WANTED: NOT-FOR-PROFIT TO TAKE MONEY ...

MARKETING THROUGH SPONSORSHIPS

Aquatic and recreation facility managers who are not capitalizing on today's sponsorship opportunities are missing out on a golden opportunity. According to a report by IEG, Inc., a leading company that promotes and develops sponsorship opportunities, North American companies spent over $7.6 billion on sponsorships in 1999. IEG reports state that "corporate sponsorship is a marketing driven relationship that benefits both parties for financial, promotional, or in-kind gain. Sponsorships are a win-win situation". Time Magazine, July 24, 2000 did a cover story on how corporate groups and persons want to see results from their sponsorship dollars, and are looking at philanthropy as a means to promote their product, develop name recognition, and/or create some form of relationship with the consumer.

In other words, gone are the days when not-for-profits could expect donations or goods simply because they have a great cause or are in need. This is not to say that philanthropy is dead. It's not. But philanthropy is best done with a long-range plan for the good of the community--either through reaction to a disaster or long-range community development, usually with business-related or arts-related results that translate into economic development. Whether through education, recreation, business attraction, or image, there is still a pattern of needs assessment and a desire for results. Philanthropy is described as the giving of money without an expectation of return on investment, but true philanthropists with large sums of money are going to be watching very closely how their money is spent and will have some form of expectation about the end result. Philanthropists hold the recipient accountable prior to giving additional funds, which is why most large giving plans include matching plans and partial payments rather than one lump sum.

On a side note, a newly developed form of philanthropy often comes from major corporations which provide large cash settlements in a philanthropic manner to avoid tax penalties, such as the $10 million that General Motors gave to National SAFE KIDS. The money was used to develop a nationwide car seat educational campaign that also resulted in statewide coalitions gaining a new Car Seat Van fully stocked with car seat check-up supplies, and neatly decorated with SAFE KIDS Car Seat Information and, of course, the GM logos.

Philanthropy and sponsorships can lead to significant forms of financial support either through cash funding, in-kind support, media, or manpower; which all translates to cost savings and/or increased revenues. Potential sponsors are interested in linking with non-profit groups because they provide access to consumers. Some statistics reported from IEG, Inc., illustrate cause-marketing's ability to influence purchases as a major reason to support local or national organizations' needs. Studies show the following:

* 65 percent of consumers are likely to switch brands or retailers due to cause-related marketing. The number one example is automobile race fans. Look at Tide, Valvoline, Pennzoil and other familiar race products. Translate that to aquatics and you may get Huggies Swimmies, Speedo vs. Tyr, Nike, or other major brand equities interested in aquatic marketing.

* 83 percent of consumers have a more positive image of companies involved in sponsorship programs. Local utility companies are a major example of this because they are viewed as a "necessary evil" and want to build goodwill.

* An estimated 78 percent of adults responding to a survey stated they would switch brands to support an on-going local event.

* Sponsorship is quickly becoming a major form of planned advertising.

With marketing-oriented concepts like these, it is time that recreation and aquatic professionals capitalize on their marketing driven power. In aquatics alone, we have five major markets: seniors, parents with young children, high school or college athletes, business persons, and young people ages 6-13. These five markets can be segmented when you look at the most active sponsor categories and can be matched together to develop a sponsorship campaign when approaching potential sponsors (figure 1).

FIGURE 1. THE FIVE MAJOR MARKETS

Market        Active Sponsor Categories

Seniors       Media, Packaged Goods, Travel, Information Services,
              Sporting Goods

Families      Packaged Goods, Banks, Retail, Automotive, Beverages,
              Electronics

High School   Automotive, Retail, Beverages, Electronics, Sporting
              Goods

Business      Media, Telecommunications, Banks, Alcohol, Travel,
              Information Service

Youth         Sporting Goods, Beverages, Retail, Electronics, Fast
              Food

When developing your property (property is a term commonly used to "coin your business assets"), you need to analyze what you have to offer. How many user visits, what are the demographics of those visitors, and what amenities do you have? Do you have the opportunity to provide company employee/group discounts, or trade memberships as a part of a sponsorship agreement? What forms of advertising or sponsor recognition can you provide to the sponsor? Each of these areas is called" a property asset" and must be fully explored, defined, and packaged.

When you package your property to a potential sponsor, do not try to sell them on what you need the money for. Rather look at your core assets and sell them on how these assets can develop their business. Sell the potential sponsor on how you can create a business-building opportunity for them that will help them achieve their marketing goals. For example, we approached Mazzio's Pizza for a corporate sponsorship and gained $2,500 in cash and $1,000 in free pizzas for use in the hospitality room and other special events throughout the year. In exchange, we provided signage in our aquatic center and a smaller sign in the hospitality room, along with sponsor recognition in our activity schedule for three issues. But what made the deal appealing to Mazzio's were three other opportunities: 1) pizza sales on deck at our concessions booth, 2) pizza sales as an option with birthday party packages, and 3) pizza sales as a fundraiser in our youth sports camps for our Teen Xtreme program. Their pizza sales volume will go up with enough profit to regain their financial investment, while each of our pizza sales will earn money for our different groups and we also obtained the cash investment. Everybody wins!

There are many more benefits, but the list in Figure 2 may give you some room to think as you begin to develop your sponsorship package. When preparing to approach a potential sponsor, create a proposal that sells. Give them enough information in a tailor-made fashion for each sponsor. The successful proposal sells benefits, not features. List your demographic data, schedule of events, and benefits you will provide. Also list what the sponsor will provide and clearly state the sponsors' investment. Don't forget that the investment can be in-kind gifts, such as media support, printing, equipment service agreements, food for hospitality, new equipment, or anything that reduces the organizations' costs. In-kind gifts are as important as cash gifts.

FIGURE 2. MAJOR ASSETS

When you package your property for sponsors, think about some of the following assets and how they may influence your potential sponsors.

* Marks and Logos -- (Specific Name and logo of organization or product)

Benefit. Positive relationship with a recognized and respected organization, promotional rights (think Monday Night Football & NFL franchise rights)

* Audience/All of Your Different Groups -- members, donors, exhibitors, volunteers

Benefit: Access for sales, sampling and surveying

* Publications and Collateral Materials -- brochures, merchandise, schedules, tickets, invitations, newsletters, race bibs, banners, posters, etc.

Benefit: Guaranteed Visibility -- cross promotions, impressions, logos and marks, branding, identity can build goodwill with community.

Benefit: Advertising tags -- radio, television, direct mail, print advertising

* Media Buys -- newspaper, radio or television ads whether purchased or in-kind

Benefit: Guaranteed impressions

* Tickets & Hospitality Opportunities

Benefit: VIP Client/Customer/Sponsor Employee Entertainment, networking, referral and sales opportunities.

* Mailing Lists -- database, member lists, donor lists, vendor lists

Benefit: Sales and promotional database

Open the process with a face-to-face meeting. Involve a tour of your facility at some point. Prepare a video of your best programs and activities, along with a sample of how previous sponsors have received recognition. Show examples of successful events that draw large crowds. Illustrate in every case how you can gain media attention and the opportunity for their signage to be in the background. When you watch major sporting events on television, you always see signage in the background and sponsors are mentioned; both lead to name recognition and help develop "branding." Every person that sees or hears that is an "impression," each and every time they see it are additional impressions. For example, the average person in our aquatic facility is there for one hour and will see our sponsor signage an estimated 10 times within the hour. Thus an estimated 200,000 user visits equals 2 million impressions. This is an important facet to sell to sponsors.

Create a "hit list" of companies that are likely to sponsor your property. Look at active sponsors in your community whose products or business are obviously linked to aquatics: kids, families, or seniors. Look at new businesses that just moved in and are looking for exposure. Watch, read, and listen to the local newspaper, radio, and television and then think about what is currently being advertised. Decide how to create a business building opportunity, such as coming out to the pool and allowing the patrons to sample their product, fill out surveys, possibly win something, and in return they purchase your new lane lines. Go in and ask: what are your marketing plans for the upcoming year, and how can we help you build your business?

Be creative, but be proactive when you develop your sponsorship campaign. If you have major special events in which you can tie in a hospitality venue, sell souvenir programs, and involve a media campaign, then you have a ready-made opportunity to develop some great sponsorship possibilities. Sponsorship beginners can attend seminars or get hooked up with a sponsorship agency such as IEG, Inc., [phone], or the Sponsorship Network at [phone]. Both organizations offer seminars, materials, and information related to learning more about how to develop and maximize a sponsorship campaign. Talk to other organizations in your local community who are active in obtaining sponsorships and consult with your local NSFRE (National Society of Fund Raising Executives) chapter.

So much money and in-kind gifts are there for the asking, and businesses do want to give you money, but you must provide an investment that is worth investing their time, money, and other resources. Do your homework and you can create a winning sponsorship program.

Corporate sponsorship has become an increasingly important source of supplementary funding for nonprofit groups. Find out how to attract and manage these sponsors in Chris Moler's guide. The author is the director of recreation and community services at Oklahoma City Community College. Moler has been involved in fund raising and sponsorship related activities for the past 15 years, and currently manages a sponsorship effort on behalf of the Aquatic Center at Oklahoma City Community College.