Small firms can get good publicity and create valuable goodwill by
sponsoring a local team, event or good cause - and it doesn’t have to break the
bank, as business writer Naomi Marks reports
Sponsorship is often
considered the domain of big business, but there are plenty of excellent
opportunities for small firms. These might include sponsoring a local sports
team, art exhibition, business competition, school project or recycling
initiative.
“Sponsorship is a mutually beneficial relationship between two
organisations, a rights owner such as a sports club, and a fund provider - the
business,” explains Jackie Fast, sponsorship manager and managing director at Slingshot Sponsorship.
“While the rights owner usually benefits from goods, services or funding
provided by the business, the funder can benefit in myriad ways,” she says.
“The return on investment won’t always translate directly into pounds. But
while measuring increased sales is important, benefits such as brand awareness, showcasing opportunities, customer loyalty, lead generation and
goodwill all need to be considered too.”
Your return on investment
Sponsorship can generate substantial publicity for a relatively small investment. “It’s
like using the strength, funds and audiences of two organisations to develop
your product and build your brand awareness,” says Fast.
She cites the example of a florist sponsoring a local football team by
buying the team’s kit, on which it prints its branding. The florist gains
visual awareness for its brand, and builds a feel-good factor thanks to its
association with the local team. It may also find networking
opportunities at matches, and opportunities to showcase its
productsat prizegivings.
“The team sponsorship may have cost £300, but a direct marketing campaign covering an equivalent size
of audience would cost closer to £3,000,” points out Fast.
Decide who to sponsor
If you want to find
sponsorship opportunities, you need to consider who your target audience is.
“That’s not necessarily who you already sell to, but it could be who you want
to start selling to or who you want to start engaging better with,” explains Fast.
Next, you need to consider what you want to achieve. “If you want to
build brand awareness, you need to look for opportunities to display your logo,
or if you are launching a new product, find
opportunities to showcase the product,” says Fast.
Approach organisations that have access to this target market and may offer these opportunities. These
might include charities, trade organisations and non-profit bodies. Sometimes
these organisations have a sponsorship manager; otherwise, write to the head of
marketing setting out how you think you can work together.
“Ideally, you want
the partner to have similar goals to your own,” advises Fast. “Then work with
them to create a plan of activities, operating to a set budget. You need to
create a win-win situation.”
Track the results
Where possible, you should measure the benefits of sponsorship. In some areas, such as
lead generation, this is much easier than in others such as brand awareness.
“Bear in mind your
return on investment won’t always translate directly into pounds,” concludes
Fast. “Sponsorship is a long-term relationship, and as such many of the
benefits come in the long term.”
Written with expert input from Jackie Fast of Slingshot Sponsorship.
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