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When a company decides that part of its marketing mix, sponsorship of an event, a television
program or an athlete is the right communication tool for their next campaign, they are really
defining the needs of a project or a program. Sponsorship management is really perceived as
marketing type of function where someone is managing the planning and execution of certain
activities where usually an exchange of visibility for money or other valuable assets happens. In
fact, we could say that it is a formal agreement between two parties to deliver a set of
deliverables by a certain time, at a certain level of performance or quality at a certain cost. That fit
very well with the definition of a project as per the Project Management Institute definition (PMI).
The question becomes, if sponsorship management involved managing projects, could the
sponsorship management world benefit from adopting the Project Management Body Of
Knowledge (PMBOK) as guiding principles to manage project?
The ideal situation for both parties is when they could merge together their project proposal into
one joint project. In order to achieve that optimum scenario it requires that both parties have
some common ground into managing sponsorship type of projects. The question at this stage
become; Does the common ground facilitating this complete integration could be based on the 5
key processes and nine body of knowledge framework from the PMBOK guide from PMI?
The framework is made of a series of activities that needs to be performed to finally get to the
output that will be used to initiate the project. That output is called a sponsorship project contract
Statement of Leverage
Measurement
Objectives Tie-in
SOO document Cross Impact
Activity 1
At this stage we try to answer fundamental marketing questions to understand the needs of the
business such as
- What is our current context?
- What are our Strengths, Weaknesses, Opportunities, and Threats?
- What is the desired situation?
It is important to set aside the sponsorship opportunity if one is know or one is push in order to
really capture the business needs based on the current situation versus the current proposal or
target events. We are more concerned during that step with mid-long term needs (3 to 5 years to
come) versus next year objectives.
The desired situation answer is the key to ensure that people understand the where we should be
instead the how we will be there? In a lot of cases, management will try to present a sponsorship
opportunity as the answer to the desired situation and in facts it is a potential solution but not
necessary the desired situation at this stage.
The desired situation should refer to geographic presence, product positioning, market share,
target market customers, brand perception, awareness, recall etc.. Usually, it is closely related to
marketing mid-long term objectives for a product or in a market.
Activity 2
Now that we understand what is the desired situation over the next 3 to 5 years we can identified
objectives that could be link to sponsorship program. Also if we meet these objectives what kind
of benefits and advantages can we receive from it. To get an understanding of that we will answer
the following questions;
- What mid-long term objectives should we expect if we meet are at the desired
situation?
- Which objectives could be met by enabling sponsorship programs?
- What are the benefits and advantages of the desired situation?
- How we will evaluate the best course of action versus these benefits?
Activity 3
Independently of this study the organization is usually proceeding with a cycle of strategic
planning looking at its priorities, strategies and tactics for the upcoming years. It is important to
validate how our desired situation and target objectives are tie to the strategic plan including the
marketing plan. Questions to answer are
- How the desired situation and objectives are fitting with the strategic & marketing
plans?
- Are there any projects in place in line with the desired situation and the target
objectives?
Activity 4
Rarely just the sponsorship of an event or other types of property whiteout the support of other
communication mix tools such as advertising, sales promotion, direct marketing, product launch
or other form of communication, will allow the sponsor to meet its objectives. The tie-in and
leverage comes into play when a message send through one of the communication variable tools
is reinforce and amplified by being linked with another variable. During this activity, we will try to
understand how we could link the potential solution in line with the desired situation with other
marketing communication variables.
- Is there any potential link with:
o Advertising?
o Sales promotion?
o Personal selling?
o Direct marketing?
o Promotional licensing?
o Corporate & marketing PR?
- What objectives could be leverage by the sponsorship program?
Activity 5
To get the benefits and advantages identified when we have the target situation establish, we will
need measurement metrics. These metrics will also help monitor the effectiveness of our
sponsorship program, will also be good project performance indicators in the context of project
management.
- Do we have any metrics related to:
o Brand recognition, recall and awareness?
o Image and attitude?
o Brand/service/product effects?
o Media audits?
o Behavioral measures?
- What are the value improvement for:
o Shareholders?
o Customers or Society?
o Employees?
Activity 6
This activity requires the regrouping of all the previous activities into a document that summarize
the Statement of Objectives or SOO. This document provides all the guidance to the
management for evaluating sponsorship proposal that will come to them. Because the sponsor
will not be creating events or television programs or athlete performance visibility, they will have
to evaluate what it is available in the market. With the SOO, the sponsors are well equipped to
look at proposal, identified which one seems to fill the needs and engage in further discussions. A
typical Statement of Objectives outline will be as follow.
Activity 7
This is the step where for the first time the sponsor meet the sponsee usually through a
sponsorship proposal submit by the sponsee to them. The content that should be part of such a
proposal, in this case we will call It Value proposition sponsorship proposal will be cover in
further details later on. Using its Statement of Objectives (SOO) , the sponsor is in good position
to perform a complete assessment of the value propositions in front of them , perform a gap
analysis and identify what needs to be add or adapt to be perfectly in line with their objectives.
Obviously the bigger is the gap between the SOO and the value proposition the more it gets
difficult to get to a project contract.
Activity 8
This alignment of the SOO and the VP is done between the sponsor and the sponsee through
discussions and negotiations. Usually visibility tools provided by the sponsee gets evaluate and
realigned towards the communications mix tactics, tie-in and leverage strategy identified in the
SOO of the sponsor. Difficulties appear when the sponsee is working with many different
sponsors for its event which may have different SOO. Then it becomes a trade off discussion to
find the right balance between all parties .
Activity 9
Once the sponsor and the sponsee agree on a common statement of work, both parties move
towards sealing the deal with a contract which become launch the initiation phase of the
Sponsorship project. Following the initiation phase, the next project processes are planning,
executing, controlling and closing as per the PMBOK from PMI.
CASE STUDY : CHINA NETCOM COMMUNICATION (CNC) SPONSORSHIP OF FORMULA
ONE WORLD CHAMPIONSHIP TELEVISION BROADCAST IN 2001
Property
Description
Target
Demo-
graphics
Visibility
tools
platform
Value/
Benefits
description
Media value
Calculation
Value
Proposition
Letter
Of
Introduction
Sponsorship
Proposal
Step 1
The first step is to describe what is the property, where is it happening, who is involved, in order
to familiarize the sponsor about what you have to offer. Any historic or background info is
important to be put in perspective.
Step 2
The target market demographics also called hard data cover by the events or activities is key to
understand and present. Important data such as age, race, familial status, income, lifestyle etc...
should be known and in the case of a new events, targeted. Also when possible the sponsee
should spend some times defining the psychographics also called the soft data of its target
market such as for example; risk takers, value for money oriented, early adopters, tech lovers etc..
Step 3
The sponsee must create some visibility tools as part of its events or activities which will translate
into media value. In a case of an event at a venue, space at strategic location could be offer to
the sponsor for display of its products, its brand or others, visibility for the sponsor on press
release, naming of the event, communication material to promote the event, stage for
presentation and there is much more. The idea is to develop what it is called a visibility platform
allowing the sponsor to use the different tools to leverage its results. There is a multitude of ways
to provide visibilities depending if its an event, a TV program, a fund raising activity, a sports or
others.
Step 4
The next step consists of describing the tangible and intangible benefits of being associated with
this event or the property. Things like its potential return in terms of visibility, of perception by the
customers, sometimes sales increase, brand awareness, brand recall, brand association and
many more potential benefits needs to be carefully explained at this stage.
Step 5
A lot of the value provided by sponsoring a property is difficult to evaluate in terms of value
because it cannot be bought separately. For example; for a sponsor that decides to be associate
with an Indy race car team and pay a certain amount to be visible on the car during all races also
benefits of VIP passes and special treatment (meet the drivers, visit the garage, lunch with the
team etc..) for its customers. This tool could easily contribute for the sponsor to the signature of a
big contract with its customer and it was not possible to buy that (VIP treatment) without
sponsoring the team.
Even though its is not easy to do, the sponsee must convert its visibility into a media value. The
idea here is to provide a comparison benchmark to the sponsor that if they would go outthere and
try to purchase the equivalent offering in advertising (television, radio, print media, billboard etc..)
how much it would cost using rate card produce by different media in the market concerned. For
example; if a company sponsor a television program and will have a opening billboard of 20 sec
with its name shown and said , how much does that worth in equivalent TV advertising using a 15
sec TV rate card.
Step 6
This step corresponds to the integration of all the element of the proposal. It is at this step where
the sponsee spend the time to understand how to customize its proposal to align to the target
sponsor needs. The value proposition should not be the same to all sponsors that we target. It is
important to start talking the same language of the specific sponsor we target using its own
products, advertising message, to place them in the context of being associate with the property.
The best description for it would tailor made value proposition!
Step 7
At this stage, the sales process gets engage by the sponsee to find a sponsor. Before sending
detail presentation packages, it is important for the sponsee to identify carefully potential
sponsors based on their fits and seek a first level of interest. To do that the sponsee prepare a
short summary 2 to 5 pages max describing the value proposition. If the sponsor is interest, It will
ask for more details so they can evaluate your offer versus their own SOO.
Step 8
Once the sponsor has express some level of interest , they will ask for more details and in some
cases a presentation. At that time the property owner is really offering the sponsorship proposal
which is reviewed by the sponsor using its SOO. This step is linking directly with the activity # 7 of
the sponsor. If proposal has the best fit there will be a period of alignment leading to the
sponsorship project contract (including the Statement of Work SOW).
Project background :Motion Asia Management has approached the National Hockey
League head office based in New York to developed a value
proposition for its property for the television broadcasting in
China. Assuming a successful connection with a sponsor to
initiate a project, the TV rights would be sold to Motion Asia
Management to be exploit. Motion Asia Management developed
the value proposition, here is a summary of the content.
Value proposition overview :
Step 1 - Half hour magazine per week(highlights, best play, news etc..)
- 1 game per week during season,
- NHL all star game
- Playoff & Stanley cup series
The value proposition of the property owner becomes is document to link with and answer the
sponsor Statement of Objectives (SOO).
The alignment of the value proposition with the statement of objectives becomes the initiation
phase of a new sponsorship project that require the same PM discipline as any other type of
projects
Sponsorship project management context outline, the body of knowledge
Assuming the sponsee found a sponsor and they successfully came to an agreement to work
together for the upcoming events or series of events. The application of the standard 5 core
processes Initiation, planning, execution, control , closing and the 9 Body of Knowledge covered
in the PMBOK 2000 is very relevant to any sponsorship type of project. At the core, a
sponsorship project is made of a series of deliverables that needs to be delivered on time, at cost
at a certain performance level (quality). It requires involving and staffing the projects qith key
competencies, communicate constantly with stakeholders, in certain cases the procurement
aspect is very important and of course, ensure success of the event by removing or planning for
any risk that could derail a deliverable.
The following graphic shows how the sponsee and sponsor initial process comes together to
create the initiation phase that will lead hopefully to the upcoming phase of implementing the
project.
PM FRAMEWORK
Statement of Leverage
Measurement
Objectives Tie-in
SOO document Cross Impact
Value
Proposition
Letter
Of
Introduction
Executing
Initiation
Sponsorship
Proposal
Planning Closing
Sponsee Alignment Sponsorship
Value Proposition SOO and VP Project
Proposal evaluation & Selection contract
Controlling
Without going into the detail of the PMBOK, the message to retain from that point on is that, the
sponsorship project is manageable the same way as any other projects from other discipline. A
Project Manager Professional (PMP) is an excellent candidate to manage such a project because
of its PM knowledge and its rigorous approach towards all nine body of knowledge increasing a
lot the chance of project success.
It is important to note that although the PM Knowledge is key, two other dimensions are also as
important to lead to project success. As per the Project Manager Competency Development
Framework publish by PMI, the dimension of project performance and personal competencies are
also very important. Project performance deal with the capability of the project manager to
implement or execute in real life action meaning in a real project its PM knowledge. The personal
competencies deal with the soft skills such as influence, negotiation, conflict resolution,
presentation etc.. which could be a bit different on this type of project versus an Information
Technology for example. One require to deal with techies with personalities quite different than in
the media management field, sports or art & culture for example that you may encounter in a
sponsorship type of project.
Author: Sylvain Gauthier B.Eng. MBA, PMP
Email : sylgauthier@gmail.com
Written: June, 2004
For : Project Management Magazine in Beijing
About Protrain Canada: Protrain Canada is a Global Registered Education Providers from PMI
and is registered in Hong Kong and Montreal.