Most typically, corporate sponsorship deals are funded and managed within advertising, brand or corporate marketing and sales promotion organizations. With the current economic times requiring senior buy-in, full utilization and accountability, it may require internal advocates to find broad based support and budget resources.
Careful review of leveraging activities and assets may reveal untapped and hidden opportunities that are beyond marketing functions. There are many internal groups that have benefited from sponsorship deals (along with others who haven’t even been considered) and may not have been asked to provide funding.
Below are a few business functions and areas that Marketing Leverage LLC has worked with successfully in generating participation and support for sponsorship related activities. Some are obvious, others not so.
• Employee Relations –This group should be part of the matrix core team as they can be central in helping to evangelize the benefits of a sponsorship along with telling the business strategy and sell the business case value. In addition, internal communications teams are often seeking ‘good news’ stories and interesting & relevant content to share with employees. Many companies provide access to sponsorship assets (tickets, merchandise, etc.) at a discount as an employee perk. Several Olympic sponsors run internal contests with winners awarded working trips to the host country during Gamestime.
o Generally the financial budget for Employee Relations is limited, so don’t expect many hard dollars. However, they can be a major ally when buy-in or renewal is needed. Also, by creating a win-win relationship, they will be more likely to do an effective job on communicating sponsorship strategy, sell in and wrap up.
• Human Resources / Campus Recruiting – These groups are marketing the company as a brand, too. Sponsorship relationships can help contemporize and demonstrate coolness or relevancy to potential hires. Most companies have job fairs, on campus recruiting and advertising that can all be enhanced by fully leveraging relationships.
o HR does have funds available, so plan to have them kick in some towards the rights fees. But help them out by sharing sponsorship related created, signage, ads or exhibit structure. This will offset some of their operating costs and also ensure they follow a consistent look, feel and thematic.
• Corporate Education and Training - May be seeking corporate activities to align with and thematic to tap into. Many sponsorship deals lend themselves as creative ideas and provide an interesting structure for training programs.
o Like HR, Training likely will not have many funds available to contribute. Assume this group as another internal ally in leveraging the deal. This may require you to give more than you get. But helping to relieve expenses, ultimately benefits the company. Sharing of sponsorship related creative, logos, photos, identity etc. will enable them to follow a consistent look, feel and thematic and make your life easier.
• Health & Wellness – Many large corporations have groups dedicated to promoting healthy lifestyles. These groups run employment involvement activities and health education seminars that are all easily tied into any sports sponsorship.
o H&W usually doesn’t have many funds available.Plan to use this group as another ally in demonstrating a “full circle” integration of the deal, to the employee body and senior management. Appeal to the property to see if they have health education programs or information readily available that can be ported over.
• Corporate Social Investment / Philanthropy – These groups definitely have funds available, either through a foundation or direct corporate allocation for arts and charitable needs to demonstrate socially responsibility
o Many have specific rules on what they can fund. This may restrict their participation to charitable aspects of a property, etc. Sponsorship leaders will have to spend time understanding these parameters. Working closely with properties is required to structure deals that can tap these funds or align with property related philanthropic activity (i.e. NFL – United Way; FIFA – UNICEF)
• Environmental Outreach – Companies whose processes or plants impact the environment often align with conservation related organizations.
o Most have funds, but individual situations should be explored.
• Product Management / R&D Budgets – In many categories (technology, automotive, video games, etc.) product managers have funds set aside for early user trials or product launch. R&D may be interested in extreme situations that can fully stress out products under demanding circumstances.
o These may take the form of direct cash funds or value in kind contributions. Sponsorship managers will have to be smart in structuring deals with properties in selling the true value of the goods being provided.
• Retail Promotion – Consumer package goods often have ‘key retailer’ strategies with specific funding for in store promos. The retailers are always seeking unique and differentiating ideas. Clever and tight integration of a sponsorship into retail can be a major step forward in enhancing this relationship.
o Funds are definitely available!Retail promos are usually planned at least three quarters in advance, so early engagement is needed. Be aware of the sponsor agreement and ‘pass thru’ rights considerations.
• Sales Awards – Virtually every sponsor of a major property utilizes one or many events as an award platform for the sales team. It is aspirational, exclusive and typically provides access to senior management.
o Sales always has money, so don’t be shy or timid! Get them to pay for part of the property rights, not just their own hospitality costs.
• Channel Marketing / Affiliate Relations – Most corporations have an extended ecosystem of partners, vendors etc. Many are actively engaged in leveraging or benefiting from sponsorship deals. (MasterCard & Visa – issuing banks; auto makers – dealers; Large retailers - manufacturers)
o Like sales, this group has money,make sure they are appropriately funding the overall deal, plus their direct costs.
• Advertising and Media Budgets – These groups may have dollars already allocated for assets that are part of the sponsorship package -- ad or signage placements in a variety of media that are viewed as useful and valuable. The sponsorship may “be” the big idea of the ad campaign and include entitlements to celebrities that will be featured in creative.
o The media group may loath this conversation, fearing that you have agreed to undesirable, off-target spots or large financial commitments. Like with other groups, early engagement, inclusion and solicitation of input is recommended.
This exercise is not merely about seeking and finding internal funds. The days of the old “tin cup” routine, where advocates make the rounds looking for investors have long since passed. Strategic, smart use of sponsorship assets requires that the project leader look broadly across the company, educate people on the benefits and provide marketing consultation.
Identify any and all angles for potential benefit extraction. Think about every group of constituencies that somehow touch the business – customers, employees, suppliers, partners, investors, media, analysts, regulators, etc. All may provide opportunities for further leveraging of the property.
In many cases, the group cannot provide directly investible funding. But they may be in a position to build upon the investment in place – fees, activation programs, etc. – that provide cost avoidance in their budget. Be sure to quantify and track these. At final review or renewal time they provide further evidence of the value to the business – plus the strong and effective leadership you have provided.
Good luck!
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