Research plays a hefty role in the success of sponsorships. From simply staying on top of what’s happening in the industry, to researching competitive sponsorship pricing – not-for-profit organizations that are serious about sponsorship know the value of digging and delving.
As for information sources – seminars and conferences can provide good general information, and their number is growing almost everywhere. Mainstream media and the general business press increasingly report on corporate sponsorship, particularly when there is a controversial aspect to the story. The topic gets fuller coverage in a number of marketing publications. In addition there is the focused coverage provided in The Sponsorship Report.
Whatever your sources, share your findings with staff; use news items to prompt discussions; file in-depth articles for later reference. It can all feed the imagination and contribute to a sense of excitement and innovation surrounding your sponsorships – key ingredients for sponsorship success.
Zeroing in on prospects
When most nonprofits think of sponsorship research, it’s the exploration associated with the quest for specific corporate sponsors that comes to mind first. Research in this area is rightly taken very seriously by those with the responsibility for finding corporate sponsors.
One expert has said in this regard that “sponsorship is about tomorrow, not about yesterday.” So while sponsorship seekers should, of course, make use of the standard directories, reference books, and annual reports that capture the past, their on-going scan of daily newspapers, magazines, and business publications for news of recent appointments, new products, and new market strategies is even more important. New developments within a corporation are often opportunities for new sponsorship relationships.
Books and articles about social and cultural trends can provide insight and can point the sponsorship seeker in the right direction – the future. Sponsorship seekers who read David Foot’s Boom, Bust, & Echo , for example, are not surprised at the gusto with which many mutual fund companies and investment firms have embraced sponsorship.
Before sitting down at the table
When the time comes to present the case for sponsorship to a specific corporation, go equipped with the appropriate research.
A basic understanding of the corporate prospect’s competitive environment is a minimum requirement for sponsorship seekers. If the industry your prospect operates in is bombarded by new entrants, if de-regulation is a factor in the industry, if consumers are fickle – you should be aware. If your prospect is striving to change its corporate image (from staid, to innovative, perhaps, or from powerful, to consumer-responsive) – again, your job is to know … for a couple of reasons.
First, it is important to place yourself on an equal footing with your potential sponsorship partner. You are, after all, presenting a business proposition, and your understanding of the business environment should underpin the discussion.
Second: while it is unlikely that the benefits and fees that will define the sponsorship relationship will be hammered out at a first meeting, you will want to demonstrate that you can respond to the particular needs of the particular prospect sitting across the table. You can do that best when you are armed with an understanding of some of the basic business challenges your prospect is facing.
There is one more piece of information you will want to have – knowledge of comparable sponsorship pricing. Corporate sponsors often look to sponsorship seekers for information about fees in general, so don’t get caught off-guard. You want to be in a position to reassure your prospect that the fees you have set are in line with industry standards – or significantly below, if that is indeed the case, and if there is justification for it.
Judith Barker is publisher of The Sponsorship Report and consults with not-for-profit organizations interested in exploring their sponsorship options. She can be reached at (416) 466-4714.
