Whenever you watch a TV reality show, I am sure that you must have noticed the anchors announce a series of names or at least one company name as soon as the show starts or when you are back from the commercial break.
He or she takes these names and then goes on to say that the show has been sponsored by them. in fact, not only TV shows, the same can also be noticed whenever you go to a music festival or a games’ show on the field. There are boards of a number of top companies and their products are posted about.
The banners at rock shows and other official events and press releases are also in the same category. Another top example would be the World Cup that just got over. It too had constant flashes on our screens about top mobile companies as well as multinational eateries. This is what is known as sponsorship marketing and that is exactly what we are going to discuss in details ahead.
If you are the owner of a leading company, then I am sure that you must have received a number of offers from schools, college, national level associations as well as social service groups asking for sponsorship for their event. This means that you want you to finance their work out of a major feel of goodwill as well as some personal agenda. It is like a win-win situation for both the parties.
On receiving such offers, you need to think whether it is actually worth the investment and whether you will be able to reap enough benefits. Only after making the necessary conditions and being satisfied with the answers do you give the green signal.
Thus, sponsorship marketing is simple yet needs clear thought. Read ahead now to know the basic concept and how it all works out if you actually engage in sponsorship marketing. In fact, there are also several types of sponsorship marketing so you should know about it all.
Now that you have read about so many examples, I am sure that you have already been able to make a somewhat clear picture as to how it is to be done. But, what hasn’t been discussed yet is that how does it help the company to earn finally. After all, it is a way or marketing and the point of every marketing strategy in use is to increase sales so that the company profit increases.
The concept of sponsorship Marketing
Sponsorship marketing is one of the simplest ways of marketing that is suggested by the expert team of professionals in each and every firm in the world. This is because what happens, in this case, is that as a company, you need to pay a certain amount to another organization.
This can be for an event or other reason too (the types are discussed ahead in this article). Then, the organization prints your name in the invites that are sent out or places your banners and boards at the venue of their event.
This way, the guests who drop in are sure to notice your name and presence. In fact, you are also given the option of putting up stalls for instant sales or to help the guests who have any queries or questions regarding your products and services. Then, it is assumed that there will also be word of mouth publicity that follows.
This is how people will start getting curious about you and a good brand name and image will be established. Once you start receiving orders, you can just sit back and see the profits of the company going up immensely. However, if you wish to retain these customers and want them to keep coming back to you for more, then you need to be excellent with your work and leave no room for complaints or negative reviews.
When you need to pay the organization, then, you issue a check on their name and hand it over to them. this is also the time when you clearly state about your requirement, that is space to put up a stall, or a banner or anything. In case you have no such ulterior motive, that too needs to be stated clearly. It is recommended to ask about every detail in advance and the space that you will be allotted so that there is no confusion later and you do not feel that your investment has gone to waste.
What are the various types of sponsorship marketing?
First, you need to understand that there is a difference between sponsorship and sponsorship marketing. This means that in the case of the first one, it is not necessary that the company desires to increase sales through this investment. This means that it is possible that the company is genuinely only helping the other organization with their work and does not need any banners or anything. Some examples of these are:
- Sponsorship for any social service community : In this case, we are referring to any charity organization that has approached a company for their funding. This does not always have to be for an event or anything but simply to sponsor a child’s career or any old age home. This can be anything that falls under the banner of community work. Do not confuse this with CSR because this is just done from the company’s part on grounds of humanity and no compulsion.
- Sponsorship as part of the company’s social responsibility : Now, this is CSR (company’s social responsibility) that we are talking about. What happens, in this case, is that each and every company is guided by the law of the land. This means that it is important for each and every company to work the society’s welfare and thus they need to give away a part of their earning for social work. This may or may not be done happily from the company’s end but it is vital and trying to escape this can actually lead to a criminal offense.
How is Sponsorship Marketing done?
Now, coming to the part of sponsorship marketing, this is done for the sole purpose of reaching out to people. In this case, the company is trying to look for benefits and is not too interested in the layout of the event. It definitely plays a role so that the company gets to know who they will be visible to and the kind of profit that they are likely to make.
This is also done is several ways. Read ahead to know what they are and also get an insight regarding how it is playing out really well these days on social media since digital media is the latest buzz in the marketing world and extremely significant in this era of technology, computers, and smartphones.
- Banners: One of the most common sponsorship categories is banners. This is where you get the chance to put up huge banners. These can be placed right at the entrance so that there is maximum engagement. The moment people enter, it is obvious that they will look around and size is known to be a factor of getting attention instantly.
- Logo prints: Logo prints refer to the print that is done on the invites. This may be a category for which you will have to pay a little extra but this is definitely worth the investment because your logo plays a major role in helping people recognize you and create an instant association. While you already have an expert team that had designed your logo in the first place to represent you, you must use it ahead to your advantage.
- The table stands: This refers to the small flags you see on the table. These tables can be at a restaurant as well as an event. The idea here is to place the stands in such a manner that when people sit at the table, you are able to meet their eyes. They are bound to read it out of curiosity. In fact, even if they do not read it and just manage to see your logo, then again it will be a reminder to them that they just saw you on the invites. This way you get the opportunity to leave a lasting impact on the minds of the people.
- Coupon handouts: When you provide sponsorship for an event or venue, you have the chance to engage in coupon handouts. This means that you can allow some people from the sales department of your company to physically be present at the venue and hand out these coupons. Discounts lure people the most. But you are no new player in this field to lead yourself to a loss. This why there are usually offers such as 20% off on a purchase that’s above 2k or 5k. This way the people feel that they are able to save and you too win.
- Stalls: Last but definitely not the least, the stalls help you to establish contact with the customers immediately. This means that you get a chance to interact with them so that you can also pitch in about other items and services. This is definitely one of the best ways to get orders that can be placed instantly. If possible, ready samples are always welcome.
I am sure that all of you have an account on several social media platforms. This is where you often come across posts from pages and other communities where they post about products and the article reads “sponsored post” or “paid promotion”.
This means that a company about who they have spoken in their video, photo or article has actually paid them so that the company receives publicity. This is usually done when you see that the other page has a lot of followers and engagement so it is seen as a way to get visibility. This is seen on a number of social networking sites and it has been extensively used by top companies of the world recently. Usually, bloggers or key opinion leaders are approached. Celebrities are also seen in collaboration with leading businesses.
Advantages of sponsorship marketing
- Brand awareness: This means that when you engage in sponsorship marketing, your brand image is improved and there is increased awareness about your existence. As the concept has already been explained earlier in details, it is not difficult to comprehend how you get publicity.
- Opportunity to expand: As and when your sales increases, so does the profit. This way, you have a chance to expand your scale of operations and diversify. This can also mean that you get the chance to merge with another company to combine efforts as well as start a whole new range of products that you have not experimented with before.
- Positive PR: PR refers to public relations. It is very important for each and every company to be able to be in touch with customers. This is why there are a number of means such as social media pages and other interactive sessions and conferences that are organized. In the case of sponsorship marketing too, you get a chance to improve the reputation of the company and get it a boost.
- Connection with customers: Last but definitely not the least, the more customers see you, the more they are drawn towards you. all you need to do is to make them feel that they need you. most effective is sponsorship marketing on social media. People are able to connect instantly and. There is a guarantee of engagement.
Disadvantages of Sponsorship Marketing
While you may be glad that you helped an NGO or a company by providing funds but it has a negative side too. The NGO or the company you are the sponsor of may provide your brand name on their boarding, it could also create a good image for your company. But everything has a dark side and this time it’s being a sponsor. So, look at the points below and think how sponsorship market could affect your business in a bad way:
- Bad usage of your funds given
While if you are a sponsor of something specific you would know where your funds are being used. Also, you would get a report of the expenditure of your funds. But, if you are a general sponsor then you may not know exactly where your money is going or has gone. So, go with the specific sponsorship
- Association sponsorship
If you are the main sponsor and the only sponsor of the program, then you should be proud and happy. But then, if the program, NGO or the company has also taken sponsorship of the other companies then it results in being a co-sponsor. This can make a completion with the co-brands and if they are big brands, then it’s surely a downfall. So always ask if there are any co-sponsors.
- Poor or Bad Publicity
However, the event, NGO or the company you have sponsored gets you a good advertising, it’s nothing like the paid one. In this type of advertisement, there is nothing that would go on according to you. You cannot target the customers, can implement the marketing tools either can you frame the specific targeted audience messages.
- A bad representation
While these NGOs, companies or the programs use your money and promotes you at their programs, there are a lot of things where they can lack and you wouldn’t be having a proper control over the branding. For example, if they are advertising you and use a wrong font or the color quality of the logo of your company, this would surely create a bad idea of your business in the audience’s mind. So be aware and ask the charity or the program to do the branding in the right way.
Keeping these points in mind you can save your business from drowning out its idea to sponsor a particular event. So, be aware and work smartly.
Thus, now that you know all that matters about sponsorship marketing, you must not delay and start looking for opportunities as soon as possible. Though there may also be a disadvantage of not being able to get attention by the busy masses, it is a chance that is worth taking. While other companies have already started off in this field, you too should not lag behind. The sooner you start, the better it is for you in the long run.