Howard HamiltonSPONSORSHIP IS an important marketing tool which provides the corporate world with an effective means of communicating brands and service. Sponsorship raises awareness of the company's brand and image. It provides a vehicle for corporate hospitality and also serves to meet a company's stated objectives as defined in the company's strategic plans.
There are a number of rules which determine whether sponsorship is right for a company. These include the following:
i) Sponsorship must deliver or contribute to a company's sponsorship objective.
ii) There should be evidence that each sponsorship can deliver the associations that match objectives. In particular, companies need to check (ideally through quantified market research) that the sponsorship vehicle has particular associations that are desirable and meet their objectives.
iii) Each sponsorship must have specific, measurable and achievable objectives in its own right. These should specify the target group, the target level of awareness and the desired change in attitudes amongst the target group.
iv) Sponsorship must offer the best media to deliver specific objectives.
v) The results of sponsorships must be measured.
In an ideal world measurement would be via business results (and this may be appropriate in certain instances). However, sponsorship generally works indirectly, changing attitudes so that customers are more likely to purchase. As such, business results can be hard to measure.
vi) Sponsorship must be appropriately supported. Companies should expect to spend as much supporting an event as was spent securing the rights. It is important to have the internal manpower and expertise to manage any sponsorship programme and its exploitation on an on-going basis. Companies need to take account and assess the internal manpower involved in:
Liaison with sponsored party
Involvement with the event.
Implementation of the supporting package.
vii) Sponsorship must be planned in sufficient time.
Successful implementation of a sponsorship programme requires:
Adequate advance planning.
An event frequency that complements your marketing goals.
A regular pattern of events or exposure will accumulate attention and provide a strong promotional background.
Most sports are seasonal so the timing of the events within the programme needs to mirror preferred timings for promotional activities and sales campaigns.
viii) Sponsorship agreements must be closely monitored.
If there are other companies that are involved as 'official suppliers' or 'official licensees', sponsors must be sure that they do not undermine or infringe their status e.g. Red Stripe being an 'official supplier' while Carib Beer is the main sponsor or Digicel being an 'official licensee' while Cable & Wireless is the main sponsor (fictitious examples for impact of competing products/services and the need for close control of agreements).
Unlike some forms of modern communications, sponsorship doesn't necessarily produce an immediate impact, either on consumer attitudes or consumer purchasing patterns. Instead, it usually functions slowly but steadily. Because of this, sponsorship should generally be considered as a long-term process.
BASIC RULES
These represent some of the basic rules which guide sponsors in deciding where they should direct their sponsorship decisions. There are also basic rules that govern the behaviour of those who seek sponsorship. The relationship should be one of mutual partnership. The sponsored party should operate with a commitment to what the sponsor wishes to achieve. The overriding considerations should always be guided by ethical conduct and loyalty.
When there has been a substantial commitment over a period of many years, I feel strongly that any change in relationship must be measured against a total breakdown in the sponsor's ability to continue the programme. The current situation with the West Indies Cricket Board and their relationship for more than 18 years with Cable & Wireless, and what now appears to be a breakdown in their ability to fulfill commitments given to the new sponsors Digicel calls for a full investigation and public disclosure.
West Indies Cricket is the single unifying entity within the English speaking Caribbean and the management must operate at the highest level of competence, integrity, ethics and transparency. The CARICOM directorate must be more proactive in ensuring that the "West Indian Product" does not become a global embarrassment. We have come a long way with the development of this West Indian unity; don't let us now throw it away through mismanagement.
A cardinal rule is that we never, at this level of expenditure and commitment, embarrass our sponsor of 18 years by changing to a competitor - especially one who I understand had been involved in the most blatant ambush marketing in the latter years of the Cable & Wireless contract.
The West Indies Cricket Board needs to get its act together and if this calls for the intervention of CARICOM, then so let it be.
REPORTS
The reports coming out of Australia are disquieting to put it mildly. We call for a full investigation and a detailed report made public.
We will be hosting the ICC World Cup in 2007 and the role of sponsors is one of the most important areas of our deliberation. Ambush marketing will result in the most severe financial cost to the local organising committees.
The financial contributions of sponsors are fundamental to sporting activities, and both sponsors and the sponsored must understand their role if the relationship is to be successful.
Howard L. Hamilton, C.D., J.P. is a former Chairman of Caymanas Track Limited. He is the current President of the Thoroughbred Owners & Breeders Association. He can be contacted at
howham@cwjamaica.com.
