Do’s and don’ts of sponsorship

Sponsorship is a relatively new tool of marketing that can deliver stunning results if the basic planning has been done to ensure that the sponsor uses the investment to best advantage.

The do’s

Therefore, any would-be sponsor should do the following.

• Align the sponsorship with the general marketing strategy. The strategy should itself dictate the nature of the sponsorship (ie demonstrate how effective a new brand of bath cleaner can be, so sponsor scouts ‘bob-a-job’ to clean baths nationwide). This will ensure that the targeting is accurate.

• Set realistic objectives that relate to other corporate aims. There is no point expecting a modest investment to project the company name on News at Ten, but it may serve to take the image of the organization in a different direction and communicate the fact to key audiences.

• Plan for the longer term, since no sponsorship investment will pay off in the short term. Most sensible sponsors consider a three-year commitment as offering the best value, since by the last year the sponsorship is better understood and utilized.

• Consider other options to confirm the value of the ultimate choice. It makes sense to look at other sponsorships which may be appropriate in order to define the best selection and how it might work.

• Speak to other sponsors to find out what to expect and avoid. Sponsors are often only too pleased to advise others, as long as they are not rivals in the same field.

• Examine how the sponsorship might work in other forms of promotion. For example, can it translate to advertising or sales promotion activity that enhances the investment and helps consolidate consumer loyalty and recognition? In the mid 1970s, Rothmans sponsored the Rothmans Rugby Yearbook and used it to expand trade in rugby clubs through quiz evenings based on its contents.

• Seek the opinions of key customers and associates on the prospect. It may seem an obvious thing to do, but will it be popular with target groups and others involved in the business? It is worth finding out before taking the plunge and making a big mistake that causes embarrassment.

• Determine the resources necessary to run the sponsorship well and to exploit its value as a platform for other forms of promotion. Who is going to carry out the work and are they equipped to do so? Are they capable of moving the investment forward to make the most of the opportunities on offer? Can it be achieved by adding to existing in-house resources alone, or will an agency have to be appointed?

• Look at the promotional effort of rivals to compare the approach and potential impact. In what way could the sponsorship further distinguish your company from its competitors and score valuable sales points?

• Commit sufficient funds to publicize the investment and launch it with maximum effect. So often sponsors meet the asking price, but have nothing left to tell anyone about it! The best maxim is to budget at least as much again (preferably twice as much) for making the investment pay off and putting a significant figure for the initial announcement. The launch is a special opportunity for publicity and should be treated as such.

• Become involved in other activities surrounding the sponsorship that could help enhance its status. Supporting other events in the life of the sport, the theatre or the gallery – with an advertisement or hospitality box – can only serve to reinforce the connection and add value to the sponsorship.

The don’ts

• Don’t take a short-term view of the project. Someone once said thank God the Pope didn’t give up on Michelangelo when he painted the Sistine Chapel. While no budget should be infinite, time above all else helps sponsorship fulfill its objectives.

• Don’t follow a major brand into a sponsor it has dominated. Unless you have large pockets, patience beyond belief or a hidden agenda! The world is full of other sponsorships where a mark can be made and an image established.

• Don’t assume the sponsorship itself will deliver all the publicity. Once the announcement is out of the way or the event staged, there is no divine right to space in the media, so it needs planning and more investment to gain a good level of exposure.

• Don’t expect instant success. Not everything will work as planned, especially with a brand new sponsorship where the learning curve can be pretty steep!

• Don’t take on too much too soon. Build on the sponsorship year on year to develop staff experience and limit the number of mistakes.

• Don’t invest so much in the sponsorship that there is nothing left to promote. This is a common mistake that has slowed the progress of sponsorship and called marketing skills into question.