As competition heats up for a bigger slice of corporate funding, corporate sponsors are demanding greater recognition for their efforts. So --watch out --your sponsors may expect more than just a microscopic logo at the bottom of your promotional posters and programs.
Marketers should also take note that more and more businesses are moving away from simple philanthropic causes to cause-related marketing. Many are now targeting and selecting healthcare organizations, events and causes that are well-matched to their own customers' incomes and preferences.
In other words, it isn't just about promoting a healthy heart or a heart-felt cause.
"Companies expect to see some return for their sponsorship dollar through higher awareness or enhancement of reputation," said Stephanie Sterling, former marketing director for Alexandria Hospital who had coordinated the hospital's Healthy Heart event. "And we as marketers need to rethink how to strike the right balance between intrusion and tasteful recognition of a sponsor's contribution."
American corporations will spend nearly $600 million on cause-related marketing events this year, according to a recent survey in the Sponsorship Report, a newsletter that follows corporate sponsorship in the U.S.
But as marketing execs look to achieve more with downsized budgets, donations need to show some gain for the company.
Cause-related expenditures face closer scrutiny now and although most company exceutives feel social responsibilities, they must also balance those sentiments with projected sales targets, say analysts.
Those feelings are underscored in a new Cone Communications/Roper study of executive attitudes. The study found that the sponsorship opportunities most popular were those that broadened a brand message, reached potential customers or instilled pride in employees.
Of the 70 firms surveyed, 93 percent said they engaged in cause-related marketing to build relationships and solidify customer loyalty.
Image enhancement, creating a brand platform and product differentiation also ranked high as motivators. Only 50 percent cited increasing sales as a major reason for initiating cause-related programs.
"Companies understand that cause [related] marketing is a long-term strategic practice that's all about brand building," said agency president Carol Cone.
Approaching A Company
The rule of thumb for approaching a potential sponsor is finding a tie-in. For example, if you are hosting a diabetes awareness program, then approach pharmaceuticals such as Eli Lilly, which manufactures diabetic drugs.
However, sponsors do not necessarily have to be related to your cause. For example, PR practitioners from the Make-A-Wish Foundation in Washington D.C., have the condo association Sea Colony in Ocean City, Md., co-sponsor their annual beachside triathalon in July. This year, the foundation raised $30,000 for its programs.
"Although it is nice to have health [industry] sponsors, they are not always easy to find or get," said Mira Koplovsky, special events coordinator with Make-A-Wish.
Healthcare executives say that, in general, approaching the marketing director of a corporation with a written direct-mail solicitation is the most effective way to secure sponsorship.
"Generally, sending a direct mail piece with a listing of sponsorship opportunities is the way to go," said Sterling.
The piece should give an inventory of sponsorship options and what the company would receive, such as recognition on print materials, tickets to the program, an article in the newsletter. It should also include a letter-of-intent form for the company to fill out.
Each price level should receive a different level of recognition and exposure. For example a grand sponsor who donates $20,000 may procure a full page advertisement in the event program while a $1,000 donor may get a quarter-page ad.
(Cone Communications,617/227-2111; Make-A-Wish Foundation, 301/738-7575; Alexandria Hospital, 703/504-3000)
Building A Relationship
Marketers have also found that building public excitement for an event helps secure future sponsors. Here are a few suggestions from healthcare marketers that may further your sponsorship search:
- Try to work more closely with sponsors to ensure they receive some earned media coverage as a result of their contribution. One suggestion is to have spokesmen highlight the sponsorships during interviews and for media kits to place greater emphasis on the sponsors' contributions.
- Convince companies that make smaller contributions to team up and plan a combined initiative to boost their sponsorship profile.
- Approach corporate donors with target demographics that closely mirror their audiences.
- Work with corporate sponsors to combine direct-marketing initiatives in order to raise the profile of both sponsor and your organization.