Here's the scenario: The event you are planning needs sponsorship, and you find yourself asking, "What steps can I take to ensure I get the contract signed?"First, do your homework before you make the phone call to a potential sponsor.
Find out as much information as you can about the company, what events it's sponsored in the past, the demographics of its target audience, and its marketing strategies and goals.
"The more a planner shows that they are aware of what we are trying to do and spend the time trying to understand Verizon, the better their odds are going to be," says Bob Elek, a Verizon spokesman.
A survey conducted in February by Performance Research for IEG Inc., a consulting and market research firm focusing on sponsorships and marketing, says that the most important benefit companies want to receive in exchange for sponsorship is category exclusivity. This proved to be a key factor in UPS's decision to sponsor Nascar in 2000.
"When we began [sponsoring Nascar], none of our competitors were there, so we had a chance to really own the sport," says Laura Kouns, motor sports marketing manager for UPS.
Another top priority for companies right now is return on investment, or ROI. In fact, many experts and decision makers agree that it has become the biggest influence in deciding to sponsor an event.
"The things we've learned in the past five years is that there are two main reasons to be a sponsor: one is return on investment and the other marketing and branding," says Kouns.
ROI is not always measured in dollars, however. Companies want to get their name out there and to the right people. According to William Chipps, senior editor of the IEG Sponsorship Report, they are looking to sponsor events that hone in on a specific audience, as opposed to blindly hitting as many people as possible. Companies are then able to expand their brand's recognition within the target audience, thereby multiplying its market size and increasing the return on investment. In fact, 52 percent of respondents in the IEG survey said their ROI is increasing from 2006 (see chart 1).
"At BlueCross BlueShield, we are looking for opportunities to be part of a well-respected event that offers branding opportunity, media exposure, and the opportunity to put our product out there," says Doug Bartel, regional spokesperson for BlueCross BlueShield of Florida. "And Florida has some of the best events for that."
Now it's time to make your pitch.
You need to be able to communicate your offer in five minutes or less—known as the elevator pitch (although you'll probably use the phone)—advises Chipps. Use the information you've learned about the company and its marketing strategies to craft your pitch so that you are able to pique the sponsor's interest. This will open the door for a sit-down meeting where you can further explain the benefits of sponsoring your event.
During the phone call, mention that you will be sending over a confirmation of your initial conversation for further review, to demonstrate your desire to work with the potential sponsor and willingness to do what it takes to make them happy.
Once you've secured the face-to-face meeting, practice your pitch.
Just as you rehearsed your speeches in high school to ensure success, you'll want to do the same thing for your meeting. The more you practice your pitch, the more confident you'll be about what you are offering, and the more prepared to answer any questions. Also, ask the sponsor what you can offer that you may not have considered and then explain how sponsoring your event can accomplish that goal.
After meeting with the potential sponsor, send a follow-up report.
It will clearly illustrate the meeting's developments and make you stand out from the other sponsorship proposals a company receives daily, says Kristy Ann Darigan, vice president of cause branding for Cone Inc.
"This should be a one- to two-page proposal that only deals with what was discussed," she says. "Any other pieces [of activation] you want to offer should be in another section entitled 'optional'—if you must include them at all."
This shows the sponsor that you have taken their company's goals into as much consideration as your own needs, and that you want both parties to benefit from the partnership. Be responsive to what the company asks for and try to incorporate its wishes into the forms of activation offered.
Make sure to give the potential sponsor plenty of time to make a decision.
Most companies will get back to you within a month with a decision. However, since yearly budgets are done months to a year in advance, your chances for getting a favorable response are increased the earlier you contact them.
"We're already looking at budgets for '08, so it's important that people try to get ahead of that cycle," says Elek. "When you get inside of six months, it's not very likely."
If you are a planner for a nonprofit organization, there are additional considerations that need to be addressed.
According to Darigan, the number one roadblock that a nonprofit planner can run into is not talking to the right person.
"Most often, nonprofit salespeople go to [firms'] community relations when they want events sponsored, but it's important to engage the marketing and communications teams as well," she says.
Nonprofit event planners need to emphasize the benefits that companies can enjoy by partnering with their event that wouldn't be available if sponsoring a for-profit event.
For instance, the impact and positive impressions a company can make socially by sponsoring a nonprofit event are different. Darigan points out that attendees to nonprofit events have usually supported or worked with that organization previously, so they are often more attentive.
In addition to the company's marketing strategies and goals, nonprofit planners should know what the social and business impacts from the event are likely to be, so the sponsor can see it laid out very clearly, advises Darigan. From there, you can offer insight into what you as the planner can do to make the partnership successful.
As for the financial aspect of sponsorships, company spending is increasing across the board.
"We are spending more money in South Florida than ever before," says BlueCross BlueShield's Bartel. "We've given away more than ever to meet the needs and address the needs of this community."
A recent issue of the IEG Sponsorship Report further supports this claim. According to the annual communications industry forecast from merchant bank Veronis Suhler Stevenson, U.S. spending on consumer and business-to-business promotions was projected to rise 3.8 percent from reported spending numbers in 2004 (see chart 2).
With increased sponsorship spending, by arming yourself with the right tools and tactics, you can make sure to get a piece of that pie, and a sponsor for your next event.
Find out as much information as you can about the company, what events it's sponsored in the past, the demographics of its target audience, and its marketing strategies and goals.
"The more a planner shows that they are aware of what we are trying to do and spend the time trying to understand Verizon, the better their odds are going to be," says Bob Elek, a Verizon spokesman.
A survey conducted in February by Performance Research for IEG Inc., a consulting and market research firm focusing on sponsorships and marketing, says that the most important benefit companies want to receive in exchange for sponsorship is category exclusivity. This proved to be a key factor in UPS's decision to sponsor Nascar in 2000.
"When we began [sponsoring Nascar], none of our competitors were there, so we had a chance to really own the sport," says Laura Kouns, motor sports marketing manager for UPS.
Another top priority for companies right now is return on investment, or ROI. In fact, many experts and decision makers agree that it has become the biggest influence in deciding to sponsor an event.
"The things we've learned in the past five years is that there are two main reasons to be a sponsor: one is return on investment and the other marketing and branding," says Kouns.
ROI is not always measured in dollars, however. Companies want to get their name out there and to the right people. According to William Chipps, senior editor of the IEG Sponsorship Report, they are looking to sponsor events that hone in on a specific audience, as opposed to blindly hitting as many people as possible. Companies are then able to expand their brand's recognition within the target audience, thereby multiplying its market size and increasing the return on investment. In fact, 52 percent of respondents in the IEG survey said their ROI is increasing from 2006 (see chart 1).
"At BlueCross BlueShield, we are looking for opportunities to be part of a well-respected event that offers branding opportunity, media exposure, and the opportunity to put our product out there," says Doug Bartel, regional spokesperson for BlueCross BlueShield of Florida. "And Florida has some of the best events for that."
Now it's time to make your pitch.
You need to be able to communicate your offer in five minutes or less—known as the elevator pitch (although you'll probably use the phone)—advises Chipps. Use the information you've learned about the company and its marketing strategies to craft your pitch so that you are able to pique the sponsor's interest. This will open the door for a sit-down meeting where you can further explain the benefits of sponsoring your event.
During the phone call, mention that you will be sending over a confirmation of your initial conversation for further review, to demonstrate your desire to work with the potential sponsor and willingness to do what it takes to make them happy.
Once you've secured the face-to-face meeting, practice your pitch.
Just as you rehearsed your speeches in high school to ensure success, you'll want to do the same thing for your meeting. The more you practice your pitch, the more confident you'll be about what you are offering, and the more prepared to answer any questions. Also, ask the sponsor what you can offer that you may not have considered and then explain how sponsoring your event can accomplish that goal.
After meeting with the potential sponsor, send a follow-up report.
It will clearly illustrate the meeting's developments and make you stand out from the other sponsorship proposals a company receives daily, says Kristy Ann Darigan, vice president of cause branding for Cone Inc.
"This should be a one- to two-page proposal that only deals with what was discussed," she says. "Any other pieces [of activation] you want to offer should be in another section entitled 'optional'—if you must include them at all."
This shows the sponsor that you have taken their company's goals into as much consideration as your own needs, and that you want both parties to benefit from the partnership. Be responsive to what the company asks for and try to incorporate its wishes into the forms of activation offered.
Make sure to give the potential sponsor plenty of time to make a decision.
Most companies will get back to you within a month with a decision. However, since yearly budgets are done months to a year in advance, your chances for getting a favorable response are increased the earlier you contact them.
"We're already looking at budgets for '08, so it's important that people try to get ahead of that cycle," says Elek. "When you get inside of six months, it's not very likely."
If you are a planner for a nonprofit organization, there are additional considerations that need to be addressed.
According to Darigan, the number one roadblock that a nonprofit planner can run into is not talking to the right person.
"Most often, nonprofit salespeople go to [firms'] community relations when they want events sponsored, but it's important to engage the marketing and communications teams as well," she says.
Nonprofit event planners need to emphasize the benefits that companies can enjoy by partnering with their event that wouldn't be available if sponsoring a for-profit event.
For instance, the impact and positive impressions a company can make socially by sponsoring a nonprofit event are different. Darigan points out that attendees to nonprofit events have usually supported or worked with that organization previously, so they are often more attentive.
In addition to the company's marketing strategies and goals, nonprofit planners should know what the social and business impacts from the event are likely to be, so the sponsor can see it laid out very clearly, advises Darigan. From there, you can offer insight into what you as the planner can do to make the partnership successful.
As for the financial aspect of sponsorships, company spending is increasing across the board.
"We are spending more money in South Florida than ever before," says BlueCross BlueShield's Bartel. "We've given away more than ever to meet the needs and address the needs of this community."
A recent issue of the IEG Sponsorship Report further supports this claim. According to the annual communications industry forecast from merchant bank Veronis Suhler Stevenson, U.S. spending on consumer and business-to-business promotions was projected to rise 3.8 percent from reported spending numbers in 2004 (see chart 2).
With increased sponsorship spending, by arming yourself with the right tools and tactics, you can make sure to get a piece of that pie, and a sponsor for your next event.
IEG, LLC
IEG, LLC