the
importance of performing competitive analyses
The Importance of Performing Competitive Analyses
You've received that exasperating phone call, e-mail or letter many times. Somewhere in the conversation or proposal, the rights seller mentions to you that you are being given the first chance to purchase the sponsorship, a kind of exclusive opportunity. However, if you don't act quickly on this "wonderful" sponsorship opportunity, they will have to approach your competitors and offer the sponsorship to them. For those of you reading from the property-side, that approach is one of the quickest ways to have your proposal tossed. Marketers know that defensive sponsorship investments rarely prove beneficial because they are made for the wrong reasons. Even though your sponsorship investments should fall in line with your overall marketing strategy, it is imperative to know where your competitors are in the sponsorship landscape.
Prime Positioning: Sponsorship does not determine your brand positioning, but your positioning does determine where you invest your sponsorship budget. Having a strong understanding of your competitors' portfolio and activation programs provides a solid foundation from which you can tactically plan sponsorship activities that differentiate your products from those of your competitors.
Ambush Actions: OK, this is a conflict-ridden issue that elicits passionate debate among marketers. Some say ambush marketing is legitimate, while others feel that it's unethical. We could have an hours-long conversation on the topic, but for now, let's just say that an analysis of competitors' sponsorship-related field activities would be advantageous in your selection of ambush activities.
Negotiation Leverage: You may find yourself in a situation where you are presented with a very attractive sponsorship opportunity. However, you may need some time to secure budget approvals or internal buy-in, but the property wants an answer quickly. Or perhaps the assets offered are not enough to justify the fee. Knowing what your competitors are doing can be of great assistance here. If other companies in your category have recently invested in pricey sponsorships, they are not likely going to sign another significant deal soon after. Use that knowledge to aggressively negotiate down the price with a time-pressured property.
Idea Borrowing: What's the expression about imitation being the highest form of flattery? Get on a plane or in a car and gather intelligence about your competitors' on-the-ground activities. Take notes. Talk to fans and attendees and get their feedback. You may see that competitors' activities can be effective for your sponsorships as well. Or you may see some details or programs you want to avoid. Either way, you can only win if you are armed with the most information - and have the ability to act on that market intelligence.
