9 Reasons Why A Sponsor Sponsors?
Sponsorship is the provision of resources by an organisation directly to an individual, event or organisation, to enable the latter to pursue an activity in return for benefits contemplated in terms of the sponsor’s promotion strategy and which can be expressed in terms of corporate, marketing or media objectives and can be used for commercial advantage.
A few of the many reasons why sponsorships are sought after can include:
1. Brand Awareness: The most important ROI that sponsors are looking at growing is that of brand awareness. By sponsoring for an event or business venture, the sponsor is expecting the name, image and knowledge of their brand to target a large audience, introduce them to the brand and in turn win over a few potential clients in the process.
2. Brand Image: Very often sponsors are also made with the intention of invoking a positive perception of the sponsoring brand. To support, build or change a desired image, the sponsoring brand will look to invest in areas that can help them achieve this objective. Depending on the reach of the brand receiving the sponsorship, the sponsor will be looking to reshape their brand image among the target audience as well.
3. Media Coverage: A rather expensive but expansive consequence of a newly established venture, a wide media coverage range is a sure means of large scale marketing. For both the sponsor and the investee, a sound media coverage can help both parties establish a strong presence among those interested in their business.
4. Product Showcasing: An amazing opportunity to showcase products, both existing and new products to test its acceptance among a diverse crowd. The investor can use this as a chance to interact with a wider audience and help draw the crowd while at the same time use it to work to benefit in understanding the demand for his products.
5. A niche audience: By agreeing to a sponsorship, the investor has now entered a new territory, one that consists of a more niche market that is specific to the needs of the investee’s business objectives. Apart from being cost-effective, it is also a great improvement from older, more conventional approaches of marketing which are quite obsolete in today’s market scenario.
6. Differentiation: With sponsorships come the opportunity to engage in various product differentiation strategies. Open to a much larger audience now, an investor is more credible to take risks and work on going one step further with regards to gaining competitive advantage.
7. Identification with a particular lifestyle: Putting the needs of the select audience comes with the new territory. Understanding their needs, requirements and predicting future demand are a few ways to make the most of the longstanding relationship a sponsorship creates.
8. Merchandise: Offering merchandise on spot is a great way to engage in quick marketing and to understand the immediate response of the audience, their preferences and suggestions that can go a long way in the development of future marketing strategies.
9. Impact the bottom line: Driving sales through contests, special schemes and product awareness, a sponsorship opens up various beneficial long term advantages that can work in the best interest of all parties involved.
While the benefits of a sponsorship are numerous, it is important to understand the individual differences that may exist and that can prevent the benefits from outnumbering the weaknesses. Identifying, accepting and working on these differences is what forms the very foundation of a strong, long term and loyal sponsorship.