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The value of sponsorship

Sponsorship is a vital tool in business . It offers the possibility of achieving several goals at once.

Enhancing Image/Shaping Consumer Attitudes - companies are looking to improve how they are perceived by their target audience. Sponsoring events that appeal to their market are likely to shape buying attitudes and help generate a positive reaction. Coca-Cola, for example, is always looking to generate a positive influence of their products in the minds of their consumers and as such regularly support events they feel can influence consumer opinions.
Driving Sales - Sponsorship geared to driving sales can be an extremely potent promotional tool. This objective allows sponsors to showcase their product attributes. Food and beverage companies often use sponsorship to encourage samplings and sales.

Visa’s fund-raising effort around its sponsorship of the Olympic Games and the U.S. Olympic Team. They promoted their association by offering to make a donation to the team each time consumers charge a purchase to their card. American Express used a similar strategy by donating to needy causes with their "Charge Against Hunger" campaign. As a result, both companies experienced a significant rise in sales volume.

Creating positive publicity/heightening visibility - Every sponsor is seeking wide exposure across al media media. Positive publicity helps create heightened visibility of products/services. Various media covering the event may include sponsors names and/or photos. In addition, the kind of media coverage a sponsor may get is often unaffordable if the company were to think of purchasing it, even if it were available. To maximize this objective, it is important for the sponsoring company to have a comprehensive media campaign to supplement the regular media coverage promoted by the organizers.

Differentiating from competitors -The mere act of sponsoring is a significant way to create competitor differentiation. Your company name has the opportunity to stand out head and shoulders above the competition. This is particularly helpful if your company wants to combat a competitor with a larger ad budget. Sponsorship allows smaller companies to compete with their industry giants and highlight points of difference.

Target audiences often perceive sponsorship in a positive way. They see you as making a greater effort to support the event, often allowing more or better activities to take place as a result of your sponsorship.

Helping with good "Corporate Citizen" role - companies to be viewed as a "good neighbour." To be seen supporting the community and contributing to its economic development is extremely powerful and creates enormous goodwill. Charities benefit -it doesn't have to be money but expertise and is a great opportunity for a long-term partnership.

Enhancing business, consumer and VIP relations - hospitality opportunities is always very attractive to companies. Perks may include special exclusive networking settings such as VIP receptions or golf tournaments – opportunities to meet key customers and solidify business relationships.

Whatever method is selected it is important to include in your marketing action plan.