Sponsorships in sports are huge. Every person knows that being sponsored or endorsed by a company means that the person or team has some value in them and the company who is sponsoring them sees that value. Sponsoring can come in many forms but the most popular is to endorse with a team or an individual.
Sponsorship can create more awareness, building of the brand and leaning towards purchase. Sponsorship can build their brand by incorporating the sponsored into it. For example, if an individual is sponsor because they are a great runner and have won many titles, a sponsor who has a company that makes running shoes, sponsor that person with a pair of running shoes and that person will be incorporated into their brand. The brand can stand alone without the induvial and vice versa, they do not need each other to exist. However the marriage of the team supports the other in success of the sponsorship and the sponsored.
There are a number of guidelines that can be used when entering into relationships with the sponsor or the person requesting sponsorship. First question that will need to be asked is the sponsorship a match. What are the budget estimations and what resources will be required. The expenses with a sponsorship can become quite expensive. That is the time frame for the sponsorship. How long does it need to last and lastly what are the objectives with regards to the plan.
The company then needs a plan on who is their target market is and what is the best strategy they can be reached on. This involves analysing the product, the company and who the customer is. The time if any campaign is important, in terms of whether the sponsor is in season with their sport or out of season. If they are playing a good season that year that makes their favourability quiet high and visibility of their brand will be at its peak as well.
A company can approach an individual or team directing to sponsor them however a sponsor broker may also be used instead. The reason someone may choose to have a sponsor broker is let them do all the hard work and procure the sponsorship for them. Most people who require sponsorship may not have the time or know how in order to get it and therefore a sponsor broker is used. They are more specialised in the field especially in marketing the brand and the person being sponsored. When using an agency maybe beneficial for the company as it allows the company to commit to one event for a specific reason and not for a life time contract or a longer obligation. For example, if a company wants to sponsor a big event where a famous band is playing and the they sponsor all the equipment, the band receives the free stuff while the company gets great exposure at the event and this can be done freely without getting into any contractual obligation.
A company may, at times, rather sponsor something or money to an event from a good will point of view instead of looking for publicity. The reasons may be to just assist the community which in turn ensures the good reputation of the company will be held. The most common form of sponsorship is to create a beneficial relationship for all involved especially for the companies brand and image.