Developing New Sponsorship Strategies in Challenging Times

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By Kevin Bartram
Principal, Bartram Sponsorship Strategies

We all know this fact - the state of the nation’s economy has not been this bad for generations and the conditions are not likely to improve any time soon. Corporations are reducing spending, particularly in any areas deemed discretionary, which is how many would classify sponsorships.

So how can an organization develop new sponsors in these tough times? The answer is to work on principle, establish a solid foundation and offer true value that will resonate with the companies deemed most desirable for partnership. Be authentic and professional in your approach while truly focusing on the needs of the companies being approached. It’s easy to say that you’re committed to establishing partnerships – it’s another thing to truly act like a partner. Remember that, regardless of the type of organization you represent, your sponsors are most likely looking at your organization as a channel for driving business, however directly or indirectly.

While one might be tempted to simply have a fire sale and cut any deal possible, now is the time to get buttoned down, revisit and update your sponsorship plan and make sure that the information being taken to prospective sponsors reflects the reality of the market and speaks to the unique needs of the corporate audience. Here are some actions to consider as you look ahead to a challenging 2009 (and beyond) in your effort to secure sponsorship revenue to fund your endeavor.

Ø Have a formal plan and defined sponsorship program that shows the prospect that you mean business, that your organization is stable with a low risk factor. Corporations are generally risk averse but, in times like these, risk is often the biggest influencer in making spending decisions.
Ø Present your offering not from the position of how wonderful your organization is (aren’t they all?) but how association with your group and access to its offerings can help companies do what they are in the business of doing.
Ø Consider approaching your sponsorship packaging from the perspective of identifying and providing access to your assets. What a company is actually purchasing when investing in a sponsorship is access to the unique assets of the sponsored organization, whether brand affinity, a unique audience, events, media or direct business opportunities.
Ø Don’t come off as desperate or fearful – potential sponsors can sense this from a mile away and won’t likely provide funds to an organization whose financial viability is strongly in question. Fear and desperation will drive away the risk averse in droves.
Ø Take advantage of the tough times by clearly positioning your offering as a business solution – as a means to drive business, generate sales and deepen relationships with potential new customers. As with all of these tools, one must apply them authentically, in a way that reflects the true nature of the organization seeking sponsorship. Be sure that what you are offering can truly be delivered.
Ø Offer your business whenever possible. Be ready to act like a true partner and make business commitments to the companies from which you are seeking sponsorship funds. And, by extension, be sure to approach those companies with which you do business with your sponsorship offering and seek quid pro quo from them as well.
Ø Consider pursuing sponsors for your organization’s “green” efforts but only if truly committed to taking actual measures to address environmental matters. Of course, many companies are jumping on the green bandwagon and sponsored organizations have adjusted to take a green position, whether genuine or not. This is a fertile area in which to seek sponsorship and will likely be so for years to come but the pretenders are easily weeded out and reputations can be damaged by making claims that do not hold up when scrutinized.
Ø Always have a professional presentation, a clean website, and take a respectful, consultative approach when recruiting sponsors. This may seem second nature and go without saying but, having sat on the corporate side for the past year, I can state first-hand that there are still many seeking sponsorship with poorly crafted, unprofessional offerings that come primarily from a position of need. Lead by clearly stating the strengths of your organization and how your assets can help prospective sponsors enhance their businesses and you should at least get some attention, the first step toward generating new sponsorships in tough – or any – times.

As a means for helping organizations develop or enhance their sponsorship offerings, I am making available my CD training courses, Sponsorship 101 and Sponsorship 201 to Dan Beeman’s Linkedin Sponsorship Insights Group at a special low rate. Designed to guide sponsorship professionals, new or experienced, in the art of sponsorship development, each CD is comprised of a one hour training program, led by yours truly, with presentations and bonus materials that provide access to intelligence gleaned over more than 15 years in the business. The programs are based on my successful webinar series administered with Sponsorwise and contain a wide range of valuable practices I have used in developing major sponsorships on behalf of both corporate and property clients.

Regularly priced at $149 each, we are making each program available to this group for $119. A package with both 101 and 201 can be purchased for $219. We are also sharing revenues with Sponsorship Insights to help fund this valuable networking and information service. Oh, and shipping is free. The contents of these programs would cost thousands of dollars if delivered by way of a consulting relationship and each contain many practices that, if properly deployed, will generate a direct ROI many times greater than the programs cost.

Please click on this link for more information on our training programs. (link) Type in the promotion code (need) and place your order. You’ll have your CDs in a week or so to help you in your quest.

Good luck and here’s to a prosperous and positively event-ful 2009.

Kevin Bartram Bio

In his near-20 year career as a marketing executive and sponsorship consultant, Kevin Bartram has developed programs, events and partnerships for several Fortune 200 companies as well as nonprofit and government agencies. The marketing-based alliances Kevin has created will generate over one billion dollars in economic impact for the communities and organizations served. His personal mission is to support social change through the facilitation of creative, mutually beneficial partnerships.

Kevin’s recent focus has been on green-related sponsorships and developing alliances to address environmental issues, while working on behalf of Pacific Gas and Electric and dozens of partner organizations. In working to help PG&E make a difference in fighting climate change by driving adoption of renewable energy, energy efficiency and carbon offset programs, Kevin is partnering with a unique blend of non-profits, sport and entertainment properties, government agencies and entrepreneurs to establish new programs.

Kevin’s clients have included Cisco Systems (for which he created NetAid with the UN), NASA, the National Geographic Society, Wells Fargo, the Golden Gate Bridge District, SunPower, the University of California and dozens of others. He has developed major naming rights deals, created new cause–based events, led a technology marketing consortium and consulted entities as diverse as the Esalen Institute and the Vatican. Kevin speaks on effective cause marketing and sponsorship development and has recently introduced a CD-based training series.

For more information, visit http://www.sponsorshipstrategies.com/.

These posts are opinions, insights and links to marketing and sponsorship news. They are meant to inspire and provoke thought. I encourage you to subscribe to my RSS feed and visit my website at www.sponsorshipinsights.com to learn about our services.

Exclusivity: Finding the Balance

Visa recently unveiled their new tagline, "Life Takes Visa," during the 2008 Summer Olympics. The timing demonstrated a well-coordinated marketing effort in which the advertising campaign and Visa's sponsorship of the Olympics augmented each other and enhanced the overall effectiveness. The sponsorship agreement involves an exclusivity arrangement which establishes Visa as "the only card accepted at all Olympic Games venues for any official Olympic Games-related transactions." (http://www.corporate.visa.com/md/fs/olympics/olympic_facts.jsp) There were 6.52 million tourist arrivals in Beijing during the Olympics and they soon found that, for the next 16 days and 17 nights, life only took Visa.

Let's consider how this played out for Visa. The benefits that Visa sought from the sponsorship agreement most likely include heightened brand visibility, increased sales, and enhanced brand image.

• Brand visibility: Pre-Olympic promotional programs were implemented in conjunction with partnering financial institutions in 46 different countries. Visa definitely gained exposure during the actual two and a half week period, and the new Visa card accounts that were opened during this timeframe further extended the visibility factor post-Olympics.
• Increased sales: Visa not only increased its sales volume during the Games, it also had an opportunity to more effectively showcase products other than its credit cards. During the Torino Winter Olympics Visa issued 650,000 prepaid cards in direct relation to Olympic transactions, and similar results can be expected of the recent Summer Games.
• Enhanced brand image: This is where the value of exclusivity becomes ambiguous. Consumers tend to use credit cards for the convenience factor. Ironically, Visa created an inconvenient situation for anyone who did not already use a Visa credit card or would have preferred to use another card for whatever reason (corporate card, reward points, etc.). Furthermore, consumers have generally come to expect the freedom of paying for their purchases with their major credit card of choice so the Visa-only policy has resulted in many an unpleasant purchasing experience and has generated a certain degree of backlash. On the other hand, their exclusivity on such a prestigious event may have caused some purchasers to wish they had a Visa!

Brand visibility is fundamentally valuable when it translates into increased business, so the value of heightened brand visibility for Visa is diminished if negative consumer perceptions develop. Also, it is unclear whether higher sales figures resulted from an actual increase in consumer preference for Visa or if the increase in sales was primarily a one-time deal rather than a sustainable improvement.

Clearly, brand visibility, sales, and brand image are inextricably interdependent. While there are measurable short-term improvements, it remains uncertain whether the derived benefits are sustainable and worth the costs of implementing Visa's Olympic marketing strategies. So the question Visa needs to ask itself is: Is the Halo effect from the Olympics worth the risk of turning off customers with the lack of alternative payment options?