promotion, sponsorship, brand management, positioning
Review the activity below or download the PDF student worksheet
Student Discussion Activity
Medium to large firms tend to have many sponsorship opportunities presented to them.
Keeping in mind that a sponsorship should be viewed a promotional tool (rather than simply a donation), please rank (in terms of value to the firm) the following sponsorship opportunities for a large supermarket chain.
- A small charity is seeking a donation of just $1,000
- In return, they will list the firm on their website as a sponsor
- A high school (of 1,000 students) is seeking a $1,000 sponsorship for their school fete
- In return, they highlight your involvement in their school newsletter and encourage parents to use your stores
- In addition, you may put up corporate signage at the fete
- A large sports association (of around 50,000 junior players) is seeking a major sponsor to contribute $50,000
- In return, they will give the firm naming rights
- In addition, you will be promoted on their results website, in their newsletters, and with regular signage at major games
- They will even give you access to their customer mailing lists (if required)
- A fairly well-known charity is looking for a joint promotional day
- Their proposal is that on a certain day, 50 cents from the sale of any of the supermarket’s own brand (private label) products goes to the charity
- Their proposal states that the firm will benefit from:
- The goodwill from supporting a good cause
- Extra customers on the day
- Customers who trial their own brand products for the first time (and may become repeat customers)
Student Discussion Questions
- On what basis (criteria) do you think that firms should assess a sponsorship proposal?
- Using your own sponsorship assessment approach – which opportunity is the best one for the supermarket chain?
- Which one appears to be the poorest opportunity?
- How effective do you think sponsorships are as a promotional tool?
- Why would firms use sponsorship, as those as opposed to more traditional forms of promotion, such as advertising?