Major multinationals such as McDonald’s, Sony and Coca Cola use sports sponsorship as a major marketing tool. But you do not have to be a large firm to engage in sports sponsorship, with a relatively small investment you can utilise this strategy to generate significant publicity for your small company.
Beneficial relationship
Writing on this topic, Small Business argues that “sponsorship marketing is one of the easiest, most affordable ways for a small business to gain exposure.” It allows you to create a mutually beneficial relationship; you gain a new marketing tool while your partner receives vital funding.
It is vital that you use sponsorship as with any other marketing tools e.g. direct marketing or social advertising. Utilise sponsorship to help your target consumers understand what your company is about, by telling your story. By strengthening your relationship with consumers, you can acquaint them with your brand’s core ideals, attracting and retaining new business.
It is important to note that when you initiate a sponsorship deal, you will see returns from your investment climb over time. It is key that when adopting this approach, you define your objectives clearly and actively manage the campaign. This will allow you to measure your sponsorship deal’s effectiveness, so you can tweak your strategy when necessary and cultivate return on investment.
Why sports?
So why should you consider sponsoring a sports team? Citing research carried out by industry outlet Sports Revolution a few years ago, Small Business argued that this strategy allows you to capitalise on sports’ ability to build a sense of community and belonging among consumers. In the survey, 79% of those questioned cited “coming together” as their main reason for being a sports fan.
Small Business argues that this sense of community can be wielded by large and small companies alike. When they become sports fans, consumers join a community of like-minded people, promoting a sense of belonging. This phenomenon is the same at every level – from international competitions such as the Football World Cup to a local community football tournament, inspiring people with a common passion to come together. This makes local sporting events the perfect marketing arena, allowing you to promote your business to consumers when they are at their most receptive.
Giving back
Continuing, the publication suggests that “sports sponsorship is perhaps the best way to build trust and goodwill in the community, as well as being seen to ‘give back’ by supporting sport at the grass roots.” Let’s say you sponsor a local kid’s football team. Your money may allow them to keep going, promoting community goodwill towards your firm. It also allows you to associate your brand with active healthy lifestyles, showing that you care about promoting high quality of life in your community.
As an example, let’s look at US tech firm’s Datto’s recent sponsorship deal with Table Tennis England, which funded the Ping! table tennis festival summer festival throughout the nation. Throughout Ping!, Table Tennis England will install as many as 1,000 tennis tables across 21 British towns and cities, in order to encourage people to try table tennis for themselves.
Yes Datto may be a large company, but smaller businesses can gain similar benefits on a smaller scale by sponsoring sports on a local level. Datto have capitalised on the fact that this tournament promotes active lifestyles, while fostering a sense of community by gathering people around a common interest, giving Datto a chance to show that it cares about giving back to local communities. In other words, sponsoring a sports team promotes brand warmth and loyalty towards your firm because you share a common interest with consumers.
Handle your finances
Therefore sponsoring a sports team can serve as a more effective marketing tool than paid advertising, as it is more likely to generate the consumer engagement and loyalty. In order to utilise sports sponsorship effectively, you need to ensure you have the financial infrastructure necessary to handle sponsorship funds. As registered bank intermediaries, Turner Little can advise you on opening UK bank accounts, so you can engage in sponsorship while maintaining a healthy cash flow.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
