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However, from a small business perspective there are other reasons
to invest in sponsorship.
Before you spend money, you should again consider your main
stakeholders. Do you sponsor the local football team with a new set
of shirts, or would it be better to give up some other resources to
help them out. Perhaps you have a spare room on your premises that
they could use for club meetings, which would help them to reduce
some of their outgoings?
Perhaps your engineering firm would gain more from using its
expertise to help a local group, rather than spending £400 on new
kit for the under 12s. Could your restaurant be a subsidised venue
for the local wine club, or mother and toddler group? Or what about
making netball posts for the local women’s netball team?
A word of warning. Sponsorship opportunities are often offered
to businesses without any concept of the benefits to each party.
Always make these decisions with your head – referring back to your
strategy. And be careful about sponsoring a sport simply because
you enjoy it; there might be a better cause to support. Remember, it
only adds value to the business if it adds value for your customers. If
in doubt, ask your customers; you could even ask them to vote.
The benefits of sponsorship are that it generates considerable
goodwill for your company and helps you forge closer links with your
community. The estate agent that always sponsors the local primary
school fete or the restaurant that provides food for a homeless char-
ity are seen as different kinds of business as a result. Of course, as
your brand is based on truth it goes without saying that sponsorship
agreements shouldn’t be taken on lightly – and certainly the nega-
tive publicity of suddenly ‘dropping’ charitable support when the
budget is tight needs to be seriously considered.
You will need to set some objectives, such as increased media
coverage, improving the reputation of your company, or in some
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