Why a sponsorship glossary?
When visiting a foreign country it is best practice to understand some key phrases in the native language. For me, that applies to business and sponsorship also. Here is sponsorship glossary of terms that will assist you in your sponsorship process, especially if you want to get sponsored by larger brands.
Activation: Any marketing, public relations or other activities a company implements to promote a new sponsorship. All costs associated with activation are in addition to the fee paid for the sponsorship.
Added Value: An extra benefit given to a sponsor or prospect. Mainly used to close a deal, offer more value, or to build stronger relationships.
Agent: The individual representative or organization that solicits sponsorships on a commission basis.
Ambush Marketing: This is a strategy used by brands that are not official sponsors of an event or property. Often times they are competitors of the official sponsors that are trying to gain more exposure or credibility by making it seem they are affiliated with the sponsored property.
Arts Marketing: Sponsorship of a visual or performing arts company, event, or festival. (e.g.: The Ballet, Symphony, Music Festival, etc)
Brand Loyalty: The act of customers consistently re- purchasing the items or services from a store or provider. Several factors affect this loyalty including: values, price, quality, branding, and customer service.
Cause Marketing: Any partnership or sponsorship involving a for-profit and non-profit company for mutual benefit. Cause marketing is different from a donation as it is marketing business expense to the for-profit company with an agreement in place with set deliverables to deliver a return on investment.
Co-Sponsors: All the sponsors associated with the same sponsored property.
Cross Promotion: When two or more organizations or individuals partner to create marketing and public relations efforts that benefit all parties involved.
Demographics: Information used to provide a clear picture of the target market for your sponsored property. This information can include age, gender, income, occupation, or any other information gathered for research purposes.
Donation: Any product, service, or gift that is given to an organization without measurable results or contractual obligations.
Editorial Coverage: Any media exposure covering the sponsored property that mentions the sponsors. (e.g: blog, newspaper articles, tv interviews, etc)
Exclusivity: The exclusive rights of sponsorship, ad sales, or exhibit booths. Exclusivity is generally a right purchased by business category for the event or sponsored property.
Fulfillment: Delivering any benefits promised to your sponsors in the sponsorship agreement.
In-kind Sponsorship: Full or partial payment for a sponsorship offered through products, services, or other non-cash methods. This is commonly known as contra or trade.
Intangible Benefits: These are soft benefits that are hard to measure, but important to capture.
We’ll stop here for this week! Studying this sponsorship glossary will make it easier to communicate clearly and more effectively when approaching a sponsor or when sorting out specific language in your sponsorship proposal. Understanding the subtle differences in definitions (e.g. exclusivity) could even result in raising your existing pricing!
Stay tuned for Part II!