Due to the wide range of options available many businesses struggle select the right sponsorship opportunity. Options for sponsorships range from community groups and events to sporting teams, charities, music festivals and business breakfasts, to name just a few.
Sponsorships not only connect businesses with key groups and build brand recognition, they also provide memorable content to share on social media. These benefits mean that sponsorship is likely to remain a popular marketing tool well into the future.
Key Questions to Ask About Sponsorships
Sponsorships don’t always deliver the desired results because they are treated as ends in themselves instead of being utilised to enhance brand image and engage with target customers.
To ensure that you select the right sponsorship opportunity for your business, ask yourself these questions:
1. What is my goal?
Before choosing an organisation or event to sponsor, you must know what you want to achieve. Are you trying to establish your company as a community leader, build brand recognition or reach a new market? Without a clear idea of what you want to gain, you have nothing to guide you, and your sponsorship dollars will more than likely be wasted.
2. How will the sponsorship benefit my business?
The organisation you partner with should complement your company image and values, otherwise your alliance will just confuse people. A good sponsorship deal enhances the image of both partners and clarifies their messages. A mutually beneficial arrangement will also give you leverage to negotiate a better deal.
3. What kind of exposure does it offer?
To achieve your goal, do you require local, national or international exposure? Before committing to a sponsorship, find out how you’ll be credited. Your company logo should be clearly displayed on all websites, billboards and printed materials. Ask what kind of media coverage will there be. The more unique the event or organisation, the more attention it will garner. Also, ensure that you’re free to use your partner’s logo in your marketing.
4. What costs are involved?
Some sponsorship deals don’t involve an exchange of money but require sponsors to give away goods and services or provide discounts. Travel to various destinations may also be required at the sponsor’s expense, and most businesses spend a significant amount on their own promotions. Before choosing a sponsorship opportunity, calculate the outlay to determine if it’s worth it.
5. Will it alienate some market segments?
While sponsoring a sporting team might seem like a great idea, remember that not of all your customers will barrack for the same side. Sponsorship of some causes may alienate members of your target market. This is where solid market research comes into play. Unless you’re trying to make a splash, it’s wise to choose an uncontroversial sponsorship opportunities that resonate with as many members of your target market as possible.