Industry Definitions

The Partnership Group is pleased to present the following list of industry terms and definitions for your convenience. These are the key terms so many clients and people ask us about and how we define them.

INDUSTRY DEFINITIONS

Activation
Ambush marketing
Arts marketing
BATNA
Benefits / Assets
Brand Experience
Bundling
Business-to Business Sponsorship
Buzz marketing
Category Exclusivity
Cause Marketing or Cause-Related Marketing
Co-sponsors
Cost/Benefit Ratio
Cross-Promotions
CSR (Corporate Social Responsibility):
Discovery or Exploratory Session
Event Marketing
Experiential Marketing
Fulfillment
Guerilla Marketing
Hospitality
In-Kind Sponsorship
Intangible Benefits
Integrated Marketing Communications (IMC)
Inventory
Licensed Merchandise
MARCOM (sometimes spelled "marcomm)
Mark
A Media Sponsor
Mnemonic
Option to Renew
Pass-Through Rights
Philanthropy
Philanthropic Gift
Presenting Sponsor
Primary Sponsor
A Property
Proposal
Prospect
Return on Investment (ROI)
Right of First Refusal
Sales Rights
Signage
Sponsee
Sponsor (Sponsorship Buyer)
Sponsorship
Sponsorship Fee
Sponsorship Marketing
Stealth Marketing
Strategic Philanthropy
Street (level) Marketing
Supplier
Tangible Benefits
Title Sponsor
Value
Venue Marketing
Virtual Signage

Activation: refers to the marketing activities a company conducts to leverage its sponsorship. The money spent on activation is over and above the rights fee paid to the sponsored property.

Ambush marketing: is a promotional strategy that takes place around a sponsorship property by a non-sponsor (often a competitor to the official sponsor) but does not involve payment of a sponsorship fee to the event. The ambush marketer attempts to capitalize on the popularity/prestige of a property by giving the false impression that it is a sponsor without paying any right's fees.

Arts Marketing: is a Promotional strategy linking a company to the visual or performing arts (sponsorship of a symphony concert series, museum exhibit, etc.).

BATNA: ris an acronym meaning "best alternative to a negotiated agreement" and was coined by Roger Gisher and William Ury in their 1981 bestseller, Getting to Yes: Negotiating Without Giving In.

Benefits / Assets: Those elements that are owned by a property and are of worth to a sponsor that the property can sell to them to achieve their goals and objectives - these are what make up the inventory.

Brand Experience: is a 3D advertising program developed in a way that includes the consumer.

Bundling: This is the combining of several assets or benefits together from the inventory to make a package or proposal for a sponsor. This is the most effective way to generate maximum dollars for a property and deliver best return on investment (ROI) for a sponsor as opposed to selling a la carte or individual benefits in a "one off" fashion.

Business-to Business Sponsorship: is a program intended to influence corporate purchase/awareness, as opposed to individual consumers.

Buzz Marketing: is a low or no cost method of viral marketing using word of mouth that has people telling other people about a company's products or services.

Category Exclusivity: is the right of a sponsor to be the only company within its product or service category associated with the sponsored property.

Cause Marketing or Cause-Related Marketing: refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Generally includes an offer by the sponsor to make a donation to the cause with purchase of its product or service. Cause marketing differs from corporate giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause marketing is a business expense and is expected to show a return on investment.

Co-sponsors: are Sponsors of the same property.

Cost/Benefit Ratio: is a ratio that attempts to summarize the overall value for money of a project or proposal a sponsor expects for each dollar invested in rights fees.

Cross-Promotions: are joint marketing efforts conducted by two or more co-sponsors leveraging the sponsored property.

CSR (Corporate Social Responsibility): is a concept whereby companies manage the business processes to produce an overall positive impact on society, by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations.

Discovery or Exploratory Session: This is an initial meeting or meetings with a prospect to determine their needs, goals and objectives so the property can build a customized proposal to deliver on these needs and ultimately show a positive return on investment for the sponsor. This is the initial stage in the sponsorship development process once a prospect has been determined.

Event Marketing: is a Promotional strategy linking a company to a special event (sponsorship of a sports competition, festival, etc.) to support corporate objectives. Often used as a synonym for "sponsorship." The latter term is preferable, however, because not all sponsorships involve an event.

Experiential Marketing: is connecting face to face with your target. It is about offering an engaging, entertaining and interactive brand experience that is unmatched by traditional advertising.

Fulfillment: is delivery of benefits promised to the sponsor in the contract.

Guerilla Marketing: is a promotional strategy that uses unconventional marketing intended to get maximum results from minimal resources. Guerilla marketing can be as different from traditional marketing as guerilla warfare is from traditional warfare. Rather than marching their marketing dollars forth like infantry divisions, guerilla marketers snipe away with their marketing resources for maximum impact.

Hospitality: is the hosting of key customers, clients, government officials, employees and other VIPs at an event and can involve tickets, parking dining and other amenities, often in a specially designated area.

In-Kind Sponsorship: is payment (full or partial) of the sponsorship fee in goods or services rather than cash.

Intangible Benefits: refers to soft benefits that are hard to measure, but important to capture.

Integrated Marketing Communications (IMC): suggests that the effects of one marketing method cannot be considered in isolation from other marketing methods and that synergy is a critical strategic component.

Inventory: The complete catalogue all physical and non-physical assets or benefits that may be made available to sponsorship buyers. The inventory (if fully delivered) should indicate all benefits and assets, their real market value - their fulfillment cost to deliver and the overall value of the inventory.

Licensed Merchandise: refers to goods produced by a manufacturer (the licensee) who has obtained a license to produce and distribute the official Marks on products such as clothing and souvenirs.

MARCOM (sometimes spelled "marcomm"): is an abbreviation for "marketing communications." Marcom is targeted interaction with customers and prospects using one or more media, such as direct mail, newspapers and magazines, television, radio, billboards, telemarketing, and the Internet.

Mark: is any official visual representation of a property, including emblems and mascots.

A Media Sponsor: is the media partner that provides either cash, or usually advertising time or space, to a property in exchange for official that designation.

Mnemonic: is an audio memory aid often used in advertising e.g. Intel's 4 notes.

Option to Renew: is the contractual right to renew a sponsorship on specified terms.

Pass-Through Rights: are benefits that the property allows a sponsor to transfer to another company, provided that company is not a competitor to another property sponsor. For example, Molson may wish to pass-through some rinkboard signage at a Leafs game to a local bar that it does business with and in return gain more pouring taps at the establishment.

Philanthropy: is an idea, event, or action that is done to better humanity and usually involves some sacrifice as opposed to being done for a profit motive. Acts of philanthropy include donating money to a charity, volunteering at a local shelter, or raising money to donate to a cause.

Philanthropic Gift: a cash and/or in-kind contribution given to a registered charity or non profit by an individual, company, foundation or organization without any expectation of anything in return (as defined by Revenue Canada) or any recognition in return or without receipt of any benefits that have a market value greater than 10% of the gift to a maximum of $75.

Presenting Sponsor: is the sponsor that has its name presented just above or below that of the sponsored property. A "presenting" sponsor differs from a "title" sponsor as the Event name and the Sponsor name are not fully integrated e.g. "The Skins Game Presented by Telus" versus "Telus Skins Game".

Primary Sponsor: refers to the sponsor that pays the largest fee and in return receives the most property benefits if the property has no title or presenting sponsor.

A Property: is defined as an entity, event or vehicle that a brand can utilize to help achieve its equity and business objectives, by providing an opportunity for the brand to deepen its relationship with its target consumers. This opportunity exists due to the range of perceptions, experiences, benefits, behaviors and aspirations that the consumer associates with the property. From the brand's perspective, this "associative equity" represents potential that can be converted into value for the brand if effectively utilized.

Proposal: The presentation that outlines the property, the objectives of the sponsor and delivers the list of benefits the sponsor will receive to achieve these goals in exchange for a specified investment in cash or in-kind.

Prospect: A company or organization who you have qualified to be a sponsor based on research and if the marriage will work.

Return on Investment (ROI): This is how the sponsor or buyer determines if their investment was good or not in a specific property. It traditionally measures against such metrics as brand loyalty, brand awareness, traffic, sales leads, actual sales, employee morale, community awareness or other elements. It is based against the original objectives of the sponsor's reason for investing.

Right of First Refusal: is the contractual right granting a sponsor the right to match any offer the property receives during a specific period of time in the sponsor's defined product category.

Sales Rights: Is when a sponsor is granted preferred supplier right to sell its product or service to the property or its attendees or member.

Signage: refers to banners, billboards, electronic messages, etc., displayed on-site and containing Sponsor ID.

Sponsee: is a property available for sponsorship.

Sponsor (Sponsorship Buyer): The payer of a fee to the owner of a property for the purpose of gaining commercial rights related to the property
To Sponsor something is to support an event, activity, person or organization by providing money or other resources in exchange for something, usually advertising or publicity, and always access to an audience.

Sponsorship: A cash and/or in-kind fee paid to a property (typically in sports, arts, education, health, entertainment or causes) in return for the exploitable commercial potential associated with that property.

Sponsorship Fee: is the payment (cash or in-kind) made by a sponsor to a property.

Sponsorship Marketing: is the activation or leveraging of this sponsorship, beyond the usual advertising, publicity and audience access.

Stealth Marketing: is any practice designed to deceive people about the involvement of marketers in a communication.

Strategic Philanthropy: is the practice of using philanthropic funds to create social AND brand value.

Street (level) Marketing: are the marketing activities undertaken by a member of a psychographic niche to further the adoption of an idea, goods or service by that niche.

Supplier: is the official provider of goods or services in exchange for designated recognition. This level is below official sponsor, and the benefits provided are limited accordingly.

Tangible Benefits: refer to concrete benefits that are easier to measure.

Title Sponsor: refers to the sponsor that has its name incorporated into the name of the sponsored property, e.g., "Telus Skins Game".

Value: The real market worth of a sponsorship property asset or package. These values are calculated by industry-accepted standards and represent the individual value of each benefit or the bundled value of the proposal. It is not the same thing as price. The price or investment is usually 10-15% lower than the actual value of the proposal.

Venue Marketing: is a promotional strategy linking a sponsor to physical site (sponsorship of stadiums, arenas, auditoriums, amphitheaters, racetracks, fairground, etc.).

Virtual Signage: is the insertion of signage electronically during a TV broadcast that is not actually present at the event (e.g. NFL's 3^rd Down line).