What is official sponsorship and what is its importance?
Official sponsorship has greatly contributed to the success of the Reb Bull brand. Likewise, the Heineken Group is known for its sponsorship of the European Rugby League Cup. To a lesser extent, a bike shop that sponsors a local bike race is well known to locals. Visibility is the main goal of sponsorship, and benefits companies in all sectors of activity and regardless of their size. A company makes itself known in order to attract customers, it associates its image with a person, organization or event to increase its notoriety.
What is official sponsorship?
Sponsorship is an agreement whereby a company provides financial, material or human support to a person or organization, which in turn promotes the brand according to agreed terms. For a sponsor, it is a communication process that is part of a marketing campaign.
How does official sponsorship work?
Business sponsorship links two partners:
A person or organization looking for a sponsor: The person is a well-known public figure with some media coverage. These are often athletes. Organization is understood in the broad sense of the term. It can be a non-profit association, a sports team, a club, a competition, a sporting event, a humanitarian or artistic activity, or even a scientific research institute. Company sponsor.
Each partner pursues a specific goal:
The sponsored entity has a specific need for money, equipment, technological tools, knowledge or technical skills. Sponsorship, in this context, is the central financing and operating model for local sports associations and clubs. The sponsored entity may also seek a sponsor for the purpose of monetizing its notoriety and media coverage. This is the case with international footballers. The company is sponsored for the purpose of vision. This promotional process is part of its marketing campaign, or constitutes its strategy in itself. The sponsor uses this communication vector to introduce itself to previously targeted customers, or to enhance its brand image by associating itself with a popular long-term partner.
Official sponsorship contract agreement:
Bail is sometimes formalized by verbal agreement. When the risks are high, it is necessary to provide a sponsorship contract. The sponsorship contract mentions the following basic terms: the identity of the parties, the duration of sponsorship and the obligations of the partners. In general, the sponsor’s commitment consists of paying a sum of money, lending, or donating equipment. The company can, for example, lend security barriers to supervise the event, or provide goodies to reward the winners of a sporting event. The sponsor may also be asked to provide a service, for example logistics. By the way, sponsorship can take the form of a beneficial discount on selling prices practiced by the company. In return, the sponsored entity provides brand visibility on its advertising media. The sponsor’s logo, for example, is printed on event posters, on stage or box banners, on the start or finish bracket of a race, or on apparel or athletes’ T-shirts. In addition, a company’s brand may be associated with a sporting or cultural event or charity in press releases, and appear online on the organization’s website and social media. When a person is sponsored, the company can intervene during a corporate event such as the opening of a new point of sale. On a secondary basis, the sponsorship contract may provide for the sponsor to be offered places to attend the sponsored event. Another consideration in favor of the sponsor: The company is authorized to communicate its sponsorship action and quote the entity it supports via its marketing materials. Bail is a matter that is little regulated by law, as the parties enter into their contract relatively freely. It should be noted, however, that the Evin Law puts an end to this practice: since 1991, sponsorships whose purpose or effect is the advertising of alcoholic beverages are prohibited.
Benefits of official sponsorship:
The benefits of sponsorship for the company are observed mainly at the level of visibility generated from the process. At the end of the day, like any marketing action, sponsorship leads to increased sales, and therefore increased sales. However, it should be noted that unlike some actions such as an email campaign or social media advertising, it is difficult for a sponsor to measure the financial impact of their investment, as the purchase journey cannot be traced. Increased Visibility: When a sponsored athlete, event, or event is advertised on television, radio, or in the press, the company reaches a wide audience. Targeted vision: A company can use sponsorship to reach a specific goal. For this, it chooses the entity that sponsors it according to the customer segment it targets, based on the audience that the event attracts. For example, an energy drink company may choose to be promoted at an extreme sporting event to reach young customers, where a luxury watch brand would prefer to showcase its visual identity during a horse race. Delegated vision: Once a sponsorship contract is in place, the company generally has to pay the agreed price. The work stops there and then it is the sponsored entity that takes up the promotion of the brand.
How to do sponsoring
Besides the issue of visibility, the company can take care to create a union of brand images in the mind of the consumer. For example, a company that sponsors an event organized for environmental protection purposes sees its image as linked to a laudable and objective commitment: it improves its reputation by promoting its values. When both partners have the same reputation, each benefits from positive image transmission. Another benefit of sponsorship is seen internally. The company improves employer branding, and can increase employee motivation by allowing them to take advantage of in-kind benefits offered by the sponsored entity. A football-loving employee, for example, would appreciate getting free tickets to a crucial match. Note that contrary to popular belief, sponsorships only entitle you to an expense deduction for advertising expenses, not a tax deduction. The tax deductions are actually reserved for donations and sponsorships, which do not entail any advertising compensation for the company. Often, organizations approach companies with their own initiative for sponsorship. But the company can provide organized care itself. The marketing department sends an unsolicited request, or consults dedicated networking sites.