Sponsorship Fulfillment

Posted on February 21, 2012 by shannon

“Ah, the sale is done. I am finished.”

In the past few weeks, I have heard that too often. Sponsorship marketing is more than merely selling a package. At the Partnership Group – Sponsorship Specialists™ we work with our clients to ensure they deliver fulfillment. Yes, deliver on what they promised. We work with them to maintain a tracking system that ensures the sponsors get everything they paid for (and hopefully, a little more)!

But recently, I have met with organizations that think it is all over when the sale is done. Often, it is not the sponsorship salesperson or the development officer; it is the ED or VP. They seem to think that, if they fail to deliver on promised assets or opportunities, it won’t really matter.

But it will. Next year, the sponsors won’t be back. It is like any business agreement. They pay you money and you deliver the product (be it hanging a banner, setting up a meeting, providing an endorsement, or whatever). It is legal and binding. This is not philanthropy. The sponsors are not there just because they believe in your mission or love the team. If that were so, they would have written you a check and left it at that. They want results. They want ROI. And yes, it is about them.

So, the next time you close a great partnership, remember that the work has just begun. Remember that you need to create a fulfillment checklist and ensure that each sponsor gets what you promised. That is just good business.

These are just one person’s thoughts. Yours are welcomed as well. Please add your thoughts or comments below. Thank you for reading and your feedback.

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Growth Continues

Posted on February 17, 2012 by shannon

As the sponsorship marketing industry continues to grow, so does the Partnership Group – Sponsorship Specialists™. Effective this month, Chris Reed, an industry professional for over 20 years has joined the Partnership Group – Sponsorship Specialists™ team full time as a senior consultant. Chris joins the existing team after over a year of part time contract work serving a variety of clients for the Partnership Group – Sponsorship Specialists™.

As a full time senior consultant Chris will be providing sponsorship consulting services to the cross section of clients on both the brand and property side of the industry. The clients immediately served by Chris will be Little League Canada, City of Calgary, Calgary Interfaith Food Bank, Town of Canmore, Canadian Red Cross – Manitoba, Town of Kindersley, Raise the Roof Foundation, City of Toronto, Canadian Cancer Society and others. Chris brings a wealth of experience to the team from his most recent work at BMO as well as over 15 years with Maple Leaf Sports and Entertainment. Chris will be based in the greater Toronto area and serve Partnership Group – Sponsorship Specialists™ clients across the country.

“I extremely excited to be joining the team at the Partnership Group on a full time basis” Chris says. “Their long track record of success with sponsorship selling properties in the non-profit, charitable, sport and municipal worlds, along with their top notch brand services provides me an opportunity to be a part of important deliverables to the Canadian sponsorship industry and provide strategic planning to our client base.”

The Partnership Group – Sponsorship Specialists™ President, Brent Barootes, adds, “we take the hiring of new additions to our team very seriously. We are selective and bring on board, what we feel, are the industry best to serve our clients. Chris’s industry experiences, both on the brand and property side add greatly to our mix and will deliver the results we are after for our existing and future clients.”

Posted in Breaking Sponsorship News | 2 Comments

The Marriage of Sponsorship Relationships

Posted on February 14, 2012 by shannon

It’s Valentine’s Day-a day of romance and relationships. So, what does that have to do with sponsorship and sponsorship marketing? Everything. Absolutely everything. I use the analogy of dating and marriage when I am talking about sponsorship relationships. In my mind, they are identical.

As a property or a brand, you first set out to find a compatible partner. You may use personal references or leads (board member suggestions, senior staff recommendations, a friend or family member recommending a person whom you might enjoy spending time with) to build your prospect list. You may use modern technology (online matchmaking services such as eHarmony on the personal side or web searches on the sponsorship side). Then you reach out and ask that person out. In the case of sponsorship, you request a meeting.

From that first “date,” you do “research.” On the personal date, you find out if they are compatible. What are their likes and dislikes? What are their goals and ambitions? Do they have or want kids? Most likely, you take it slowly. You are cautious. You want to make the right moves. It is the same in the sponsorship world. At the Partnership Group – Sponsorship Specialists™, we call these “dates” discovery sessions.

After some “dating,” you may make a proposal. At first, it may be the suggestion of living together or leaving a toothbrush over. In the sponsorship relationship, it may be a small “test drive” sponsorship. If that seems to work well (small sponsorship/toothbrush scenario), then the big proposal comes-the “ask” for marriage and a long-term commitment-at higher stakes than a sleepover or small sponsorship.

All of that is just the “foreplay.” Once the “marriage” takes place, the real work begins. To make the marriage work, both parties must give and take. Both must communicate and work together. Both must “fulfil” on their vows and the promises they made. As long as both parties continue to deliver “the goods,” the marriage will last. Hopefully that is a lifetime, such as BMO Bank of Montreal and the Calgary Stampede (100 years), Molson and the Montreal Canadiens, and CIBC and the Canadian Breast Cancer Foundation. But sometimes people change. What was promised or vowed does not come to fruition. Then there may be separation and divorce. It is important to do this amicably.

Unfortunately, similar to our Canadian divorce rate of 50%, sponsorship partnerships often do not work out. I watch brands fail to activate when they promised they would. I watch selling properties not deliver audience or signage, or senior management people change things after the marriage has been consummated.

So yes, Valentine’s Day is an important reminder for all of us in sponsorship about our existing relationships. Why not call your sponsors or your properties today and tell them how much you appreciate them? Tell them you care. I don’t think you need to send flowers or chocolates, but a phone call, note, or email may be just the right thing to do with your sponsors this Valentine’s Day.

These are just one person’s thoughts. Yours are welcomed as well, so comment below.And thank you for reading.

Posted in Tuesday Morning Commentary | 2 Comments

How to Close Business in Sponsorship Marketing

Posted on February 7, 2012 by shannon

Recently, I read an article by Jane Porter on losing a sale. It brought back memories of losing sales opportunities when I was selling sponsorships on the street and the lessons I learned along the way.

Sponsorship is all about partnerships and creating win-win scenarios. Too often, I see people go through the motions and not really work at sales. Then they can’t figure out why they never got the business. Some other property got “their” money.

Sponsorship salespeople need to build better relationships. That does not mean more gifts for prospects, more dinners at fancy restaurants, and tickets to sold-out concerts or events. It means helping prospects to achieve their goals. It means sending them articles and stories that will assist them in moving their businesses forward. It means giving them a lead for a new client or staff person when it is the right prospect for them. It means building a relationship wherein the prospect sees you, the sponsorship manager of a property, as a valuable relationship.

You help them. You consult with them. You make them successful.

When a prospect or existing client stops asking questions or coming to you for advice, you should be worried. It means someone else is providing them with advice. If someone else has filled your role, soon they will take your sale! Know your clients’ timelines for decision making. Even if it is not soon, still create a sense of urgency. Set timelines for steps toward the close so you can move the process forward. Failure to achieve small wins along this long road will cause you to be left out of the decision-making process. That’s another point. Know who the decision maker is.

So often, I encounter clients who think they are talking to the decision makers and then cannot figure out why they lost out to someone else. You need to know and manage the hierarchy or you will lose the sale.

There are two last issues that I often come across.

One is the “issue of price.” The reason we all object to price, is because we think we can get the same product for less somewhere else.

There is a difference in quality and performance between a Focus and a Lincoln. If I want a luxury car with comfort and all the bells and whistles, I will pay the extra money for the Lincoln. As a property, your products are different from others and you need to show why, along with how you can deliver results accordingly to overcome a price objection. And finally, watch for the brand that is “looking for a proposal.” When they want you to send them a proposal versus having a discovery session, your Spidey Senses should start to tingle. They already have a supplier and are just doing “due diligence.” They are price shopping or quote gathering.

If you cannot get a conversation or full discovery with them, you probably do not have a chance in the long run. I walk away from people who don’t have time to meet and talk about what they need. I know that, unless I understand what they are trying to achieve and the budget they have to achieve it, I cannot help them. So, I don’t build the proposal or submit.

These are just one person’s thoughts. Yours are welcomed as well, please comment below, and thank you for reading.

Brent Barootes

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Something Different in Sports Sponsorship?

Posted on January 31, 2012 by shannon

Last week, I spoke of how well sport is doing with sponsorship. It’s true. Those that are doing it right in sport are going to really grow. But others are not. When true value, customer service, and fulfillment are not there, the result is horrendous.

In the past year, Alpine Canada has lost the vast majority of its sponsors. It no longer controls the one World Cup in Canada. Sponsorship revenue is in trouble, but there is one truly bright spot-Mike Janyk. His self-promotion has caught my attention. Back in early November, Ken Belanger, the sponsorship coordinator for the Association of Canadian Mountain Guides and a past client of the Partnership Group – Sponsorship Specialists™, sent me a link about Mike. I was hesitant. I wasn’t sure that I wanted to see another stock package from a self-promoting athlete who needs money. But I clicked on the link.

Normally, I tell everyone that the “Gold – Silver – Bronze Stock Packages” are dead-and they are. I repeatedly tell people not to produce glossy folders and stock pages. I tell them that they need to do the discovery and then build the program. The other stuff doesn’t work. It won’t take you where you need to go.

However, I clicked on the link. I was more than pleasantly surprised. I was impressed. Here was a generic presentation that caught my eye and my interest. Mike truly built a great introductory presentation. It showed some assets, spoke about what he had to offer, and encouraged sponsors to talk to him about building a custom program. I encourage you to look at it. It`s well done. The link is http://vimeo.com/30464395.

Yes, I was impressed. I thought it was creative and great. I hope you looked at it too. But did he get any sponsors? Did anyone step up to the plate? Last month, The Sponsorship Report noted that, as of its publication date, Mike still had not acquired a sponsor. He is confident that it will come, but to-date-nothing. It was a great presentation, but maybe the correct route is still to know what you have to sell and what it is worth, prospect correctly, get meetings, and do discoveries. As I have always said, perhaps that is really the right way.

These are just one person’s thoughts. Yours are welcomed as well, so comment below. And thank you for reading.

Brent Barootes

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Sport Marketing Continues to Dominate

Posted on January 24, 2012 by shannon

No matter how you look at it, sport sponsorships and sports marketing continue to dominate the sponsorship revenue model. The overall pie continues to grow, so all sectors such as the arts, municipalities, entertainment, education, member associations, and so on are also growing, but sport is not losing its share. It still accounts for about 50% of all sponsorship revenue in Canada.

To make things even more interesting, in a recent report, PriceWaterhouseCoopers (PWC) predicted that sponsorship will grow faster than any other segment within the sport world during the next few years. So, not only will sport continue to dominate the overall sponsorship revenue charts, but internally in the sport world, sponsorship will overtake gate revenues by 2015. This will make sponsorship the largest revenue channel for sport halfway through this decade. Neither gate revenues, nor media and broadcast rights, nor concessions, nor merchandising, nor anything else will generate more revenue than sponsorship.

For decades, we have all known that sports do sponsorship right. They know their audience. They target their audience. They deliver results for sponsors. They create affinity for their products and the products of their sponsors. They drive traffic, sales, and profits for their sponsors. Well, when you do it right, you make money-and sport is doing that.

Though people in the arts, non-profits, municipalities, member associations, and others often criticize sport for its domination of the revenue pie, they need to take note. They need to put aside their resentments and petty “woe is me” attitudes and learn to do it right. They need to see how sport does it and emulate it. They need help and professional development to be successful instead of saying, “We can’t do it.” As the Canadian Sponsorship Landscape Study 2011 noted, there is over $1.5 billion in sponsorship sales and revenues in Canada annually. That means there is over $750 million for the other sectors to share. At the Partnership Group – Sponsorship Specialists, we work with the smallest and some of the largest sponsorship selling properties in Canada and help them to be successful. No matter how big or small you are, sport or not, if you do it right, you will succeed.

As the brands that invest in sport know, it is getting way more expensive. They need to be more selective and strategic. As professional sports fees rise, amateur sport sponsorships are becoming more efficient and effective for smaller brands. We often direct our smaller budget corporate clients to amateur sport opportunities that can deliver results. But again, if the amateur sport organization cannot deliver, it too can say goodbye to future revenue.

It is a new year. As sport sponsorship revenues continue to climb, especially on the professional sport side, brands need to be more strategic. But selling properties in the other sectors, such as the arts, charities, non-profits, and such, need to get way better at what they do. They need to understand that sponsorship is not begging for money and twisting the arms of benefactors to underwrite organizational costs. Sponsorship marketing is a business. It is one that can yield great returns for both buyers and sellers, but only when it is done right.

These are just one person’s thoughts. Yours are welcomed as well, please comment below. And thank you for reading.

Brent Barootes

Posted in Sports Sponsorship | Tagged , | 1 Comment

The Business of Sport – Sponsorship Marketing: The Underlying Objectives

Posted on January 23, 2012 by shannon

Now available: The January 21, 2012 episode of “The Business of Sport” and Sponsorship Marketing on the FAN 960 hosted by Jungle Jim Hunter, featuring Brent Barootes of The Partnership Group – Sponsorship Specialists™.

  • Why do organizations sponsor sporting events such as the upcoming 2012 Olympics, the Paralympic Winter Games Games, and the Alberta Winter Games?
  • The difference between Philanthropy and Sponsorship Marketing
  • Sponsorship Marketing as Strategic Investments, with ROI expectations
  • Sponsorship Marketing vs. Advertising
  • What’s in it for me?
  • Underlying objectives of Sponsorship Marketing: Pembina and ATCO Gas – more than a donation, sponsorship for employee engagement, employee aquisition, community oriented

 

 

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Canon Scores with Soccer Sponsorship

Posted on January 23, 2012 by shannon

Capitalizing upon soccer’s growing popularity in Canada, Canon Canada Inc. recently inked a deal to become a Primary Level Partner of the Canadian Soccer Association and its National Teams, and an Associate Sponsor of the Association’s Active Start Soccer Fests.

The agreement also ensures Canon – a leader in digital imaging solutions – will be the official supplier of equipment for the Canadian Soccer Association.

“Soccer is the largest participatory sport in Canada and is the fastest growing sport in the country,” said Colleen Ryan, senior director of corporate communications, Canon Canada. “We are extremely proud to support all levels of soccer in Canada, from being a Primary Level Partner of the Canadian Soccer Association and the Canadian National Teams, to being an Associate Sponsor of the more than 150 Active Start Soccer Fests that take place across Canada between April and September every year.”

Soccer’s increasing popularity among youth is the focus of the Active Start Soccer Fests – youth development programs aimed at introducing the sport to kids. With soccer becoming more prominent in the Canadian sport landscape in recent years, and this trend continuing with the hosting of the CONCACAF Women’s Olympic Qualifying tournament at BC Place in Vancouver, a partnership between Canon – a longtime supporter of soccer across the globe – and the Canadian Soccer Association makes perfect sense.

“Canon’s involvement in soccer around the world over the years makes this a natural fit for the Canadian Soccer Association,” said Peter Montopoli, general secretary, Canadian Soccer Association. “Having one of the world’s most valuable brands on board at the Canadian Soccer Association clearly illustrates that Canadians are embracing ‘the beautiful game’ and are committed to growing the game across the country.”

 

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Doing Sponsorship Right

Posted on January 17, 2012 by shannon

Last week, I was reminded how to do sponsorship right. I was chatting with a couple of industry leaders.

We were discussing different sponsorship marketing programs in Canada and which of them are working well. During the conversation, we talked about different brands and properties and that they should enter the upcoming Sponsorship Marketing Council of Canada Marketing Awards. There are some really great programs out there, but measurement is essential. If you cannot measure success, how can you determine if the program is worthy of an award, let alone a renewal investment? That is essential.

Then I recounted a sponsorship story that I will never forget. It is personal. It is about my daughter. I had nothing to do with the program itself, except through her involvement. Many of you have heard me tell this story at conferences and such. It is worth repeating, because to me, it is the epitome of sponsorship. It is anecdotal, but it is measurable in my mind. It works. In fact, it works really well.

My daughter was four years old at the time. (She is now six.) She decided that she wanted to play soccer. So, she signed up for Timbit’s soccer in Calgary. To my understanding, Tim Horton’s (hence the name Timbit’s Soccer) pays a very low rights fee to Soccer Canada compared to some its other national sponsors. But they activate well and do it right.

For $50, she got to play eight games that spring and be included in a tournament. She also got a Timbit’s team soccer shirt, a Timbit’s knapsack, a Tim Horton’s water bottle, soccer socks, team and individual pictures, and a Tim Horton’s medal at the end of the season. All of this for $50! Man, we could not go wrong. As a parent, am I ever pleased that Tim’s is a sponsor, because the entry price is right and we get real value for that investment. It was a great season.

It is important to note that, at that time, when my daughter was four, she had never eaten a donut in her life or been inside a Tim Horton’s restaurant.

That summer, we were driving through Saskatoon to visit my father-in-law and sister-in-law. We were stopped at a red light and my daughter piped up from the back seat, “Hey Daddy, there’s a Tim Horton’s.” She was correct. Across the road was a Tim’s. I turned back to her and said, “Hey, you are four years old. You can’t read. How do you know what that says?” She confidently replied, “They are the people that make soccer happen.” I was shell shocked! (I shouldn’t have been. I am in the industry and earn a living from it.) I asked her if she wanted to go into Tim’s. Again, she confidently replied, “No, they just serve coffee in there and I don’t drink coffee.” (I am so thankful for that answer.)

So does sponsorship work? Yes, it does. Is it measurable? Yes, it is. When it is done right and activated, it works. My daughter’s experience with Tim Horton’s is the best example I know. And just for the record, she has since been in Tim’s and loves donuts! What can I say? Tim’s investment worked.

These are just one person’s thoughts. Yours are welcomed as well, please comment below. And thank you for reading.

Brent Barootes

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Playing in the Big Leagues of Sponsorship

Posted on January 10, 2012 by shannon

In recent months, there has been a lot of excitement about big sponsorships and professional sport.

Molson won its NHL sponsorship rights opportunity over Labatt. VISA walked away from Bobsled Canada, leaving a major hole in the revenue side of that organization. RBC and HBC announced renewal agreements with the Canadian Olympic Committee beyond the 2012 London Games. CIBC and Chevrolet announced sponsorships with the 2015 Pan/Parapan American Games. And ScotiaBank announced that it is now a major sponsor and the official bank of the Toronto Maple Leafs.

By my account, these deals account for over $425 million in sponsorships. So, how do the little guys play in the big leagues? Or can they even play in the sponsorship world at all?

With the return of the Jets, we are seeing lots of small Winnipeg businesses trying to ride on the coattails of the team—but to no avail. The game has changed since the team was last in town. Unless you pay the fees, you cannot use the logo, or mention the club’s name, or promote players’ appearances other than their names and “hockey player.” Ask the small Montreal restaurant that tried to be a local supporter of the Montreal Canadiens during the playoffs last spring and was fined over $60,000.

Professional sports are big business. You either play by their rules or you don’t play.

In my opinion, that does not mean you cannot play in the big leagues. And it certainly does not mean that you cannot play at all. If you want to play in the big leagues, you need to be strategic. Years ago, we struck a deal with a local home builder and the Calgary Flames. They are not paying six figures, but are still with the hockey club, and in fact, have added the Oilers to their portfolio. The key is activation. You must know your objective, focus on achieving it, and not be oversold assets. Another example is to partner with the sport’s broadcast partner. That is usually much less expensive and reaches a larger audience. Small businesses were partners at the Vancouver Olympics as well. It comes down to being strategic.

Overall, yes, the little folks can play in the sponsorship game. Every day, we work with many clients that are small properties selling sponsorship. Many of them are generating anywhere from $100,000 to $500,000 or more a year because they are doing it right. How can they compete with the Toronto Maple Leafs, the Olympics, and the CFL? Strategically! They approach the right prospects with the right programs and assets through a discovery session, and ask them for the right amount of money in a customized proposal based on the prospect’s budget. And yes, they are very successful.

And for our brand clients or sponsors, how do they succeed if they do not have seven-figure budgets or more? Again, it is strategic. We work with them to negotiate agreements with properties that are relevant to them. We work with them on properties that are grassroots and local, regional, or national, as they may require. We work with them to activate on the smaller rights fee investment. They are winning the battle and the war. They are integrating their sponsorships with their traditional marketing plans and media. They are filling niches and making programs work.

Our company itself does several annual sponsorships ranging in cash and contra from $1,500 to $10,000. Nothing huge. But from the smallest to the largest, they work. Otherwise, we would not renew them. So yes, smaller organizations (properties and sponsors) can play in the sponsorship world. And yes, if it is strategic, they can play in the big leagues as well.

These are just one person’s thoughts. Yours are welcomed as well, please comment below. And thank you for reading.

Brent Barootes

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