As a small business you will probably get approached by a sports team or a community event to be a sponsor. When marketing your small business this seems attractive marketing process to understand, or even perhaps try your product or service. However, before you accept there are things you should consider.
What are you getting for your sponsorship?
to talk to your organization or event organizer how you can maximize your sponsorship. dollars and get in writing what exposure your business will get
some questions to ask are:
- Where will the logo, brand or company my name appear?
- How and how often will logo, brand or company my name appear?
- Is it only sponsorship or is it shared with other companies? Who are the companies that will share the sponsorship and they are relevant to my business?
- What additional benefits will I receive for my advantage? For example, the inclusion of ad in their program, assigned seating in a game or event to entertain clients, players on a sports team meeting key customers, etc.
To ensure quality logo is kept, to require the approval of any materials where the logo or information about the brand or company will appear.
Cost Versus favor of
With any marketing strategy you perform you need to be aware of the costs, as against the results you want to achieve. Sponsorship as a marketing strategy should not be different. Analyze your cost advantage versus the expected results you want to achieve. Compare the cost of sponsorship marketing tactic costs to determine whether the money could be better spent on other marketing techniques. For example, if you press lunch how many ways you hope to generate from sponsorship? Would you like to generate more leads by direct mail campaign to the same customer?
If you are unable to provide certain benefits, you may be able to negotiate prices or promote joint sponsorship. With the joint sponsorship secure sponsorship is shared with companies that complement and is not a direct competitor.
Setting a Budget
Set a budget for how much you want to commit to sponsorship. Plan in advance which events, institutions, etc. you want to sponsor this year and stick to the plan. It is likely that you will get requests all year from organizations that need sponsorship. Unless they offer a once in a lifetime opportunity, it is best to stick to the plan to prevent overspending and hasty agreements sponsorship may not be appropriate for your business and your target market.
Relevance for Your Target Market
Select the option that applies to your brand or company and appeal to your target market. Try not to choose the option that only the interest or a particular employee. It is no use to sponsoring local football if players or spectators are not your target market.
Tracking sponsorship strategy is often difficult because of the wide audience they have the potential to reach
Several ways to monitor sponsorship results are:
- Measuring media exposure from the sponsorship assistance. event notification and choice in the local newspaper, on the radio etc
- Measuring exposure to brands or companies in other mediums such. programs, clothing, logo etc
- new customers that have come from sponsorship participation of your example. asking customers where they got to hear about you or your company, market research which analyzes customer recall where they saw the brand or company name
- privilege you get from such sponsorship. access to databases
- Relationships with people who may be effective that you could not normally get, for example. MPs, sports stars etc
Grants can be a great marketing strategy; However, it is always wise to work out what it will do for small business before you commit to spending valuable marketing dollar.
© Marketing for Business Success Pty Ltd 2008