Sponsorships

In the world of Sports Marketing, sponsorships have become vital as the agreements generate revenue and spark the engagement between the business and consumer. 
There are many objectives sponsors must meet, including the increase of sales, brand awareness and image, hospitality, and other strategies that build relationships with the target audience. Fan engagement and interaction has increasingly become a top priority for businesses. For a startup business, it is most important to communicate with their audience because the startup is an unknown entity and commodity in the industry. Since the target audience is unfamiliar with the brand and, furthermore, the brand is slowly building credibility, the products and services must be appealing and appetizing to satisfy the consumer’s initial interest.    
        

Sponsorships are not just important for startup businesses, but they are equally as important for well-known companies. In chapter three of Developing Successful Sport Sponsorship Plans, the term “activation” is what sponsors need to build strong relationships with its targeted audience. According to the chapter, “industry data have shown that sponsors are not spending enough money on activation, with 70% of sponsors spending less than the suggested $3-to-$1 on activation” (Stotlar). Activations assist in “consumer purchase intentions” and building a positive image for the brand itself.  Two additional initiatives which help to grow businesses are the ideas of cross-promotion and cause-related sponsorships. Cross-promotion “is among the most powerful and popular activation methods as they can grant marketers access to new distribution channels and spread out promotional costs across multiple partners” (Stotlar). 

One of the entertainment companies heavily involved in cross-promotion is World Wrestling Entertainment. According to their Corporate website, WWE has had relationships with over 200 companies, in 85 countries, attributing to $1 Billion in global retail sales. From General Mills, Post Foods, Mountain Dew, K-Mart, and the recent collaboration for Terminator: Genisys at WrestleMania, and many others, each cross-promotion has seen tremendous success. In terms of cause-related sponsorships, WWE has joined forces with Susan G. Komen to raise awareness and funds toward breast cancer research. In addition, Stephanie McMahon and Paul “Triple H” Levesque founded Connor’s Cure, a foundation for pediatric brain and spinal cancer research, and Be-A-Star, the anti-bullying campaign formed to promote “positive methods of social interaction and encourages people to treat others as equals and with respect” (WWE Community). In terms of fan engagement and providing an unbelievable experience for the audience, WWE consistently delivers at a high level.

As a prospective entrepreneur, formulating sponsorships and partnerships with businesses will positively affect the relationships with my targeted demographic. Similarly for sports organizations such as the NFL, and the NBA, strategic philanthropy enhances the reputation of a company with society and leads to consumer contribution, as the audience is more inclined to purchase from a company involved in partnerships with charitable foundations. On a grassroots level, investing in a relationship with local foundations will bring credibility and an emotional connection with my target audience, resulting in a win-win-win outcome for all parties involved.