9-1 Chapter 9 Preevent Evaluation McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights...
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Transcript of 9-1 Chapter 9 Preevent Evaluation McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights...
9-1
Chapter 9Chapter 9
Preevent EvaluationPreevent Evaluation
McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved
9-2
Preevent EvaluationPreevent Evaluation
• An Effort to Evaluate Sponsorship Opportunities with the Goal of Identifying the Best Opportunities for Investment While Rejecting Those that Are Unlikely to Produce an Adequate Return on the Sponsorship Investment
• Recall Earlier Premise that Sponsorship Motives Have Evolved to Focus on ROI
9-3
Reasons for Increased Reasons for Increased Emphasis on Preevent EvaluationEmphasis on Preevent Evaluation
• Increased Emphasis on ROI
• Increased Cost of Sponsorship
• Increased Number of Sponsorship Opportunities
• Increased Opportunities Beyond Sports
• Better Descriptions of Sponsee/Sponsor Target Markets
9-4
Increased Emphasis on ROIIncreased Emphasis on ROI
• Sponsors Will Weight the Cost of Sponsorship Against the Benefits
• Specific Marketing Objectives Associated with the Sponsorship Investment
• Preevent Evaluation Represents an Effort to Estimate the Value of the Anticipated Results
9-5
Increased Cost of SponsorshipIncreased Cost of Sponsorship
• Rights Fees for Major Events Have Experience an Upward Trend
• World Cup of Soccer Sponsorship: $17.5 Million in 1994; $40 Million in 2006
• Also Need to Consider Cost of Leveraging
9-6
Increased Number Increased Number of Sponsorship Opportunitiesof Sponsorship Opportunities
• Properties Adding to Sponsorship Base
• Properties Adding New Sponsorship Levels
• Properties Seeking Sponsors for First Time
• New Events Seeking Sponsors
• Sponsors Seeking International Opportunities
9-7
Increased Number of Increased Number of Opportunities Beyond SportsOpportunities Beyond Sports
• Causes– American Express & Muscular Dystrophy
Association
• Entertainment, Tours & Attractions– Ameriquest & the Rolling Stones Concert
• Festivals, Fairs & Annual Events– J2O & London Comedy Festival
• Arts– DaimlerChrysler & Van Gogh Art Exhibit
9-8
Better Descriptions of Sponsee’s Better Descriptions of Sponsee’s and Sponsor’s Target Marketsand Sponsor’s Target Markets
• More Information
• Better Defined Small Target Markets
• Better Targeting Available When Prospect Engages in Preevent Evaluation
9-9
When Are Preevent When Are Preevent Evaluations Needed?Evaluations Needed?
• When Existing Contracts Expire
• When New Opportunities Emerge– Property Initiates Sponsorship Program– Existing Sponsors of Property Drop Out– Property Increases Number of Sponsors
• When a Marketer Decides to Seek Sponsorship Opportunity for First Time
9-10
Evaluation by theEvaluation by thePotential SponsorPotential Sponsor
• Identify Corporate Marketing Objectives
• Delineate & Prioritize Specific Objectives
• Identify Set of Evaluation Criteria
• Assign Weight to Each Criterion in Model
• Rate Each Criterion (for Each Alternative)
• Select/Reject Opportunities Based on the Systematic Evaluation of Each Alternative
9-11
Identify Corporate Identify Corporate Marketing ObjectivesMarketing Objectives
• What Do We Want to Achieve with Our Marketing Strategy?
• Examples:– Increase Awareness– Enhanced Consumer Perception– Strengthen Brand Loyalty– Increase Sales– Attain Positive Public Relations & Publicity
9-12
Delineate & Prioritize Delineate & Prioritize Specific ObjectivesSpecific Objectives
• What Do We Want to Achieve with Our Sponsorship Strategy? What Priorities?
• Possible Sponsorship Priorities– (3) Increase Awareness– (4) Enhanced Consumer Perception– (2) Strengthen Brand Loyalty– (1) Increase Sales– (5) Attain Positive Public Relations & Publicity
9-13
Identify Set of Evaluation CriteriaIdentify Set of Evaluation Criteria
• Identify A Broad Set of Evaluation Criteria
9-14
Identify Set of Evaluation CriteriaIdentify Set of Evaluation Criteria
• Break Each Criterion Down into More Specific Evaluation Criteria; For Example:
• Budget Considerations– Affordability– Cost Effectiveness– Tax Benefits
9-15
Assign Weight to Each Assign Weight to Each Broad Criterion in ModelBroad Criterion in Model
• Weights Should Reflect the Relative Level of Importance of All Criteria to Be Used in the Evaluation Process
• Common to Use 100 Point Basis for Allocation Purposes
• Other Basis Can Be Used if Desired
9-16
Assign Weight to Each Assign Weight to Each Broad Criterion in ModelBroad Criterion in Model
• Consider the Following 3-Criteria Model Using a 100 Point Basis
– Target Market Considerations (60)– Budget Considerations (30)– Event Management (10)
9-17
Reallocate Weights to Each Reallocate Weights to Each Specific Criterion in ModelSpecific Criterion in Model
• For Each Broad Criterion, 1 or More Specific Criteria Will Be Used in the Evaluation Process
• Each Specific Criterion Will Be Assigned a Weight that Reflects Its Importance in the Assessment of the Broad Criterion in Which It Is Listed
9-18
Reallocate Weights to Each Reallocate Weights to Each Specific Criterion in ModelSpecific Criterion in Model
• Instead of a 100 Point Basis, the Basis Is the Number of Points Assigned to Each Broad Category
• In the Previous Hypothetical Model, the Points Were Allocated As Follows:– Target Market Considerations (60)– Budget Considerations (30)– Event Management (10)
9-19
Reallocate Weights to Each Reallocate Weights to Each Specific Criterion in ModelSpecific Criterion in Model
• In This Hypothetical Model, Assume that the 60 Points Allocated to Target Market Considerations Are Reallocated As Below:
• Target Market Considerations (60)– Geographic Media Coverage 10– International Coverage 2– National Coverage 8– Demographic Fit 30– Size (Reach) 10
9-20
Rate Each CriterionRate Each Criterion
• Using An Appropriate Measurement Scale, Each Criterion Is Rated on Its Merits
• Most Scales Use Between 5 and 9 Points in Order to Allow Adequate Discrimination
• Generally, a Low Evaluation Is Assigned a Low Number; a High Evaluation Is Assigned a Number at the High End of Scale
9-21
Rate Each CriterionRate Each Criterion
• Consider a 9-Point Scale Where -4 Is a Poor Rating and +4 Is an Excellent Rating; the Scale Has a Midpoint of Zero.
• Each Criterion Can Now Be Rated on the 9-Point Scale
9-22
Rate Each CriterionRate Each Criterion
• Consider an Example Where Coca-Cola Is Considering Renewal of Its Sponsorship with FIFA and the World Cup of Soccer
• Criterion Weight Rating W*R
• Target Market Considerations (60) – Geographic Media Coverage 10 +4 40
– International Coverage 2 +4 8
– National Coverage 8 +1 8
– Demographic Fit 30 +3 90
– Size (Reach) 10 +4 40
9-23
Complete the Ratings ProcessComplete the Ratings Process
• Multiply Each Rating by the Weight for the Corresponding Criterion
• Criterion Weight Rating W*R• Target Market Considerations (60)
– Geographic Media Coverage 10 +4 40
– International Coverage 2 +4 8
– National Coverage 8 +1 8
– Demographic Fit 30 +3 90
– Size (Reach) 10 +4 40
9-24
Sum Results for All CriteriaSum Results for All Criteria
• Result Will Be a Single Grand Total
• Maximum Possible Points for Any Model Equals the Aggregate Weight Total Times the Best Rating for Each Criterion
• In this Overall Example: 100 x 4 = 400
9-25
Applying the ResultsApplying the Results
• Use the Same Model to Compare Each Alternative Sponsorship Being Considered
• Compare Results of One Alternative to Another
• Compare Results to an Established Benchmark
9-26
Applying the ResultsApplying the Results
9-27
Overview of the ProcessOverview of the Process
9-28
Sponsee ApplicationsSponsee Applications
• Allows Sponsee to Evaluate Its Proposal from the Prospective Sponsor’s Perspective
• Understand Prospect’s Priorities
• Can Help Sponsee Decide Which Components to Offer in Its Proposal
9-29
Closing CapsuleClosing Capsule
• Prospects Have Many Opportunities from Which They Can Choose
• The Increase in Opportunities and a Major Focus on ROI by Prospective Sponsors Has Led to Greater Emphasis on Preevent Evaluation
9-30
Closing CapsuleClosing Capsule
• Systematic Preevent Evaluation Should Increase the Likelihood that the Sponsorship Will Achieve the Objectives Sought by the Sponsor
• Fewer Sponsorships Should Fail
• Fewer Failures = Higher Renewal Rates