Sponsorship used to be the domain of the big brands with big budgets but there are so many opportunities now that even small companies can take advantage. One sector who have embraced this are the Estate Agents, how many school fairs have you seen recently with their rows of estate agent boards proudly supporting the event?
Unlike advertising, sponsorship is incredibly cost effective and creates great publicity, builds brand awareness and has a much higher ROI than an advertising campaign. This is because sponsorship allows a business to target a niche market, without spending excessive money to get in front of the customer.
There are many different types of sponsorship: Media sponsorship, Location sponsorship, Financial sponsorship, People sponsorship, Event sponsorship, the list continues. Now you understand the types of sponsorship it is time to get an idea of the various ways sponsorship can be displayed for the customer or client. For example, when sponsoring an event, businesses could put their brand logo onto cups, bill boards, banners, they could even sponsor the VIP room at the event.
As previously mentioned, sponsorships are a very cost effective way to reach a niche target market. Sponsoring an event specific to a company’s target audience allows the business to focus more time and money on how their brand is received by the consumer instead of using up resources to try and reach the customer through other expensive forms of marketing. Putting a company brand in front of a target audience is one of the best promotional opportunities a company could ask for. The audience will already spend money with competitors who offer similar products and services. Therefore, by creating a positive image of their brand, the business will be at the forefront of the consumers mind when they next come to purchase a product or service.
Sponsoring a local event is a great way to gain the trust and respect of the local community, for both small businesses, and larger companies. By creating a positive public image around the local area, the sponsor can open up great advertising opportunities through word of mouth marketing. There would be an initial cost to sponsor a local event, however, word of mouth marketing is completely free and trusted more by the consumer because it is coming from people they already know and trust, not a sales person who is expected to try and sell to them. Following on from this, sponsoring a local event is a differentiator and puts the business ahead of competitors by standing out across their industry. The more a company can be at the forefront of the customers’ mind, the more likely they are to gain sales.
Trust is an essential factor to establish a relationship between the consumer and the business, if there is no trust there will be no sale. Positive publicity and word of mouth marketing are just two ways that can help to establish a relationship between the client and business. Establishing a relationship is essential to the longevity of a business, repeat custom is the back bone of most companies and without it businesses can easily suffer and go out of business. Customers will only return if they received a good service and were happy with the quality of their purchase or service. Also if they like the company they are dealing with, in order for the consumer to like a company they must establish a relationship with them. A trusted relationship between a business and a consumer is valuable and is just as important if not more important than acquiring new business.
In conclusion, sponsorship helps to create a positive public image, increase brand awareness, assists with driving sales and gives businesses the opportunity to stand out and differentiate themselves from competitors.