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Motorsport Sponsorship Paying The Way

Friday, September 8th, 2017

Car rallying is an expensive sport due to the upkeep of the car; paying fees for racing among many other financial requirements, sponsors are needed to help lift the financial burden from drivers and their teams. Unlike most motorsport activities, in car rallying an individual can be in charge of his/her own finances, they do not necessarily need a team or a company to foot their bill if the individual can find sponsorship on their own.

But sponsors cannot go into a contract with drivers and their teams without first knowing the benefits they will gain by sponsoring a specific rally team and not another. Therefore, the rally teams must be able to show interested sponsors how they would benefit and this is usually done by their sponsorship management team. The main roles of the sponsorship management team is to maintain liaison with existing sponsors to ensure that the contracts are maintained and coordinated with the other areas e.g. communications, merchandising, licensing etc. The other role is to find new sponsors by carrying out market research, looking at the legal aspects such as marketing rights, evaluating sponsorship proposal etc.

Sponsorship liveries are the paint scheme and sticker design on a rally car which is used in order to advertise sponsors or to attract more sponsors. These liveries change from season to season depending on marketing ideas of sponsors (some sponsors might wish to have their logos more prominent in some locations than in others), rules and regulations of some events e.g. In some events Tobacco sponsors are prohibited.

A lot of resources are put into sponsor decision making, this is because the sponsors want to get some profit from their investments. The decisions include which teams to support, location of their logos, how much they are to invest. All of these decisions are due to the fact that the sponsors want to get maximum advertising exposure so as to create brand loyalty and fan loyalty from the association with a specific team or driver to a specific brand (the sponsor’s brand) as the success of a team means the success of the sponsors and vice versa. The team that is sponsored by a specific sponsor gets more time to concentrate on their performance as they are not burdened by the finances.

Sponsorship however is not only about having a sticker on the car; it’s about the mutual beneficial relationship between the sponsor and the team. The sponsors might use the rally races to entertain potential customers or existing customers, this forms a rapport between them encouraging further dealings as the strict business environment is removed. Sponsors do not only get returns when there are active ongoing races but through sponsorship management firms they are able to provide exposure for a team’s sponsors away from the track.

Without sponsorship, rally racing would not be as famous as it is because there would be few teams competing as they might be the only ones able to finance themselves. Rally sponsorship is a symbiotic relationship between the rally teams and the sponsors i.e. a mutually beneficial relationship which is to the benefit of all involved.

Motorsport Sponsorship Tops the List for Sports Sponsorship – Why?

Friday, September 8th, 2017

Car racing is the largest and fastest growing spectator sport in America from the Indy 500 all the way to NASCAR and all over the world it is a major sport with the popularity of F1 and Rally ranking among the best spectator sports in the world. It is therefore without a doubt that sponsors will flood this market. It is estimated that 25% of sports sponsorship deals are directed towards Motorsports. Other team sports have no support for the type of direct commercial sponsorship that Motorsports offers. Sponsors are an integral part of the team as they provide the operating capital for the team. They provide Motorsports sponsorship in exchange for mass advertising to the millions of fans who enjoy the sport so as to increase their market share in their respective fields and earn a profit. It’s a fitting way to make a profit by increasing your consumer base.

When it comes to advertising, no one does it better for sponsors than Motorsports. From the liveries plastered on cars that serve as mobile billboards to the multitude of fans, to the race track signage and drivers uniforms splashed with a multitude of sponsor logos, Motorsports is an ideal platform from the advertising aspect of sponsors. The full commercial sponsorship is ideal for a sponsor’s main goal which happens to be, getting better brand recognition. Sponsors expect their brand to be spread out to the fans that turn up to watch their favorite team. The logic behind sponsors is that the millions they spend on the team can be regenerated by an upscale in product purchases by loyal fans of their respective teams.

Sponsors want brand recognition and many companies that specialize in sponsorship management have great success in providing exposure for a team’s sponsors away from the track. Sponsors would want to feel they are getting value for their money and this would ensure sponsorship deals go the right way for both parties. Sponsors want to feel involved in the process of decision making particularly since they are funding the team. Success on track is vital to the sponsor as their brand will be associated with success and thus create brand loyalty among the fans. It’s often known that sports fans are highly likely to choose sponsor brands of their favourite teams over other brands. The media coverage of these Motorsport events provides a better, more versatile way of advertising where the viewers need but to see the liveries on cars and uniforms to know of the sponsor brands. This is a better, more versatile way than the more traditional way of an allocated advertisement slot during coverage. The overall success of a team as well as their accelerated brand recognition is what sponsors are out to achieve in the long run and provided they see the potential in your team, a worthy sponsorship management strategy and a viable target audience then you are in for business.