5. Glossary of Terms Commonly Used in Sponsorship

Awareness: Consciousness either spontaneously or prompted. Typical metrics are;
  • Aided/prompted. The respondent is given a list of brands to prompt recognition
  • Spontaneous/unaided. The respondent is asked to name one or more brands in a category
  • Top of Mind. Usually means the first of those names.

Ambush marketing: A promotional strategy whereby a non-sponsor attempts to capitaltise on the popularity/prestige of a property by giving the false impression that it is an official sponsor. Often employed by the competitors of a property's official sponsors.

Arts marketing: Promotional strategy linking a brand owner to the visual or performing arts (sponsorship of a symphony concert series, art exhibition, ballet, theatre, cultural and social events etc.)

Brand experience: What the consumer learns and senses from using or contact with the brand through sponsorship.

Cause related marketing: Promotional strategy that links a brand owner's sales campaign directly to a non-profit or charitable organisation. Generally includes an offer by the sponsor to make a donation to the cause with the purchase of its product or service. Unlike philanthropy, money spent on cause related marketing is a business expense, not a donation, and is expected to show a return on investment.

Co-sponsors: Sponsors of the same property.

Customer relationship management (CRM): The new imperative of marketing. As the marketplace approaches super saturation of products and services - as the power in the marketing equation shifts from product to consumer - brand loyalty starts to get eroded. In order to successfully compete, brand owners have to create loyalty relationships with their customers, one customer at a time.

Hospitality: Hosting key customers, clients, government officials, employees and other VIP's at an event. Usually involves tickets, parking, dining and other amenities, often in a specially designated area, and may include pro-am spots, backstage tours, etc. Also known as client entertainment. Modern day hospitality is about effective CRM.

Media equivalencies: Measuring the exposure value of a sports sponsorship by computing the coverage it generated and calculating what it would have cost to buy a like amount of ad time or space in those outlets based on media rate cards.

Presenting sponsor: In the USA, it refers to the sponsor that has its name presented just below that of the sponsored property, e.g. "AT&T presents Cirque du Soleil". In presenting arrangements, the event name and the sponsors name are not fully integrated since the word(s) "presents" or "presented by" always come between them.

Primary sponsor: The sponsor paying the largest fee and receiving the most prominent identification.

Property: A unique, commercially exploitable entity (typically in sports, arts, events, entertainment or causes).

Rights holder: This is a sports team, club, event holder or other entity that seeks commercial sponsorship. Also known as a sponsee or sponsor seeker.

Sponsorship In Kind: Payment (full or partial) of sponsorship fee in goods or services rather than cash, for example technology services or website etc.

Reproduced with kind permission of Ardi Kolah. Maximising The Value of Sponsorship, published by SportBusiness Group.