Corporate sponsorship is one of the most popular marketing tools used worldwide. Sponsorships differ from other marketing campaigns because they typically kill two birds with one stone. Basically, both the parties (sponsor and the organizing group) benefit. Many organizations who seek sponsorships are non-profit ones, financial support from various business establishments is always a goal. On the other hand, businesses find sponsorships a great way to engage their consumer audiences. It gives them a positive image, exposure, appeal. And at the same time they can display and advertise their products. Through sponsorships companies can directly communicate with their market and build good relationships with them.
How do sponsorships work?
Sponsorships take place between the event organizer and a corporate entity. For example, a local group that is planning to organize a Breast Cancer Awareness program goes to a particular company and offers a marketing plan in exchange of in-kind service or financial assistance. The group will only have to present their sponsorship proposal to their target sponsor and the latter decides whether to accept the offer or pass it over.
For businesses, sponsorship can add an additional boost to its marketing campaign. In this very competitive market, each company has to find a way to get more customers who will not only buy their product but will patronize it for a longer period of time. And as far as consumers are concerned, a company that recognizes its buyers and listens to their feedback is a company worth trusting.
Sponsorship and Proposal Development
Creating the sponsorship proposal is the most crucial part of corporate sponsorships. The organizing group should make sure that their proposal has what the sponsors need. In making the proposal, they have to consider certain things to secure the commitment of their sponsors.
– How will the event benefit the sponsors?
– What’s the likelihood of the project becoming successful?
– What are the possible risks?
– What is the total amount of support (in cash or in kind) that is needed?
Basically, the sponsors want to know whether they are going to benefit from sponsoring the event. Therefore, the sponsorship proposal should provide a comprehensive report and analysis of the proposed terms. Sponsors also need to know the target audience: whose coming to the event, why will they come, how credible is the organization holding the event, who are the others sponsors, and what is the cost. It is important that the proposal points out the benefits the sponsoring company is going to get justify the cost they’re going to spend. It should also contain some other information like what will happen in the event and a summary of the project.
Corporate sponsorship is perhaps one of the fastest growing industries in western countries especially in the US. This multi-million dollar industry has tremendously helped businesses (small and big) to establish customer relations, branding, and popularity. Furthermore, it has brought so much hope for community work. Almost all kinds of events designed for general welfare are possible even if the organizing groups do not have the funds.