well as photographs of its automobiles. Advertising

5. By sponsoring your team, Pepsi ensures that all your concession stands will serve its soft drinks instead of Coke’s. Every time fans go to the concession stands, they will see Pepsi products. Product positioning (could also be Sales & sampling opportunities or Exclusivity)

6. You offer the local newspaper the opportunity to sponsor your team, and since they are running a series of special articles on the stray pet population, you include in your proposal the opportunity for them to place donation containers by the entrances to support the city’s shelter. Fundraising

7. Microsoft is a company that relies heavily on business-to-business sales. You offer them their own suite at your venue, complete with full catering service and locker room passes, as part of your sponsorship proposal to them. Hospitality opportunities

8. The Olive Garden doesn’t want to get “lost in the crowd” of other sponsors at your event, so you offer them the opportunity to present one player each game with “The Olive Garden Player of the Game Award.” “Ownership”

9. As part of your sponsorship deal with Nike, the players in your league will wear Nike gear at all games, instead of Reebok or Adidas. Every fan that attends the game or watches on televi-sion will see the Nike equipment being used. Product positioning (could also be Exclusivity)

10. As part of your sponsorship proposal, you offer Visa the opportunity to set up tables in your venue for fans to apply for credit cards. Sales and sampling opportunities


RESEARCHING YOUR TARGET SPONSORS Directions: Respond to each part of the activity. When you have finished, ask your instructor for

a copy of the rating scale. Choose a team, league, or event that you’d like to work for in sport/event marketing someday. Your job is to sell sponsorships for this team, league, or event.

Identify two potential sponsors you should contact. Research the companies, and find out as much information about them as you can. Try to determine facts about each company’s customer base, sponsorship history, competition, and financial status.

Good resources include trade magazines, business periodicals, and the Internet, including websites such as www.hoovers.com and the companies’ own sites.

Synthesize your research into a one-and-a-half to two-page paper for your teacher. Be sure to explain whether or not your findings support each company as a good potential sponsor choice for your team, league, or event.

Write a role-play situation in which you sell sponsorship opportunities for your sport/event to the selected company.


RESEARCHING YOUR TARGET SPONSORS—RATING SCALE Directions: Circle the appropriate value. Poor Fair

Good

Excellent

1. Researched potential sponsors’ customer bases, sponsorship histories, competition, and financial status

0 1–2 3–4 5

2. Thoroughly explained findings in paper 0 1–2 3–4 5

3. Tailored presentation to specific sponsor’s needs

0 1–2 3–4 5

4. Asked potential sponsor’s decision makers for a face-to-face meeting

0 1–2 3–4 5

5. Created interest in organization/event 0 1–2 3–4 5

6. Created interest in the sponsorship opportunity

0 1–2 3–4 5

7. Gave event details, using visual aids 0 1–2 3–4 5

8. Explained how potential sponsor can get involved

0 1–2 3–4 5

9. Emphasized benefits over tangible components

0 1–2 3–4 5

10. Asked for the sale 0 1–2 3–4 5


RATING SCALE FOR GROUP ACTIVITY #2 Directions: Circle the appropriate value.

Poor Fair

Good

Excellent

1. Created interest in the organization or event using vital statistics and positive quotes

0 1–2 3–4 5

2. Created interest in the sponsorship opportunity, including demographic data and past examples of success

0 1–2 3–4 5

3. Gave event details using visual aids 0 1–2 3–4 5

4. Explained how prospective sponsor could get involved by presenting a customized sponsorship package

0 1–2 3–4 5



TOTAL RECALL KEY OBJECTIVE A (Page 5 of student LAP)

1. Most sport/event organizations want or need the money from the fees sponsors pay to enter into the partnership. For hallmark sport events and professional leagues, sponsorship fees can generate millions and millions of dollars. For smaller events, sponsorship fees are much more modest but can be just as critical to the event’s financial success. Another benefit most sport/event organizations seek from partnerships with sponsors is lower costs on the goods and services they need. These types of arrangements are known as value in kind (VIK). Sport/Event organizations are also looking for extra advertising and promotion when they create sponsorships. When sponsors enter into a partnership with you, they will do more than just pay for the sponsorship fee. Smart sponsors know that they need to exploit the sponsorship as well. Exploitation refers to a sponsor’s investment in advertising and promot-ing the organization or event above and beyond the basic partnership.

2. Sport/Event organizations are always looking for lower costs on the goods and services they need. Let’s say you are working for a baseball team. Before every home game, your team pro-vides visiting coaches, scouts, members of the media, and other important guests a meal in what’s called “the press dining room.” You usually serve sandwiches from Subway or have food brought in from the catering company down the street. It’s important that you provide this service, but it sure isn’t cheap. By offering Subway or the caterer a sponsorship in which it can pay part of or its entire fee by providing food for the press dining room, you create a win-win situation. Adding a sign to the outfield advertising the caterer or renaming the seventh-inning stretch the “Subway Seventh-Inning Stretch” costs you a lot less than buying all of that food. These types of arrangements are known as value in kind (VIK). VIK arrangements can be very beneficial to sport/event organizations, but you must be careful. When looking for VIK sponsors, keep in mind that the deal is only worthwhile if you’re receiving high-quality goods or services that you would have purchased regardless of the sponsorship agreement.

3. Sport/Event organizations are looking for extra advertising and promotion when they create sponsorships. When sponsors enter into a partnership with you, they will do more than just pay for the sponsorship fee. Smart sponsors know that they need to exploit the sponsorship as well. Exploitation refers to a sponsor’s investment in advertising and promoting the organi-zation or event above and beyond the basic partnership. This includes advertising in stores, in newspapers, on the Internet, on the radio, and on television, as well as offering special pro-motions designed around the sponsorship. All this extra promotion boosts consumer aware-ness of both the sponsor and the sport/event organization, benefiting both. To maximize the effectiveness of the partnership, most sponsors will spend anywhere from $1.20 to $3 on exploitation for every $1 they spend on the sponsorship fee. It’s important to look for pro-spective sponsors who understand and are committed to exploiting the agreement.

4. Answers will include increasing sales, increasing awareness, enhancing public relations, meet-ing/beating the competition, enhancing relationship marketing, and reaching target markets.


TOTAL RECALL KEY (cont’d) 5. One way that sponsors try to increase their business is to establish relationships with their

current and prospective clients. Games and events provide a great way for them to spend time with those clients outside an office setting. The special treatment that sponsors receive from the sport/event organization can also make a favorable impression on the guests they bring to the event.

6. Answers will include product positioning, advertising, public relations, hospitality opportunities, exclusivity, “ownership,” sales and sampling opportunities, and fundraising opportunities.

7. It is possible to have too much of a good thing. When a game or event acquires too many sponsors, the audience can get overloaded with messages and start to tune everything out. Prospective sponsors want assurance that they won’t get “lost in the crowd,” so it’s a good idea to offer them some sort of ownership in the event.

OBJECTIVE B (Page 8 of student LAP)

1. Try to determine as much as you can about the company’s customer base—does it match the same demographic characteristics of your fans? Research the company’s sponsorship history, if it has one—what other sports or events does it currently sponsor or did it sponsor in the past? Find out what sports or events the company’s competitors sponsor as well. And pay close attention to the company’s financial status—would it make a sound business partner for your organization? Do its products make it a good candidate for a VIK arrangement? The answers to all these questions should help you narrow down the list of potential sponsors to contact.

2. Four levels of sponsorship include:

• Title sponsorship—the most expensive level; one sponsor whose name will become part of the event name

• Presenting sponsorship—similar to title sponsorship, except the sponsor’s name comes after the event name; may have more than one presenting sponsor

• Exclusive sponsorship—also called “official partners” or “official suppliers”; exclusive only to their specific category (soft drink, credit card, financial services, etc.)

• Nonexclusive sponsorship—sponsors share category with other sponsors; works well for small, community events such as Little League

3. The five parts of the sponsorship presentation process include:

Part One—creating interest in your organization or event Part Two—creating interest in the sponsorship opportunity Part Three—giving event details Part Four—explaining how the prospective sponsor can get involved Part Five—asking for the sale


TOTAL RECALL KEY (cont’d) 4. Your verbal presentation to the decision makers is only half the battle. It’s also crucial that

you leave a packet of information behind when you leave the meeting so the decision makers can review your proposal. The packet should restate all the highlights of your presentation and include extra copies of the visual aids you used. Keep it relatively simple and organize the information in the same sequence you used in your verbal presentation. A video may be appropriate as well, but only if it is short.

5. Answers will include any three of the following additional tips for successful sponsorship presentations:

• Make sure you have everything set up in the conference room before the meeting begins.

• Never take the presentation past 30 minutes.

• Bring a small gift for each of the decision makers, such as an event T-shirt or cap.

• Rehearse your presentation beforehand so you can smooth out any of the rough parts before the real thing.

• Stand still as you’re speaking, and make eye contact with each of the decision makers throughout your presentation. Try to avoid verbal pauses, such as “uh” and “um,” and speak slowly.

• Be prepared to answer questions! Encourage the decision makers to make the presenta-tion interactive, asking questions and adding their thoughts throughout. It’s a great way for you to evaluate how they’re reacting to the proposal. If you’re asked a question you can’t answer, be honest and say so. Tell the decision makers you’ll get the answer for them within the next business day.

6. If your prospective sponsor isn’t ready to make a decision on the spot (which is common), as-sure the decision makers that you’ll be willing to change the proposal if they can identify ways it can better suit their needs. After you’ve gotten feedback from your prospective sponsor, you’ll be able to fine tune the proposal even further. Then, ask the decision makers if you can return and present the revised proposal to them in person. Don’t repeat the entire presenta-tion—just the parts where you made changes. Be prepared to answer more questions as well as to make more revisions on the spot, if necessary. Sometimes, the prospective sponsor will still need more time to think about the proposal before making a decision. If this is the case, don’t be discouraged. Use your time to create and present sponsorship proposals for even more prospective sponsors. The more proposals you make, the greater your chances for sales success.


PRACTICE TEST

Part I—60 points

Directions: Answer each of the following questions. Use a separate sheet of paper to record your responses.

OBJECTIVE A

1. What are the three main benefits of sponsorship that most sport/event organizations are looking for? (3 points; 1 point each)

2. Explain value in kind (VIK). (4 points)

3. Explain sponsorship exploitation. (4 points)

4. List at least three reasons why companies enter into sponsorship agreements with sport/ event organizations. (3 points; 1 point each)

5. How can sponsorships enhance a company’s public relations? (3 points)

6. Explain how sponsorships can impact relationship marketing. (3 points)

7. Why do potential sponsors value exclusivity? (3 points)

8. Describe the concept of sponsor “ownership.” (3 points)

OBJECTIVE B

9. What information should you seek to find about potential sponsors during the research step? (3 points)

10. List and describe the four basic levels of sponsorship. (4 points; 1 point each)

11. List the five steps in the basic outline of a sponsorship presentation. (5 points; 1 point each)

12. How can you create interest in your organization/event when speaking to potential sponsors? (4 points)

13. How can you create interest in the sponsorship opportunity when speaking to potential sponsors? (4 points)

14. What is the best way to give event details when speaking to potential sponsors? (4 points)

15. Describe what kind of information you should leave behind after you’ve made your presenta-tion to a potential sponsor. (4 points)

16. List at least three additional tips for making a good impression at a sponsorship presentation. (3 points; 1 point each)

17. What should you do if the potential sponsor isn’t ready to make a decision after hearing your revised proposal? (3 points)


PRACTICE TEST (cont’d)

Part II—40 points

Directions: You just got a job in the marketing department of an Arena Football League team. Your boss wants you to start selling sponsorships right away. The team’s main pri-orities in forming partnerships with sponsors are fees and exploitation.

Demonstrate your skill at selling sponsorships by writing a plan for how you will approach the task your team has given you. You may assume details such as the actual benefits you’ll be able to offer. Use a separate sheet of paper to record your response.

Suggested Criteria Levels: Part I—48 points

Part II—32 points


PRACTICE TEST KEY

Part I—60 points OBJECTIVE A

1. While every sport/event organization’s specific goals will be unique, there are a few main benefits of sponsorship that most are looking for. First, most sport/event organizations want or need the money from the fees sponsors pay to enter into the partnership. Another benefit most sport/event organizations seek from partnerships with sponsors is lower costs on the goods and services they need. These types of arrangements are known as value in kind (VIK). Sport/Event organizations are also looking for extra advertising and promotion when they create sponsorships. When sponsors enter into the partnership, they do more than just pay the sponsorship fee. Smart sponsors know that they need to exploit the sponsorship as well. Exploitation refers to a sponsor’s investment in advertising and promoting the organization or event above and beyond the basic partnership. (3 points; 1 point each)

2. Most sport/event organizations seek from sponsor partnerships the benefit of lower costs on the goods and services they need. Let’s say you are working for a baseball team. Before every home game, your team provides visiting coaches, scouts, members of the media, and other important guests a meal in what’s called “the press dining room.” You usually serve sand-wiches from Subway or have food brought in from the catering company down the street. It’s important that you provide this service, but it sure isn’t cheap. Think about all the money you’d be saving if only you could get that food for free. You can! By offering Subway or the caterer a sponsorship in which it can pay part of or its entire fee by providing food for the press dining room, you create a win-win situation. Adding a sign to the outfield advertising the caterer or renaming the seventh-inning stretch the “Subway Seventh-Inning Stretch” costs you a lot less than buying all of that food. These types of arrangements are known as value in kind (VIK). VIK arrangements can be very beneficial to sport/event organizations, but you must be careful. When looking for VIK sponsors, keep in mind that the deal is only worthwhile if you’re receiving high-quality goods or services that you would have purchased regardless of the sponsorship agreement. (4 points)

3. Exploitation refers to a sponsor’s investment in advertising and promoting the organization or event above and beyond the basic partnership. This includes advertising in stores, in newspa-pers, on the Internet, on the radio, and on television, as well as offering special promotions designed around the sponsorship. All this extra marketing boosts consumer awareness of both the sponsor and the sport/event organization, benefiting both. To maximize the effec-tiveness of the partnership, most sponsors will spend anywhere from $1.20 to $3 on exploita-tion for every $1 they spend on the sponsorship fee. It’s important to look for prospective sponsors who understand and are committed to exploiting the agreement. (4 points)

4. Answers will include at least three of the following reasons why companies enter into spon-sorship agreements with sport/event organizations—increasing sales, increasing awareness, enhancing public relations, meeting/beating the competition, enhancing relationship market-ing, and reaching target markets. (3 points; 1 point each)


PRACTICE TEST KEY (cont’d) 5. Sponsorships can enhance a company’s public relations by helping it build an image.

Most sponsors are trying to either create or maintain a certain image. Associating with a sport/event organization helps them do so. Sponsors look for sport entities that display the same characteristics and qualities that they want consumers to associate with their products. For example, luxury car makers like to associate with sports that consumers view as “classy,” such as golf or sailing. (3 points)

6. One way that sponsors try to increase their business is to establish relationships with their current and prospective clients. Games and events provide a great way for them to spend time with those clients outside an office setting. The special treatment that sponsors receive from the sport/event organization can also make a favorable impression on the guests they bring to the event. (3 points)

7. Sponsors are willing to pay a lot for the right to be the exclusive provider of their product for your sport/event organization. In an intensively competitive market, they value the oppor-tunity to promote their products in an environment free from the competition. (3 points)

8. It is possible to have too much of a good thing. When a game or event acquires too many sponsors, the audience can get overloaded with messages and start to tune everything out. Prospective sponsors want assurance that they won’t get “lost in the crowd,” so it’s a good idea to offer them some sort of ownership in the event. For example, if you are presenting a sponsorship opportunity to Burger King, you could offer components such as “The Burger King Player of the Game” or “The Burger King Halftime Show.” (3 points)

OBJECTIVE B

9. Try to determine as much as you can about the company’s customer base. Does it match the same demographic characteristics of your fans? Research the company’s sponsorship history, if it has one. What other sports or events does it currently sponsor or did it sponsor in the past? Find out what sports or events the company’s competitors sponsor as well. And pay close attention to the company’s financial status. Would it make a sound business partner for your organization? Do its products make it a good candidate for a VIK arrangement? The answers to all these questions should help you narrow down the list of potential sponsors to contact. (3 points)

10. The four basic levels of sponsorship are as follows: (4 points; 1 point each)

Title sponsorship—the most expensive level; one sponsor whose name will become part of the event name (such as the Sprint Cup Racing Series)

Presenting sponsorship—similar to title sponsorship, except the sponsor’s name comes after the event name (such as The Grand Ole Opry presented by Cracker Barrel Country Store); may have more than one presenting sponsor

Exclusive sponsorship—also called “official partners” or “official suppliers”; exclusive only to their specific category (soft drink, credit card, financial services, etc.)

Nonexclusive sponsorship—sponsors share category with other sponsors; works well for small, community events such as Little League


PRACTICE TEST KEY (cont’d) 11. The five steps in the basic outline of a sponsorship presentation are as follows: (5 points; 1 point each) Step One—Create interest in your organization or event. Step Two—Create interest in the sponsorship opportunity. Step Three—Give event details. Step Four—Explain how the prospective sponsor can get involved. Step Five—Ask for the sale. 12. In five minutes or fewer, make the case for why your organization or event is extraordinary.

This is when you should “brag” a little about your organization and the top-notch product you provide to the public, painting an exciting picture for the prospective sponsor about who you are and why your event is so wonderful. Give some vital statistics, too, regarding the success of your event(s) in the past. You might want to include some positive quotes about the event from attendees or media coverage. (4 points)

13. In five minutes or fewer, give an overview of the sponsorship opportunities your organization or event provides, as well as the demographic characteristics of your fan base. Reinforce the benefits of sponsorship with your organization by providing examples of your past sponsors’ success with you. It’s always a good idea to include a quote or testimonial from them if possible. (4 points)

14. In fewer than 10 minutes, give a detailed description of your event, including when and where it will be. And don’t just talk about the event—show the event! Provide the decision makers with pictures, maps, schedules, and any other visual aids that will help illustrate your words. (4 points)

15. Your verbal presentation to the decision makers is only half the battle. It’s also crucial that you leave a packet of information behind when you leave the meeting so the decision makers can review your proposal. The packet should restate all the highlights of your presentation and include extra copies of the visual aids you used. Keep it relatively simple and organize the information in the same sequence you used in your verbal presentation. A video may be appropriate as well, but only if it is short. (4 points)

16. Answers will include at least three of the following additional tips for making a good impres-sion at a sponsorship presentation: (3 points; 1 point each)

• Make sure you have everything set up in the conference room before the meeting begins. Decision makers aren’t interested in watching you boot up your computer or shuffle through your handouts while they wait for you to start.

• Never take the presentation past 30 minutes. Even if you have a great deal of infor-mation you’d like to include, you will not be able to hold the decision makers’ attention or interest past the half-hour point.

• Bring a small gift for each of the decision makers, such as an event T-shirt or cap.

• Practice makes perfect! Rehearse your presentation beforehand so you can smooth out any of the rough parts before the real thing.


PRACTICE TEST KEY (cont’d)

• Stand still as you’re speaking, and make eye contact with each of the decision makers throughout your presentation. Try to avoid verbal pauses, such as “uh” and “um,” and speak slowly.

• Be prepared to answer questions! Encourage the decision makers to make the presenta-tion interactive, asking questions and adding their thoughts throughout. It’s a great way for you to evaluate how they’re reacting to the proposal. If you’re asked a question you can’t answer, be honest and say so. Tell the decision makers you’ll get the answer for them within the next business day.

17. Sometimes, the prospective sponsor will still need more time to think about the proposal before making a decision. If this is the case, don’t be discouraged. Use your time to create and present sponsorship proposals for even more prospective sponsors. The more proposals you make, the greater your chances for sales success. (3 points)

Part II—40 points

Directions: Circle the appropriate value. Poor Fair

Good

Excellent


0 1–2 3–4 5

2. Asked potential sponsor’s decision makers for a face-to-face meeting

0 1–2 3–4 5

3. Created interest in organization/ event

0 1–2 3–4 5


0 1–2 3–4 5

5. Gave event details, using visual aids

0 1–2 3–4 5


0 1–2 3–4 5

7 Emphasized benefits over tangible components

0 1–2 3–4 5

8. Asked for the sale 0 1–2 3–4 5 Suggested Criteria Levels: Part I—48 points

Part II—32 points


POSTTEST

Part I—50 points Directions: Identify the correct answer to each of the following questions. Use a separate sheet of

paper to record your responses.

OBJECTIVE A

1. Which of the following would occur first in the process of selling sport/event sponsorships: (2 points)

a. Create a standard set of sponsorship packages for your organization. b. Determine what your organization needs to gain from the sponsorships. c. Seek potential sponsors who can offer you value in kind (VIK). d. Determine the dollar amount you expect potential sponsors to commit in exploitation. 2. Which of the following is a reason that sport/event organizations enter into partnerships with

sponsors: (2 points)

a. Fees c. Product positioning b. Relationship marketing d. Exclusivity 3. Your hockey team receives free skates from Nike as part of Nike’s payment of its sponsorship

fee. This arrangement is known as (2 points)

a. value in kind (VIK). c. relationship marketing. b. exploitation. d. exclusivity. 4. Your sport/event organization just entered into a sponsorship agreement with MasterCard.

Now MasterCard is running a nationwide ad campaign that’s centered on your big event. This promotion is known as (2 points)

a. title sponsorship. c. value in kind (VIK). b. exploitation. d. product positioning. 5. Which of the following is a reason that sponsors enter into partnerships with sport/event

organizations: (2 points)

a. Nonexclusivity c. Sales b. Sponsorship clutter d. Fees 6. To create or maintain a certain image, companies sponsor sport/event organizations that dis-

play characteristics they want consumers to associate with their products. This is one way of enhancing (2 points)

a. relationship marketing. c. sales and sampling opportunities. b. exclusivity. d. public relations.


POSTTEST (cont’d) 7. Dell Inc. wants to bring potential clients to your games to enjoy an evening out and, hopefully,

to make some sales. You offer the company its own private suite as part of its sponsorship deal. You are helping Dell enhance (2 points)

a. relationship marketing. c. fundraising opportunities. b. product positioning. d. public relations. 8. Since you have a sponsorship agreement with Lay’s Potato Chips, you sell its brand at your con-

cession stands. This is an example of (2 points)

a. product positioning. c. fundraising opportunities. b. “ownership.” d. hospitality opportunities. 9. Bank of America is the only bank affiliated with your sport/event organization. This benefit is

called (2 points)

a. value in kind (VIK). c. “ownership.” b. exclusivity. d. presenting sponsorship. 10. Taco Bell doesn’t want its message to get lost among the messages of your team’s other spon-

sors, so you offer to name the pre-game show “The Taco Bell Pre-Game Report.” This benefit is called (2 points)

a. exclusivity. c. sales and sampling opportunities. b. “ownership.” d. fundraising opportunities. OBJECTIVE B 11. After you know what your organization needs from sponsors and exactly what you have to

offer in terms of benefits, what is the next step in the sponsorship sales process? (2 points)

a. Present sponsorship opportunity. b. Revise the proposal. c. Research and target potential sponsors. d. Tailor sponsorship package for specific sponsor. 12. Which of the following is an example of title sponsorship: (2 points)

a. The Heisman Trophy presented by Suzuki b. Yahoo!, official Internet provider for the NHL c. Little League Team B, sponsored by Pokey’s Pizza d. The Delta Air Lines New Year’s Eve Gala


POSTTEST (cont’d) 13. What is the best way to present your proposal to potential sponsor companies? (2 points)

a. In person c. Over the phone b. Through the mail d. Via teleconference 14. Which of the following is the first step in a sponsorship presentation: (2 points)

a. Explain how the prospective sponsor can get involved. b. Create interest in your organization or event. c. Create interest in the sponsorship opportunity. d. Give event details. 15. Which of the following is a good way to create interest during your sponsorship presentation:

(2 points) a. Emphasize tangible components rather than benefits. b. Ask for the sale right away. c. Provide demographic characteristics of your fan base. d. Avoid using quotes or statistics. 16. What is the best way to present event details to a potential sponsor? (2 points)

a. Avoid “bragging.” c. Move around the room constantly. b. Speak as fast as possible. d. Use visual aids. 17. In which of the following steps of the sponsorship presentation process do you present the

package you have specifically tailored to the potential sponsor’s needs: (2 points)

a. Create interest in your organization or event. b. Create interest in the sponsorship opportunity. c. Explain how the prospective sponsor can get involved. d. Ask for the sale. 18. When explaining how a potential sponsor can get involved with your sport/event organization,

it’s important to emphasize (2 points)

a. benefits. c. statistics. b. tangible components. d. value in kind (VIK). 19. At the end of your presentation, if the decision makers aren’t ready to make a decision, what

should you tell them? (2 points)

a. They must make a decision because you have other potential sponsors waiting. b. You can repeat the presentation for them if they’d like you to. c. You’re sorry for wasting their time. d. You’re willing to change the proposal to better suit their needs.


POSTTEST (cont’d) 20. The packet of information that you leave behind after your verbal sponsorship presentation

should (2 points)

a. always include a video. b. never include a video. c. cover every piece of information from your presentation. d. restate only the highlights of your presentation. 21. Never take a sponsorship presentation past __________ minutes. (2 points)

a. 30 c. 20 b. 45 d. 35 22. Which of the following is an ideal gift to give decision makers at a sponsorship presentation:

(2 points) a. Tickets c. CD player b. Money d. T-shirt 23. If the decision makers ask you a question you can’t answer, you should (2 points)

a. try to make the question seem unimportant. b. tell them you’ll get back to them within one business day. c. make up an answer on the spot. d. call your boss on your cell phone. 24. When presenting your revised proposal, you should (2 points)

a. avoid asking for the sale. b. refuse to answer any more questions. c. only go over the parts you’ve changed. d. go over the entire presentation again. 25. If your potential sponsor is ready to say yes to your proposal, you should (2 points)

a. immediately cancel appointments with other potential sponsors in the same category. b. send a letter of agreement summarizing the proposal. c. draft the agreement on the spot. d. begin contract negotiations yourself.


POSTTEST (cont’d)

Part II—50 points Directions: You work in marketing for a big outdoor concert venue. Your latest assignment is to

start selling sponsorships for the upcoming concert season.

Demonstrate your skill at selling sponsorships by role-playing a sponsorship sales presentation with your teacher. You may assume details such as the potential sponsor you’re presenting to, the actual benefits you’re able to offer, etc. Your teacher will use a rating scale to evaluate your performance.


Part II—40 points


POSTTEST KEY

Part I—50 points OBJECTIVE A

1. b Determine what your organization needs to gain from the sponsorships. The first step in the process of selling sport/event sponsorships is to determine what your organization needs to gain from the sponsorships. While every sport/event organization’s specific goals will be unique, there are a few main benefits of sponsorship that most are looking for. Call a meeting before you begin the sponsorship sales process, and make sure everyone in your organization agrees on what your priorities are in searching for sponsors. Creating a stand-ard set of sponsorship packages, seeking potential sponsors who can offer you VIK, and determining the dollar amount you’d like potential sponsors to commit in exploitation are all important parts of selling sponsorships, but determining your organization’s priorities comes first. (2 points)

2. a Fees. Sponsorship fees are a main reason that sport/event organizations enter into part-nerships with sponsors. These organizations generally cannot survive on ticket revenue alone. Relationship marketing, product positioning, and exclusivity are all benefits for the sponsor, not the sport/event organization. (2 points)

3. a Value in kind (VIK). VIK is a benefit that gives sport/event organizations lower costs on the goods and services they need. This arrangement allows a sponsor to pay part or all of its fee with goods or services rather than cash. Nike providing free skates to a hockey team it sponsors is an example of a VIK arrangement. Exploitation is a sponsor’s investment in advertising and promoting the organization or event above and beyond the basic partner-ship. Relationship marketing is a strategy in which businesses spend time with current and prospective clients outside the office setting to enhance the partnership. Exclusivity is the sponsor’s privilege of being the only company in its particular category of goods or services. (2 points)

4. b Exploitation. Exploitation is a sponsor’s investment in advertising and promoting the or-ganization or event above and beyond the basic partnership. This includes advertising in stores, in newspapers, on the Internet, on the radio, and on television, as well as offering special promotions designed around the sponsorship. All this extra marketing boosts con-sumer awareness of both the sponsor and the sport/event organization, benefiting both. MasterCard’s national ad campaign centered on your event is exploitation. Title sponsor-ship is a partnership in which the sponsor’s name precedes the event’s name, such as The Allstate Sugar Bowl. Value in kind (VIK) is an arrangement in which the sponsor pays part or all of its fee with goods or services. Product positioning is the sponsor’s privilege of hav-ing its goods or services used at the event. (2 points)


POSTTEST KEY (cont’d) 5. c Sales. Increasing sales is a reason that sponsors enter into partnerships with sport/event

organizations. Almost every sponsor’s ultimate goal is to sell more of its product because of the sponsorship. Sponsors want exclusivity, not nonexclusivity. Fees are main reasons that sport/event organizations form partnerships with sponsors, not the other way around. Sponsorship clutter happens when a sport/event organization has so many spon-sors that the messages get “lost in the crowd.” It is a reason sponsors would avoid the partnerships, not form them. (2 points)

6. d Public relations. When companies sponsor sport/event organizations that display charac-teristics they want consumers to associate with their products, they enhance public rela-tions. Most sponsors are trying to either create or maintain a certain image. Associating with a sport/event organization helps them do so. For example, luxury car makers like to associate with sports that consumers view as “classy,” such as golf or sailing. Relation-ship marketing is a strategy in which businesses spend time with current and prospective clients outside the office setting to enhance the partnership. It enhances business-to-business relations, not public relations. Associating with a sport/event organization be-cause of its characteristics and qualities does not have an impact on exclusivity or sales and sampling opportunities. (2 points)

7. a Relationship marketing. Relationship marketing is a strategy in which businesses spend time with current and prospective clients outside the office setting to enhance the part-nership. By offering Dell its own suite, you are enhancing its opportunities for relationship marketing. Product positioning is the sponsor’s privilege of having its goods or services used at the event. Offering Dell its own suite would not have an impact on product posi-tioning, fundraising opportunities, or public relations. (2 points)

8. a Product positioning. Product positioning is the sponsor’s privilege of having its goods or services used at the event. Selling Lay’s Potato Chips at your event is giving the company excellent product positioning as a result of its sponsorship agreement with you. “Owner-ship” is the sponsor’s opportunity to “own” part of the event, such as the pre-game show or the MVP award. Selling the chips does not impact the company’s fundraising or hospi-tality opportunities. (2 points)

9. b Exclusivity. Exclusivity is the sponsor’s privilege of being the only company in its particular category of goods or services. By being the only bank affiliated with your sport/event or-ganization, Bank of America is enjoying exclusivity. Value in kind (VIK) is an arrangement in which the sponsor pays part or all of its fee with goods or services. “Ownership” is the sponsor’s opportunity to “own” part of the event, such as the pre-game show or the MVP award. Presenting sponsorship is a partnership in which the sponsor’s name succeeds the event’s name, such as The Grand Ole Opry presented by Cracker Barrel Country Store. (2 points)


POSTTEST KEY (cont’d) 10. b “Ownership.” “Ownership” is the sponsor’s opportunity to “own” part of the event, such

as the pre-game show or the MVP award. Naming the pre-game report for Taco Bell gives the company “ownership” in your event. Exclusivity is the sponsor’s privilege of being the only company in its particular category of goods or services. The pre-game show doesn’t affect exclusivity, sales and sampling opportunities, or fundraising opportunities. (2 points)

OBJECTIVE B

11. c Research and target potential sponsors. After you know what your organization needs from sponsors and exactly what you have to offer in terms of benefits, the next step in the sponsorship sales process is to research and target potential sponsors. Only after you’ve done so can you tailor sponsorship packages for specific sponsors, present sponsorship opportunities, and revise proposals. (2 points)

12. d The Delta Air Lines New Year’s Eve Gala. Title sponsorship is a partnership in which the sponsor’s name precedes the event’s name. The Delta Air Lines New Year’s Eve Gala is an example of title sponsorship. The Heisman Trophy presented by Suzuki is an example of presenting sponsorship. Yahoo!, official Internet provider for the NHL, is an example of exclusive sponsorship. Little League Team B, sponsored by Pokey’s Pizza is an example of either exclusive or nonexclusive sponsorship. (2 points)

13. a In person. The best way to present your proposal to potential sponsor companies is in person. Make the initial contact with the company, and ask for a face-to-face meeting with the decision makers you’ll need to convince. Only send your materials through the mail if you absolutely cannot get a meeting. Mail, phone, and teleconference are not good options for making a sponsorship presentation. (2 points)

14. b Create interest in your organization or event. The first step in a sponsorship presentation is to create interest in your organization or event. Creating interest in the sponsorship opportunity, giving event details, and explaining how the prospective sponsor can get involved all come after this step. (2 points)

15. c Provide demographic characteristics of your fan base. Providing demographic characteris-tics of your fan base is a good way to create interest in the sponsorship opportunity. Po-tential sponsors will be interested to know if their target market is the same as yours. In this step, you shouldn’t address the tangible components or intangible benefits of the sponsorship yet, nor are you ready to ask for the sale. Using quotes and statistics is helpful and always a good idea. (2 points)

16. d Use visual aids. When giving event details to potential sponsors, don’t just talk about the event—show the event! Provide the decision makers with pictures, maps, schedules, and any other visual aids that will help illustrate your words. During the presentation, you should be “bragging” about your event, so the decision makers will know how great it is. You should also speak slowly and try to stand in one place throughout the presentation. (2 points)


POSTTEST KEY (cont’d) 17. c Explain how the prospective sponsor can get involved. During this step of the sponsorship

presentation process, you present the potential sponsor with the package you have specif-ically tailored to meet its needs. Explaining how the prospective sponsor can get involved is the heart of the presentation. Creating an interest in your organization or event, creating an interest in the sponsorship opportunity, and asking for the sale are all important parts of the presentation, but they are not the time for introducing the specific sponsorship package. (2 points)

18. a Benefits. When explaining how a potential sponsor can get involved with your sport/event organization, it’s important to emphasize benefits. You’re presenting the decision makers with the sponsorship package you have specifically tailored for their company and showing them how your proposal aligns with their objectives and provides solutions to their mar-keting needs. The benefits of sponsorship go far beyond the actual tangible components you’re offering. This part of the presentation may involve statistics or VIK, but its focus should be on benefits. (2 points)

19. d You’re willing to change the proposal to better suit their needs. At the end of your presentation, if the decision makers aren’t ready to make a decision, you should tell them you’re willing to change the proposal to better suit their needs. You can use the feedback you’ve received throughout the presentation to revise the proposal accordingly, and then meet again later. Pushing them into making a decision will probably result in a “no,” and repeating your entire presentation won’t speed up the process. The decision makers may just need some time to think it over. Be confident, and don’t apologize for offering them the opportunity! (2 points)

20. d Restate only the highlights of your presentation. The packet of information that you leave behind after your verbal sponsorship presentation should restate only the highlights of your presentation, not every piece of information you covered. A short video can also be appropriate, but is not a necessity. (2 points)

21. a 30. Never take a sponsorship presentation past 30 minutes. Even if you have a great deal of information you’d like to include, you will not be able to hold the decision makers’ attention or interest past the half-hour point. (2 points)

22. d T-shirt. A T-shirt is an ideal gift to give to decision makers at a sponsorship presentation because it is small, inexpensive, and represents your sport/event organization. Tickets or a CD player are more expensive gifts that would cost a lot of money to give to each decision maker, and money might be perceived as a bribe! (2 points)

23. b Tell them you’ll get back to them within one business day. If the decision makers ask you a question you can’t answer, tell them you’ll get back to them within one business day. They’ll appreciate your honesty much more than if you just make up an answer on the spot. Don’t make the question seem unimportant or interrupt the meeting by making a call on your cell phone. (2 points)


POSTTEST KEY (cont’d) 24. c Only go over the parts you’ve changed. When presenting your revised proposal to a po-

tential sponsor, you should only go over the parts you’ve changed. It is unnecessary to repeat the entire presentation. You should be prepared to answer any more questions that the decision makers might have, and be ready to ask for the sale. (2 points)

25. b Send a letter of agreement summarizing the proposal. If your potential sponsor is ready to say yes to your proposal, send a letter of agreement summarizing the proposal. You won’t be able to iron out every bit of the negotiations yourself. Both parties will use attor-neys to draft an official sponsorship contract, but a letter of agreement gets the deal un-derway. Don’t cancel any plans with other potential sponsors in the category just yet. Until you have a firm deal with one sponsor, keep all your options open. (2 points)

Part II—50 points

Directions: Circle the appropriate value. Little

Value Below

Expectations Meets

Expectations Above

Expectations

1. Came prepared for the presentation 0 1–2 3–4 5


0 1–2 3–4 5

3. Created interest in organization/ event

0 1–2 3–4 5

4. Included “quotes” 0 1–2 3–4 5


0 1–2 3–4 5

6. Included demographic and psycho-graphic characteristics

0 1–2 3–4 5

7. Gave event details, using visual aids 0 1–2 3–4 5


0 1–2 3–4 5

9. Emphasized benefits over tangible components

0 1–2 3–4 5



Part II—40 points


POSTTEST GRADER Page 33 1. b 2. a 3. a 4. b 5. c 6. d

Page 34 7. a

8. a 9. b 10. b

11. c 12. d

Page 35 13. a 14. b

15. c

16. d

17. c 18. a 19. d

Page 36 20. d 21. a 22. d

23. b 24. c

25. b


GLOSSARY 1. EXCLUSIVITY: In a sponsorship agreement, the sponsor’s privilege of being the only company in

its particular category of goods or services

2. “OWNERSHIP”: In a sponsorship agreement, the sponsor’s assurance that its message will not get lost in sponsor clutter; the opportunity to “own” part of the event, such as the pre-game show or the MVP award

3. PRESENTING SPONSORSHIP: A partnership in which the sponsor’s name succeeds the event’s name, such as The Grand Ole Opry presented by Cracker Barrel Country Store

4. PRODUCT POSITIONING: In a sponsorship agreement, the sponsor’s privilege of having its goods or services used at the event

5. RELATIONSHIP MARKETING: A strategy in which businesses spend time with current and pro-spective clients outside the office setting to enhance the partnership

6. SPONSORSHIP: A partnership in which a company pays a fee to affiliate itself with a team, league, or event

7. SPONSORSHIP EXPLOITATION: A sponsor’s commitment to promoting the team, league, or event by investing in advertising and promotion

8. SPONSORSHIP FEE: A sponsor’s initial payment or investment to enter into a marketing part-nership with a team, league, or event

9. TARGET MARKET: The particular group of customers a business seeks to attract

10. TITLE SPONSORSHIP: A partnership in which the sponsor’s name precedes the event’s name, such as The Allstate Sugar Bowl

11. VALUE IN KIND (VIK): In a sponsorship agreement, an arrangement in which the sponsor pays part or all of its fee with goods or services


MAKE THE MATCH STUDENT QUESTIONNAIRE Directions: After completing Make the Match (Selling Sponsorships), please rate the following

statements to help MBAResearch improve the LAP. Marking a five indicates that you “strongly agree” with the statement, while selecting a one indicates that you “strongly disagree.” When you have finished, please fax your responses to 614-486-1819 or mail them to MBAResearch at P.O. Box 12279, Columbus, OH 43212.

1. The information in So What? encouraged me to want to know more about how to sell sponsorships.

1 2 3 4 5

2. The examples used in the LAP helped to increase my understanding or interest in selling sponsorships.

1 2 3 4 5

3. The LAP content is clear and easy to understand. 1 2 3 4 5

4. I liked the application exercise/activity. 1 2 3 4 5

5. I understood the directions for the application exercise/activity. 1 2 3 4 5

6. I better understood how to sell sponsorships after completing an activity/application exercise.

1 2 3 4 5

7. I easily understood what the test questions were asking. 1 2 3 4 5

8. I guessed and got the right answer to test questions most of the time. 1 2 3 4 5

9. The Gray Zone presents an ethical dilemma that does not have a black- and-white answer.

1 2 3 4 5

10. The Gray Zone really made me think about ethical dilemmas involving selling sponsorships.

1 2 3 4 5

11. What did/didn’t you like about this LAP?


MAKE THE MATCH TEACHER QUESTIONNAIRE Directions: After completing Make the Match (Selling Sponsorships), please respond to

the following questions to help MBAResearch improve the LAP. When you have finished, please fax your responses to 614-486-1819 or mail them to MBAResearch at P.O. Box 12279, Columbus, OH 43212.

1. What information could be presented in So What? that would compel students to want to know more about selling sponsorships?

2. What information in the student or teacher booklets needs to be changed to make it more accurate, easier to understand, and/or more up-to-date?

3. What anecdotes, examples, etc., could be added to the LAP to increase student understanding or interest in selling sponsorships?

4. How would you improve the application exercises and their directions?

5. What specific changes need to be made to test questions so that they will be clearer?

6. How would you change The Gray Zone to make it relate more to selling sponsorships and present an ethical dilemma that does not have a black-and-white answer?

Documents

LAP Teaching Guidesembaldwin.weebly.com/uploads/3/8/0/5/38057993/lap_127.pdf4) It’s important that you provide this service, but it sure isn’t cheap. 5) Think about all the money