avoiding divorce
The Redmandarin Guide to a Successful Sponsorship
Marriage
"Marriage has many pains, but celibacy has no
pleasures"
Dr. Samuel Johnson 1709-1784
Aware that the days of simply signing the contract and banking the cheque
are now over, rights holders are increasingly referring to their commercial
sponsors as partners. The International Olympic Committee recently renamed
its TOP programme from Total Olympic Programme to The Olympic Partners, in
an effort to demonstrate the longevity of its deals and the importance of
its sponsors in bringing the Olympics Games to life. Sponsorship is dead.
Long live the partnership.
A successful partnership is akin to marriage. It requires commitment, patience,
time, energy, communication and trust. A "partnership" might look
good in a proposal, but to what extent do rights holders adhere to the marriage
vows once the money is in the bank? Here are our tips on making the marriage
work, and how to divorce with dignity:
1. Find the right partner to start with
Understanding the compatibility of image, target audience and relevance of
product fit are key to a successful sponsorship marriage. There are many examples
of rights holders dazzled by the draw of the dollar and signing inappropriate
sponsors, unwilling to exploit and invest in the equity of the relationship.
There are also plenty of sponsors who tie up with events whose image is at
odds with their own, more often than not through the personal preferences
of the decision makers. In either case the marriage is likely to be short-lived
and divorce bloody.
2. Make sure your partner spends time with other
friends
Spending time with other people brings added stimuli to the marriage and stops
boredom. Encouraging interaction between co-sponsors can result in highly
cost-effective promotional activity that enables a long-term sponsorship agreement
to remain fresh and innovative. Even the best relationships can become faded
and dusty if the routine is the same, month in, month out.
3. Trust each other
Keep promises and a lid on expectations. Be honest with data and realistic
with achievable goals. Being economical with the truth can finish off an otherwise
perfect partnership very quickly, and over-promising on event attendees, media
coverage expected or exploitation budget planned swiftly reduces the expected
value of a sponsorship contract to either partner.
4. Communicate, communicate, communicate
The more that partners feel involved in making decisions and planning for
the future the greater the likelihood of a long-term relationship. Rights
holders have historically been poor at providing the right level of service
and day-to-day contact with their sponsors - resulting in the sponsor feeling
unloved and unwanted. Sponsor workshops, brainstorms, presentations, newsletters,
Intranets and regular briefings on the development of the event can ease and
speed up the communication process.
5. Don't take each other for granted
Partnerships fail when either party believes the other will be supportive
of them regardless of their behaviour. Never regard the signing of a sponsorship
contract as akin to the final consummation of the marriage. The relationship
requires dialogue, attention, care and servicing, and sponsors should be the
first to know of any imminent crisis about to affect the event. Reading about
it in the press will not a happy marriage make.
6. Understand each other's differences
Good partnerships acknowledge eachother's similarities and respect each
other's differences. Whilst in a sponsorship agreement it can be argued
that both the corporate and the organisation are mutually dependent on
each-other for competitive edge, the rights holders' priorities will generally
be on increasing financial support, increasing promotional reach and increasing
media coverage of the event. Sponsors, on the other hand, will have a
different set of needs which might include image enhancement, product
trial and hospitality. A sponsorship marriage can quickly break down if
either party tries to interfere too greatly in the agenda of the other,
and equally lose the support of the fan and consumer base which is integral
to the success of the event for both parties.
7. Protect your partner
Ambush marketing is regarded as shrewd business practice in a competitive
world by some, and as unethical parasitic marketing that erodes the value
of the sponsorship market place by others. Either way, the rights holder has
an obligation by way of the marriage vows to ensure that the interests and
rights of its partner are protected.
8. Divorce with dignity
Not all good things have to come to an end. Coca-Cola has had a relationship
with the Olympics for over seventy years, and Cornhill Insurance has sponsored
English cricket for over twenty. But brand personalities mature and change,
marketers leave, new regulations restrict, new technologies alter the media
landscape and audience reach, and the law of diminishing returns may force
a sponsor not to renew or reconsider.
A divorce needs careful planning and communication. Any relationships which
come to an abrupt end reflect badly on both parties. Build reasonable negotiation
periods into contracts, agree on who says what to the outside world, and begin
early in finding new partners or new opportunities. Seek impartial advice
if an impasse is reached. After all, a dignified divorce is infinitely preferable
to a public bun-fight.
Sally Hancock
Chief Executive Officer
Redmandarin
