Book Sponsorship

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The Fundamentals of the Sponsor

Search
By Robert Villegas, Jr.
Copyright 2004 New Century Marketing Concepts

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The Fundamentals of the Sponsor

Search
by Robert Villegas, Jr.

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The Fundamentals of the Sponsor Search

ISBN 0-930962-25-7
Copyright 2004 New Century Marketing Concepts
New Century Marketing Concepts
1243 Priority Place
Indianapolis, IN 46227
317-881.3826
http://www.insmkt.com/fund.htm
http://www.sportmarketingbooks.com
http://www.insmkt.com/money.htm
sales@insmkt.com
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Table of Contents
Introduction ..................................................................................... 6
Chapter 1. What is Sponsorship? .................................................. 8
Chapter 2. The Sponsorship Sales Matrix ................................... 23
Chapter 3. How to Write a Sponsorship Proposal ...................... 48
Chapter 4. How to Find a Sponsor ............................................... 60
Chapter 5. 101 Ideas on Getting and Keeping a Sponsor .......... 94
Chapter 6. How to Write an Introductory Letter to a Potential
Sponsor ....................................................................................... 109
Chapter 7. Sample Marketing Plan for a Sports Team.............. 119
Appendix A. Resources .............................................................. 153
Appendix B. Demographics........................................................ 156
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Introduction
This book is written for anyone seeking sponsorship relationships. Though the
point of reference is motor sports, the ideas and principles presented are
applicable to any company, sport team, marketing agency and organization that
uses sponsorship to support its activities.
As a young account executive for UPS in the early ‘80s, I learned a key principle
that would later become standard in the business world: If you spend more time
with the large client and show your dedication to the relationship, you will be
rewarded with additional business. I initiated my own processes where I made
weekly visits to my large accounts; analyzing distribution, answering questions,
providing solutions, assisting in technology upgrades and sometimes even
helping to load packages onto trailers. This experience eventually led to my
being selected as the first UPS Indiana District Major Account Executive, in a
pilot project, with 100 Top Accounts from South Bend to Evansville. As a result
of this experience, UPS developed a major account strategy that they still use
today.
Later, I had the opportunity to enjoy the involvement of UPS at the Indianapolis
Motor Speedway. Back in 1987, he had recommended that UPS develop a
program of hospitality at the Indianapolis Motor Speedway during May when the
activities surrounding the Indianapolis 500 took place each year. The program
proved so successful that it was continued and eventually other UPS Districts
were performing similar hospitality events coincident with local national events.
During one post-race analysis, it was proven that customers that were invited to
hospitality, food and racing at the Indianapolis Motor Speedway, gave UPS more
revenue than those that were not invited.
During a trip to Cleveland for an Indy Car Race in the early '90s, he had an
opportunity to meet with Jimmy Vassar and Adrian Fernandez, then up and
coming race car drivers, and learned about the benefits of sponsorship and the
excitement of being “in the pits” as compared to being in the stands. On the
return trip, he wrote a feasibility report that was sent to Corporate that UPS
should get involved in motor sports sponsorship. The response: “UPS will never
sponsor a race car.”
Needless to say, history has written a different story, and the UPS sponsorship
program now in place has proven to be a huge success. In 1996, I took my
experiences at UPS and retired early to pursue both my writing aspirations and
motor sports interests. I started New Century Marketing Concepts in order to
help drivers and teams obtain sponsorship. He quickly learned that what race
teams needed, particularly smaller teams, were tools that could help them
compete with the big corporations. Since then he has written a number of
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documents for precisely this purpose and compiled them into this book. It is the
culmination of years of experience and as much wisdom as possible.
- Robert Villegas
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Chapter 1. What is Sponsorship?

The Sponsorship Opportunity
During the 1996 Indianapolis 500, many new sponsors came to the forefront of
motor sport.
Buddy Lazier, the winner of the race, was sponsored by Delta Faucet, an Indiana
based company. Delta Faucet received the equivalent of millions of dollars of
international exposure before, during and after the race. For years to come, this
company will be known as an Indy 500 winner and will bask in the glory of being
the best.
Since 1996, the Indy Racing League, the sanctioning body that runs the Indy
500, has taken great strides and become one of the most exciting and innovative
racing venues in the world. Fans have noticed the breath-taking wheel-to-wheel
competition and are flocking to the track. Sponsors have noticed the large
number of fans and want to draw more impressions and customers by supporting
the teams. A synergy has developed as the best race drivers in the world have
joined the IRL fray adding to the exciting competition and the IRL's worldwide
reputation.
The supreme racing series in the world is NASCAR. Started as a family business
after World War II, this organization has grown steadily over the years by
providing a host of "heroic" and beloved drivers, while also joining the major
automobile manufacturers with a multitude of sponsors--bringing NASCAR
drama and excitement to millions of fans who eagerly support favorite teams and
sponsors. NASCAR is the motor sports sponsorship standard.
No matter what the venue, racing is fun, exciting and it often takes place on
beautiful sunny days. The danger, drama, outdoors environment, added to the
roar of engines, smell of hot dogs, burning fuel and screeching tires make motor
sport an All-American pastime with a huge audience. Add a few marching bands,
movie stars and celebrities and you have the ingredient for a day not soon to be
forgotten.
Indeed, there is great interest in racing nationally and internationally. Television

crews cover all major league races live. A winning driver, who is interviewed
often, gives the sponsor free exposure. The cost of such exposure in any other
advertising medium is often tens of times more expensive than the cost of having
a logo visible on camera during television or trackside coverage. Many
companies base their entire marketing plans around their motor sport
involvement because they know it can catapult them to market share supremacy.
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Race car drivers are daring and heroic figures. Not only are they skilled drivers,
but fans love their positive personalities and charisma. Young men want to be
like Tony Stewart and buddy around with him. Young girls want to flirt or go out
with Dale Earnhardt, Jr. Older people would be proud to know Rusty Wallace or
Jeff Gordon. Executives want to do business with them. Commentators and
writers want to feature them in their stories. Track owners want to make sure
they show up at the track so the fans keep coming, and car owners want to pay
them well so they keep the team in the winner's circle. People who like a
particular driver will eagerly patronize the companies that put their logos on his
uniform and racecar.
Let me quote from the USAC FF2000 Media Guide:
"As a marketing vehicle, auto racing is a proven winner. No sport attracts more
corporate sponsorship dollars. Of the estimated $3.2 billion spent on sports
sponsorship last year, 25 Percent was directed towards auto racing. Racing is
regarded as an exciting, glamorous, unique and effective marketing tool.
Auto racing is the number one and fastest growing spectator sport in the United
States with over 80 million fans attending events each year. The percentage of
television sports viewers per household watching auto racing is virtually tied with
NFL regular season football, and higher than all other television sports except
NFL playoffs and college football bowl games. That's why more companies invest
in auto racing for sports sponsorship - more than pro teams, golf or tennis.
(Source: Bozell, Jacobs, Kenyan and Eckhardt Advertising)
There is no other sport like auto racing that provides the corporate sponsor with
so many different ways to merchandise and market its racing association. The
role of the corporate sponsor has long been recognized in auto racing as a major
and necessary component of the sport.
Baseball, football, basketball, hockey and other team sports do not permit the
direct commercial sponsorship association that is offered and nurtured in auto
racing. Support of the sponsor and its products or services is an accepted way of
life.
• Cars serve as moving billboards for the sponsor's logo. When properly placed
on the vehicle, the sponsor's graphics are highly visible to the fans in the stands
and to TV viewers.
• Drivers and team uniforms, along with event and race circuit signage, which
carry prominent sponsor identification, give the sponsor additional visibility
with fans at the track and also appear in TV coverage and newspaper photos.
• Drivers support sponsors by wearing brand or corporate apparel at public

appearances away from the race event: to further the sponsorship association.
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• Trucks which transport the cars to the racing circuit also serve as traveling
billboards for the sponsor and its racing association.
• Products can be showcased at the track through hospitality functions and

display exhibits where additional signage and product sampling opportunities are
available.
• Print and electronic media outlets, which set the standard for news coverage,
have agreed to mention race sponsors of events and cars in their coverage if
those sponsorships are an integral part of the story.
• This is a much more liberal policy than is followed in other types of sports
coverage and in hard news and feature stories.
• Cross marketing programs between several corporate sponsors present

opportunities to sell and promote products in a unique and innovative fashion.
• In-store product displays using a racing theme coupled with a driver

autograph session and show car display assist in generating additional traffic into
retail stores.
Corporate track side hospitality provides for a unique way to entertain clients,
employees and VIPs." (quote used by permission of USAC FF2000)
What is Sponsorship?
To begin to understand what these great racing venues are accomplishing and
how they are doing it, we need to understand what motor sports sponsorship is.
How does it make possible the dramatic events at the racetrack and how has it
created the industry that is the worldwide motor sports phenomenon?
A Race Team is a business made up of car owners, mechanics, drivers and

equipment. The car or team owner has the important job of making the team
successful, getting it on the racetrack, winning and collecting the earnings. In
major league racing venues, team ownership is big business involving all the
management and marketing tools used by mainstream businesses. These teams
employ talented marketing and promotions managers and are highly
sophisticated in their business dealings. They understand that in order to be
successful on the track, the team must be successful in the boardrooms.
Racing, for the big time team, can be very profitable if it approaches business
relationships with professionalism and good will. Successful team managers
know they must ensure that each sponsor receives a tangible result in return for
showing them the money.
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Don't be mistaken about sponsorship. The sponsor is the most important element
in the team's and driver's successes. Sponsors are a key component of the race
team, every bit as important as are the guys who turn the wrenches and change
the tires. The sponsor provides the operating capital for the team and in return is
allowed to use the team's and the driver's prestige, charisma, fan interest and
media coverage to its advantage. A company involved in motor sports can get its
message across to millions of potential customers, generate good will in the
community, and most importantly, increase market share and profits. Pure and
simple, sponsorship of a race team is a marketing play, a way to make more
money by getting more people to buy products or services.
So what kind of company could benefit from motor sports sponsorship? How can
you decide if it is a good thing for your company? What are some of the
sponsorship options, and how can you get started? Sponsorship types in motor
sports are similar to those found in all sports. Sponsorship activities are listed in
the 2002 Sports Sponsor FactBook by Team Marketing Report:
Types of sports sponsorship activities -
Advertiser: included in a printed game program and/or a team or league media

guide Associate Car/Truck/Motorcycle Sponsor: secondary sponsor on a
vehicle involved in motorsports
Associate Sponsor: secondary sponsor of a sports property or event
Associate Team Sponsor: secondary sponsor of a motorsports or cycling team
Award Sponsor: sponsor of award given to athlete or team Broadcast
Sponsor/Advertiser: sponsor or advertiser on radio broadcast, cable telecast or
over-the-air broadcast
Building Naming Rights: sponsor receiving entitlement to a stadium or arena
Car/Truck/Motorcycle Sponsor: primary or main sponsor on a vehicle involved
in motorsports
Founding Sponsor: sponsor given this designation by the property or event,
usually for size of sponsorship in addition to timing of deal
In-Stadium/Track Signage: company with signage in a stadium, arena, motor
sports track or other venue
Official Licensee: company given this designation by the property or event
Official Marketing Partner: sponsor given this designation by the property or
event Official Sponsor: sponsor given " exclusive " or “ official " status (usually
in a defined product category) by the property or event
Official Supplier: sponsor whose agreement calls for the company to provide its
product or service to the property or event
Player/Driver Sponsor: sponsor with recognition tied to a particular player
Presenting Sponsor: sponsor given this designation by the property or event
Promotional Partner/Sponsor: sponsor with presence tied to in-game or retail-
based promotions
Series Sponsor: sponsor of a motor sports race series, or other series of events
Sponsor: general sponsor of a sports property or event
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Team Sponsor: sponsor of a motor sports or cycling team

Title Sponsor: sponsor receiving entitlement for an event, award, etc.1
As you can see, the options in sports sponsorship are many and most race team
sponsors will use a combination of these options when attempting to leverage
their team involvement.
Racing teams, in general, have three basic types of sponsors:
1) Primary sponsors have the most visible presence and provide major dollars.
They purchase primary logo placement on the racecar, team equipment,
uniforms, etc. They make it a practice of getting the most for their considerable
investments by developing additional promotional and hospitality programs. They
are the big boys.
2) Secondary level sponsors purchase secondary status on racecar and team

signage. These companies obtain positions on racecars in order to maintain or
grow their company image. They spend less than the big boys but they are big in
their own markets.
3) Associate level sponsors are often smaller companies or, again, large
companies where success in their industry requires at least a motor sports
presence. Such sponsors are in racing to enhance a portion of their marketing
program. They do not spend as much as the big boys, but still gain more than the
cost of their investments. Associate level sponsors can also be brands that
accompany a group of other brands on the car in a cooperative marketing
program. Other types of associate sponsors include those whose logos are
required on every car by the racing series or through cross-promotional
programs.
Certainly every sponsor of motor sports has a deep love for competition and
racing. It is this love that propels many CEOs to use motor sports sponsorships
to help their companies grow. Their presence at the racetrack gives them a
chance to see first hand what many other companies are doing to grow their
businesses. The people who have the most fun at the track are those who cheer
for a team or driver who is their spokesperson and friend.
Sponsorship can consist of more than just driver or team sponsorship. You can
access a variety or a combination of sponsorship opportunities in motor sports
such as:
1. Title Sponsorship.
2. Official Sponsor.
3. Marketing Rights.- Licensing Agreements
4. Official Suppliers Rights.
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2002 Sports Sponsor FactBook by Team Marketing Report – http://www.insmkt.com/ssf.htm
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5. Driver/Team/Series Sponsor
6. Endorsement Agreements
7. Single Day or Event Sponsorship.
8. Broadcast Sponsorship.
9. Racetrack venues for sponsors are opportunities to gain name and brand
recognition through a variety of means such as:
• Racetrack signage
• Contests
• Product giveaways
• Cross-promotional opportunities with the team on television, radio, the
Internet and at the track.
• Event Program advertising
• Hospitality opportunities.
10. Licensing and merchandising rights
Brand Identity
"There is a famous story that circulates in the Marketing Department at Great

Western Bank in Los Angeles. Several years ago, a man walked into their
Bellflower branch (Los Angeles), and asked to see the manager. The manager
came out and the customer informed him that he had his last paycheck in hand
and that he wanted to deposit it into a new Great Western checking account.
'That's fine, commented the manager, 'but you look rather young to retire and
never work again.'
'Well,' replied the customer, "I just won the lottery, and I want to bring all of my
money to Great Western Bank.'
The manager smiled and asked, 'You must have passed six other banks on your
way to this one. Why do you want to deposit your money at Great Western?'
'I've been a Lakers fan my entire fife, 'stated the new millionaire. 'Great Western
sponsors the team, puts their name on the building they play in, so that's where
I'm bringing my money!"'
This story taken from the book "Sports Marketing" by Phil Schaaf illustrates that
one of the major benefits of sports sponsorship is brand or product loyalty. Fans
do notice which companies sponsor their favorite team or racecar driver. SRi
says 45% of CART fans are more likely to buy a product from a sponsor while
other forms of sports sponsorships support generally 20% brand loyalty. We
believe this level of brand loyalty is typical of all race fans.
What do these companies have in common?
Nike
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Gatorade
Coca-Cola
Pepsi
Home Depot
Pennzoil
Yes, they are all sports sponsors. More importantly they are successful because
sports sponsorships are a major component of their marketing programs. They
know that there are good business reasons for their sponsorships. Simply put,
the millions of dollars they spend on sports sponsorships have come back to
them many times in product loyalty from fans.
Brand or logo exposure such as that found on billboards, banners, display

advertisements and television commercials work because they engage the
attention of the person exposed to them. What you experience in seeing a sign is
the called power of suggestion. Each time you look at a sign or message,
marketing people count an "impression." The next time you see that name on the
shelf of your local store, you will get another impression. When you see a
magazine add featuring the product, you get another. You may see a sign or
message so often that you neglect to register it consciously. You still register it
subconsciously. This gives the product a subliminal monopoly on your time and
thinking. You will probably buy lots of that product. The cost of creating the sign
or message is little compared to the return on the exposure.
The psychology of developing product impressions on the minds of consumers is

a proven concept. It works; otherwise you would not see companies like ESPN,
ABC, NBC, and many others selling advertising time for big dollars.
One of the most inexpensive ways to develop sign impressions is to sponsor a

race team. The racecar and driver's uniform, transporter, team uniforms, etc.,
offer the sponsor an opportunity to get attention, particularly if the driver is a
frequent winner with a great fan base. Every second that the race car is on
television or seen by the fan at the track, the sponsor receives an advertising
value equal to the money that would have otherwise bought that time in
traditional advertising media. If the driver is constantly in the top five, the sponsor
will reap many times the sponsorship investment.
Some companies count the amount of time each sponsor logo appears on
television. They calculate the dollar value of the exposure they receive in order to
estimate return on investment. They also look at press releases and news stories
that show up in newspapers, magazine articles in Circle Track, Open Wheel
Magazine and Speed Sport News to name a few. Don't forget Speedweek and
Raceday television shows. Today, we even have an entire television network
dedicated to SPEED. Just the general interest in the driver and racing can make
sponsorship and logo signage a significant boon to the sponsor company.
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Motor sports involvement is an effective way for a new, small or medium sized
company to grow. A carefully executed marketing program can result in a great
increase in brand identity and product loyalty. The investment need not be large
because a small increase in market share means much more to a smaller
company. It also provides the foundation for future growth and a more prominent
motor sports presence.
Oil companies like Pennzoil, Valvoline, and Texaco use motor sports merely to
maintain their respective market shares. If one of them were to stop their motor
sports involvement, brand identity would seriously suffer and they would lose
significant market share. Each spends considerable sums to connect with a team
that can be a winner. Watch any televised race and notice the number and
variety of companies involved in sponsorship of events or teams. Notice their TV
commercials to see how they enhance their image by connecting with winning
drivers or racing themes (Want to have a better performing car? Buy our product.
Want a faster computer, or faster Internet access, use our software, etc., etc.).
Look at the special promotions they conduct at the track, the displays they set
up, the posters and collectors' items they give away or sell. Notice the
questionnaires they ask you to fill out so they can learn about your age, income,
spending habits, etc.
Racing and the racetrack provide a tremendous entertainment value for families
and fans. Race events give fans a chance to associate their personal values
with such core values as teamwork, achievement and hard work. Sponsors will
benefit from a variety of opportunities to successfully gain a return on their
involvement. The range of marketing goals at the track can consist of increasing
brand loyalty, creating awareness and visibility, changing or reinforcing your
corporate image, rewarding your sales force, exciting employees, networking
with other teams and sponsor organizations, change consumer behavior, drive
traffic to retail locations or web sites, educate race fans, find new markets, etc.
Finally, let's look at a fun side of motor sports involvement. One important way to
grow your business is through hospitality at sporting events. Giving your best
customers access to the pits and hospitality area is an excellent way to build
lasting relationships.
"In the late 1980s, a Nabisco executive gave a newspaper interview where he
discussed his sponsorship with a prominent local baseball team. In the article, he
identified his luxury box access as a tremendous advantage in entertaining key
customers. 'The luxury suite,' he stated, 'allows me to entertain customers,
especially the decision Makers, at the highest level.'
Two weeks later, the baseball team won the pennant and was on the way to the
World Series when the Nabisco executive received a phone call from one of his
most important supermarket buyers. 'Look,' the customer said, 'if you want to sell
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me some product, I need to be entertained at the highest level.... How about

some series tickets?"'
This story, also taken from the book SPORTS MARKETING by Phil Schaaf,
points out the importance of good relationships with key customers and how
sports sponsorship and hospitality can increase the bottom line. If you are not
entertaining them at the ball game or the racetrack, someone else might be.
Certainly, product quality and service are the most important reasons a company
should do business with you, but hospitality at major sporting events is a proven
way to develop familiarity and trust with decision makers. They expect first class
treatment.
One company I am aware of monitors the growth in business from customers

entertained at Indianapolis during the month of May. Each year, business growth
from these customers is higher than from customers that were not invited.
In addition, the racetrack is a great way to meet other company executives in

shirtsleeves, relaxed, and enjoying the surroundings. Through these contacts,
business relationships develop that can mean significant numbers to your bottom
line. Many of these executives would prefer to deal with other executives who
support the sport they love.
First Steps
Generally, a large or medium sized company will go through a long process in

order to determine if motor sports can benefit sales and growth. The first phase
involves investigating whether sponsorship is a viable marketing medium. This
phase requires analyzing motor sports, the fans, the races, related advertising
mediums like television commercials, print advertising, etc., to determine if
opportunities exist in motor sports to gain new customers.
Once you decide on a series, you must choose who will receive your support.
There are several options depending on how much money you want to spend
and how much exposure you want. There is an old axiom in racing: "Speed costs
money. How fast do you want to go?" Certainly, the established teams with high
dollar sponsors will go fast and race toward the front. This keeps their sponsors
in the limelight. If you can become the primary sponsor for such a team, you will
do well. But it will cost and you should seek to gain maximum advantage from
primary involvement. And, if you can, insist that there be a tangible result, insist
that the racing organization actively participate in sales and marketing initiatives
on your behalf. Tie your sponsorship, not just to racing success, but also to sales
success. A good test for a potential team: Do they understand that they are in
business to help you be successful or do they think you are in business to help
them?
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If you want to test the waters and see if team sponsorship will work for you-and
you do not want to spend the big bucks-you may want to find an up-and-coming
driver. A driver in this category often needs sponsorship assistance and your
company may be just the shot in the arm he/she needs to become a winner. As
your market share grows, you can afford to take him or her to the next level of
the sport.
You can hire an outside marketing firm (Like New Century Marketing Concepts)
to find the right team and driver for you. Many outside agencies will even design
your motor sports marketing program for you, analyzing the market, matching the
demographics, and developing marketing strategies and programs to enhance
your involvement.
You may choose to contact the agent of the driver or team you like. He/she will
arrange for you to meet the driver and prepare the contracts and agreements
necessary to complete your sponsorship arrangements.
Before you begin your program you need to identify the basic areas where your
motor sports program can be effective. And the first question is "Should your
company be in motor sports? Can it improve brand recognition and customer
loyalty? Can it significantly impact your company's success? The excitement
found in the motor sports arena is known to give many companies a boost in
positive exposure and attach a positive image to the brand and/or logo.
At this point, it is a good idea to develop an inventory of promotional programs

and opportunities in order to implement your motor sports marketing strategies.
This inventory is basically what you’d like to find in the little black bag of any
team you’d like to sponsor. Below are some suggestions on what they can offer
you. These are just a starting point. If you have other ideas, don’t hesitate to let
them know. It might even be a good idea to prepare a statement of your
sponsorship proposal guidelines so that teams can know up front what you
expect.
• Preferred Supplier Status – this status tells the public that the team uses only
your products within your category because of loyalty and quality.
• Naming Rights – the sponsor purchases the right to change the name of the
team to one appropriate to your marketing and branding strategies.
• Official Product Status – similar to Preferred Supplier Status except that the
team has designated it their “official” supplier – this is most often used for
major events like the Super Bowl or Indy 500 or NASCAR, but if the team
garners enough attention, you can do it as well.
• Single Race Sponsor – some sponsors are more interested in a particular
market – the team can sell you primary sponsorship while they race in that
market alone.
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• Primary Sponsor – this is the sponsor that obtains primary positioning on the
car and other equipment visible to the public - the company provides the
biggest share of the race team’s budget.
• Secondary Sponsor – the company that purchases a secondary sponsorship
obtains logo placement on the car and other equipment visible to the public
much smaller than that of the primary sponsor
• Affiliate Sponsor – this company has purchased a smaller logo size or has
traded products or services in return for small logo placement on the car and
other equipment visible to the public.
• In-car Camera Sponsorship – When the television camera looks out through
the race car’s in-car camera, you want your designated logo visible in the
camera shot.
• Category exclusivity – this means that the sponsor gains exclusive status in a
particular industry or product category in return for sponsorship participation –
you are their only sponsor among your competitors.
• Licensing – this enables your company to be the sole licensee for any
products that relate to the race team, t-shirts, posters, die cast cars, etc.
• Endorsements – this is a specific category of opportunity where the team or
driver endorses a particular product to the public in return for dollars.
• Cross-promotional sponsorship – this is where you or another team sponsor
give the team product instead of dollars – the team takes the product and
negotiates with another sponsor for special shelf space positioning and
advertising in a retail location – the race team receives all or a percentage of
the profits from the retailer.
Once you have decided to enter motor sports, you need to plan your marketing
programs. This is where the sponsorship can pay. If the marketing program does
not aim to take full advantage of the sponsorship involvement, you are throwing
dollars away and will wonder later why the sponsorship did not work. In other
words, successful sponsorship involves the investment of additional marketing
dollars above and beyond the amount given to the team. The rule of thumb: in
order for the sponsorship to work, you need to invest additionally at least as
much in marketing as you spend on the sponsorship.
Let's say you are now a Motor Sports Sponsor. I am sure you will enjoy the
prestige that comes from owning a company that is helping a sports personality
compete in his/her sport. Your marketing programs should focus on the following
goals:
1. To appeal to your customers and potential customers-to increase business.
2. To improve your relationship with your employees and your local or national
community.
3. To enjoy watching and participating in the success of your sports personality.

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Here are some suggestions on how to maximize your investment.
You should develop marketing initiatives to increase market share. First review
your existing marketing programs. Analyze them to determine which programs
would benefit from being related to motor sports sponsorship. For instance,
magazine advertising gains zing by using pictures of the racecar or driver
endorsing your products. Drivers can do television commercials and make
personal appearances at conventions and trade shows that you may already
attend annually.
You can improve employee morale or sales by having your driver personality
come to a meeting and give a motivational speech. He can tell you stories from
his career or talk about safety, health, avoiding drunk driving, etc. In other words,
some marketing programs become stronger when you intelligently employ your
racing personality and his/her success.
Once you have reviewed and converted your existing marketing programs, you
can turn to new initiatives that will further expand your company's image and
market share. These initiatives should aim at your target audience and take fun
advantage of the appeal and influence of your driver/spokesperson.
Marketing programs are successful when they help your company gain new
business or maintain existing business. The following marketing initiatives have
been successful. They only point the direction you could go with your marketing
initiatives. By no means do they exhaust all the possibilities.
• Develop an "Instant Win" Radio Promotion featuring the driver and your
company.
• Develop a "Fantasy Team Member" competition where the winner has a

chance to be a race team member with uniform and pit access, etc.
• Create crowd giveaways between race heats, where fans answer trivia
questions about racing and win prizes.
• Develop additional signage opportunities at tracks, retail locations, etc., where

blank space is available.
• Create a sponsor Booster Club for additional hospitality and promotional

opportunities.
• Obtain space on outdoor billboards for your company featuring the driver and
sponsor.
• Create a cost-effective literacy campaign or other charity program using the

driver as spokesperson.
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• Develop cross-promotional campaigns with retail extensions and suppliers.
• Set up product sampling opportunities at racetracks and other events.
• Develop die-cast models of the racecar showing the sponsors on the car.
• Develop Rent-a-Tent parties at the track for product displays.
• Execute Scratch-Off Card Promotions.
• Pursue Event sponsorship for the sponsors or supplier/s.
New Century Marketing Concepts has devised a simple program that will enable
your company to analyze the potential benefits of motor sports marketing for your
company.
Critical Questions:
• Demographics - Do your demographics match the demographics of motor

sports?
• Competition - What are they doing (or not doing) in motor sports?
• Competition - How can you meet the efforts of your competitors in motor
sports and what will it cost?
• Strategies that have worked - What has been done successfully in the past in
your industry and how can you make that experience work for you?
Enhance and improve your existing marketing plan
• Review the plan
• Identify areas where motor sports involvement will improve the existing plan
o Develop programs and promotions
o Determine additional budget/s
• Implement new programs and promotions
Design
• What will you do?

21
• How will you do it?
• Who will be responsible?
• How will you measure results?
• Who will report when?
Planning
Program Management
• Implementation Schedule
Brand Management
• Integrating with the corporate marketing plan
Hospitality
• Target clients
• Hospitality plan
• What to pitch and how
Sponsorship that pays
• Team incentives
• Promotions
• Cooperative programs
• Cross-promotional programs
• Contests and awards
• Event sponsorship
Show Me the Money
There are many ways to pay for your sponsorship. You could budget the
payments over the season or pay one flat amount. By financing your sponsorship
with a business loan, the team gets the money to run, but you can spread the
payments over time with the proceeds from increased sales. In some cases, you
could provide product in trade. The recipient could either use the product or hand
it off to a retailer or wholesaler for some racing dollars. You can become involved
in a cooperative sponsorship program where your company and others could
pool marketing money and invest in a team. For instance, the Baja Bob program
offered by New Century Marketing Concepts and Low Carb Living, Inc. is
22
currently available to sports teams with marketing partners who can sell the Baja
Bob product line of healthful drink mixers. In return, the manufacturer of the Baja
Bob brand invests a percentage of each product purchase in the team (See
http://www.insmkt.com/bajabob.htm).
There are other opportunities, such as offering contingency awards or prize

money to a team. In this way the money goes to the team only when they win
specified results. Some companies may not think that motor sport is right for
them. Yet, they can still gain marketing points by paying for sponsorship and
placing the logo of a favorite charity on the car. You could also help a team or
driver obtain sponsorship from one of your customers or associate companies.
They may reward you by placing your logo on the car.
ROI
When market share increases as a result of a specific initiative, you want to

enhance it to gain even more market share. You also need a way to monitor the
effectiveness of each initiative in order to assess its impact on your business.
Without such an assessment, you have no way of knowing which elements of

your marketing program are working best and which are not working at all.
Summary
Motor sports sponsorship can be a rewarding way to become involved in your

community-and increase the standing of your company. Because of the
International appeal of racing, with some careful planning, you can make your
company into a major player in the business environment.
23
Chapter 2. The Sponsorship Sales Matrix

Introduction
This chapter is designed to provide race and sports teams with a new paradigm
for organizing and selling sponsorship for their teams. It is written with a
primary focus on the race team, but the principles apply to all forms of sports
teams and event planning. The intent and goal of the paradigm presented here
is two-fold: 1. It allows you to assist the sponsor in positioning the sponsorship
offering based upon his/her key drivers and marketing goals rather than the goal
of merely providing sponsorship dollars to your team, and 2.) It focuses the team
and/or event around its key purpose which is to proved a vehicle for the
promotion and or sales of brands, companies and products. The result should be
better funded teams and events.
Organizing
Developing an effective sponsorship proposal can be a daunting task, especially

for the small to medium sized sports team. The Sponsorship Sales Matrix
provides a framework that will allow you to develop your sponsorship inventory.
You can use it to organize your sponsorship offerings so they are clear to you
and eventually, clear to the sponsor. Each piece of the matrix is a separate
category that matches the specific goals of the sponsor so both the team and the
sponsor can see at a glance what it is that you offer and how best to focus upon
it. When you put together your sponsorship proposal for a given client, and after
having discussed your matrix with him, you will know how to skew your
presentation to his/her particular goals. This means a better sponsorship
proposal that is specific to the needs of the sponsor.
Selling
The Sponsorship Sales Matrix presented in this document can also be an

effective tool for both selling and up selling your sponsor. For instance, let’s
assume your sponsor signed on as an affiliate sponsor and you tailored your
proposal and agreement to compatibility with the price and range of services that
he/she selected. However, if your agreement tended towards a focus on one
particular area, let’s say, logo impressions, you may later want to direct him
toward additional involvement with your web site where you can increase logo
impressions significantly by linking your site to his/web and/or developing special
web based promotions that will draw more traffic to both web sites. By up selling,
later, you can develop an addendum to your sponsorship agreement and gain
additional sponsorship dollars. In fact, though the sponsor might be an affiliate
sponsor in one area of your sponsorship matrix, that does not mean he cannot
pay “primary” sponsorship dollars for an effective program in another area of your
matrix. The same could occur, for instance, with a sponsor who is heavily into
24
hospitality and asks you how to increase logo presence at hospitality events that
you put on for him/her. The Sponsorship Sales Matrix is a handy tool for starting,
developing and improving your sponsorship involvement among your clients.
25
Sponsorship Sales Matrix
The Sponsorship Sales Matrix Sample below represents the building blocks that
provide linkage in the sponsor's mind so you can offer and deliver
comprehensive promotional solutions in an effective and timely manner.
Promotions Logo Impressions
•Retail locations or corporate •Brand/Logo Identity Strategy

•Race track •Trailer/Racecars
•Tent •Uniforms
•Website •Shop
•Website
•In-car Cam
•Merchandising/Freebies/Hero cards
Hospitality Media
•Tickets •New Conference

•Gourmet cooking/meals •Press Releases
•Tent •Press package
•Suite •Newsletters
•Track rides •Interviews
•Tour/travel packages •Articles
Internet Cross-promotions
•Logo link to Web site •Liaison with other sponsors

•Frequent mention of Web site •Liaison with race series
•Sponsor link page •Cross-promotional product sales
•Sponsor profile on Web site •B2B lead development and liaison
•Product sales
•Lead development
•Promotions
26
Your Marketing Objectives
Your team’s sponsors, clients and suppliers represent a broad range of

companies that seek to use motor sports involvement to grow their businesses.
A correct strategy for sponsorship acquisition must assume that the buyer
(sponsor) positions the sponsorship. By focusing of your sales efforts on the
needs of your sponsors and clients, you can successfully match your services to
their needs. Your ability to succeed in this effort, however, must depend on the
proper exploitation of your strengths, both implicit and explicit. A carefully
defined effort to assist the sponsor in direct sales, advertising and other
promotional media, including your every day actions on their behalf, will result in
the correct blend of product and perception.
You must become a sponsorship "solutions provider" who has the ability to
accurately identify the customer's needs and offer solutions. Within the
Sponsorship Sales Matrix, you can define a mix of promotional drivers that you
can use as sales tools to provide specific information that will, throughout the
sales process, bring the prospect through the 6X6 product matrix building blocks
(See illustration).
Sponsorship Sales Matrix
Customer Customer
Drivers Promotions Logo Delivery
Impressions
Hospitality Media Operations
Internet Cross-Promotion
Spectrum of Activities
The selling process requires a focus on the customer’s business and marketing
objectives, the key drivers that move their business forward. In order to identify
the sponsorship services most capable of satisfying their immediate needs.
Through effective listening and questioning with a prospect, recognition of implicit
rather than explicit needs, and effective communication of those needs to the
customer, you will be able to use "linked-selling" to expand your service offerings
to a prospect, and where possible, gain additional sponsorship dollars. By
starting with any sponsor service and linking related needs to that service, you
can move the customer from one suite of services to another. In this way, you
27
are able to offer both individual service elements and a complete "sponsorship-
in-a-box" to the customer.
By carefully planning your offerings in advance, in terms of human resources

needed, and other related costs, you can develop a clear understanding of how
much it will cost you to provide these service elements and how to cost your
sponsorship to the client – you can plan your profits. The ultimate goal for each
sponsor is to provide him/her with the choices that meet the company’s
marketing drivers, while at the same time having an opportunity to consider the
benefits of other drivers that may, later, meet additional marketing goals.
Through this matrix-style process, the sponsorship sale does not end with the
customer signing an agreement. The delivery of quality program management is
the key to your future success. You must provide all team employees with the
necessary financial, administrative, technical, training and management support
to ensure timely delivery of quality services to the customer. Your in-house team
of marketing experts should be ready to respond quickly to customer needs as
they arise. You should develop an effective quality assurance program to
monitor and assist your people in providing the highest quality of service delivery
at the lowest cost. In addition, your change order management system, will be
available at all times, as needs arise, to move a customer from their selected
sponsorship services to those not included in the original agreement.
As you can see, the matrix has organized your sponsorship offerings into six
building blocks. By understanding how each of these blocks is implemented, you
can organize your offerings so that you will be able to create an excellent
structure of deliverables. Let’s drill down a bit:
In the area of Promotions, you will need the following:
• Programs
• People
• Equipment
Programs consist of a number of specific offerings that you must have the people
and organization to implement. You have trained marketing people, a
relationship with a modeling agency and a set of “promotions” that you can
deliver at the customer’s site/s or at the track to promote the company and its
products. Equipment may consist of tents, tables, show car, etc., all of which are
available to help you deliver the programs that the sponsor needs.
In the area of Logo Impressions, you will need the following
• Logo or Branding Strategy (worked out with the sponsor in advance)

• Painter or logo Designer
• Relationship with TV Networks for In-car camera opportunities
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• Trackside and Roadside Logo Events

• Logo tracking reports post-event
By sitting down and developing a strategy with your sponsor, you can develop an
effective plan for ensuring maximum logo exposure for his/her products and or
brands. Effective delivery of logo stickers and/or banners by your designer will
ensure new logos get placed on time and at the right events. TV networks can
help you develop an effective In-car camera agreement and tracking companies
can calculate how effective you were in getting logo impressions at the track and
on television. You can report your successes to the sponsor after the event.
For Hospitality Events you, you will need the following
• Hospitality Event Planning with the Sponsor – for employees or targeted

customer base – best customers to improve business, etc.
• Hospitality Tent/s or Suites
• Gourmet Cook
• Servers and Greeters
• Cooking Equipment and Accessories
• Hospitality and Trackside or Pit tour Plans and Tour Guides
• Relationship with Ticket Agency and/or Travel Agency
• Limo and/or Transportation Services
Hospitality can be as simple as pit passes for 2 people and/or as extensive as

major events with lunch, freebies and driver meetings on race weekend. It
depends on how much the sponsor is investing and you need to be able to
provide the services that he wants. By offering a range or services and prices in
this area, you give the sponsor an opportunity to fit everything into his
sponsorship budget and, most importantly, you need to be able to price
according to what it will cost so there is some markup for you to spend on the
team.
For Media offerings, you need the following
• Media personality contact information – mailing list

• Good media relationships
• Drivers trained on how to handle media for the sponsor
• Writer for newsletters, press packages, articles, new releases and other forms
of communication
• Press representative to look for ways to get your team, your drivers and
sponsors into the limelight – set up interviews, make sure everyone is where
they are supposed to be and ensure the proper “mentions” and “thanks” to
sponsors are made
Once again, your price for these services is dependent upon the sponsor’s
budget, so don’t offer more than you can deliver for the amount the sponsor
29
invests. Can one person wear several hats or do you need to be the marketing
person to cut costs? Keep in mind a good marketing person here, could also be
looking for other sponsors
For the Internet, you need the following
• A great, good looking web site

• A web designer and data base manager who can provide the bells and
whistles that make the site exciting and the promotions work
• A logo strategy worked out with the client
• Internet promotions worked out with the client
• Excellent Search Engine Optimization Strategy (SEO) to ensure your site gets
visited
• A marketing program to promote the web site on the track, on your literature
and everywhere else possible
Some sponsors may not want Internet presence for the dollars they spend. They
may elect to spend dollars on hospitality or logo impression strategies. But later,
in conversation, you may be able to get him to sit down with you, once he/she
learns of how many hits and potential logo impressions your web strategy is
getting for other sponsors – up sell him on the ROI here and you get more
money.
For Cross-promotional offerings, you will need the following
• Creativity
• Flexibility
• Marketing Implementation Manager (You?)
I’ve long advocated that every race or sports team should develop a Value
Added Program for their sponsors where they create a sort of “association”
among their sponsors (and even sponsors of other teams) to develop cross-
promotions, B2B transactions and long-term relationships with discount prices
among fellow sponsors. You may be able to craft some programs among
sponsors where your team retains a portion of the profits to put back into the
team – in return for your promotional and/or logo impression assistance. An
effective effort here, means the sponsor pays virtually nothing for the
sponsorship compared to ROI (and that is the goal after all), and learns to love
you as well. In fact, the cost to you is virtually nil but the return in terms of long-
term relationships could be incredible.
Now you can see the benefits of the Sponsorship Sales Matrix:
• Your sponsorship offerings are well organized and defined

• They are easy for the sponsor to understand
• You know you can afford them
30
• You know how to price them so…

• You know how much you have for racing
• You have an effective cross-selling and up selling framework that means…
• You make more money from sponsors
Now that you know the building blocks of your sponsorship offerings, you will
need to scale the sponsorship packages by cost and volume. In other words, a
sponsor that pays for a primary sponsorship (generally 80 – 100% or your
needed budget) gets more in terms of quantity such as large logo impressions,
more guests for hospitality, a stronger mention with the media, etc. A sponsor
who provides less money is correspondingly going to receive less of these things
in the package you put together for him/her.
Basic Tools
Putting this all together is a matter of sitting down and planning it out. Your basic
tools are the following:
• Delivery/Implementation Plans for all Service Offerings

• Modular Sponsorship Proposal
• Modular Sponsorship Presentation
• Modular Sponsorship Agreement
• Change Order Management System
Delivery/Implementation Plans for all Service Offerings
Organize your delivery and implementation plans with your key people and those
who will be responsible for making sure everything happens when it should.
Don’t for get your accountant who can help you plan the costs for all these great
programs.
In your planning meetings, discuss all the deliverables. Work backwards from
the result you want to achieve toward the “what do we need” and “how do we do
it.” You will find that these meetings will be very stimulating as ideas are thrown
around and people really understand the value and importance of these plans.
Get everything down on paper, especially, who will do what and when. Later,
you will need to sit down with your sponsor and put numbers into this, dates, etc.,
so that you know what needs to be done, when and who will do it. An excellent
planning tool here is Microsoft Project that enables you to plan projects like this
in just that manner, who, when, when, where.
31
Microsoft Project Worksheet – Sample
Modular Sponsorship Proposal
In my booklet on “How to Write a Sponsorship Proposal,” I recommended

modular sponsorship proposals. A modular proposal means that you organize
each section of the proposal into separate documents that you later piece
together to accomplish a specific goal. Once you know you prospects “Proposal
Guidelines,” you can go to each module and tailor it to the specific guidelines.
Keep in mind, violating these guidelines means no sponsor.
Modular Sponsorship Presentation
The same goes for your presentation. Make it flexible and well organized
enough so that you edit only the pages you need to edit rather than the whole
document.
Modular Sponsorship Agreement
The same goes for your agreement – same point, same results. However, in
your sponsorship agreement, organize it around the Sponsorship Sales Matrix for
ease of understanding.
Change Order Management System
This is where you get agreement and signature for any up selling you do. Get
your lawyer involved because you want this change order agreement to have the
same power and follow through as you want your original sponsorship
agreement. It is, in effect, an addendum and your lawyer should write it that way
32
so all you need is a signature from your sponsor and a check and you are in
business.
Strategy
The sponsorship sales matrix enables you to develop a strategy for each sponsor
prospect. By getting a clear understanding of the basic drivers of a company’s
marketing plan, you can structure your sponsorship offerings and presentations
to address what’s most important to the prospect. This gives you leverage
compared to other companies that come in the door.
This approach also enables you to focus your sponsorship programs, not on the
needs of the team for money, but on the needs of the sponsor for business
growth. You become a valuable asset to the sponsor and thereby are much
better able to get the money you need to race. In fact, I advocate a different
approach to selling sponsorship. Before you sit down and give him/her a
presentation on your sponsorship offerings, get him to sit down and have a
sponsorship “brainstorming” or planning meeting with you. Tell him/her you want
to discuss his marketing goals and plans and see how the two of you (or 3 or 4 of
you) can put together an effective strategy so you can then come up with a great
presentation. In fact, after this planning meeting, he/she may just marvel at your
abilities to deliver for your sponsors and say, let’s forget the presentation, why
don’t we move to the letter of intent or sponsorship agreement. If you are willing
to sit down and do this sort of planning for a sponsor, you certainly can deliver
and deserve the sponsorship. Below you will find a recommended meeting
agenda overview to give you an idea of the things you want to discuss with the
sponsor. Before you start, ask them what are their key marketing drivers and
what they want to get out of an effective sports sponsorship program. This will
enable you to focus on which boxes in your Sponsorship Sales Matrix to spend
the most time in your meeting.
Meeting Agenda Overview
Promotion
•Planning and Integration
•Retail locations or corporate
•Show car
•Autograph sessions
•Corporate site visits
•Speaking engagements
•Race track
•Product giveaways
•Interviews and surveys
•Tent availability
33
•Driver/Team appearances
•Product sales
•B2B Introductions
•Website
•See Website Building Blocks
Logo Impressions
•Brand/Logo Identity Strategy
•Planning
•Trailer/Racecars
•Uniforms
•Shop
•Website
•In-car Cam
•Brand Identity Opportunities
•Design and Artwork
•Documentation
•Measurement
Hospitality
•Tickets
•Gourmet cooking/meals
•Tent parties
•Suite parties (where available)
•Track rides (where available
•Tour/travel packages
Media
•New Conference
•Press Releases
•Press package
•Newsletters
•Interviews
•Articles
34
Internet
•Logo link to Web site
•Frequent mention of Web site
•Sponsor link page
•Sponsor profile on Web site
•Product sales
•Lead development
•Promotions
Cross Promotion
•Target Companies
•Cross-Promotional Brainstorming
•Who, What, When
•Meeting and Contact Assignments – Who
•Promotional Ideas – What
•Implementation Plan - When
Product/Offering Planning Form
You can use the form below to work with your sponsor in planning for each
element that drives their company’s marketing efforts. This is a sample to give
you an idea of how to use this form. Sit down with this form with a customer to
develop a plan for each sponsorship offering. You may even want to do this
before the sponsorship presentation and proposal document in order to develop
sponsorship costs and ROI for the team.
Example of Sponsorship Offering Section of the Sponsorship Proposal
Sponsorship Packages
Primary Sponsor
XYZ Racing offer one primary sponsor the following benefits:
• Logo placement on boat, truck and engine for television camera and other
exposure
• Frequent mention of sponsor involvement with the team at all events and
interviews
• 8 free event passes per event to entertain employees and clients –
introductions to team and anglers included
35
• 4 annual fishing trips for up to 4 people for client, employees, customers,

etc.
• Entire boat wrap negotiable. The boat wrap is a NASCAR style covering
on the boat that is visible while it moves on the highway. When traveling
from venue to venue, for every 2 miles traveled 30,000 people will see it.
This is a traveling billboard that will also be seen on ESPN2 coverage
• Guest appearances of XYZ Racing team (number of appearances
negotiable) at seminars, customer locations, trade shows and other
promotional activities negotiable for expenses and schedule availability
• Autograph cards, posters, T-shirts negotiable – includes autographed
picture of your boat and angler thanking you for participation – additional
promotional pictures available
• Logo placement on team uniforms or uniforms designed in corporate
colors
Cost $50,000.00
Secondary Sponsor*
We offer secondary sponsors the following benefits:
• Limited number of guest appearances of team (number of appearances

negotiable)
• 4 free weekend passes per event to entertain employees and clients –
• Secondary level logo placement on boat and uniforms
• Autograph cards, posters, T-shirts negotiable
Cost $10,000.00
Affiliate Sponsor*
We offer affiliate sponsors the following benefits:
• 2 free weekend passes per event to entertain employees and clients –

• Affiliate level logo placement on boat and uniforms
• Autograph cards, posters, T-shirts negotiable
Cost $5,000
* Sponsorship packages can be arranged to include needed products, hotel

accommodations, restaurant trades and other items of value.
How to develop your list of offerings and prices:
Step 1.
36
Below list the sponsorship services you will be providing as part of your general
sponsorship services. For examples see Page 1. Across from each list the equipment you
will need to supply this service and the number of people who will provide it.
Promotions Equipment Number of People

Retail locations or corporate
locations visits…..
Contest
Family and customer rides
with in context of events
Toy and clothing give
aways
Tent- VIP and Product sales
Product Sampling
Product Sales
Website Promotions
Other Promotions Below
Logo Impressions # of Races or Events Number of Impressions per

season
Brand/Logo Identity Strategy
Sponsor Banners and
Signage
Trailer/Vehicles
Uniforms
Shop
Website
In-car Cam
Merchandising/Freebies/Hero
cards
Wings on Race Cars
Driver/Team using product
Other Logo Impressions
Below
37
Hospitality Equipment Number of People Needed

Tickets to Retailers
Gourmet
cooking/meals/Drinks
Tent
Suite
Track rides
Tour/travel packages
Visits from Aviation
legends
Sponsor Banners and
Signage
Other Logo Impressions
Below
Media Equipment Number of People

News Conference - weekly
locally and regionally
Press Release – Several
National
Publications
Press package
Newsletters
Interviews – Media Day
Ride alongs at every event
Articles – Several different
National Publication
Themes
Other Media Below
38
39
Internet Who Will Provide Number of Hits/Impressions

Logo link to Web site
Frequent mention of
Sponsor Web site
Sponsor link page
Sponsor profile on Web site
Product sales
Lead development
Promotions
Other Internet Below
Cross Promotions Who will Coordinate Number of People

Liaison with other sponsors
Liaison with National
Organizations – Race
Series, etc.
Cross-promotional product
sales
B2B lead development and
liaison
Product Sales
Retailer Hospitality
Product Taste Test
Other Cross Promotions
Below
40
Tally Sheet
Based on the above, list the equipment you will need to provide all services and the cost
of that equipment
Equipment Cost to Purchase Equipment
Total Cost of Equipment to

Provide Sponsorship
Services
People/Positions Hourly Rate Hours to Work for Total Pay

all Events
41
Total Cost of People to

Provide Sponsorship
Services
42
Total Cost for all Above
Item Cost
Total Cost for
Equipment
Total Cost for People
Total Team Budget to
Race
Total Cost to Run

Season
Services – Primary Sponsor – Based on Above
Item - Service Cost
___Percent of Race
Budget
Total Cost to Primary
Sponsor
43
Services – Secondary Sponsor – Based on Above
Item - Service Cost
___Percent of Race
Budget
Total Cost to
Secondary Sponsor
Services – Associate Sponsor – Based on Above
Item - Service Cost

44
___Percent of Race
Budget
Total Cost to Associate
Sponsor
Notes and Ideas
45
46
Internet - Sample
PRODUCT Internet
SUITE OF SERVICES Logo link to Web site

Frequent mention of Web site
Sponsor link page
Product sales
Lead development
Promotions
MARKETS Regional, Midwest, Indiana
FEATURES Logo link to Web site
Sponsor link page
Product sales
Lead development
Promotions
BENEFITS Logo link to Web site

Logo impressions to 65,000 visitors weekly
Communicate value of sponsor to team and value of
sponsor products to 65,000 visitors weekly
Sponsor link page
Drive traffic to sponsor web site
Create more logo impressions
Communicate positive message about sponsor, sponsor
value in market and good deeds done by sponsor
Product sales
Drive interest in the products from fans of race team
Lead development
Provide qualified leads to sponsor from loyal fans – convert
fan loyalty to sponsor loyalty
Promotions
Special pricing to team fans increases sponsor cash flow
and product sales
Free samples ordered from web site increase product
familiarity, logo impressions and product experience to
increase sales
CHANNELS Internet team web site
COMMUNICATIONS Internet Team Web Site
PRICING Minimal – web site updates and maintenance fees - included
in sponsorship cost
47
Product/Offering Planning Form
PRODUCT
SUITE OF SERVICES
MARKETS
FEATURES
BENEFITS
CHANNELS
COMMUNICATIONS
PRICING
48
Chapter 3. How to Write a Sponsorship Proposal

Have you learned from experience that poorly produced sponsorship proposals
lead to an under-funded team? If you have, this chapter is for you. My goal in
this is to provide you with some basic guidelines on what to communicate in
order to produce a winning sponsorship proposal. These guidelines will focus on
what you should be presenting to your potential sponsor in making the best
business case for involvement with your team. I am assuming that you already
know how to write effective business documents and do not need tips on how to
write clear sentences and paragraphs.2 If you have difficulty with the written
word, you should seek out a competent writer to help you.
Before you get started, you must understand that you are competing against the
“Big Boys.” They use professional printing companies, fancy folders, graphic
designers, professional marketing writers, cloth letterhead paper and advanced
computers and printers. They put their best foot forward to potential sponsors
and know how to impress. They even use the power of trackside hospitality
suites and Lear Jets. The good news is that you don’t need to spend big bucks
developing your sponsorship package and you can develop a proposal that looks
professional. By putting some thought and effort into your proposal package you
can compete effectively with the big boys. It doesn’t have to cost more than the
sponsorship dollars you need and you don’t need to hire a consultant who costs
more than the team.
I’ve seen a number of sponsorship proposals that say, in effect, “I will do my

absolute best to promote my sponsors,” as if an intention of that type is going to
bring attention to the offer. Such a statement is a give away that the driver or
team doesn’t have a clue about how to promote sponsors. “Thanks but no
thanks.” The people looking at your proposal are trained professional marketing
people who know, for the most part, how to get the most from their marketing
programs. They look for professionalism and marketing savvy in the teams they
bring on, not just a statement of intentions. This means that if you are going to
be successful, your proposal must look like and speak the language of the “Big
Boys.”
This document is written with the small-budget race team in mind. However, the
ideas presented here can benefit any sports team including the big-budget
teams. Most of these guidelines were developed out of my own efforts to write
effective sponsorship proposals for clients. As a professional business writer, I
have produced a number of proposals as well as business plans, corporate
brochures, marketing plans, web content and other types of documents. In this
document, I have tried to make it possible for you to create a professional
proposal document without having to hire me to do it. However, I am willing to
2
If you can’t, and don’t be embarrassed if you can’t, maybe I can help at http://www.insmkt.com/fund.htm.
49
evaluate your document and make editorial and promotional recommendations.

To learn more go to http://www.insmkt.com/editprop.htm.
Before You Start
Before you start writing your sponsorship proposal, you must set a goal for your
document. First, decide how much you will need in order to operate an effective
and winning team. The old Penske axiom applies here: Speed costs money –
how fast do you want to go? This is your money goal and you should make sure
it is an adequate amount. Look over your projected annual budget and ask
yourself what you need to be truly competitive. Secondly, you should include in
your money goal enough for the time and effort it will take to deliver on the
benefits you promise your sponsors. Remember, sponsors are not going to go
away once they write the check. They are going to come around to bask in the
glory…they expect to be treated well and they want lunch and premium tickets –
free. So include these costs as well…and while you are at it, consider money for
the people who will do the work of schmoozing the sponsors. They must be paid.
Another key issue before you start is to identify each sponsor’s expectations for a
sponsorship proposal. Active major sponsors will often produce “sponsorship
guidelines” that communicate to teams what they expect to see in the proposal.
You should ask specifically if they have such guidelines before you even begin
putting something together for them. If they don’t have guidelines, here are
some important questions to ask your potential sponsor:
• Is motor sports a category of sponsorship you favor? If the answer is “No,”

move on.
• Do you require exclusivity in your industry category from a sponsor? This
means that they don’t want another beer manufacturer on the car if they are a
beer manufacturer. You will waste your time presenting a proposal if you
already have a sponsor competing with them in their industry.
• What is your primary goal in sponsorship and what do you expect your
sponsored teams to include in their proposal?
• Do you require any audience statistical reporting, research or other sales
activities at the track?
• Do you look for a certain percentage of the sponsorship investment to be
spent by the team on enhancing the sponsorship?
• How much do you usually spend, in addition to the sponsorship investment, in
leveraging the sponsorship and what would you like the team to do to support
these expenditures in terms of promotional support? This can be measured
in dollars or in a percentage of the cost of the sponsorship. Typically, a
sponsor won’t get their money’s worth unless they spend an equal amount to
the amount spent on the sponsorship in leveraging the sponsorship with
additional promotion programs.
• Can you give me some information about your core branding goals? What
tag lines, images, icons, values and messages do you seek to promote
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through your sponsorships and how can the team aid you in communicating
them?
• What kind of cross-promotional strategies have you successfully pursued in
the past?
Needless to say, the value of having these questions answered before the
preparation of the sponsorship proposal is crucial to your ability succeed in your
proposal document. A key point to remember, the success of your proposal will
depend on how thorough you are in gathering information about your potential
sponsor. Most of the time, you won’t be able to get this information without their
assistance.
Develop Your Sponsorship Inventory
Most companies work hard to develop an inventory of promotional programs and

opportunities in order to implement their marketing strategies. You should do the
same. This inventory is basically your little black bag of things that you can do
for a sponsor and you should have them on the tip of your tongue at all times.
You’ve already done a lot of work in this area with your Sponsorship Sales
Matrix. Now is the time to put that work to use for your proposal. Below are
some suggestions on what you can offer your sponsors. These are just a
starting point. If you have other ideas, don’t hesitate to offer them to your
sponsors.
• Preferred Supplier Status – this status tells the public that you use only this
sponsor’s products because of your loyalty and their quality.
• Naming Rights – the sponsor purchases the right to change the name of your
team so that it is no longer the name you have given it but the sponsor’s
team.
• Official Product Status – similar to Preferred Supplier Status except that you
have designated it your “official” supplier – this is most often used for major
events like the Super Bowl or Indy 500 or NASCAR, but if your team garners
enough attention, you can do it as well.
• Single Race Sponsor – some sponsors are more interested in a particular
market – you can sell them primary sponsorship while you race in that market
alone – needless to say, you’ll need to work it out with your other primary
sponsor.
• Primary Sponsor – this is the sponsor that obtains primary positioning on the
car and other equipment visible to the public - the company provides the
biggest share of your budget.
• Secondary Sponsor – the company that purchases a secondary sponsorship
obtains logo placement on the car and other equipment visible to the public
much smaller than that of the primary sponsor
• Affiliate Sponsor – this company has purchased a smaller logo size or has
traded products or services in return for small logo placement on the car and
other equipment visible to the public.
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• In-car Camera Sponsorship – When the television camera looks out through
your in-car camera, you want this company’s logo visible in the camera shot.
• Category exclusivity – this means that the sponsor gains exclusive status in a
particular industry or product category – they are your only sponsor among
their competitors.
• Licensing – this enables the sponsor to be the sole licensee for any products
that relate to your team, t-shirts, posters, die cast cars, etc.
• Endorsements – this is a specific category of opportunity where your team or
driver endorses a particular product to the public in return for dollars.
• Cross-promotional sponsorship – this is where one of your sponsors gives
you product instead of dollars – you take the product and negotiate with
another sponsor for special shelf space positioning and advertising in a retail
location – then you receive a percentage of the profits from the retailer.
Modular Proposal Sections
The modular document section approach has been used successfully by many
companies. “Document reuse” means better sponsorship messages that have
been tested and proven to work over time. By creating each section of your
proposal as a separate module, using the heading as a title for the module, you
can edit those that need to be tailored to a particular prospect’s proposal
guidelines and their specific needs while the rest of the document stays generic
and consistent. I recommend the modular approach as a cost-effective strategy.
By keeping a menu of sponsorship proposal modules you save time and money
and ensure your message gets across consistently.
However, there are problems with document reuse. You must ensure that you
read the entire document thoroughly and have edited the modules correctly.
Ensure that you haven’t left in the document the names of other companies and
individual’s names. And you should make sure you check the document for
consistency of message to eliminate any contradictions you may have created
while editing one module and keeping the others the same. Always, always,
always check and recheck. Every writer needs an editor.
How Does Your Proposal Look?
Let’s face it, the “big boys” know how to create attractive proposals. You must
ensure that yours is at least as well written and speaks the right marketing
language. A neat looking document that presents its subject in a clear and
concise manner will get attention regardless of whether it comes in a pretty
package. If you struggle with the written word, don’t hesitate to ask those around
you for editorial and grammatical advice. You don’t want to spoil your chances
because of a misspelled word or poorly written prose. Keep in mind, not every
race team has a staff of highly paid marketing managers. Sponsors understand
that and you’ll get an “A” for effort if your document is to the point and neatly
organized.
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Yet with today’s computer technologies, color printers and word processing
software, it is possible to format your document so it is appealing. If you are not
good with computers, ask someone around you to help in formatting and
organizing it for you. Just remember, the important issue is whether it is clearly
written, well organized and communicates well the benefits of your sponsorship
packages. Pay attention to the details of what you are communicating and you
will take a big step toward getting on the track.
An excellent resource is your local Kinko’s. This company has state-of-the-art

computers and printers. They can even consult with you on how to make your
document attractive, how to properly bind it, cover it and ship it. Take advantage
of this low-cost resource for upgrading the quality of your documents.
The Parts of a Sponsorship Proposal
The elements of a great sponsorship proposal are:
Executive Summary
Although the Executive Summary appears first, you should write it last. The
Executive Summary is the Introduction to the proposal and should spell out, in
briefest terms, the offer that will be presented in more detail in the rest of the
document. It is an overview of what is to come so that the reader can view it in
order to prepare him/herself for understanding in general terms what you will
present in specifics later. It should provide a succinct description of the
promotional (sponsorship) opportunity that you are presenting, an explanation of
the advantages of developing a partnership with your team and a brief statement
of your commitment to ensuring their investment is well-spent.
You should think of the Executive Summary as an effort to sell the sponsor
without his/her having to read the rest of the document. You should express, in
briefest term, the best business case, the most important reasons why the
potential sponsor should continue reading.
The Executive Summary should contain:

• A brief introduction to the sponsorship offer
• A brief introduction to the team and driver
• A short statement of sponsorship benefits
• A statement of your marketing experience and commitment
• The best business case for accepting your sponsorship offer
Team Introduction
Put your best foot forward. Include accomplishments, personalities, and lots of
pictures of those personalities, team office, anything that will reflect the team’s
dynamic character. This is a critical component and you must ensure that
everything here is positive and energetic. Include your team’s mission statement
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and your basic philosophy behind the operation and management of the team.
What special capabilities does the team have that give it a competitive edge and
how do you approach your relationship with your sponsors? How long has the
team been in business and who are the owners and managers? What series do
you run in, how many cars do you run and do you have any specialized
capabilities that give a competitive edge?
If the bulk of your operating budget is set, it might be helpful for the sponsor to be
informed about the situation relative to finance. In other words, if 70% of your
budget has been raised, let the sponsor know that his/her support could make a
world of difference. This issue might convince them that the program is strong
and viable. You might want to indicate which other sponsors are involved with
your program so they can understand how they might fit in with your program.
On the other hand, if you cannot run without this sponsor, let them know how
much their participation means to the future plans of the team. Be careful not to
shed a too negative light on this as it might cause them to balk, but if handled
properly, they will understand your situation and look more toward the benefits
they might gain by helping you out.
Team Introduction should include:

• Team accomplishments
• Major team personalities
• Short history of the team
• Mission statement
• Special competitive advantages
• Team situation (financial)
• Some major sponsors
Team Record
Create tables and graphs that highlight your past success. This is your chance
to prove to the sponsor that you can provide logo impressions that get noticed. If
you’ve had a stellar record, then talk about how many people have seen you win
or battle for the lead. Give statistics and show value. If you are an up-and-
comer without a distinguished record, talk about your goals and aspirations and
your need of a viable sponsor that can bring you to the front. You must spin this
section in as many ways as possible to present yourself as a winner, a striver or
a hard driver that gets attention.
Team Record should include:

• Overview of major accomplishments
• Goals and aspirations of the team
Driver Introduction
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This is where the sponsor meets the key personalities of your team. Show the
driver/s at their best with nice pictures, smiling, signing autographs, driving with
two wheels in the air (but still under control). Talk about his/her family life,
spouse, children, father, mother, etc. Give him/her a human touch and don’t just
mention success on the track but also in the boardroom (if any) or performing
charitable activities, etc. If he isn’t a star, make him one.
Be upfront with the sponsor and let them know whether the driver is signed with
the team. How long will his/her contract be in effect and which races does each
driver plan to run?
Driver Introduction should include:

• Driver/s bio
• Driver/s accomplishments
• Special issues and characteristics of the driver/s from a marketing/personality
perspective
Marketing Opportunities
Sponsors expect you to have answers for their business and marketing needs.
Sponsors are not just along for the ride. They want to sell, impress and excite
the fans. After all, this is show business and you must put on a good show so
you are noticed – that means the sponsor is noticed. In this section, let the
sponsor know, in general, what you are going to do to make them noticed, to get
logo or product impressions. If you don’t know what an impression is, that is the
number of times the car goes around the track multiplied by the number of
people who see it (they don’t have to notice it to get an impression, by the way).
It is also the number of people who ask for an autograph at the track and see the
logo on the uniform, the number of people who see the show car and driver in
front of a supermarket, the number of people who see the logo or product while
driving by the shop. Count it all and be creative. Make sure your program gives
the highest number of impressions that you will generate.
However, your programs should include more than just logo impressions. There
are a number of things you can do to showcase the driver and sponsors. The
driver must be available and ready to meet, speak, show, talk, present, promote
and educate. In this section, you should detail just what the driver will do for the
sponsor, how many times he will do it. Ever wonder why the most successful
drivers have the most in sponsorship dollars? Certainly, they were winners from
the beginning, but more importantly they do things for the sponsors. Let’s face it,
the driver who gets out front on the track and off is your best bet for getting
sponsorship dollars. Communicate that accessibility and willingness. If he has a
marketing degree, that’s even better.
Don’t forget other opportunities. Look at what the most successful teams do and
take a lesson. There are opportunities for hospitality and entertaining sponsor
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customers and prospects, cross selling between sponsors, up selling at retail

outlets, promotional product packages that feature the team and driver and a
host of other creative things you can do that will mean a winning proposal. Let
the sponsor know that you are marketing savvy and that you are capable of
ensuring their marketing success. Above all, don’t just say, “I’ll do whatever it
takes.” That’s an amateur. Show them that you are savvy and how you will do
it. If you need to study marketing, that would be the best investment you ever
made. If you don’t want to go to college, Team Marketing Report has some
excellent books on developing winning promotional programs called Great
Promotional Ideas, Volumes 1 and 2. You can find out more at
http://www.insmkt.com/tmrprod.htm
Marketing Opportunities section should include:

• Marketing opportunities
• Overview of team approach for marketing sponsor products/services
• Marketing commitments
• Special marketing benefits that derive from this team alone
Sponsorship Packages
Here is where you put the nuts and bolts of your proposal together. Remember
the goal we talked about before: the number of dollars you need to be
successful. Now it is time to translate this goal to a set of sponsorship offerings.
Take a look at your Sponsorship Sales Matrix and identify the programs and
other sponsorship offerings you think the prospect is looking for. In your
investigating phase you should have gotten lots of information about their
marketing goals, branding strategies and promotional programs. Use this
information to prove to the sponsor that your packages will meet their needs
better than those of your competitors.
First of all, each offering should have a name that sells it, distinguishes it from
other offerings. If you want to call it “Primary Sponsor” or “Title Sponsor” that is
fine, but ensure that it has a name that conveys prestige and separateness from
the other offerings. Also ensure that the offerings are easy to understand so
there is little doubt about what the offering will do for the sponsor. Be creative
and set your team apart with some winning titles. Even those offerings that
involve small dollar contributions, sometimes called “affiliate sponsors” should
invoke some sort of prestige. Otherwise, how could you sell it?
Each offering should have a set of “benefits” that go to the sponsor in return for
the dollars. This is where the sponsor can see the strengths that you bring to
them as a member of their racing family. Ensure that the benefits respect the
amount contributed for each program. Don’t give a lower paying sponsor
something you don’t also give the higher paying sponsor. In other words, if they
pay more, they should know they are getting more.
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Use the “Features and Benefits” approach. A feature is a characteristic about the
offering that brings about a benefit to the purchaser. A features and benefits
statement goes like this: “Because of <feature> you receive <benefit>.” An
example: “A primary sponsor receives larger logo placement on the race car,
transporter and team uniforms. This means your logo or product will be seen by
more potential customers.” A knowledge-based qualifier for this statement would
be “Statistics (cite the source of the data) prove that race team and driver fans
are XX% more likely to reward the primary sponsor when it comes to purchasing
your product category.” Then the “clincher” statement would be: “In addition, we
will do X, Y and Z to ensure even more fans see the primary sponsor logo
multiplying by a factor of X the amount of exposure you receive.”
The following are almost staples in sponsorship packages:
• The sponsor’s name will appear in all materials, letter heads and literature
created by the team
• The manager and driver/s agree to make a certain number of appearances
for the sponsor with expenses paid by the sponsor
• The sponsor’s name is included in all press releases
• Team members agree to wear the sponsor’s lapel pin or baseball cap at all
times
• Team agrees to distribute sponsor’s business cards and sales literature at all
events where possible
Offer assistance with other types of promotions in which the sponsor might be
interested such as series sponsorship programs, race title sponsorship, official
product provider status, track signage, etc. Sweeten the pot by asking for
additional dollars if you win a number of races, set track records, sit on the pole,
etc. in order to motivate the team and driver to strive harder. Benefits could be
special announcements and press and television coverage when the incentive is
achieved.
Make sure that there is some exclusivity of benefits for the higher value
packages and be clear about this so there is no confusion. You should also
indicate your policies regarding non-compatible sponsors (or direct competitors)
as well as the sponsor’s right of review regarding these relationships.
Your sponsorship packages should include

• Sponsorship package names
• Sponsorship package features and benefits
Package Prices
After you describe each sponsorship package or offering, you want to indicate
the price of each package. You can do it after the description of each package or
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in a separate table in this section. I prefer the price to be the last item mentioned
after the description but a nice table detailing the package name and price is also
easy to review and understand. Always scale the table with the most expensive
package listed first and then the rest in ascending order.
Package Prices should include:

• A table of sponsor packages linked to the price for each package
Recommended Programs
If you are tailoring the proposal for a particular sponsor prospect, you may want
to emphasize a specific program with the explanation that this will ensure the
best result for their particular needs. Always leave yourself an out by suggesting
that the prospect can still select other options or even combinations of options.
Offer them a long-term savings by signing a multi-year contract and additional
benefits.
Implementation Plan
This is probably the most important part of your proposal because it

communicates to the potential sponsor that you know how to deliver a winning
sponsorship partnership. Event planning is a career path and you must ensure
that the sponsor knows you can deliver. A brief description of how you plan on
implementing and ensuring that the sponsor gets the maximum benefit for his
investment will ensure the sponsor that you’ve been there and you know you can
deliver. You may want to introduce him to the people who will manage the
sponsorship at each event and you want to indicate, to some degree, what will be
done in specific markets that the customer considers key.
Implementation Plan should include:

• What will be done for the sponsor
• Who will do it
• When will it be done
• Where it will be done
Reporting
In this part of the proposal, you should communicate how you plan on reporting
your activities to the sponsor. Let them know what your communication plan will
be and what you will be communicating. This will ensure the sponsor that you
view yourself as a valuable partner and employee who is committed to their
success. Indicate who their contact person will be, introduce that person and
their qualifications for the job. How often will you be reporting to the press and
media and will you provide a press clipping service for the sponsor. What other
series stats and published reports will you be providing and how often?
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Contact Information
If you are going to be emailing your proposal to potential sponsors in an effort to

obtain interest, make sure you include contact information so they know whom to
contact in the event they would like to pursue a meeting.
Optional Sections
Past Performance References

If you have a history of performing well for your sponsors, you may want to enlist
those past or present sponsors as references. This option could make a huge
difference if your existing sponsors are happy with the return on their investment
with you and are willing to praise you to another potential sponsor. This may
even help your sponsors develop additional business opportunities among them
as well. Be careful, however that you don’t use a competitor of your potential
sponsor as this will certainly ruin the deal.
Make sure that you coach your sponsors on what to say and how to say it.
Again, before you give a reference, make sure your sponsors are enthusiastic
about the results you have given them.
Fan Demographics and Race/Event

Schedule
Demographic data reveals the make up of the fan base that attends your events.
Characteristics such as income level, age, marital status, education, occupation
and lifestyle are analyzed by sponsors to determine if your fans are a good fit for
their products and services. It is important to the sponsor that the fan base for
your style of racing (including both spectators at the track and those watching on
television) has significant shared characteristics with their target customers.
You should be able to find good demographic data from your racing series. Most
series have conducted their own surveys and are willing to provide you with the
information if it helps you obtain sponsorship. There are also companies that
provide demographic data (and other reports) such as Sales and Marketing
Management (S&MM) at
http://www.salesandmarketing.com/salesandmarketing/index.jsp. This company
and their web site can be valuable resources for you.
If you know that fan demographics in your series are a good match for this
sponsor, then mention this fact in the Executive Summary and put some charts
or statistics in the appendix. This will give the potential sponsor a good feel for
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the series makeup and whether it appeals to target customers. Most often, your
series publishes demographic numbers that you can use in your proposal. Play
this up if the match is good and handle it carefully if the match is not. For
instance, if the major market for a sponsor includes mostly women, perhaps you
don’t want to emphasize the fact that 80% of your series fans are men. But do
mention that many men come to the track or watch on television with their wives
or girlfriends.
An event schedule enables the sponsor to determine if you participate in events

within key markets for the company. If you are aware of their key markets, make
sure you mention that in your Executive Summary and you may want to offer
special activities in those markets to give your sponsor additional exposure.
Finishing Touches
To make sure the proposal looks great, you must do some simple things that
every writer does with his finished work:
• Spell and Grammar check

• Prepare Table of Contents
• Prepare Cover Letter
• Prepare Section Tabs for the document (optional)
• Insert Special Pages and charts if applicable
• Check pages in each copy to make sure they are in the proper order
• Check each copy and make sure there are no missing pages
• Final reading of the document to spot any minor flaws and typographical
errors
Most of the above can be done with your word processing software. It will
ensure that you have dotted all the “i”s and crossed all the “t”s so to speak.
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Chapter 4. How to Find a Sponsor

This chapter details the best paradigm for developing sponsorships for racing
and other sports teams. It is based upon a selling model that has revolutionized
Major Account sales strategies in other industries. It suggests that sport
sponsorship decisions are indeed major purchasing decisions that involve careful
consideration by the astute sponsor. It recommends a methodology for reaching
them, getting their attention and moving them through a sales cycle that
leverages each step taken and moves toward a successful sponsorship
agreement.
In fact, sponsorship decisions involve much more than major purchases; they
impact marketing budgets and marketing plans of corporations that extend for
years into the future. You should understand and recognize that corporate
marketing involves structured programs that are designed to help the company
find, reach and appeal to their target markets. Their goals often involve
enhancing the customer experience and if you can help them do this you have a
chance of being part of their marketing program. By being aware of this and by
convincing them that you are a good choice for helping them achieve their
marketing goals, you stand a better chance of getting the support you need. The
successful sponsor search must then address these issues and expose your
marketing savvy as well as your willingness to work toward the goals of an
overall corporate marketing strategy.
The most common mistake that racers make when it comes to finding support is
to believe that all you have to do is win races and sponsors will come. The
history of motor racing is full of hundreds of great drivers who did well early in
their careers but were not able to muster the support needed to stay in the sport.
The reason for their lack of success is that they did not think it necessary to learn
the key elements of “sales” that would have shown sponsors that they were able
to bring attention to their team, logos and products. Sponsors are not there to
serve the racers; they are there to increase their sales. The racer must serve the
sponsor. If you know how to attract sponsors professionally, how to turn the
sponsor into a living, active part of your team and how to draw maximum
attention to your sponsor in ways that other drivers don’t know, you will do fine.
Another important mistake that a racer can make is to rest on his/her laurels.
Your job is to race and in order to race you must sell yourself. Racing is a full
time job and when you aren’t qualifying, winning and/or testing, you must be
selling yourself and your racing career to anyone and everyone who will listen.
As a driver or team manager, you must structure your time so it includes plenty of
schmoozing time with sponsors, potential sponsors, media people and anyone
that can help you get to the finish line. Just as you communicate important car
information to the team and engineers who help you set up the car, you must
drag your whole team into the limelight by teaching them how to be enthusiastic
about both racing and marketing. As the leader of your team, you must lead in
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all ways so that everyone knows your commitment to racing success. Do

otherwise and you will learn the benefits of ESPN television coverage from the
comfort of a couch.
Professionalism will be the key to your success in finding and signing sponsors.
You must know what to do when the sponsor says “Let’s do this” but more
importantly you must learn not only how to get there, but also how to “develop” a
marketing partner that is happy with the investment made in your team. Whether
you are a “dirty blue jeans” racer sporting a go-kart, an open wheeled midget car
or a formula 1 team, the potential sponsor will always be impressed with
professional appearance and presentation, well thought out sponsorship
programs and follow-through. If you are able to project that you have these
elements you will get on the track. If not, you will always wonder how great you
could have been had you been lucky enough to find that big sponsor. It is really
up to you. If you want to get to the top, you must do what it takes and that
means having marketing savvy and making great presentation.
Before You Begin
Before you begin your search you must take inventory of your team and look at
every aspect from a marketing and sales perspective. Look at your business,
your web site, shop, your employees, yourself, your driver/s, your friends and
your existing sponsors and ask some basic questions.
Your Business
Before you can borrow money at a bank or satisfy sponsors that you are a
legitimate racing threat you have to convince them that you are a legitimate
business. You may have started your team because people kept coming to you
to help them with their race cars. You may have bought someone’s race car and
decided to see how well you could do. This led to some success and the desire
to get better equipment or move to the next level. No matter how your team
started, you should go back to the basics and make your team into a true
business. This starts with a business plan.
A business plan will ensure that you have thought about all the essentials of
running your team and that you are serious about your racing intentions. It will
also help you organize in your mind the various components of the business and
how to prioritize the various processes that go into your every day operation,
even your race strategy. A business plan consists of your company description,
company history, operating plan, management profiles, marketing plan and
company goals. These vital issues, if they are thought out correctly will establish
you in the business world and position you so that you can take advantage of a
host of other business opportunities.
Shop
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Your shop is the window into your team. If you’ve ever visited a top race team
shop you will see that their model is a hospital room. Policies and procedures in
these shops require strict adherence to the principle that a clean, disinfected and
well organized shop is the key to impressing visitors and achieving
professionalism on the track. At your facility, you have the opportunity to put up
as much signage as you’d like. Ensure that the shop has an attractive sign
announcing your team, driver/s and sponsors. Use the walls for pictures of your
team and sponsor logos, checkered flag finishes, magazine and newspaper
articles and your glorious trophies – anything that enables you to promote your
team.
Web Site
Your team web site is your showcase to the world. It should be attractive and
well done. When I say attractive, make sure that it is done by a professional.
Unless you are a web designer by profession, it is not likely that you will be able
to produce a site that is up to the standards of your biggest competitors. Give
the web designer one major assignment: “Make me look better than my
competitors on the web.” On your web site, have plenty of information, your
team accomplishments, driver and team profiles, information about sponsorship
opportunities, and lots of action shots. Make sure that visitors have the ability to
contact you should they want to email you directly. And finally, don’t forget the
fans. A sponsor will notice that you care about the fans and give you points for it.
A great touch is to have links to your sponsors’ web sites also; again, you get
points for that.
Make sure your website url (address) and email address are on all your literature,
letterheads, business cards, etc. And finally, don’t just put up a site and think
that you will get lots of visitors. Hire someone to promote the site so it can be
found. Have this person develop a linking strategy and programs that get you
listed toward the top of the search engines. Your web site will do you little good if
no one can find it.
Employees
Your employees are also a window into the team. Do they wear clean uniforms
every day? Are they the kind of employees that will not only do an outstanding
job on your cars but also look professional on the track? Are they trained by you
about looking and acting like professionals that represent your team and
sponsors? Do they understand the value and importance of the sponsors and do
they contribute to the overall good impression you want to give to sponsors and
the public?
Yourself
As the team manager, driver and/or overall leader of the team, you must ask the
same questions about yourself. Are you ready to present yourself to a potential
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sponsor and win in the PR wars? How about presenting yourself to the public?
Are you a proven leader? A good speaker? What do you have to do to be more
professional and well liked by fans and especially business professionals that
watch you on the track and in the pits? How do you carry yourself and what do
you do when adversity strikes? Do you respond professionally, coolly and with
forethought? Are you always thinking of ways to be a partner to your sponsor or
do you think their job is to keep you on the track in return for logo placement on
the car? Do you understand the importance of logo impressions and hospitality?
Driver/s
Your driver/s are the heroes that the fans will watch and cheer. The questions
you ask about your employees and yourself should also be asked about the
driver/s. Are they comfortable both on the track and in the boardroom? Are they
presentable and affable? Or are they angry and egocentric? Are they willing to
go the extra mile for a sponsor and think in terms of what they have to do to win
on the track and with the sponsors and fans? It would help if they had college
degrees of some sort, either in marketing, engineering or something that
indicates their level of intelligence and willingness to work toward a long-range
goal. Even if they just take a few classes and are willing to learn would be a
plus.
Friends
You need lots of friends. Friends look out for you, try to help you, always talk
about you and send opportunities your way. Ask the same questions about your
personal friends that you asked about employees, yourself and your driver/s. If
you don’t have any friends like this, get as many as you can. Be open, accepting
and affable to your friends and they will give you a major pay back.
Your best friends are your fans and they deserve to be coddled and schmoozed.
You’d be surprised how hard working they can be if they know that can get
involved and contribute to the team. Find ways to do this and you may just land
that big sponsor with the help of a fan.
Existing Sponsors
There is an art to matching sponsors on your team. Take a look at your existing
sponsors and ensure you don’t step on their toes when talking to competitors.
Do you have a good relationship with them? After all, they are your references.
What would they tell a potential sponsor about you? What can you do to improve
these relationships and how can they help you find additional funding? Your
sponsors employ many of your fans and these fans need to be coddled and
schmoozed too.
Most importantly, you must ask yourself which of your existing sponsors are
benefiting most from their involvement with your team. Would a higher level
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involvement benefit them even more? Ask yourself how they can benefit by
moving up and what you can do to increase the value to them. Perhaps these
sponsors are the place to start. You don’t want any of them telling you, half way
through the season, that they were thinking about moving from affiliate to primary
sponsor, but since you didn’t ask, next year they will be with your strongest
competitor.
What Do You Need?
Needless to say, a good computer with Microsoft Office Suite will help. You can
use MS Word for your letters and MS Access to develop a database of potential
sponsors. You can also use MS Excel to help with budgeting and expenses and
MS Powerpoint to create great presentations for your sponsor meetings. Internet
access, a web site and marketing materials would also be helpful. These
materials could include a press package, and introductory letter, a sponsorship
proposal and additional information on the value of sponsorship to companies
would help as well. The Sports Sponsor FactBook can be found at
http://www.insmkt.com/tmrprod.htm along with other helpful books and
information.
You also need a well defined set of sponsorship offerings and implementation
strategies for delivering them to sponsors. An excellent resource for sports
teams struggling with the task of defining sponsorship offerings is the chapter of
this book called The Sponsorship Sales Matrix. This chapter provides a
paradigm for sports teams that want to have a first rate sponsorship offering
presentation.
Finally, we need to put all this new knowledge that you’ve acquired into a SWOT
Analysis for your team/business that will help you develop the action plans to
implement real improvements in your sponsor search.
SWOT Analysis
THE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS

ANALYSIS
One thing few race teams do today is conduct a strengths, weaknesses,

opportunities, and threats (SWOT) analysis on their company or on any specific
aspect of their business especially their sponsorship efforts. Yet, regular and
consistent analyses of this type can be critical to your future success. A SWOT
analysis is an objective look at the internal elements of your team, as well as the
outside issues that impact your success or lack thereof. If done diligently, you
will always have a handle on what you need to do to improve season after
season. At the very least, this analysis should be done at the end of each
season (after each race, I think) for both your competitive racing activities and for
your sponsorship efforts.
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By analyzing and understanding the internal resources available in planning your

sponsor search activities, you will gain a better understanding of what you need
to do to take advantage of strengths and how to overcome weaknesses.
Understanding and planning for both opportunities and threats will give you
crucial information for assessing external situations that impact your business,
local communities and the series in which you race.
Needless to say, before you conduct your SWOT analysis, you must become
familiar with every detail of sponsorship opportunities and weaknesses in your
race team, including budget, personnel, volunteers, time, schedule, series target
audiences, and population sizes of the communities where the races takes place.
If you are not, then enlist the time and expertise of the individual you have
delegated to perform your sponsor search activities.
Strengths
What distinct competencies does your race team, bring to the sport? Is there
anything unique about you that gives you an advantage you can exploit to give
you an edge, or as Penske would say, to give you the unfair advantage? What
additional competencies can you identify within your key employees that might
give you an advantage, education, special skills, advanced knowledge? What
other resources within the community can you identify that will strengthen your
position in planning this event? Do you have significant support in the local area,
a fan club, great sponsors?
Consider both technical (racing) skills and marketing skills that you and your
employees have developed in previous positions or the experience of organizing
and managing a race team. The combination of skills, education, along with a
knowledge and interest in the sport, certainly provides you with strengths that
can help you to succeed both on the track and in the boardroom.
Identify the practical skills and abilities that you or others in your organization
may possess. (See Figure 1) Keep in mind, this is not rocket science. Just get a
general idea of these skills. You don’t have to take two months to do this. You
just want to identify the strengths of your organization. You can add other things
that you come up with at a later time.
Series Strengths
The Racing Series can provide plenty of experienced sport event managers to
work at the race events and marketers to sell the event should you have
sponsors that require it. If not, then learn the rules for event promotions from the
series marketing team so you don’t break any rules, and more importantly, so
you know what you can do for sponsors that you can put into your sponsorship
offerings in the sponsorship proposal. For instance, tents provided by a Racing
Series can be erected to protect marketers and fans for any promotion you might
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be doing for your sponsors. Or, if they are willing to help the sponsor for a fee,
let the prospective sponsor know what the possibilities are for such promotions.
Strengths Analysis Checklist – Figure 1
Assess each skill by writing the term strong, average, or weak in the Assessment
column.
Skill Assessment
Financial Planning
Budgeting, accounting, management
Human Resource Management
Recruiting, training, supervising,
motivating staff and volunteers
Safety, Security, Risk Management
Admissions, venue grounds, spectators,
players, personnel
Hospitality
Invitation design and production,
amenities, coordination of logistics,
hosting activities
Food and Beverage
Negotiations, quality, quantity, contract
and price
Sales and Marketing
Prospecting, selling, closing, servicing
Writing
Correspondence, promotional copy,
internal memoranda, newsletters, trade
publication articles, media releases,
follow-ups
Leadership Ability
Leadership Ability
Persuasion, motivation, listening,
problem-solving skills
Other skills or strengths:
Racing Series Strengths – Analyze each of the following from the standpoint of the
Racing Series
Strength Assessment
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Capital
Staff Time to Assist Teams
Assist in Financial Transactions and
Promotions
Legal Assistance
Concessions Policies
Other Strengths (if any)
Notes and Comments
Weaknesses
Analyzing weaknesses, though not entertaining, is vital to your success because

these harmful internal weaknesses can negatively impact your sponsor search
program, possibly even your success on the track. Convene a meeting with key
staff and volunteers to determine any weaknesses that are important enough to
address. Ask them to suggest internal areas that are inadequate, that may be
controlled and/or corrected, or that should be eliminated before they erode your
team’s profitability. Elimination of weaknesses may mean personnel changes,
retraining or reassignment, possibly even termination or hiring of special skills.
Weaknesses and dealing with them are as important to your team as strengths
because they are the negatives that are drawing your team down.
One weakness to seriously look at: Is your marketing program good enough to
get you the sponsorship you need?
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Use Figure 2 for identifying weaknesses of your team.
The Weakness Analysis Checklist - Figure 2

Weaknesses Checklist
Assess each weakness by writing the term critical, controllable, or eliminate in the
assessment column.
Weakness Assessment
Disagreements among key staff and/or
volunteers
Personality conflicts among staff and/or
volunteers
Lack of trained, experienced personnel
and/or volunteers
Short planning time
Funding problems
Facility shortage or inadequacies
Sponsor search
Other weaknesses:
Solutions and Action Plans

69
This approach of assessing your team strengths and weaknesses will help you
improve your organization to handle the opportunities and threats from both
inside and outside sources. This is critical to the survival of your team and your
future on-track success.
Also, less controllable than internal variables, opportunities and threats

nevertheless require careful analysis to ensure a successfully planned sport
event.
Opportunities
The opportunities that present themselves may increase your revenues, but what
are these opportunities, how can you recognize them, anticipate them, plan for
them?
• Racing Series Opportunities – What does the sanctioning body do for teams?
Many of them have very effective programs for teams and will do all they can
to help you find sponsorship and help you promote for them as well.
• Local Opportunities – Your local area has a strong base of businesses with
which you can develop strong relationships – find out how to meet the
necessary people, where to hang out, who’s who in local influence. All good
people to know.
• Event Opportunities – Every event you participate in, and even those you
don’t, often present opportunities to meet people who can help your team, or
people with whom you can network. Are you ready for these opportunities?
Do you have a plan to pursue them and take advantage of them?
Use Figure 3 to identify the opportunities for your team and racing series.
Qualify all opportunities as hot (action required), green (investigate further),

lukewarm (possible but not immediate need). Finally, determine whether an
opportunity requires “action on your part to make it happen.
The Opportunities Analysis Checklist - Figure 3

Opportunities Analysis Checklist
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Assess each opportunity for its value by writing the term hot (action required),
green (investigate further), lukewarm (possible but not immediate need) in the
assessment column.
Opportunity Assessment
Each Race Event
Trade Shows
Local Events
Prospective Sponsors
Racing Series
Other (See below)
Other opportunities you have identified should support your goals and objectives.
If it does not entirely support your end result, determine ways to control it. For
example, a tourist-related activity such as a major music festival may be
scheduled on the same date as your race. Control this activity to the best of your
ability by giving your local fans and sponsors something special that day so they
come to the race rather than the festival. Or have flyers passed out at the
festival telling people about your event to see how many decide to come to the
event. If they present the flyer at a place of your designation, give them a freebie
for coming. Otherwise, this scheduling conflict could become a threat rather than
an opportunity.
Threats
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Threats of all types may jeopardize the success of your sponsorship efforts. By
recognizing potential threats, you increase your chances for success by
identifying them and planning ahead.
To determine the range of threats to your team success, bring together all team
members for a threat analysis meeting. This includes risk management,
volunteers, marketing people, mechanics, engineers, technicians and all other
critical people. Ask each of them to list any potential threats within their area of
responsibility and identify any threats that may affect the team as a whole. See
Figure 4.
The Threats Analysis Checklist Figure 4

Threats Comments (Serious – Monitor Further –
Requires Coverage or Action)
Personnel
Business Processes
Sponsor Search
Rules and Regulations
Race Series
Other Threats:
Prospecting – Targeting Potential Sponsors
Planning on which companies you will approach is almost as important as your

sales call. Divide your potential sponsors into relevant categories that will ensure
you are talking to the right prospects. First look locally to the area immediately
adjacent to your race team. This town benefits from your motor sports
involvement and there may be some fans that admire your efforts working in
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these local companies. Do your prospecting here by talking to people in the

neighborhoods and businesses that you do business with. These businesses
may be willing to trade products and services in return for exposure and a little
track hospitality. Look through your local Business Directory or Yellow Pages.
On the Internet, visit your local Chamber of Commerce web site and other local
web sites and directories. You may find other companies here that are willing to
trade product and services in return for affiliate level logo placement on your car
and trailer. Maintain a database of these companies and record all information
you receive about these companies so you can be aware of opportunities. Your
key for these companies is that the exposure you receive on the track and in the
local community can be exploited by these companies to gain product and
service loyalty. You can also send business their way anytime you hear of
someone needing their products and services.
Regional companies also have a local flavor and many of them pursue their
regional markets more aggressively than they would a national market. You can
find these companies in directories like the Sport Sponsor FactBook and Industry
Directories that are found in most local libraries. These companies love the
support they gain from being involved in their regional markets and plan most of
their marketing activities regionally. Before you contact them, develop ideas on
how you can help them gain awareness in their region. How many races do you
run in their territories? Do their customer demographics match your fan
demographics? Do they compete in the marketplace against other sponsors
already in the series? Why shouldn’t they compete on the racetrack? What
kinds of things can you do to help them gain awareness that the other sponsors
are not getting from the teams they support in your series? Know the answers to
these questions and you will get a hearing.
Does your series have a national following? Do you race all over the country? Is
national exposure a possibility with your team? A national company can be huge
a catch for you and put you on the map. Further, such companies have
significant marketing budgets and have played the sponsorship game for years.
They know the ins and outs and they expect you to know them as well. They
want to sponsor teams that put them on the map in the series and they look for
professionalism.
You should develop a database of potential sponsors and do your best to

develop personal and business relationships with the management of these
target companies. By developing an internal sponsor advocate within a company
and keeping this person informed of important information regarding your
activities, you lay the groundwork for future participation. Don’t be afraid to
schmooze and don’t be stingy with the freebies. It may never pay off in
sponsorship, but tips and information that these people give about their industry
and other opportunities can be helpful. Sooner or later, they will deliver for you in
some way. That is in the nature of “comps.”
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An important piece of information concerns the sponsor’s marketing goals.

Acknowledge that the target’s marketing plan is all about using corporate
resources to increase sales to existing customers and find new customers. The
target sponsor is thinking about this when he considers your proposal. His
wheels spin with new ideas when you are hitting his hot buttons and he will yawn
if you are not appealing to these goals. Therefore, it is imperative that you
understand that he is not interested in helping you race. He is interested in
increasing market share and he has given you his time and attention in the hope
that you can help him achieve that. Is the company looking strictly for
impressions and association with racing from a fan perspective or are they more
interested in hospitality services that will enable them to close deals? Are they
trying to drive customers to retail stores or giving samples at the racetrack? Are
they trying to attract web clicks and online orders or insurance premiums?
You should also learn whether they have a large marketing department or a
small one. Large marketing departments tend to be very segmented with people
specializing only in small parts of the overall marketing program. One individual
may be responsible for selecting new properties or events to sponsor while
another may be involved with program activation and management. Are you
even talking to the right person, a player with influence or someone who wants to
make a name for him/herself by bringing in new ideas. Use every contact but
make sure the contact is helping you get to the right person, not just playing for
hospitality and freebies.
Most large companies have a well-defined marketing plan. Your goal is to

become part of that plan. The marketing plan is a blueprint for corporate growth.
It provides a roadmap for what will be done, who will do it and how it fits into the
overall plan. The likelihood is that sport marketing and sponsorship are already
part of it. The question is how easily do you fit into it and are you the best bet for
achieving the sport marketing part of the plan. Needless to say, if you know
nothing about the goals defined in the marketing plan, you are rolling the dice
when you present your proposal. Your internal advocate should be a great
resource for you and you will be successful in convincing him/her of your viability
if you ask questions about the company’s marketing plan and marketing goals.
One important detail you want to get from your advocate is key geographic
marketing information. Are there important markets for this company where you
race? Have you ever won there? How popular is your driver and team in that
market? If so, what are those markets and how important are they for their
marketing plans and strategies. What are they already doing in each of those
markets? Consider how you can help strengthen their strategy for them and help
them gain market share against a key competitor. This can be critical information
to include in your sponsorship proposal.
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In many cases, sponsors defer to agencies to make sponsorship decisions.

Make sure you research the relationship between a sponsor and the agency as
well as how decisions are made.
Some interesting stats developed by IEG3 will give you an indication of what is
important to your potential sponsor. 58% of all sponsorships purchased by
companies in their survey are in the area of sports sponsorship. 42% of all
sponsors will spend the same amount from year to year while 31% tend to
increase their sponsorship spending each year. Sponsorships tend to reflect
only a small part of the overall sponsorship spending of most companies. But up
to 10% of companies that sponsor spend 35% of their marketing budgets on
sponsorships. A full 40% of companies spend just as much in activation of their
sponsorship programs as they do in paying out sponsorship dollars. This means
they are committed to making their sponsorships work. In 2002, 62% of
sponsorship-involved companies sought to increase awareness and visibility for
their company or products. 59% merely wanted to reinforce or change their
image. 43% wanted to drive retail traffic into stores or dealerships and 41% were
involved to stimulate sales through product usage or sampling. 37% of
companies used sponsorship to display and showcase products and samples at
sporting events and 22% sought to entertain clients. It would be a good idea if
you knew which of these goals are important to your prospect before you write
your sponsorship proposal for them.
An excellent source for information on sponsors and the sports in which they are
involved is the Sports Sponsor FactBook published by Team Marketing Report.
http://www.insmkt.com/ssf.htm. This book will show you the companies that are
involved in sponsorships and the sports teams and events they sponsor. It also
is full of the names of key decision makers at these companies.
In prospecting for sponsors, use technology to leverage your efforts as much as

possible. A short introductory email is often much better received today than an
introductory letter, particularly since emails can be easily deleted if they are not
of interest. If they are of interest and you get a response, you may have made a
big step toward getting your foot in the door. The Sports Sponsor FactBook
provides email addresses of key people that want their email known.
A word of caution: even emails are better received if they are written like a letter,
professional and formal. Always use “Mr.” or “Mrs.,” etc. when addressing the
executive (at least until you get on a first name basis). Keep communications
short but complete and “knowledge-based” rather than “salesie.” This means
provide usable information and data rather than sales pitches. Rather than
saying, “We can help you get your message to the fans,” provide information on
how your sport or team has helped promote products. Ask them to respond if
they’d like to learn more. Use industry research and information and you will
become part of the pipeline the customer uses when making decisions…and you
3
Lead Sponsorship – Powerpoint presentation by IEG
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will be better received rather than deleted. Ensure that the subject line of the
email promises usable information so it will be noticed and read. Finally, never
spam or send unsolicited emails. Use only “published” email addresses and it
may be appropriate to ask first if you can send some info by return email.
I’ve always believed that you should follow up every letter or email with a phone
call. In today’s business world, almost every phone is tied to voicemail and you
will seldom get to the person anyway, but a voicemail can be a good opportunity
to offer information, invitations and freebies. If they don’t respond, you haven’t
hit the right chord and need more info. Ask around about the company.
When talking to the prospect, don’t mistake the request for a proposal or
literature as an indication of interest in your team. This request may merely be a
way of getting rid of you and off the phone. Ask questions that will help you
determine if they are really interested in finding new teams to sponsor. Ask them
if they are even interested in motor sports sponsorship. Make sure you are
talking to the decision maker. These additional questions will save you needless
time and money.
Prospecting Tips
• What you are doing in prospecting is qualifying the prospect and turning it into
a viable lead that you can move into the Sponsorship Sales Cycle (see
below). This means you bring the lead through the four steps of qualification:
Generate Lead, Follow-up, Qualification and Presentation. Each of these
steps is important and must be completed but the most important is Follow-up
because this gets the wheels turning and moves you toward presentation. If
you meet lots of people but fail to call them back, you never know if they were
viable.
• It is important to determine if you have an experienced sponsor or a company
that is interested in investigating the possibilities of using sponsorship to
promote products and services – it is easy enough to approach companies
that you know are involved in sponsorship, but there are many companies
that would be interested if approached and sold on the idea – so the first
question when qualifying a prospect is: “Has your company ever used racing
or sports sponsorship in the past?” If yes, then you want to learn as much as
you can about their experience. Was it good or did things happen that turned
them off on the idea? If they’ve never sponsored before, you may have to
skew your presentation toward convincing them of the benefits of sponsorship
first before presenting your proposal. If they have sponsored before, ask
them about their experience. Is there anything they didn’t get out of it in the
past that you can address?
• If you can determine the status of their sponsorship budget, you will also be
able to qualify the prospect further. Are they spent for the year? If so, when
would be a good time to get back so that you might be considered for next
year’s budget? If they have some money left in the budget, perhaps they can
76
take a lower level sponsorship to test the waters and then come back next
year when the budget is set. Keep in mind, most companies want to spend
less than what is in the budget, so try to come in under that amount with
deliverables that you can reach in order to keep them interested next year
and beyond – prep them by telling them that you’d like to work toward a long-
term relationship and use that test period as a way of getting your foot in the
door.
• It is always helpful to know who you are competing against if the prospect is
involved in sponsorship – if you know this, you may be able to distinguish
your company from the competition if you know some of their weaknesses.
• Determine the buying time table. Does the prospect have an immediate need
for sponsorship and promotions (not likely), or are they looking far into the
future – find out how far into the future so you can get into the mix of their
buying decision now.
• Try to measure the urgency of their need by asking when they will be making
buying decisions regarding sponsorship. If the prospect is vague on this
issue, you may have someone who is along for the ride, hoping to get some
freebies and hospitality but not really serious about sponsorship. If you
suspect this, make sure you are talking to the decision maker and/or ask to
meet the decision maker. With this approach, you will soon learn whether
there is serious sponsorship intent or lack thereof. If the prospect can give
you definite info and appears to be on a schedule in terms of meeting dates,
deadlines, etc., do your best to get into the mix and address as many of
his/her specific needs as you can identify.
Phone Techniques
Good phone techniques will ensure that you sound professional and worth
listening to. Here are some tips:
• Prepare a script to aid you in remembering what to say

• Introduce yourself as a “high-level” manager of the race team – this gives you
credibility and authority
• Practice your script so you don’t sound phony
• Have your sponsorship proposal, especially your sponsorship offerings and
sponsors benefits, handy in the event you have to answer questions with
more specificity
• Steer the customer toward a meeting rather than just a sponsorship proposal
mailing – this will give you a better shot
• If you do send a proposal and cover letter, make sure you follow up with 2
days of their estimated receipt of the package so the prospect does not go
stale
• Make a recording of you saying your script so you know how you sound and
what you need to do to sound better
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• Prepare a list of rebuttals to the most common objections – rebuttals can help
you sound knowledgeable and prepared to sell – Here are a few rebuttal
ideas to the most common objections:
o Not Interested
This objection is a brick wall when it comes to sponsorship.
Respond that you have some excellent programs for
companies like theirs that can help them gain new business.
Give them your business card and a brochure – ask them to
keep an eye out for the exposure and publicity your team will
gain in the series or on national television and perhaps down
the road they may want to look at the issue again – prepare
the groundwork by stating that your programs are
inexpensive and designed to return to the sponsor more than
the original investment
o Happy with their existing sponsorships
Give them a list of sponsorship benefits with your team – tell
them you are dedicated to giving your sponsors good return
on investment and would be glad to talk about how you can
help them – give them some food for thought and ask them
to evaluate what their return is on their existing sponsorship
– tell them you have given your past sponsors excellent
returns and would be glad to talk to them about how you can
do it so that they have a way of comparing with their existing
sponsorships – if you can get the to commit to this analysis,
tell them you will call them back in a few weeks to see if
they’d like to take it to the next level
o Just send me literature
The above approach will work with this sponsor as well – just
get into their mind the team’s name – tell them to look out for
you in the press and media as in the first objection and tell
them you are dedicated to great services and return on
investment – mention your top programs, logo impressions
and hospitality or other services as a way to get the wheels
spinning – go ahead and send them literature and make sure
you let them know you are going to get back with them in
that literature – make a follow up call and ask, not to give
them a sponsorship proposal, but to sit down to see if you
and he/she can brainstorm about ways to promote their
company or products
o No time to talk – call me later
Call him/her later – but make sure you do – and ask for that
meeting to brainstorm about working out ways together to
promote their company or products
o Price is too high
Ask what price would be reasonable in their view – then tell
them what level of sponsorship and services that amount will
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buy them – also stress that the exposure will be less – but
don’t turn them down unless they are completely
unreasonable – more importantly, stick with the original price
as the best value, the best way to gain significant exposure
and new business – get your foot in the door by selling the
lower sponsorship and then leave the door open to the
higher level sponsorship if you can deliver the results you
say you can – perhaps they will buy the higher level
sponsorship next year if you do a good job – if you can, get
them to commit to that purchase next year – but make sure
you deliver what you promise this year
• In your script, reduce your words to key points, bullet points that only say part
of the message so you can sound more natural – make them easy to
understand especially when communicating your sponsorship offerings
• Smile – they can hear it
• Use assumption which means assume the positive rather than the negative
response – assumption is an art but if you practice it well can make a big
difference for you – assume you are going to get a “Yes” rather than sounding
like you will get a “No”
• Match the person’s mood and tone of voice with a similar tone of voice
• In a phone conversation like this, you usually have only the first ten seconds
to make a good first impression – practice that first ten seconds until you are
certain you are positive and to the point
• After every call, ask yourself what you liked about the call and what you can
do differently to sound better on the next call
• Listen attentively to what the person on the other end of the line sounds like –
listen to audible cues about how they are feeling, what they are thinking,
whether there is real interest
• Finally, your phone script can be an excellent talking guide when talking to
potential sponsors in person, so do it well and you have a powerful tool for
attracting sponsors
Sample Cold Call Phone Contact Script
Tip: Scripts are never designed to be read verbatim. You must present yourself
with a conversational tone and not sound like you are reading. To help you with
this we have taken the scripts below and created a list of bullet points for each
one so you can sound more natural. It is also a good idea to practice your script
with someone before you call so you will sound more polished. The more
practice you have the better you will sound.
Also, it is best to find out as much as you can about the company before you
make a cold call. Check the web site or call ahead for a copy of the annual
report. The web site may have a section for companies seeking charitable
contributions or sponsorships. Look it over carefully. If they publish their
sponsorship proposal guidelines online, print it out and study it carefully. Also,
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look for the names, email addresses and phone numbers of people involved in
marketing or sponsorship decisions. Record all this information on your client
information sheet.
Script
Cold Call: You have never contacted the company before.
Good morning, my name is ______________ with ________________ Racing.

I’m hoping you can help me. Can you direct me to the individual responsible for
marketing or sponsorship programs (If you already know this person’s name, just
ask for him/her)? Would you mind telling me the name and title of the person I
will talk to?
Once on phone:
Good morning, Mr/Ms ________________. My name is ___________________

with ______________________ Racing. We presently have (drivers’ names)
_________________ and _______________ driving for us in the ___________
(Series name). We race in such cities as ______________ (give a short list of
the major markets where you race). I’m calling to learn about your sponsorship
activities to see if we can help you with your marketing programs in these areas.
(Do not ask this next question if you already know the answer) Does your
company presently do any sports or motor sports marketing? (If “No”) Would
you mind if I send you some information about the potential benefits of
sponsorship and a sponsorship proposal from my team?
If you have researched the company, use this script: Good morning, Mr/Ms
________________. My name is ___________________ with
______________________ Racing. We presently have (drivers’ names)
_________________ and _______________ driving for us. I’ve been
researching your sponsorship programs and wonder if you’d be open to looking
over a sponsorship proposal from our company. We race in ____________ (give
a short list of the major markets where you race). We would like to see if we can
help you with your marketing programs in these areas. Do you have any
openings in your budget for a new team? (If the answer is “No,” ask: When
would you be looking to make your sponsorship decisions for next year? (If
he/she answers) Would you mind if I contact you sometime before then to
pursue sponsorship then? (If he/she says “Ok,” ask) When would be the best
time for me to make that contact?
(Write down the person’s response and any other information or interests in order
to tailor your presentation to their needs) Before I do that, would it be possible to
sit down with you for a few minutes next (specify day) ____________ so I can
learn a little about your company and tailor a presentation to your marketing
goals? If you don’t mind I’d like to bring our driver _______________ along as
well. (Notice, even though this prospect is not interested in sponsoring you this
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year, you want to make a good first impression. That is why you are trying to
schedule a meeting to get a jump on the following year. When the right time
comes, you will be ready and he will know it. This will get your foot in the door
and give you “top of mind” presence when the time comes to talk again. At your
meeting, ask lots of questions, learn everything you can and write it down. Then
ensure that he/she knows when you will be getting back with him for next year.
If he/she would prefer a different day or time to meet, make sure you write it
down.
At this meeting, keep the following questions in mind – and make sure you listen
and take good notes.
• Is motor sports a category of sponsorship you favor? If the answer is “No,”

find out why not and see if there is an opening to learning more about it for
future consideration.
• Do you require exclusivity in your industry category from a sponsor? This
means that they don’t want another beer manufacturer on the car if they are a
beer manufacturer. You will waste your time presenting a proposal if you
already have a sponsor in their industry.
• What is your primary goal in sponsorship and what do you expect your
sponsored teams to include in their proposal?
• Do you require any audience statistical reporting, research or other sales
activities at the track?
• Do you look for a certain percentage of the sponsorship investment to be
spent by the team on enhancing the sponsorship?
• How much do you usually spend, in addition to the sponsorship investment, in
leveraging the sponsorship and what would you like the team to do to support
these expenditures in terms of support. This can be measured in dollars or in
a percentage of the cost of the sponsorship. Typically, a sponsor won’t get
their money’s worth unless they spend an equal amount to the amount spent
on the sponsorship.
• Can you give me some information about your core branding goals? What
tag lines, images, icons, values and messages do you seek to promote
through your sponsorships and how can the team aid you in communicating
them?
• What kind of cross-promotional strategies have you successfully pursued in
the past?
Now you are ready to plan for the next meeting and you’ve got lots of material
and he will remember that you took the time to learn about his company when
the time comes. It is a good idea, to maintain contact during the season,
perhaps invite him/her and the family out to the track with free tickets and lunch.
Ask him/her to bring the boss or anyone else he/she wants to have a good time
at the track. Once there, let them bring up the idea of sponsorship in the future,
let them see the value you bring and ensure that someone is there to entertain
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them from the team, a driver, wife, marketing person to make sure they have a
good time, etc. Remember, you don’t have to high pressure them. The fact that
you offered the tickets and entertainment and that they had a good time is more
important than asking them for a letter of intent. If the opportunity presents itself,
go for it.
The Stages of a Major Sale
In his book, Spin Selling by Neil Rackham, the author defines the elements of a
major sale as indicated by the chart below:
Preliminaries Investigating Demonstrating Obtaining

Capability Commitment
Preliminaries
Preliminaries involve introducing yourself, giving some initial information, starting

the conversation and probing to see if there is a basis for investigation of the
possible opportunities that sponsorship involves. Rackham is convinced that the
preliminaries are not as important as once thought, but it goes without saying that
during the preliminaries you make your first impression and it must be a good
one. Be well dressed, professional, friendly and honest.
Not all preliminaries are done in the same way, whether you contact by email, at
the local pub, by phone or by mail, the most important impression you want to
leave is professionalism and follow through. Convey your ability to present
yourself and be presentable to others. And equally as important, if you say you
are going to meet at a certain time, be there at that time. If you promise to send
something and/or do something for the prospect, do it without hesitation. Show
them you can be trusted and are reliable and you will score big points.
Investigating
In this phase, you will be uncovering the prospects needs. You’ll ask critical
questions about their marketing goals and learn what they want to accomplish.
This stage helps you set up the sale by giving you the key information you need
in order to convince them that you are the team that can help them reach their
goals. Investigation is actually a critical skill and you get better at it by asking
questions, taking good notes and using everything you learn to understand better
how to sell your sponsorship package and match their needs to your capabilities.
According to Rackham, this stage is the most important of all. It is where you
show the prospect that you really want his business. It is where you learn
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everything you can about his business and work with him to uncover ways to
help him get his message across through your team.
Demonstrating Capabilities
Here is where your presentation to the customer is crucial. You have gone
through the preliminaries and investigation of needs and now you are ready to
use all your knowledge to help the prospect find solutions. Show them about
your team but, most importantly, present sponsorship packages and benefits that
help them solve marketing problems. During this phase you show what you are
made of.
Be open and flexible with the sponsor. If you perceive that what you had thought
might be a primary sponsor suddenly seems more interested in becoming an
affiliate sponsor, keep selling and shift your focus to selling that kind of
sponsorship. Perhaps they have a smaller budget than you thought or they may
just want to test the waters for a while. Go ahead and move toward an
agreement and use the time you have with them to learn more about their needs
and budget. The main point here is to sign the sponsor so you can move forward
with them into the future. Always do what is in the sponsor’s best interest and
sacrifice immediate gain for potential long-term benefit. It will show your loyalty
to your sponsors and gain you even more respect in racing.
Obtaining Commitment
During this stage, you begin the work that will lead to your sponsorship
agreement. It is good to try to get away from this meeting with at least a letter of
intent. Work with the prospect to draft the letter and ensure that all the details of
the coming sponsorship agreement are covered. Once you have the letter of
intent, you are almost there. Now it is time to sit down with your lawyer and
theirs and draft the sponsorship agreement.
SPIN Selling
When you are attempting to work out a sponsorship arrangement with a target, I
have found the best approach is the consultative approach. This means you
should approach your potential sponsor as a problem solver who wants to help
solve marketing problems by bringing real solutions to his program. Use the
SPIN selling model:
S = Situation
P = Problem Statement
I = Implications
N = Need
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To elaborate, here’s how Rackham describes each stage in his book, SPIN
Selling:
“1. Situation Questions. At the start of the call, successful people tend to ask
data-gathering questions about facts and background. Typical Situation
Questions would be "How long have you had your present equipment?" or "Could
you tell me about your company's growth plans?" Although Situation Questions
have an important fact finding role, successful people don't overuse them
because too many can bore or irritate the buyer.
2. Problem Questions. Once sufficient information has been established

about the buyer's situation, successful people tend to move to a second type of
question. They ask, for example, "Is this operation difficult to perform?" or "Are
you worried about the quality you get from your old machine?" Questions like
these, which we call Problem Questions, explore problems, difficulties, and
dissatisfactions in areas where the seller's product can help. Inexperienced
people generally don't ask enough Problem Questions.
3. Implication Questions. In smaller sales, sellers can be very successful if

they just know how to ask good Situation and Problem Questions. In larger sales
this is not enough; successful people need to ask a third type of question. This
third type is more complex and sophisticated. It's called an Implication Question,
and typical examples would be "How will this problem affect your future
profitability?" or "What effect does this reject rate have on customer satisfaction?"
Implication Questions take a customer problem and explore its effects or
consequences. As we'll see, by asking Implication Questions successful people
help the customer understand a problem's seriousness or urgency. Implication
Questions are particularly important in large sales, and even very experienced
salespeople rarely ask them well. We'll be giving a lot of attention to Implication
Questions in this book.
4. Need-payoff Questions. Finally, we found that very successful salespeople

ask a fourth type of question during the Investigating stage. It's called a Need-
payoff Question, and typical examples would be "Would it be useful to speed this
operation by 10 percent?" or "If we could improve the quality of this operation,
how would that help you?" Need-payoff Questions have several uses, as we'll
see in Chapter 4. For now, perhaps the most important one is that they get the
customer to tell you the benefits that your solution could offer. Need-payoff
Questions have a very strong relationship to sales success. It's been common, in
our studies, to find that top performers ask more than 10 times as many Need-
payoff Questions per call as do average performers.”4
The SPIN Selling idea rejects the old “tried-and-untrue” sales techniques based
upon frequent closing efforts. Before Rackham’s analysis of selling techniques,
as described in the book, it was assumed that selling success could be improved
4
SPIN Selling by Neil Rackham, McGraw-Hill, Page 17
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by more frequent “closing” efforts. Many books on selling, even today, are
devoted to teaching sales people how to close using a variety of techniques that
essentially place the buyer in a position where he must say, “Yes” or “No.” In
other words, closing techniques are high pressure sales tried on people that don’t
respond to high pressure closing techniques. Rackham learned that these
closing techniques were actually not effective in the “big sale,” that is, sales
situations where the purchase involved a large expenditure for the company. In
those situations, the buyer based the decision to purchase upon a more careful
consideration of the quality of the products, services and follow-on support. I
would say that, in the big sale, the decision to purchase is based upon the
acquisition of knowledge about the product or service.
I believe that SPIN Selling is completely applicable to the selling of sponsorships.

A sponsorship decision is, after all, a “big sale” and companies have for decades
based their sponsorship associations upon careful consideration of the value
given by the team that they select for a long-term sponsorship relationship. If
you want to be successful in selling sponsorship, you must know that:
• Sponsorship is a long-term proposition, a major investment for a company.

• Sponsorship decisions are dependent upon a long-range marketing
strategy and the strategic objectives of the company. They are not made
on a moment’s thought.
• Sponsorship team selection takes time and deliberation on the part of the
sponsor.
• Sponsors do not generally purchase on the basis of “closing techniques”
but upon how successful you are at convincing them that you are a viable
team that will support their strategic plans over the long-term.
• TAKE YOUR TIME with the prospect. It is not necessary to get into a
conflict with the customer about whether he will buy or not. It is not
necessary to keep asking him to sponsor your team. What works here is
to reduce sales resistance by learning how to move the sales process
forward toward shorter goals about which the prospect can agree.
• The better you are at moving a contact forward toward shorter-range goals
that investigate potential opportunities, the better you will be at getting to
that final decision.
This means that your first contact may not be to ask for sponsorship but to
establish a friendship and a project that will investigate the opportunities you
provide so they can decide if your offer matches their goals. This means that you
want show them that you are committed to advancing their goals by asking
questions about how you can help; showing a willingness to work with them to
develop a fit for your team among their strategic marketing initiatives. It means
that getting your foot in the door is a big part of the effort, but what you do once
you get that foot in is the key to being asked to stay. Stop asking for sponsorship
and start asking how you can help them reach their marketing goals. Once that
dialogue starts, you will learn how to create a sponsorship relationship.
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What SPIN Selling techniques can do for you is take the pressure off of selling.
You don’t have to worry about a successful sale every time you meet with a
prospect; you don’t have to worry about learning “how” to sell or learning how to
ask the prospect to be your sponsor. You don’t have to deal with the butterflies
in your stomach at what lack of sales success means about your manhood.
What you have to do is get better at moving the prospect forward by investigating
with the prospect how you can eventually work together. You have to build a
relationship with the prospect that is enjoyable, relaxed and mutually beneficial to
both of you. There now, don’t you feel better about selling sponsorship now?
You can buy the book, “SPIN Selling” by Neil Rackham to get more details about
the SPIN Selling model. In the meantime, you can follow these simple rules:
1. Consider yourself a problem solver and let the prospective sponsor know
that you want to be educated on their marketing problems and goals. This
means you want to identify the sponsor’s SITUATION regarding their
marketing needs and turn that situation into marketing PROBLEMS you
can solve. By getting the prospect to talk to you about their marketing
PROBLEMS, they are bringing you into their confidence and giving you an
opportunity to present solutions that could result in sponsorship. They are
asking you what you can do for them if they sponsor you.
2. By adequately convincing the sponsor that you understand the importance
of those problems (the IMPLICATIONS) for their marketing goals, you can
offer specific solutions to their sponsorship NEEDS. Keep in mind that the
IMPLICATIONS that derive from their marketing problems may not be
known to the potential sponsor. A good approach is to try to draw out
those IMPLICATIONS in terms that allow you to present the solution.
Rephrase the problems in terms of IMPLICATIONS and see if the target
responds positively. If so, you’ve got to have a solution that includes you.
Strengthen your approach by turning those IMPLICATIONS to specific
NEED-PAYOFFS that the prospect understands and offer your
sponsorship solution and what you can do to provide that payoff.
3. If you’ve gotten this far, you’ve brought the target into the “Sponsorship
Sales Cycle.” (See below)
Selling Tips
1. If a sponsor tells you he is not buying, find out what his reason is. Use
this reason as a foundation for the future, as a starting point that you will
address and use to improve your sponsorship offering. Remember, he is
not always going to tell you his real reasons. In this case, he may be
saying, “not yet” rather than no. Keep this prospect on your list and stay in
touch. Make him/her a friend and give him some percs so he knows you
are still interested.
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2. If a prospect tells you that he is too busy to talk to you, ask him when is a
better time. The answer will give you an indication of whether there is
even an interest in your team.
3. If a prospect says your price is too high, ask him what he would consider a
better price and then steer him/her toward a sponsorship package within
that price range.
4. When a prospect stalls (makes excuses or tries to keep you waiting), you
are in sponsorship Hades. Remember the stall might be a way of saying
“not yet.” He may also be saying “No” but hoping he/she may get some
hospitality during the racing season. Find a way to eliminate the situation
that has brought up the stall in order to create a situation where he can
focus on your offer. Toward this goal, offer new options and solutions that
might give more value or better benefits.
5. If a prospect suddenly tells you that he is not the decision maker, it
means, “No, the offer doesn’t meet our needs.” At this point, you must
sweeten the offer and ask to meet the person or persons who will make
the decision. Enlist this person in helping you craft a new offer that would
appeal “to the decision maker.” It is often best to isolate this person to the
decision even though they say they are not the right person. By doing
this, you force his hand and either get a decision or you will be given an
opportunity to meet the “real” decision maker with this person’s support.
6. Sometimes it is a good idea to ask the prospect to help you craft the letter
of intent as a way of clarifying the offer. This is helpful especially when
you think he is wavering. By specifying the terms of the agreement, you
are eliminating his/her objections and making the offer more concrete.
Thereafter, all he needs to do is sign the letter and you have won the deal.
7. Don’t be afraid to vary the terms of payment to say, monthly payments,
but do this only if you already have enough money on hand to run the full
season. If this is a primary sponsor, and you have no cash on hand, then
ask the sponsor to provide you with a certain percentage first and then
divide the balance into monthly payments. A better solution, if they want to
budget the payments, ask them to take out a loan so that you have the
operating capital you need and they can pay the loan in installments.
8. Try to get all decision makers involved in your major presentations. Don’t
forget to have a quality presentation and be willing to listen and pay close
attention to body language to see how you are doing and what you may
need to do to tailor your presentation to their needs. Having the key parts
of your presentation memorized (from bullet points) before the meeting
frees you to analyze reactions and size up the room. Most importantly,
listen, listen and listen. Take good notes. Remember this presentation is
not about you, it is about how they can gain from sponsoring you. Always
demonstrate that you understand their perspective, their goals and
promotional needs. Ask questions, both open and closed questions.
Open questions start with “Tell me about…” Closed questions start with
“Do,” “Is,” etc. You get more information from an open question so
develop the art of asking open questions. Sound natural, talk from bullet
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points instead of memorized lines – extemporize your conversation, don’t

memorize. And finally, always think about what is in your sponsor’s best
interests, not your own.
9. It would be great if the prospect only brainstorms with you about how to
make the sponsorship work. You know you’ve got a hot one if this is the
case. Forget about the sale, you’ve made it…brainstorm along with
him/her and focus on how to make the sponsorship deal as sweet as
possible until you get the agreement signed.
10. If you must deal with objections, make sure you learn what the objection is
about. If price is the objection, again, sweeten the pot, maybe even find
out what their bottom line investment would be, then customize the deal to
something that fits that investment. Remember, if they say price is too
high, it doesn’t mean they don’t want to buy, only that they want to deal.
They either want more for their money or want to spend less for a lower
level sponsorship. Before, you quote a new price, find out how much they
would be “comfortable” paying, then assess this price to see what would
be feasible for you to quote in terms of a new price and/or sponsorship
offerings. If you have to, and if they are only spending “secondary”
sponsorship money, then give them secondary status with a few freebies
from the primary sponsorship offerings if you need. Just be flexible and
you could still come out of it with some money. Another way of dealing
with price is to offer the prospect a range of options and let him/her select
the sponsorship offerings that fit within that range. Once they select a
sponsorship range, let’s say “affiliate” range, then you can customize the
offerings you are willing to include within that range to make the deal
move forward.
11. Another good way to handle price is to suggest financing as an option. In
this way, they can spread their payments out over the length of the season
or the length of the sponsorship agreement while you get your money
upfront. This also enables them to spread the cost of the sponsorship out
over several years rather than one year and one big chunk. Most
companies already have sources of additional capital because of their
relationships with banks. However, if they do not, it pays to have a
lending bank in your pocket, so to speak, that you can recommend to him.
Perhaps, you can promise the lending bank “affiliate” level or logo
placement in return for “expedited” treatment of the loan. Or you can just
do it as a favor to your banker. Ask the lender what you can quote in the
areas of possible loan terms and interest rates in order to give the
potential sponsor an idea of what it will cost him/her to finance the
sponsorship. Looking down the road, you now have a sponsor that will be
easier to renew, since he has made his sponsorship investment affordable
and can look at the increase in business over time to the investment
he/she made. In addition, you now are able to upgrade this sponsor to
additional offerings and benefits at any time, since the additional cost for
the upgrade would be minimal compared to full price. And best of all, they
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are not likely to bail out on the sponsorship, as sometimes happens, since
they are already committed to the bank for the loan they’ve taken out.
12. Always differentiate your sponsorship offerings from other teams. If you
have an advantage in terms of price, proximity to the sponsor,
communication of results, better track results and any other advantage,
make sure you mention it. It will make a difference.
Isolating the prospect to the decision is the most powerful way to get them on
your side. Use every statement of interest and agreement in order to strengthen
your offer and move the prospect closer to a decision.
Timing
Timing is critical to the presentation of your sponsorship proposal. Keep in mind,

companies typically run on the traditional calendar year but some also have
unique fiscal years and these could depend on product rollout and service
schedules. For example, if a company usually rolls out new products in June, all
marketing programs are geared toward that rollout. If the potential sponsor has
already developed their marketing program for the coming year, you will have no
chance of winning sponsorship (it is very rare for a proposal to be so compelling
that the company will shift gears in midstream). Most decisions are made well in
advance of season’s end. It is best to come in with a long-term approach. Find
out when such decisions are made, make contact with the key decision makers
and let them know that you’d like to make a presentation or send a proposal
when these decisions are being considered. While you are at it, ask them about
their goals for the coming year. What can you do to address those goals so your
proposal is unique and relevant?
There are, of course, some sponsors that keep a “fund” available should a new
opportunity arise. These dollars are usually spent when something “big”
happens such as a World Series in a major market. An astute marketer will
always be on the look out for these companies and present a sponsorship
opportunity when something new develops. Your sponsor profile and sponsor
advocate can be very helpful here.
Watch your prospect’s sponsorship activities, especially their event

sponsorships. Try to become aware of their entire sponsorship portfolio so you
can strategize about the right moment to “strike” and when to work around their
schedule. Sometimes it is better to wait until after a major sponsorship event to
call as most marketing managers put all their time and energy into making sure
the event works well. Afterwards, insert yourself into the aftermath of the event
by proposing ways that you can help them get more for their dollar when a similar
event comes up. Become a consultant and a resource for them and you’ll be
appreciated for your efforts.
It is also more common today to send sponsorship proposals by email

attachment. Although, nothing replaces the power and effectiveness of a face-to-
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face sponsorship proposal meeting, and you should continue to strive for such
meetings, many companies like the idea of digital document sponsorship
proposal because it enables them to eliminate those in which they would not be
interested and it ensures they get many more proposals to consider. Needless to
say, this means your proposal must be a very good one to be noticed. You must
ensure it stands above the crowd, is highly professional and market-based.
I recommend that you convert your documents to “.PDF” format to avoid the
possibility of sending a virus with a Word or text document. Potential sponsors
would not be happy if their networks were corrupted by an email virus from you.
Learn more about Adobe Acrobat Reader for “.PDF” files at
http://www.adobe.com. Most word processing software today can convert your
documents to .PDF format. Another suggestion, always keep your virus
protection software current as viruses continue to be developed and are
becoming more and more sinister and destructive to computer systems.
ROI
One of the most difficult issues for a race team is ensuring that the sponsor
knows that he/she is getting a benefit in terms of ROI (Return on Investment). I
cannot stress enough the importance of communicating to your sponsor on a
continuing basis how much you have affected their return. We’ve talked about
reporting and informing the sponsor about what you’ve done for them in a past
event. You must, if you want to keep this sponsor, convince him/her that what
you have done results in tangible new sales of their products. This means that
when you do in-store promotions you should get feedback on how much product
was actually sold. You should work with local retailers in each market and let
them know you are coming. Coordinate activities with your inside sponsor
person for maximum results. You may want to sell product in your shop or at the
track so you can report these sales to the sponsor.
Needless to say, there are many numbers that are just not available to you. But
you can ask the sponsor how sales are going in the markets you affect. Ask him
to provide you with before and after numbers for each event. Ask him for
feedback on how you are doing and, if the numbers are not positive, ask him
what you can do to improve the situation. Treat the sponsor as a partner, and
above all, treat yourself like the one employee the sponsor has that can impact
their business in a positive way.
Don’t ignore this issue if you want to race.
Legal Issues
One thing that will kill a sponsorship agreement is whether you understand the
legal issues surrounding sponsorship agreements. I’m sure you understand that
a sponsorship agreement is a legal document. The quality of that document is
critical to your success and your ability to negotiate an effective agreement is
critical to any single sponsorship deal you develop. I recommend that you have
competent legal advice before and after every sponsorship deal. And you should
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consult your lawyer after you have crafted your sponsorship proposal. He/she
can help you make your offering “foolproof.” To learn more, you can start with an
excellent book by Team Marketing Report titled “Legal Issues in Sports
Sponsorship” at http://www.insmkt.com/legal.htm. If you’d like some referrals on
legal counsel, please email me.
Sponsorship Sales Cycle
Below, I have provided some of the key points of the Sponsorship Sales Cycle.
Although no sponsorship pursuit is the same, this cycle will give you some ideas
on how to work your way through developing a sponsor. Use this cycle as a
guide to tell you where you are in your relationship with a prospect or existing
sponsor. It can help direct you to what you can do to enhance your relationship
and keep the sponsor in your corner. Remember, this is a sales “cycle” and that
means once you succeed in landing a sponsor, the cycle starts over – that is if
you want to keep the sponsor.
Phase 1
- Inquiry/Research – learn all you can about the target sponsor, their
corporate philosophy and past and present sponsorship activities.
Develop a profile for the sponsor and ask critical questions that will enable
you to know what you are talking about when you make your formal
proposal. See “Introduction,” “Target Profiling” and “Timing” above. Use
the SPIN Selling approach.
Phase 2
- Contact – identify key players, become acquainted with them personally,
ask them for assistance in presenting your proposal, ask them key
questions about their future marketing plans. This person must become
your advocate, your inside person who can help you knock down the
barriers. Take your time with this person and don’t move in for a quick
kill—it’ll never happen unless you are very lucky. Plan two, maybe even
three years, ahead (don’t tell them that). The key is to get an audience
when the time is appropriate for the prospect.
- Get the audience – after all that schmoozing and preparation, it is time to
make a proposal presentation. These are best done on premise or, if you
have a nice shop, at the shop with the driver and team present. Be
prepared and plan everything precisely. Don’t leave a leaf unturned and
make sure you put forth your absolute best foot. And be prepared to look
at this first presentation as just the beginning of a process that may take
several years. You may not fit their plans right now, so don’t consider it a
failure if you don’t get the sponsorship agreement this time. Keep asking
the SPIN questions and prepare the ground for the future, even if it is a
few years away.
- Make your presentation – If you can use a Powerpoint presentation and
an overhead projector, do so. Convert your proposal to this format so they
can think about the offer in the form of concise bullet points. Cover all the
marketing angles and use this as a brainstorming session to get the
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prospect’s “wheels” spinning with ideas. Be as open and creative as

possible. If you have the ability to develop a Flash or Director
presentation, these software programs can create dynamic and flowing
presentations that make Powerpoint look like the horse and buggy. But if
you can’t, Powerpoint will work. Always give the customer a paper version
of the presentation to peruse and take with him/her. If you need help
there, we can help at http://www.insmkt.com/power.htm.
- Every deal needs to be closed and this is where the salespeople are
separated from the couch potatoes. This is where your selling instincts
and desire are crucial. Through out the sales process, always be closing
– use the trial close, ask if they are ready to work in the letter of intent or
sponsorship agreement. Another strategy is called the incremental close.
Identify concerns and issues and offer solutions and always ask, now that
you’ve covered the concern or issue if they agree to pursue the
sponsorship. Then move on to the next increment. Sooner or later, you
will get to the big close, the deal. Ask what it would take for them to go
ahead, what do you need to do, what can “we” (you and the sponsor) do
to improve the deal, make the sponsorship offerings stronger. One good
strategy is to always match your closing strategy and mood to the buyer’s
mood and needs. Never seem pushy or overbearing, be sensitive to how
he/she is acting, thinking, feelings. Above all, if you’ve got a hot prospect
and they are close, be patient. I know you need to race, but understand,
they don’t care about you and pushing them at this critical stage will kill
the deal. It is all about their needs to sell and promote products, logos,
brands. If you don’t understand where they are in their decision, or if they
seem to be stalling, take their temperature. Ask them how you are doing,
how’s the deal look. Are you looking good, bad, no deal?
- Persistence pays. If they have gotten this far, you can make the deal.
Don’t give up or get frustrated. Follow up every week or ever few days,
keep things moving forward. There is a saying in sales, the last one left
wins. Most major sales take between 3 to 10 follow ups, even 3 to 10
meetings. Just keep trying. Define your prospect as either “Hot” (very
serious), “Warm” (may take a little nudging or more time) and “Cool”
(interested but stalling or indecisive. If they are “Hot” call them every
week, keep trying trial or incremental closes, take them to lunch dinner,
the race track…keep them interested and keep trying. If they are “Warm”
keep in touch every other week or so. Feel them out, ask how you are
doing, what needs to be done to give them the sponsorship benefits you
offer. If they are “Cool” try to figure out how to make them “Hot” or just
keep regular touch and see how things are going.
- If the prospect seems to be stalling, don’t be afraid to ask what is the
cause of the delay. When is the decision to be made? What can you do
to help? Can you be there when the decision is made. If they say, call us
back in January, call them at least 1 or 2 weeks sooner so you can
determine if anything has changed before any competitors beat you to it.
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- If you’ve gotten this far, congratulations. Now it is time to craft the basic
sponsorship agreement. Make sure you take decent notes or have a staff
member take notes for you. Get a basic idea of what the sponsor wants
and what he/she is expecting to pay. If you can have someone develop
the preliminary sponsorship letter of intent while the sponsor is there, so
much the better. If you can get him/her to sign it, even better.
Phase 3
- Now it is time to develop the sponsorship agreement. Keep in mind, the
active sponsor may have an idea of how the agreement should read and
may want to develop it for you based upon the ideas discussed in the
meeting. If so, great…but make sure you study it carefully, particularly
regarding their understanding of what you said you’d deliver and whether
you can actually deliver it for the price. It is also a good idea to have your
lawyer look over it before you sign the bottom line.
- Planning. Have a meeting with your staff and go over the agreement.
Make sure everyone knows what his/her job will be in making it work.
Have your “ducks in a row” because you want to make this work. Don’t
forget to congratulate everyone for their efforts in winning this sponsorship
and, well…have a party too (Invite the sponsor).
- Signing and sponsor planning meeting. Once you are comfortable that the
agreement is perfect and you are ready to sign and move forward, you
need to sit down with the sponsor and plan the launch of the sponsorship
relationship. Here you will go over your planned activities and
communicate to the sponsor your planned diligence in making them a
successful sponsor. Discuss announcing the sponsorship, press releases,
etc. Oh, don’t forget the check.
- Plan and hold periodic review meetings with the sponsor to go over
progress and success. This gives you a chance to correct any problems
in plan implementation and keep the sponsor in the loop. If you can
develop data on impressions, product sales, driver promotional activities
and on track performance, do so. This information is the best thing you
can do to keep the wheels turning, so to speak, to position yourself and
the sponsor for the end of the agreement and the beginning of a new,
perhaps even more lucrative agreement.
Client Relationship
- Manage the sponsor. Schmooze, schmooze, schmooze. Call the sponsor

after every event and review highlights of the event, results, marketing
success, hospitality success, etc. Develop a sponsor newsletter and
regular email reports – not just on your on-track results but marketing
success.
- Now that you are a successful marketer of sponsorship and promotional
packages, well how about upgrading equipment, new cars, maybe a
second or third driver, or moving up to a major league venue? What you
did well once, you can do well an unlimited number of times.
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- Finally, you must evaluate your efforts. Have effective reporting

procedures in place so you can learn from your experiences and your
mistakes. Have frequent marketing and planning meetings. Develop an
implementation plan for each event and evaluate your success so you can
repeat that success next year. Just like you tweak a racecar for better
performance at each track, you must tweak your sponsorship promotional
activities so you can get better as time moves forward. Who knows, you
may be the next Chip Ganassi? Oh, don’t forget to send me the
hospitality and pit passes.
The Sponsorship Sales Cycle
Phase 1 Phase 2
Contact
Inquiry /
Research
• Implementation
• Client Relationship Proposal /
Cycle Presentation
Planning Sponsorship
Agreement
Phase 3
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Chapter 5. 101 Ideas on Getting and Keeping a

Sponsor
Introduction
This chapter started as a short one-page item designed to provide a few

suggestions that were not regularly being done in sports sponsorship. It grew as
ideas came almost by themselves and begged to be put on paper.
For those who do not know, the history of sponsorship betrays the fact that early
sponsorships were not intended as marketing vehicles. In fact, most sponsorship
activities were charity-based events or money spent to help support a local team
of amateurs. Such support activities were engaged in by wealthy companies or
individuals, not as a way of gaining new markets and attention, but merely to do
a public good.
Unfortunately, too many racers today see sponsorship in just that way. A
company or executive falls in love with a particular driver and decides to become
a patron so that the driver can get on the track and win. If only the world were
that simple and if only there were more people out there willing to throw money
away for the sake of a nice-guy driver. Somewhere along the line, someone
realized that he, the sponsor, should expect something back from the teams
he/she sponsored, at least some business and a good word here and there. The
days of public-service sponsorship were coming to an end.
What caused this shift, I imagine, is the discovery, at some early point in the
history of sponsorships, that the team sponsored by company A was using and
paying for the products of competitor company B. Imagine the horror of the team
manager when the sponsor asked for his money back. Perhaps this was all the
incentive needed to convince the manager that maybe he should do something
to give back, perhaps even try to make sure the sponsor got back more in
business than he spent on the sponsorship. The days of doing a good
sponsorship deed were over and sponsors became promoters and team
managers became marketers (or hired them).
The ideas presented here are presented in a random order because that is how
they were born. After years of involvement in a variety of different marketing,
sales and business writing positions, these ideas have been part of my way of life
as they should be the way of life of anyone responsible for getting the money that
a race or sports team needs in order to compete. I have attempted to elaborate
on each point so that you can see the idea or principle that makes it a valid idea
worth performing.
A couple of ideas before the ideas. If you use a PDA or personal planner of any
type, have these ideas input into your planner to show up on certain days to kind
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of remind you, sort of a “tip of the day” to keep the wheels turning and keep you
always looking for opportunities. See me about rights to the calendar quotes.
Don’t forget to send me those free tickets when you get to Indy.
74 Ideas for Helping You Get a Sponsor
1. Develop a sales plan – start with your team goals and work backwards –
how much money do you need to operate? – this is your sales goal – find
out how many pitches you need to make to get one sponsor then make
sure you make enough sales pitches to reach your goal – knowing the
average dollars gained per successful sale will help also in planning how
many leads you need to develop and how many sales pitches to shoot for
– then schedule the activities and time you need to reach it – use past
experience or keep careful records in order to know how many people
your sales plan requires you to contact during a given period of time in
order to get the money you need.
2. Look at your sponsorship efforts as a five-fold process: 1. Finding qualified

leads, 2. Developing a sales situation with as many of those leads as
possible, 3. Making the pitch, 4. Negotiating and SPINning, 6. Developing
an agreement, and 7. Keeping the sponsor. Believe it or not, I like to do
step 4 before step 3. Convince the prospect to sit down with you and
brainstorm about how you can help them increase sales or whatever it is
they want to gain from sponsorship – then put all that into the sponsorship
proposal. To learn more about SPIN, see my article “How to Find a
Sponsor.”
3. Test every prospecting activity – rather than spend hundreds of thousands

of dollars on a particular kind of advertising, test it with a smaller
expenditure first to see if it will work, then calculate how much you will
have to spend to get one good sponsor from that activity – analyze the
quality of every lead developed also so you don’t waste money getting
prospects that don’t pan out – better yet, get a free test from the lead
provider so they have to work for your business.
4. While we’re talking about testing activities, use the principle of logo
impressions when looking for sponsorship. This principle states that
people are affected by repetition in advertising. For you this means that
you should talk about the benefits of being a sponsor to everyone and
repeatedly. Just like a company that is advertising in a magazine takes
out a series of adds, you should realize that just you may have to talk to
each prospect several times before you get their attention. Sooner or later
it will register that he should “buy your product.”
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5. Call a list broker to see if he/she can recommend a list of good potential
sponsors in the industries you’ve targeted – their advice is most often free
and they may be able to help you develop a list of good prospects. Make
sure they understand where to get the kind of leads you need rather than
just selling you some general list of businesses – you can get that list
yourself from the Telephone Book.
6. Put “Your Logo Here” on the side of the race car and trailer – a better idea
is to put it on your back up car and use it when you do shows or otherwise
display the show car.
7. Put your sponsorship proposal on your web site – you’d be surprised how
few teams do this or even give sponsors a chance to learn that they need
sponsorship when they visit their site – if your web master can find out
who is visiting your site by means of a guest book or other tracking, it
might be helpful to know this and follow up with a phone call or email
thanking them for visiting the site and asking if they would like to talk
about a marketing partnership.
8. Have a “Find a Sponsor” contest for fans and friends with gifts and prizes
to all that help get sponsors – get everyone involved, put it up on your web
site, have a party to launch the effort – put an add in the newspaper and
mail out flyers – make it fun and give away autographed pictures – use
your party to hand out copies of the sponsorship proposal – give a
presentation and don’t forget to invite all the people you have pitched to,
everyone you do business with, etc. – give away a big prize to the fan that
brings in the biggest sponsor.
9. Ask the local track owner to dinner or golf – this person will help you if you
ask – tell him your situation, your plans, your goals, your dedication to
success – ask him to recommend you to people he/she talks to.
10. Join local organizations like Chamber of Commerce and Kiwanis Clubs –
these organizations do lots of good things in the community – you don’t
have to beg here, just participate and get involved – give and you receive.
11. Speak at local schools about safety on the streets – Have the teacher
invite parents – this gets you in front of the kids to promote safety and they
could bring their parents along who might be able to help you – it doesn’t
hurt to give out a small flyer or business card stating that they should
contact about further speaking engagements of sponsorship if the school
allows. Don’t forget to mention your existing sponsors if you can.
12. Volunteer for charity work that might put you close to a sponsor (or might
not – it is a good thing to do) – make sure that it is a charity that has no
political agenda or ax to grind – you don’t want to alienate sponsors that
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might be offended by the goals of the group – such as to put them out of
business.
13. Find out where businessmen hang out in your community – restaurant,
bar, golf club, gym and make as many friends as you can – I don’t know if
this is true but I was told once by a senior level executive that an upscale
bar is the best place to strike up a conversation and develop a friendship
with a potential sponsor – don’t get soused though – it could be the best
way to lose a sponsor – don’t drink and drive either – that’s illegal.
14. Check the Yellow Pages for categories of all the businesses that provide
products or services that you use – call them and let them know about
how much money you could bring to them in business from what you buy
– and in new business from sponsorship.
15. Put a display ad in the Yellow Pages for your race team – the Yellow
Pages is considered the best place on the planet to advertise your
business – you never know how many people look in the Yellow Pages for
“Race Team.” Perhaps a display ad mentioning that you have great
sponsorship and hospitality programs could help.
16. Call local marketing companies and let them know of your sponsorship
needs – if they know of any companies that might benefit, ask them to
contact you – or you can afford it, hire them to help you find quality
sponsors and develop your sponsorship offerings – these companies are
well connected and if you don’t hire them, give them some hospitality at
the track or take them to dinner with the driver/s. You never know what it
might lead to.
17. Call local retailers and offer to put the show car in front of the store or mall
with the driver signing autographs – Put a sign next to the car asking for
sponsorship – give a flyer to every person about the benefits of
sponsorship – offer the retailer a free affiliate sponsorship for their
assistance (if you find a big sponsor)
18. Call local night clubs or bars that cater to business people or cater to
racing fans and do the same thing – offer to put the car inside the bar
somewhere for a couple of weeks - Put a sign next to the car asking for
sponsorship – have the bar give out flyers about the benefits of
sponsorship – offer the bar a free affiliate sponsorship for their assistance
(if you find a big sponsor)
19. Obtain a copy of Sports Sponsor FactBook – this excellent publication

which is now about 3.5 inches thick offers detailed information on
thousands of sports sponsors – it invaluable for the sports team or
marketing company that works for sports teams
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20. Study Marketing – I know you may think this is silly, but you need to know
what you are doing and the field of marketing is an ever changing and
evolving field that doesn’t take prisoners – you are either knowledgeable
and marketing-minded or you are watching on the couch.
21. Develop your Team Marketing Strategy – that’s right your team needs a
marketing strategy – you are after all a business and you need to know
what you and your employees will do and how they will do it to present
your company in the best light to your customers, fans and sponsors.
22. Develop your Marketing Inventory – a marketing inventory is like a Dr.’s

black bag. It holds within it all the tools you will use whenever someone
asks you to cure a marketing problem for them or to recommend a
marketing idea. You can find out more in “How to Find a Sponsor” and
“The Sponsorship Sales Matrix” by the author of this booklet.
23. Develop a “hook,” a really great idea that no one else is doing that you can
present quickly and that you can use to get the conversation started –
you’ve got a really great idea or program that provides measurable results
for sponsors and you’d like to talk about it ASAP. You just came up with it
a few days ago and want to present it to a great sponsor.
24. Develop a “Team Sponsorship Brochure” which condenses your

sponsorship proposal and highlights what you can bring to a potential
sponsor – this is an inexpensive way to get the message across –
sometimes they read it, sometimes they throw it away – sometimes they
file it – but it will remind them that you offered them an opportunity
whenever they see you on the track and notice the attention you are
getting.
25. Practice Your Cold Call Script – the key idea here is “practice” – you have
to have your script down pat and you must sound natural – practice –
practice – practice until you’ve got it so well down you don’t have to think
about it and can just watch for reactions from the people you reach.
26. Have a business plan for the team – you are a business, aren’t you?
27. Set up a web site for your team and drivers – if you don’t have a web site
with some great pictures and your sponsorship capabilities and the
records you’ve set, well, some people think, you aren’t a real race team.
28. On your web site, develop a links page of other related businesses and
ask for a link to your race team from their site – linking helps improve your
position with web search engines – link popularity, as it’s called, is often
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one of their key ranking criteria – that means you rank higher and more
people have the opportunity to find your web site.
29. To continue the thought above, look over the links pages of other race
teams and automotive related web sites – ask them for a reciprocal link –
that means you link to them and they link to you – you may also find
potential new sponsors on these pages because if they think enough
about being linked on your web site, they may think enough about putting
some dollars on the line for even more exposure.
30. Rather than a link, try to get a banner placed on their main page or other
strategic page to see if these companies can find you – a banner
exchange with another site is a great way for you to promote your site – a
word of caution, the Internet if filled with a variety of different types of web
sites that can be divided up into a variety of categories – people are
attracted to sites that reflect their basic artistic preferences – sites for
lawyers and consultants tend to be very formal and professional looking –
sports sites tend to be populated with bright colors, energy, action pictures
that exude excitement – yours will be a sports site but be careful that you
link up with other sites that appeal to your fan base and their values.
31. Find out your competitors’ sponsorship or marketing weaknesses and find
ways to distinguish your team from theirs by beating them in these areas –
this can be learned through rumor, word-of-mouth or simply just asking
them how things are going – always be aware of what they are “not” doing
that would be good for sponsors and provide it for your sponsors so you
can distinguish yourself as leading edge and someone to stick with.
32. Sign up with a banner exchange service to have your web site banners
placed on other web sites that are members of the banner exchange
program – remember the warning in idea # 30.
33. Include banner logo placement for the sponsor on your team’s web site as
a sponsorship offering – why not charge them for it – especially if your site
is well placed and high traffic – want to find out how much traffic you are
getting? – install the Alexa toolbar at www.alexa.com – it will give you lots
of stats on your web site.
34. Create resumes for major team members and drivers – lots of companies
do this and it is a great way of showing your potential sponsors that you
have a great crew with which they should be associated.
35. Give autographed pictures and business cards of drivers to every

potential sponsor you meet – have them in your brief case and always
have your brief case.
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36. Write a book or article on your area of expertise or about the history of
your team – publish it on the web with a link to your web site or sell it to a
publisher – this gives you lots of exposure and the credibility you need to
attract sponsors – better develop a great relationship with an author or
sports journalist and ask him/her to do it for you – if you are not well
known, ask him/her to help you get publicity – put him/her on your mailing
list for all info and freebies.
37. Place a display ad in the most popular racing magazines and local
newspapers thanking your sponsors and provide information on how to
contact you for additional sponsorship.
38. Perform a SWOT Analysis on the race teams sponsorship prospects –

SWOT means Strengths, Weakness, Opportunities and Threats – this
analysis can help you take advantage of your strengths, minimize or
eliminate your weaknesses, recognize your opportunities and head off
your threats – an excellent exercise that will do you a world of good – look
up SWOT analysis on the Internet or read my article, How to Find a
Sponsor.
39. Get an excellent sponsorship proposal – this document has to impress

and not embarrass you – it must be well written and attractively bound –
don’t overdo it though – it has to be professional looking also – not too
glitzy.
40. Make your sponsorship proposal “modular” – this means make each
section self-contained so you don’t have to edit the whole document each
time you send it to a different sponsor – try to have lots of generic sections
that you will seldom have to change and keep the sections that relate to
specific offerings few so there is not a lot of editing with each printing.
41. Always keep sponsorship proposal copies and business cards on hand –
your briefcase is a good place.
42. Incorporate your race team – corporations get lots more respect from
other corporations – if you are still a sole ownership company or a non-
company, that hurts you from a corporate point of view – corporations
want to deal with companies that are here to stay, like them.
43. Hold a sponsor fair at your shop and invite top companies to which you’d
like to make proposals – Also invite all the business people you’ve met for
whom you have collected business cards in the past – don’t forget the
fans – make it fun but find a time and place to pitch your proposal – I like
the idea of setting up some tables in a private area where you can
discreetly take potential sponsors and pitch them – give them some extra
freebies and sit down and talk, “how can we help you promote your
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business?” – train some of your staff to make these presentations while

you are busy pitching the big boys – even get a driver to do it to sweeten it
even more for the sponsor.
44. At the fair hold a forum discussion group about what sponsors want from
race teams and publish the forum transcript on your web site and send it
out to everyone that attended to show them how serious you are about
giving value – follow up each of these to see if you’ve convinced anyone.
45. Whenever you meet a business person, ask for a business card. Then
after the meeting, send him/her an email or a short note about how you
enjoyed meeting them. Personalize it but always ask them if they'd like to
talk about sponsorship, you'd love to bring over some autographed hats or
pictures (or the driver) and a sponsorship proposal – Then follow up with a
phone contact.
46. Develop a 3-minute script or spiel on why a company should sponsor you
– make it quick and to the point and load it up with benefits and ROI
statements – if someone won’t give you time for an appointment, ask him
for only a few minutes then use this script – the meeting may last longer
than a few minutes if you do it well.
47. Keep abreast of all racing and sponsorship news at

http://www.motorsportsforum.com/contents/index.php?s=c06b3c62f1c49c
17871b5320c8031b7d. You might even find a few leads – Here’s a tip: Do
a search for “Sponsor” and/or “Sponsorship” on this site to learn about
some of the new deals being made – it might give you more than 101
ideas.
48. Always be looking for sponsors at least two years down the road – never
wait until the end of the season to try to find sponsors for the next season
– always look for multi-year agreements – sell the idea that a better
sponsorship result will come to the sponsor by looking several years down
the road.
49. Attend all automotive and racing trade shows that you can attend,
especially Performance Racing Industry trade shows – collect as many
business cards as you can and follow up on all of them – I’ve also like
SEMA and even Comdex in Las Vegas where a great many new
technology companies attend – don’t leave each booth you visit a
proposal (they would much rather sell you something so understand it is
not a good idea to try to sell sponsorships at these booths) – just try to find
out who the key people are that you can contact later – check your local
Chamber of Commerce and local organization trade shows – these may
be even better sources.
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50. Create a short brochure about your team and sponsorship opportunities –
use it when it is inappropriate or unnecessary to leave a more expensive
sponsorship proposal.
51. Contact your race series management and marketing people to learn what
promotional programs or opportunities can be provided by the series at
every event – put this into your sponsorship proposal so the sponsor sees
the benefit of racing in this series – see if the series has a program to
introduce you to potential sponsors and ask them what you need to do to
get on their list.
52. Ask for referrals – if you have a business acquaintance or business

relationship, ask for potential sponsorship referrals – give these people
some of your business cards and sponsorship brochures to give to people
with whom they come into contact.
53. Develop partnership with other companies that reach your markets – in
exchange for logo placement and other reciprocated promotions, develop
programs with charities and help them achieve their goals to the same
people you reach through racing and through your sponsors.
54. Shift the risk to yourself or your team – this means that instead of focusing
on the sponsor’s risk, the money he has to give or product he has to trade,
shift toward what you must risk in order to make it work – put yourself out
there as the lead in promoting their products or services and making it
work – you could do this in the form a measurable guarantee of results for
the sponsor, but make sure they know you consider it something you must
accomplish for the sponsor.
55. Make sure you are talking to the decision maker – ask the person, without
questioning their authority, if they will actually make the decision or
whether it needs to be taken up to another level of responsibility before a
decision is made – if possible, ask this person to help you by getting you
to the decision maker involved – if you learn that the decision maker has
no interest whatsoever in sponsorships, you have saved yourself a lot of
work (and possibly some costly freebies who should have told you the full
story).
56. Assume that you are in a competitive bid situation, that you are competing
against other teams for their sponsorship dollar – if there is any way for
your internal advocate to tell you against whom you are competing, you
have a leg up – if not, assume you are and give the best value you can –
keep in mind, they always want more for less – so price accordingly – and
make sure you focus on making them “feel” they are getting more for less
with you.
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57. Never fail to inquire about discretionary spending for such things as
advertising and promotion that the potential sponsor gives to their dealers
or customers – this discretionary spending can be directed toward you,
let’s say, on behalf of their dealers and retailers in the areas where you
race – instead of to the company as a whole – you may have to convince
the local dealers to contribute the money but if they like the idea, it doesn’t
cost them a penny except you might give them some free tickets and hats
when you race their way – large retailers, franchises and distributors of
various types do this kind of discretionary advertising that they present to
the dealers for them to spend in advertising as they see fit – why shouldn’t
they advertise on your race car during an event that has the whole town
galvanized – it gives them a team and a sponsor to develop loyalty over.
58. Offer lots of extras and freebies that have high perceived value but don’t
cost you a lot of time and money to provide – introductions to other
business owners, autograph parties, autographed hero cards, free
hospitality offered at the last minute as a gift – all of these work and cost
you little.
59. Increase the perceived value of your sponsorship offerings by developing

promotional services that other teams do not have – this makes your
offerings scarce and more interesting to potential sponsors.
60. If there is any way to find out what the prospect sponsor’s budget is, you
should try – this goes to the relationship you have with the decision maker
– if they give you this info, they are telling you what you need to do to get
those dollars for your team.
61. Have someone on your team (or yourself) join Internet forums and
discussion groups on your series, sponsorship and marketing – make sure
you put a “sig file” with links to your and your sponsors’ web sites on all
posts and email messages – a sig file is your name and address that
appears in all your emails automatically – make sure yours says “Talk to
me about sponsorship – have I got a deal for you.”
62. Don’t say, “We need a sponsor,” say, “Take advantage of the sponsorship
opportunities with our race team.” Tell them to get in line, don’t ask them
to open the door for you – tell them you’d like to help them get more
business.
63. All inquiry letters should be addressed to a specific person in his/her

department within the company. If you have to call before the letter to find
out who that person is, try to talk to that person and ask him to look out for
the letter you are sending – you’ll never get noticed if you don’t give some
notice.
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64. Don’t be afraid to tell the prospective sponsor what you will do with the
sponsorship money (don’t say you throw a party though – say you’ll spend
it on a brand new state of the art wind tunnel or something that will help
you race better) but also tell them how they will benefit from the
investment.
65. Ask a local dignitary or sporting celebrity with ties to your locality, other
than your driver/s, to support your scheme. Ask them to make
introductions for you to potential sponsors – give them a free ride in the
race car or introduce them to the track announcer, etc., but make sure he
puts in a good word for you.
66. Inquiry letters should be no longer than one page – that is if you don’t
want the recipient to throw it away.
67. Ask your local papers and radio stations to help in publicizing your team –
be generous with the freebies to the press but be always asking for free
publicity in return.
68. The "Hollis Sponsorship and Donations Yearbook" is a valuable reference

source.
69. Target companies with a history of sponsorship in your sport including

their competitors – this is a given, I know, but you’d be surprised how
many of them are never approached because they are thought to have
already made their decisions.
70. Always tailor your query letters with content that is specific to the company
to whom you are writing – never use a “generic” letter – make it friendly,
personal, refer to people you both know, events you both attended,
relatives you both have, etc.
71. Keep in mind, companies are more inclined to give to perceived "good
causes" e.g. youth, education, the disabled or disadvantaged – consider
your team a “good cause” by being involved in other good causes – this
always gets respect and open doors.
72. Make sure you’ve assigned one person to coordinate all sponsorship
proposals - this person should be available on the phone during working
hours and by cell at any other time – I just love watching people talk on
cell phones while they are out with their families.
73. Develop a sign in page or guestbook for your web site so you can get
email addresses of people who visit your site – ask them if it is ok if you or
your sponsor can send them literature and samples
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74. Offer to do a questionnaire for your sponsor’s products on your web site
with a free sample given to the fan that answers the questions.
Keeping Sponsors
1. Add specialized services to the sponsorship offering. You can do special

things such as having the driver and team members seek out certain
‘guests’ of the sponsor at the track in order to give them first-class
treatment and a special thrill. Invite them to the garage area or treat them
to lunch with the driver, etc.
2. Develop a ‘buddy’ program that selects a key sponsor individual for

special ‘buddy’ treatment. A member of your staff can be assigned to
each key person to ensure that they have a ‘special’ treatment at the
track.
3. Always Be Selling – don’t hesitate to cross sell and up sell to your

sponsors – don’t say, I’ve got a great idea on how you can spend more
money on the team, say – how’s things going with your marketing
programs, anything I can do – don’t forget about that opportunity I
mentioned – I’m available to help you in any way I can.
4. Talk to your Sponsor – this is an extension of the above, but it is a good

idea to schedule regular meetings with your sponsor – in their conference
room or at the track so you can talk about how you are doing, what you
can do, etc. to help them.
5. Always Be Thinking – while you are trying to keep sponsors, always be

thinking of
i. How to promote and sell their products

ii. How to present and verbalize your sponsorship pitch
iii. How to keep them – make them happy and satisfied
iv. How to make them your best friends
6. Don’t just always be selling, always be buying from your sponsors and
always help them buy at a bargain – this earns their trust – always be their
best employee
7. Sponsor Appreciation Day/s – a nice dinner with a fan appreciation during

the day and awards, thank you’s, and lots of good times schmmozing at
the end of a successful season
8. To elaborate on making the sponsor your best friend – build a personal

connection with the potential sponsor – handwritten notes, invitations, golf,
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dinner, family outings, the occasional night on the town, birthday cards
and letters can make a big difference
9. Offer hospitality programs – if the sponsor came on for just logo

impression, educate them about the value of entertaining clients at the
races, practices and qualifications – tell them to invite a friend or client for
lunch at the track on you and then, afterward, tell them about how
inexpensive are your hospitality programs
10. Give aways should be given away to your sponsors too
11. Always be asking how can we help you sell, what can we do for you?
12. Always be communicating – call them after each race, during the race and
even before the race – let them know how you are doing – that let’s them
into the pits – once I had a chance to work with the pit crew during a race
doing something to help – gopher work but it was fun and exceptionally
exciting – see, I’m still talking about it
13. Build your shop close to the race track – develop a parking area for
sponsors and shuttle their guests to the track – set up pre-race tailgaters
area for sponsors and fans with special promotions – offer fans a free ride
to the track and give them sponsor promotions and t-shirts with sponsor
logos – make it part of the sponsorship offering so they pay for it.
14. Offer sponsor product giveaways at the shop – let your sponsor know that
the shop can be used to attract new business – you’d be glad to help
distribute samples, marketing materials, brochures coupons.
15. Develop a MVF (Most Valuable Fan) Award to the fan who is most
devoted to promoting the team and sponsor logos and products – a great
fan brings a great sponsor – right?
16. Develop “Scratch n Win” promotion for the employees of your sponsor
with a great prize given away at a race.
17. Use your web site to promote your sponsors products and link from your
site to theirs – better yet, make it part of the sponsorship offering so they
pay for it.
18. Before you submit a sponsorship proposal to renew a sponsor

agreeement, ask the company advocate about the key drivers for the
company’s marketing programs – what do they need to strengthen their
marketing programs – then focus your proposal on these key drivers.
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19. Offer a local radio station a chance to interview you or your driver after a
big race or once a week and use it as an opportunity to promote your
sponsors. It is also an opportunity for your sponsor to purchase discount
advertising commercials during the show.
20. Offer a local television station a chance to interview you or your driver
after a big race or once a week and use it as an opportunity to promote
your sponsors. It is also an opportunity for your sponsor to purchase
discount advertising commercials during the show.
21. Develop a Team Association of sponsors where sponsors can meet each
other to mutual benefit. To help the team, they help each other more
successful by steering business toward each other and selling at special
discounts – promote this as one of the benefits of being your sponsor.
22. Do a weekly AOL (or other online) chat for fans and mention the
importance of your sponsors.
23. After every race do a “What went right, what went wrong” analysis relating
to your marketing efforts for the sponsor/s and send them a report of this
analysis.
24. Develop a list of companies that you should not approach. Learn the
industry of your existing sponsors and avoid their competitors (unless you
know they are going away) – By not approaching your sponsors’
competitors, you keep your credibility and their loyalty.
25. However, if the sponsor is going away at the end of the agreement period,
use this list as a prospect list for new sponsors – since you already have
experience in this industry, you could bring considerable strengths for the
next sponsor.
26. Develop a study at the end of the season of what went right and what
went wrong in your sponsor relationship and at the track for all sponsors to
take into the future and make improvements to strengthen your
sponsorship value.
27. Ask for referrals from your sponsors of companies that they presently work
with in their industry – especially ask for companies that they presently do
cross-promotional programs to see if you can get a new sponsor and help
both of them sell their products or services - give these people some of
your business cards and sponsorship brochures to give to people they
come into contact with.
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28. If you have a high traffic web site, offer existing sponsors a banner
exchange so they can drive traffic to you and vice-versa – or make it part
of your sponsorship offering to sweeten the deal.
29. Create free publicity every chance you get – better, make the chances –
call local friends and acquaintances, newspapers, radio stations every
time you get into a town and ask for opportunities to promote yourself and
your sponsors – bring along your driver/s and team members, plenty of
brochures, autographed pictures, etc. – get a PDA to keep all these
numbers.
30. Have a consistent message – everything you do and say should convey
value to your sponsors – include them in all your marketing and
informational literature – when you get up front, get them up front with you
– when you present yourself, present them as part of what got you where
you are.
31. Become an authorized reseller of your sponsor’s products – develop a

reselling agreement with your sponsor and agree to a top discount that
you can then invest in the team – create a reseller web site for the team
and place the link on the site to your race team – get business cards and
brochures from the sponsor and develop a marketing plan to help you sell
their products.
32. Be accessible to your sponsors – give them your private cell number, your
personal email address and even your home phone if they need to talk to
you at any time – also give them complete access to your marketing
people or other facilitators to whom you have delegated responsibilities –
make sure they are fully trained on “HOW” to deal with the sponsor – you
may want to ask your sponsor for the same info with his company.
33. Create a “Sponsor Handbook” for your team – ideas on how the sponsor
can leverage the sponsorship relationship with your team – give lots of
value added, freebies, etc. Sweeten the deal with lots of tips and ideas –
tell them you are available at any time for questions and discussion.
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Chapter 6. How to Write an Introductory Letter

to a Potential Sponsor
Your introductory letter should be sent to a potential sponsorship prospect after
you have received a request for more information by mail or phone. You can
also send an introductory letter, as a way of getting your foot in the door, to a
known sponsor that you have decided to pursue.
You want to get right to the point so you don’t waste his/her valuable time. The
first paragraph should state the reason why you are writing, either to introduce
yourself and your team or to introduce the sponsorship proposal that you’d like
for him/her to accept.
You must give a good introduction of the team or driver, some background and
successes, indicate reasons why this team or driver is worthy of support and how
successful he/she has been at advancing sponsorship goals for team sponsors.
Tell them in no uncertain terms why they should be sponsoring you. What are
your marketing strengths? What other opportunities or value added benefits
would they gain from you? Are you an award winner with a good track record of
wins, top finishes, lots of tv and print coverage? What are the top markets you
can help them reach? Are you associated with any worthy causes?
Explain what the prospect would get in a program with you and ask them to
continue further contact or to encourage them to request a meeting or
sponsorship proposal. Give some benefits and expected results from
involvement with the team or driver.
Explain, the next steps, either wait for your call, call you for a meeting, email, or
otherwise indicate that there is interest. Best bet is to offer a range of
possibilities they can take.
Indicate that you appreciate the opportunity they have given you to introduce
yourself, team or driver.
Sample Introductory Letter
October 29, 2000
Mr. XXXX XXXXXXXX

Vice President of Marketing
ABC Company
1234 First Street
Indianapolis, IN 46204
Dear Mr. XXXXXXXX,

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Thanks for your letter of September 30, 2000 regarding possible sponsorship of
Fast Stuff Racing Team and driver Mario Gonzalez.
As I mentioned in my previous discussion with you, I strongly believe that Fast

Stuff Racing can help your business build a dynamic marketing program that
pays for itself many times in new sales. Fast Stuff Racing is one of the leading
race teams in the NASCAR Winston Cup Series. We have put together a
dynamic racing program with a young and charismatic driver, Mario Gonzalez.
Mario has qualified on the front row in three races and finished in the top 10 four
times this year. He is a strong candidate for Winston Cup Rookie of the Year
honors. The media attention we have received this year has been outstanding.
Your program with our team could benefit you in a variety of ways:
• Cross-promotional sales with our present sponsor XYZ Company

• Corporate hospitality in our trackside suite area
• New brand awareness in Mexico and the United States
I have taken the liberty of providing you with demographic information regarding
race fans that attend our races and watch on ABC and ESPN television
coverage. As you will see from this information, this fan base is very much in line
with the demographic of your company’s targets. In addition, we can offer
additional promotional opportunities in return for a sponsorship investment in our
team. Below is a list of only a few of the programs we have successfully
implemented for our present sponsors:
• We have created crowd giveaway programs where on track fans

answer trivia questions about racing and win prizes. These trivia
cards will contain your company’s logo.
• We have created a sponsor Booster Club for additional hospitality
and promotional opportunities in our trackside hospitality suite.
• We can obtain discounted rates on space on outdoor billboards for
your company featuring the driver and sponsor logo.
• We have created a cost-effective literacy campaign or other charity
program using the driver as spokesperson.
• We can set up product sampling opportunities at racetracks and
other events.
• We have developed die-cast models of Mario’s racecar showing
the sponsors’ logos on the car.
• We have managed tent parties at the track for product displays and
driver appearances.
These ideas, along with the hospitality opportunities we have available, reflect
programs that we have developed to give value to our sponsors’ corporate
marketing initiatives. We stand ready to pursue all opportunities and ideas
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including cross-promotional programs, bartering, special promotions and

licensing/merchandising opportunities.
As a marketing partner with your organization, I assure you that we will do

everything possible to ensure that the results you obtain are significant and far
beyond the investment you make. I would enjoy an opportunity to meet with you
to discuss this further and identify ways that our two organizations can work
together to leverage your marketing programs. Over the next few days, I will call
you to see when we can meet. If you have any questions, feel free to contact me
at any time.
Sincerely,
Robert Villegas, Jr.

Fast Stuff Race Team
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Sponsor Profile Data Sheet

Company Name Industry Internal Advocate
Address Internal Advocate Title
Key Management
Name Title
Name Title
Name Title
Name Title
Name Title
Key Sponsorship Decision Maker

Name Title
Goals of the Sponsorship Activity
Increase Awareness Reinforce or Change Image Drive Retail Traffic
Display/Showcase Products Entertain Clients Other

Ideas for Helping them in their Marketing Efforts
Notes
Action Steps
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Sponsor Profile Data Sheet – Page 2

Company Name
Check Areas of Interest

• Preferred Supplier Status
• Naming Rights
• Official Product Status
• Single Race
• Primary Sponsor
• Secondary Sponsor
• Affiliate Sponsor
• In-car Camera Sponsorship
• Category exclusivity
• Licensing
• Endorsements
• Cross-promotional sponsorship
• Other (Describe Below)
Notes
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Strengths Analysis Checklist
Assess each skill by writing the term strong, average, or weak in the Assessment
column.
Skill Assessment
Financial Planning
Budgeting, accounting, management
Human Resource Management
Recruiting, training, supervising,
motivating staff and volunteers
Safety, Security, Risk Management
Admissions, venue grounds, spectators,
players, personnel
Hospitality
Invitation design and production,
amenities, coordination of logistics,
hosting activities
Food and Beverage
Negotiations, quality, quantity, contract
and price
Sales and Marketing
Prospecting, selling, closing, servicing
Writing
Correspondence, promotional copy,
internal memoranda, newsletters, trade
publication articles, media releases,
follow-ups
Leadership Ability
Leadership Ability
Persuasion, motivation, listening,
problem-solving skills
Other skills or strengths:
Racing Series Strengths – Analyze each of the following from the standpoint of the
Racing Series
Strength Assessment
Capital
Staff Time to Assist Teams
Assist in Financial Transactions and
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Promotions
Legal Assistance
Concessions Policies
Other Strengths (if any)
Notes and Comments

116
The Weakness Analysis Checklist

Weaknesses Checklist
Assess each weakness by writing the term critical, controllable, or eliminate in the
assessment column.
Weakness Assessment
Disagreements among key staff and/or
volunteers
Personality conflicts among staff and/or
volunteers
Lack of trained, experienced personnel
and/or volunteers
Short planning time
Funding problems
Facility shortage or inadequacies
Sponsor search
Other weaknesses:
Solutions and Action Plans

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The Opportunities Analysis Checklist
Assess each opportunity for its value by writing the term hot (action required),
green (investigate further), lukewarm (possible but not immediate need) in the
assessment column.
Opportunity Assessment
Each Race Event
Trade Shows
Local Events
Prospective Sponsors
Racing Series
Other (See below)
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The Threats Analysis Checklist

Threats Comments (Serious – Monitor Further –
Requires Coverage or Action)
Personnel
Business Processes
Sponsor Search
Rules and Regulations
Race Series
Other Threats:
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Chapter 7. Sample Marketing Plan for a Sports

Team
Introduction
This document is designed with two purposes in mind:
1) To help you organize your team sales processes and strategies into a
consistent, integrated program, and
2) To provide you with a document structure that you can use to create your
own team Marketing Program.
One might ask, why do we have to go to such extremes in order to develop a

strategy for marketing our team? The answer is simple, because you want to
succeed. The single most prevalent cause of failure of sports teams is lack of a
coherent and integrated plan, refusal to look at all the elements of marketing and
leverage those elements for the sake of the team. Some people may be
surprised to learn that a race or sports team is a marketing organization. It must
market itself in order to market the products and brands of its partners, otherwise
known as sponsors. We may come into a particular sport because we love it
and want to be part of it, but we can only stay in our sport because we are good
at marketing. Notice I did not say we can only stay in our sport because we are
good at it. The cold hard truth is that we can not be good in our sport unless we
are good at marketing.
As Joe Gibbs would most likely tell you, a race team is a professional sports
team. In order for the team to be effective and financially successful, it must
conduct itself like a professional sports team and leverage all its tools and assets
just as effectively as any baseball or football team. To understand what this
means, let us look at just what it is that sports teams do:
Marketing
Presenting the team to the local community and the world involves a mix of
marketing initiatives designed to create maximum awareness about the team,
maximum ticket sales, merchandise sales and overall team revenues. A
professional sports team needs to have a first rate-marketing plan and qualified
people to execute the plan in order to be successful. This means that the
marketing team working for a race team needs to be as good as the racers,
professional, highly trained and always looking for the competitive edge. In
racing, it is called the unfair advantage.
Operations
The unfair advantage shows up in the details and is an outgrowth of watching the
little things that go into success on the track. First-rate engineers, mechanics,
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managers and pit crew will do what it takes to watch those small differences that
will translate to inches that mean victory over the course of a race. Other sports
teams practice, train and attend to the physical conditioning of their athletes to
ensure maximum performance.
Naming Rights
Sports teams have learned to take advantage of every opportunity. Stadium
naming rights deals mean huge dollars to the stadium ownership and the teams
that play there. In racing, it is great if a team is named after the owner but even
better if a great sponsor pays you to put their name on your team, building and
equipment. Imagine how much free publicity the Target Chip Ganassi Racing
Team has just received from my using them as an example of a naming rights
deal. A good naming rights deal for your team could be all you need, but you
must ensure that you are well paid for such a huge amount of publicity.
Event Management
You won’t be successful if you can’t execute the programs and initiatives that
your sponsors want. This includes hospitality programs that translate to happy
sponsor clients and employees of your sponsors. How much time and effort
have you dedicated toward putting this sort opportunity together for your
sponsors?
Merchandising
Merchandising means you are able to take advantage of all the on-track, retail,
mail order and Internet opportunities to sell your team’s logos and merchandise.
Merchandising opportunities are also sponsor opportunities - their logos on your
merchandise and your logos on theirs.
Facility
Your facility can become a local landmark. As your team develops and
succeeds, you can use your physical location to draw attention to your efforts. A
good sign or your team name on the building will cause people to stop and feel
pride about your location in their community. It is your museum for all your
victories and a hallmark for the fans that love your team and drivers. A good
example is the name Union Federal Bank on the Indianapolis Colts training
facility. What about your building?
Sponsorship
Sponsorship is what pays the bills if you have it and what keeps you off the track
if you don’t. In concrete terms, get it if you want to be successful and watch
racing on tv if you don’t get it. More importantly, the art of getting sponsorship
has to be learned and learned well. Your primary business focus must be on
structuring your business plan and marketing plan so every element works and
you get plenty of sponsorship.
Personnel
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Many professional sports teams fail dismally in this area because young people
(highly skilled athletes) tend to be more emotional and inconsiderate. This is not
unusual with professional athletes of today but many teams have counted the
loss of millions of dollars because of misbehavior. The same applies to the
people you hire on your team. They must be trained about how important is
appearance and attitude both on and off the track to the very real issue of
obtaining sponsorship. They must be trained on how to assist the team in finding
and keeping sponsorship. They must become walking billboards, speaking
advertisements and entrepreneurs dedicated to the success of your business.
Advertising
Sports teams invest large amounts of money on extensive advertising campaigns
in radio, television, press releases, web sites and other venues in order to make
the public aware of their presence and importance to the community. Many of
these campaigns involve trades for reciprocal promotions such as radio
advertising in return for radio station signage at the stadium and practice
facilities.
Media
Sports teams have agreements with local and national media for such things as
interviews, shows, stories, etc. They work with national and local writers to
provide talking points and information about the team and players so they can
obtain as much free exposure as possible. The team is both a national and local
asset and people all over the world want to know as much “insider” information
as the team is willing to allow. A carefully crafted media strategy means millions
in free advertising for the team and even some team sponsors.
Hospitality
Hospitality has become more important as sports teams recognize that the
excitement and appeal of sports competition offers participating companies an
opportunity to solidify business relationship by entertaining their top clients at the
ball park or race track. Hospitality suites are modern phenomena that mean fun
and exclusivity for those fortunate enough to be invited. Imagine how special you
would feel if you were brought to the event in a limo and treated to gourmet food,
beverages and a great sporting event.
Value Added
As a professional sports team, you need to find creative ways to add value to the
investment made by sponsors. You do this by leveraging your position as a
sports team that gains considerable coverage and attention from the public and
you use that leverage to help your sponsors gain attention. If you are good at
this, you will also gain from having satisfied sponsors and even a percentage of
the proceeds.
Strategic Plan
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If there is no strategic plan, there is no strategy, as Yogi Berra might say. The
strategic plan is the part of your marketing plan that sets the goals and activities
for the whole team – each and every member. Professional sports teams and
businesses that are worth their salt have a strategic plan to tie all the pieces
together and to create a marketing team that runs like a well tuned race car –
straight to the checkered flag. That is what this document is about – your
strategic plan, your Marketing Plan.
So let’s get to work. Below you will find a Sample Race Team Marketing Plan
that you can use as a guide in creating your own plan. It is based upon plans
that I have put together for several companies and has worked well. All you have
to do is tailor it to your team, your goals and your specifics. Best of luck.
How to Use this Document
(The document, Sample Marketing Plan for <Team Name> is designed as a full
marketing plan for a race or sports team. The first step you want to take is to
“find” every occurrence of the team name, “<Team Name>” and replace it with
your own team’s name. This can be done with the “Find” and “Replace”
functions in your word processing program. Secondly, you want to read the
entire document and make edits, changes, deletions and additions that are
relevant to your team. What we have provided in the document are suggestions
that you can use or change as you see fit. You will also find suggestions in
parentheses “( )” to guide you in the purpose and usage of many of the sections.
Once you read a suggestion, delete it so that it is not part of your finished
marketing plan document. If a section or even a sentence does not apply to your
team, edit or delete it.)
Marketing Plan for <Team Name>
Introduction
This document presents the marketing plan for <Team Name>. It provides the
foundation for all business processes that will be used to develop awareness of
and income for the team. It is a comprehensive blueprint for how we will pursue
all activities that involve marketing the team, its logos, brands, properties,
sponsorship, advertising inventories and all other assets in order to maximize
profit and reduce costs.
Description of Company
The <Team Name> is a top performing team running Indycars in the Indy Racing
League in the U.S.A. Our goal is to become a top contender for series
championship and a winner of the Indianapolis 500. The company was formed in
January of 2001 by Doug Baker and Chip Johnson with shop and offices at 2001
Industrial Parkway in Indianapolis, Indiana 46241.
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Using state of the art technology and employing top engineers and drivers will
catapult the team to the top and give prospective sponsors an opportunity to
leverage team success for their own benefit. We are working to develop a
win/win situation for the team and our sponsors with top marketing programs and
sponsorship offerings that are the most innovative in the sport. With a focus on
ROI and sponsor satisfaction, we will become the “goto” team in our series as we
set the standard for the future of the sport.
Strategy for Growth
Basic growth strategy
(This section is critical for you. It will allow you to develop the best “words” that
you will use to present your team to the business community.)
The <Team Name> strategy for growth is based upon a dynamic plan that
develops new sponsorship and identifies opportunities to promote and cross
promote our sponsors. Our strategy involves identifying the best sponsorship
targets and utilizing a sales cycle primed to help them get the most from their
involvement with our team. Our strategy will consist of the following:
Ensure the highest quality sponsorship services and program delivery to

sponsors
Toward this goal we are constantly striving to improve our sponsorship programs
and promotional activities by means of a Quality Assurance program. We have
developed an inventory of sponsorship offerings that will yield high return and
visibility for our sponsors’ products, logos and brands. Our focus will be to
develop measurable results and show long-term sponsorship viability so that the
best sponsors will see the value of their involvement with our team.
Obtain a high level of exposure for the team that will elevate the value of our
sponsorship programs
By ensuring the team has top drivers, competitive equipment and the best team
members, we will create a synergy where larger and better sponsors will view our
team as the best value. This will be done by cultivating relationships with key
media personalities, constant press releases to the media and development of
newsworthy programs. Our efforts to gain attention will show to the media and
the public that we are a first-rate member of the business and sports
communities that will be around for years to come.
Engage in an aggressive effort to capture the sponsorship business of new and

expanding companies
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By focusing on potential new sponsors that are beginning to take dominance in

their industries, we can offer major league motor sports as a compatible method
for gaining new exposure and market share. To a great extent, we specialize in
bringing up and coming companies into the limelight by helping them gain new
international exposure – helping to launch them into the competitive fray as a
viable alternative to race fan customers that will reward on track presence and
work ethic with team and sponsor loyalty.
Strategic Plan
Our strategic plan is designed to establish business practices that create our
racing success. The strategic plan consists of the following:
(Your strategic plan should be identified as a combination of your entire business

focus including those processes that support your business. Here indicate the
value and importance of everything you do and relate those activities to your
overall business goals.)
1. Operate the highest quality and most successful race team in the industry.
2. Sustain the momentum of our growth plan.
3. Capture a premium share of sponsorship revenues.
4. Maintain and improve our reputation for excellent promotional activities on

behalf of our sponsor sponsors.
5. Manage our resources and assets effectively.
6. Continuously reduce our costs of operation while achieving the highest

results.
Team employees must make a concerted effort to maintain the good will of all
potential sponsors and race industry professionals by:
• Setting high standards of performance and striving to exceed them.

• Maintaining a strong commitment to safety, quality and dependability.
• Dedicating ourselves to the principle that the success of <Team Name> and
its employees is a direct result of sponsor satisfaction both on and off the race
track.
• Ensuring that the company is a good place to work by respecting the dignity
of our people, encouraging suggestions and seeking to constantly improve
our working environments.
• Making sure sponsors' needs drive our whole organization through effective
reporting, financial planning and budget control.
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Company’s Competitive Advantages (Base these on the strategic plan above.

Keep in mind, in order to develop a consistent plan, everything must derive from
the strategic plan.)
The principal competitive factors of our team are high operating standards,
strong commitment to safety, sponsor satisfaction, employee focus and training,
effective sponsor reporting and financial planning and budget control.
High Operating Standards
<Team Name> is dedicated to the highest standards of safety in our sport

through both operations and marketing. As a team dedicated to on-track
success we realize that this success cannot happen without success in the
business and marketing processes that support the teams activities. At <Team
Name>, you have a first-rate partner.
Strong Commitment to Safety

<Team Name> provides the key to successful motor sports through a dedication
to safety and technology. From start to finish, <Team Name> is focused on
following all safety rules and regulations and going the extra mile to work on and
develop the highest safety standards of any team.
Sponsor Satisfaction
<Team Name> strives for complete satisfaction as a sponsor marketing vehicle.
We provide excellent event and hospitality management during all racing events
in which we participate. This enables our sponsors to concentrate on both
enjoyment and critical business issues while at the track and in their marketing
programs.
Employee Focus and Training

There is no learning curve with <Team Name>. Our experience and technical
expertise mean that we use time-tested and continuously improving workflow
schedules in our shop and on the track give us an edge over our competition.
We know how to perform because we have years of experience and the best
people in the industry. Our employees are dedicated, professionals and good
citizens. They are highly qualified in their areas of expertise, possessing a high
degree of educational excellence. In addition, we have trained them in areas
such as motor sports marketing, representing sponsors to the public and how to
present the team in a positive way.
Effective Sponsor Reporting

<Team Name> managers and drivers maintain a consistent program of results
and marketing reporting. Team sponsors are regularly kept abreast of racing
status and relevant issues. Sponsors receive timely communications before,
126
during and after competitive events. The result for the sponsor is up-to-date
information and effective marketing decision-making.
Financial Planning and Budget Control

<Team Name> offers "fixed-fee" sponsorship pricing so the sponsor knows the
cost of his/her involvement. Sponsors can reduce sponsorship costs by
customizing <Team Name>’s broad range of promotional and marketing
sponsorship services to their specific needs without costly waste.
Marketing Objectives
<Team Name>’s target sponsors include both new and incumbent motor sports
product and service providers, as well as other companies whose sponsorship
inventory and brands can benefit from exposure at the race track and television
sports coverage. We have set a sales goal for fiscal year 2005 to be $76M. For
fiscal year 2006, the goal is $ 100M.
A correct strategy in our industry must assume that the buyer positions the
sponsorship benefits. By focusing our sales efforts on the marketing goals of our
sponsors, we can successfully match our sponsorship proposal to their marketing
needs. Our success in this effort, however, must depend on the proper
exploitation of our strengths, both implicit and explicit. A carefully defined effort
in our direct sales, advertising and other contacts, including our every day
actions on behalf of our sponsors, will result in the correct blend of activity and
perception.
The <Team Name> Marketing Manager/VP is a well trained "solutions provider"

with the ability to accurately identify the potential sponsor's needs and offer
solutions from within the <Team Name> sponsorship inventory mix. <Team
Name> sales tools are designed to provide specific sponsorship service
information that will, throughout the sales process, bring the potential sponsor
through the 6X6 sponsorship inventory matrix building blocks (See illustration).
The selling process requires a focus on the potential sponsor’s business and
marketing objectives in order to identify the <Team Name> services most
capable of satisfying their needs. Through effective listening and questioning
with a prospect, recognition of implicit rather than explicit needs, and effective
communication of those needs to the potential sponsor, <Team Name> sales
professionals will be able to use "linked-selling" to expand our sponsorship
offerings to a prospect. By starting with any <Team Name> sponsorship service
and linking related needs to that sponsorship service, we can move the potential
sponsor from one suite of sponsorship services to another. In this way, the
<Team Name> sales professional is able to offer both individual sponsorship
service elements and a complete "sponsorship-in-a-box" to the potential sponsor.
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However, the sale at <Team Name> does not end with the potential sponsor
signing an agreement. The delivery of quality sponsorship management is the
key to our future success. We provide all <Team Name> employees with the
necessary financial, administrative, technical, training and management support
to ensure timely delivery of quality sponsorship services to the potential sponsor.
Our in-house team of motor sports experts is ready to respond quickly to the
potential sponsor’s needs as they arise. We have also developed effective
quality assurance programs to monitor and assist our people in providing the
highest quality of sponsorship service delivery at the lowest cost.
Current Situation
(Describe company’s current situation in its market)
Market Opportunity
(Describe the Market Opportunity – see below)
Current Situation - Sample
<Team Name> competes with other professional race team in the

______________ Series. Several of these teams are large corporate entities
possessing greater financial, technical and marketing resources.
In our assessment of the racing marketplace, we have evaluated trends that we

believe will have the most impact on our team’s success over the next few years.
The pace of technological development and investment in motor sports will
continue to grow. Trends for growth in our series will accelerate both
segmentation and convergence in the market as new demographics in terms of
fans enter the base and as new and unique sponsors and products begin to seek
the series following their competitors or striking out to test ROI. Moreover, while
the level of growth and capital investment in the domestic market will be
impressive, we anticipate an equally dramatic increase of international interest as
well.
Brief Competitor Issues
Sample: The 2004 the NASCAR points system changes have given many teams
the incentive to race toward the top ten for the majority of the season and will
give 10 teams a chance to win the championship toward the end. We want to be
one of those ten teams. In view of the fact that our team, under these rules
would have actually won the championship in 2003 means that there is a
tremendous opportunity for our sponsors to gain significant exposure in 2004.
Those sponsors who join our quest can gain significant exposure, not only at the
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end of the season, but through out the season as the media and fans watch our
progress to see if we can repeat what we did in 2003 and win the championship.
Market Opportunity - Sample
<Team Name>’s marketing strategies are driven by our platform for growth, the
versatility of our comprehensive sponsorship inventory and our reputation as a
solutions provider for our sponsors. <Team Name> 's quality services, event
management implementation, marketing design help us achieve economies of
scale in terms of delivery costs and will continue to attract sponsors in the years
to come.
Target Markets
<Team Name>’s targeted markets are defined in the categories that follow.
(In this section, you want to identify target market segments that might be
interested in getting involved in the series. Look at other sponsors for an
indication of industries where you might find suitable targets, competitors,
associates, related products, etc., where you might find companies not presently
involved.)
Example:
Existing Racing Sponsors and Their Industry Competitors in the

Telecommunications Industry
Regional Bell Operating Companies (RBOC), GTE, and other local exchange
carriers currently provide more than 95 percent of local telephone services in this
country. Due to price increases, stiff competition from new comers and regulatory
issues over which these companies fight in public, there is a strong need for
them to differentiate themselves with positive images and also to gain brand
awareness. Such competition is coming from wireless services, small local
service providers unaffiliated with the RBOCs, incumbent LECs, cable TV and
utility companies. However, the numbers tell the true story: CLECs account for
1.3% of the ILEC’s total revenue ($70 billion in 1997); CLECs’ share of the ILEC
market is 14%; and their share of access is 10%. Based on this market data,
robust competition does exist at this point.
The ILECs function as diversified communications companies in a multi-billion

dollar market place. They compete in a global marketplace offering local
telephone services, long-distance, wireless PCS, custom calling service, local
phone interconnections to interstate long-distance companies, operator services
and a host of high-speed data services and equipment.
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It is anticipated that the ILECs will continue to invest heavily in wireless and
interlata infrastructure. The combined capital expenditure for wide bandwidth
access and other sophisticated technologies will exceed $30 billion in 1999.
There remains a ”natural” fit between the <Team Name> sponsorship inventory
line and ILEC infrastructure expansion plans. They need new customers and we
race in their markets nationwide. The rate of change in capital investment and
technological change is impressive. We anticipate an equally dynamic increase
in infrastructure and technology expenditures in the international markets. They
need customers for their new infrastructure and communications capacities. Our
sponsorship inventory and sponsorship offerings will provide a tremendous
opportunity for top-line growth with these companies.
Examples of the potential sponsors in this market segment:
The seven original regional Bell operative companies

Ameritech
Bell Atlantic
BellSouth
NYNEX
Pacific Bell
Southwestern Bell
US WEST
In addition to the RBOCs, there are more than 100 other franchised local
telephone companies such as GTE and Southern New England Telephone
Company.
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<TEAM NAME> Sales Matrix
Promotions Logo Impressions
•Retail locations or corporate •Brand/Logo Identity Strategy

•Race track •Trailer/Racecars
•Tent •Uniforms
•Website •Shop
•Website
•In-car Cam
Hospitality Media
•Tickets •New Conference

•Gourmet cooking/meals •Press Releases
•Tent •Press package
•Suite •Newsletters
•Track rides •Interviews
•Tour/travel packages •Articles
Internet Cross-promotions
•Logo link to Web site •Liaison with other sponsors

•Frequent mention of Web site •Liaison with race series
•Sponsor link page •Cross-promotional product sales
•Sponsor profile on Web site •B2B lead development and liaison
•Product sales
•Lead development
•Promotions
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<Team Name> Sponsorship inventory Matrix represents the building blocks that
provide linkage in the sponsor's mind so we can offer and deliver comprehensive
sponsorship solutions and speed-to-market.
(Here you want to define your basic building blocks of sponsorship offerings.
You will use these offerings to present to your potential sponsors. For a fuller
discussion look at the chapter in this book called “The Sponsorship Sales Matrix.”
Look at the chart above and edit each offering so it contains those basic
sponsorship offerings your team would like to sell to sponsors. This will enable
you to further create the company infrastructure of people and equipment you will
need to develop an excellent set of services for your sponsors.)
Product/Offering Sample Form - Internet
When we sit down with a sponsor, we seek to develop the best sponsorship
offerings yielding the best results for our sponsors. We review all the important
issues in our sponsorship sales matrix and work with the sponsor to develop the
most effective strategy possible so that their investment comes back many times
over.
In addition, we work with the customer to craft a comprehensive features and

benefits package to ensure that the sponsor understands what they will be
getting for their investment.
Product Offering Sample
PRODUCT Internet
SUITE OF SERVICES Logo link to Web site

Sponsor link page
Product sales
Lead development
Promotions
MARKETS Regional, Midwest, Indiana
FEATURES Logo link to Web site
Sponsor link page
Product sales
Lead development
Promotions
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BENEFITS Logo link to Web site

Logo impressions to 65,000 visitors weekly
Communicate value of sponsor to team and value of
sponsor products to 65,000 visitors weekly
Sponsor link page
Drive traffic to sponsor web site
Create more logo impressions
Communicate positive message about sponsor, sponsor
value in market and good deeds done by sponsor
Product sales
Drive interest in the products from fans of race team
Lead development
Provide qualified leads to sponsor from loyal fans – convert
fan loyalty to sponsor loyalty
Promotions
Special pricing to team fans increases sponsor cash flow
and product sales
Free samples ordered from web site increase product
familiarity, logo impressions and product experience to
increase sales
CHANNELS Internet team web site
COMMUNICATIONS Internet Team Web Site
PRICING Minimal – web site updates and maintenance fees - included
in sponsorship cost
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(Develop a features and benefits chart for each sponsorship offering so you know
what benefits to stress in your discussions with the prospect. Features are
characteristics about the offering that enable you to discuss the offering.
Benefits are the results the sponsor can hope to attain. A Features and Benefits
statement goes like this: “Because of <Feature> you can <Benefit>.”)
Example: Features and Benefits Sample
Sponsorship inventory Feature - "Because of you can…"

<Team Name>’s…
Internet Global reach for sponsor Improve logo
logos and information impressions, inform
customers and gain new
business
State of the art web site Associate your team with
a proven winner
Web promotional Distribute sample
programs products to loyal fans and
web visitors
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Marketing and Sales Processes
Business
Development Marketing
• BDL • Competitive
(Business • Competitive Information Analyses
Development List) • Sponsorship Proposal • Sponsorship
• Weekly Activity
•
Information
Sponsorship Sales
Inventory
Reports Matrix (Offerings) • Leads Generation
• Sales Meetings • Market Research
<Team Name>’s business processes are organized to gain new sponsorship for
the team. Marketing people provide support and assistance to the Business
Development people in the form of weekly updates, lead generation, marketing
research, on-track support and the <TEAM NAME> web site to name a few. The
Business Development department leverages the support of Marketing in its daily
contacts with sponsors and prospects. The outcome is a smoothly functioning
unit where the result is larger than the input of both departments.
The marketing and sales processes at <Team Name> provide a unique balance
between the potential sponsor’s needs and <Team Name> marketing and
promotional capabilities. This combination of marketing and sales activities is
based on the three-phased process outlined below.
The Sales Cycle
Phase 1
- Inquiry/Research – learn all you can about the target sponsor, their
corporate philosophy and past and present sponsorship activities.
Develop a profile for the sponsor and ask critical questions that will enable
you to know what you are talking about when you make your formal
proposal. See “Introduction,” “Target Profiling” and “Timing” above. Use
the SPIN Selling approach.
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Phase 2
- Contact – identify key players, become acquainted with them personally,
ask them for assistance in presenting your proposal, ask them key
questions about their future marketing plans. This person must become
your advocate, your inside person who can help you knock down the
barriers. Take your time with this person and don’t move in for a quick
kill—it’ll never happen unless you are very lucky. Plan two, maybe even
three years, ahead (don’t tell them that). The key is to get an audience
when the time is appropriate for the prospect.
- Get the audience – after all that schmoozing and preparation, it is time to
make a proposal presentation. These are best done on premise or, if you
have a nice shop, at the shop with the driver and team present. Be
prepared and plan everything precisely. Don’t leave a leaf unturned and
make sure you put forth your absolute best foot. And be prepared to look
at this first presentation as just the beginning of a process that may take
several years. You may not fit their plans right now, so don’t consider it a
failure if you don’t get the sponsorship agreement this time. Keep asking
the SPIN questions and prepare the ground for the future, even if it is a
few years away.
- Make your presentation – If you can use a Powerpoint presentation and
an overhead projector, do so. Convert your proposal to this format so they
can think about the offer in the form of concise bullet points. Cover all the
marketing angles and use this as a brainstorming session to get the
prospect’s “wheels” spinning with ideas. Be as open and creative as
possible. If you have the ability to develop a Flash or Director
presentation, these software programs can create dynamic and flowing
presentations that make Powerpoint look like the horse and buggy. But if
you can’t, Powerpoint will work. Always give the customer a paper version
of the presentation to peruse and take with him/her. If you need help
there, we can help at http://www.insmkt.com/power.htm.
- Every deal needs to be closed and this is where the salespeople are
separated from the couch potatoes. This is where your selling instincts
and desire are crucial. Through out the sales process, always be closing
– use the trial close, ask if they are ready to work on the letter of intent or
sponsorship agreement. Another strategy is called the incremental close.
Identify concerns and issues and offer solutions and always ask, now that
you’ve covered the concern or issue if they agree to pursue the
sponsorship. Then move on to the next increment. Sooner or later, you
will get to the big close, the deal. Ask what it would take for them to go
ahead, what do you need to do, what can “we” (you and the sponsor) do
to improve the deal, make the sponsorship offerings stronger. One good
strategy is to always match your closing strategy and mood to the buyer’s
mood and needs. Never seem pushy or overbearing, be sensitive to how
he/she is acting, thinking, feelings. Above all, if you’ve got a hot prospect
and they are close, be patient. I know you need to race, but understand,
they don’t care about you and pushing them at this critical stage will kill
the deal. It is all about their needs to sell and promote products, logos,
136
brands. If you don’t understand where they are in their decision, or if they
seem to be stalling, take their temperature. Ask them how you are doing,
how’s the deal look. Are you looking good, bad, no deal?
- Persistence pays. If they have gotten this far, you can make the deal.
Don’t give up or get frustrated. Follow up every week or ever few days,
keep things moving forward. There is a saying in sales, the last one left
wins. Most major sales take between 3 to 10 follow ups, even 3 to 10
meetings. Just keep trying. Define your prospect as either “Hot” (very
serious), “Warm” (may take a little nudging or more time) and “Cool”
(interested but stalling or indecisive. If they are “Hot” call them every
week, keep trying trial or incremental closes, take them to lunch dinner,
the race track…keep them interested and keep trying. If they are “Warm”
keep in touch every other week or so. Feel them out, ask how you are
doing, what needs to be done to give them the sponsorship benefits you
offer. If they are “Cool” try to figure out how to make them “Hot” or just
keep regular touch and see how things are going.
- If the prospect seems to be stalling, don’t be afraid to ask what is the
cause of the delay. When is the decision to be made? What can you do
to help? Can you be there when the decision is made. If they say, call us
back in January, call them at least 1 or 2 weeks sooner so you can
determine if anything has changed before any competitors beat you to it.
- If you’ve gotten this far, congratulations. Now it is time to craft the basic
sponsorship agreement. Make sure you take decent notes or have a staff
member take notes for you. Get a basic idea of what the sponsor wants
and what he/she is expecting to pay. If you can have someone develop
the preliminary sponsorship letter of intent while the sponsor is there, so
much the better. If you can get him/her to sign it, even better.
Phase 3
- Now it is time to develop the sponsorship agreement. Keep in mind, the
active sponsor may have an idea of how the agreement should read and
may want to develop it for you based upon the ideas discussed in the
meeting. If so, great…but make sure you study it carefully, particularly
regarding their understanding of what you said you’d deliver and whether
you can actually deliver it for the price. It is also a good idea to have your
lawyer look over it before you sign the bottom line.
- Planning. Have a meeting with your staff and go over the agreement.
Make sure everyone knows what his/her job will be in making it work.
Have your “ducks in a row” because you want to make this work. Don’t
forget to congratulate everyone for their efforts in winning this sponsorship
and, well…have a party too (Invite the sponsor).
- Signing and sponsor planning meeting. Once you are comfortable that the
agreement is perfect and you are ready to sign and move forward, you
need to sit down with the sponsor and plan the launch of the sponsorship
relationship. Here you will go over your planned activities and
communicate to the sponsor your planned diligence in making them a
successful sponsor. Discuss announcing the sponsorship, press releases,
etc. Oh, don’t forget the check.
137
- Plan and hold periodic review meetings with the sponsor to go over
progress and success. This gives you a chance to correct any problems
in plan implementation and keep the sponsor in the loop. If you can
develop data on impressions, product sales, driver promotional activities
and on track performance, do so. This information is the best thing you
can do to keep the wheels turning, so to speak, to position yourself and
the sponsor for the end of the agreement and the beginning of a new,
perhaps even more lucrative agreement.
Client Relationship
- Manage the sponsor. Schmooze, schmooze, schmooze. Call the sponsor

after every event and review highlights of the event, results, marketing
success, hospitality success, etc. Develop a sponsor newsletter and
regular email reports – not just on your on-track results but marketing
success.
- Now that you are a successful marketer of sponsorship and promotional
packages, well how about upgrading equipment, new cars, maybe a
second or third driver, or moving up to a major league venue? What you
did well once, you can do well an unlimited number of times.
- Finally, you must evaluate your efforts. Have effective reporting
procedures in place so you can learn from your experiences and your
mistakes. Have frequent marketing and planning meetings. Develop an
implementation plan for each event and evaluate your success so you can
repeat that success next year. Just like you tweak a racecar for better
performance at each track, you must tweak your sponsorship promotional
activities so you can get better as time moves forward. Who knows, you
may be the next Chip Ganassi? Oh, don’t forget to send me the
hospitality and pit passes.
Sponsor Relationship Cycle

Sales Process Sales
•Pursuit Plan Proposal
•Sponsor Matching/Brainstorming
Racing End •Marketing Research
•Final Report •Sales Strategy Proposal
•Sponsor Relationship •Seek Out Proposal Guidelines Process/Presentation
•Pursuit Plan •Marketing People

•Post-Racing Analysis with
Relationship Management
•Business Development
Sponsor •Sponsorship Management People
•Documentation •Change Order Management •Team Manager

•Seek Out New Proposal •Sponsor Reporting •Successful Bid
Guidelines
•Sponsor Relationship
•Pursuit Plan
Racing •Quality Assurance Active
End •Seek Long-term Relationship Sponsor
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The Three Levels of <Team Name> Presentation
1. <Team Name> Theme Discriminators
(This level of presentation involves what you say to people about your team
regardless of the context or situation. <Team Name> theme, discriminators,
qualifiers and features and benefits should be used when discussing the team
with potential sponsors. These discriminators are bullet points consisting of
one or two sentences that identify the "<Team Name> difference." They
should be used like tools in a bag depending on the potential sponsor's
implicit needs as identified in discussion with the potential sponsor. They
should also be used in basic presentations and corporate overview literature
and brochures.)
The <TEAM NAME> Themes
Implicit Themes - Positioning
(There are certain quality-based characteristics of <Team Name> that define the
team on a subliminal level. We define these as "implicit themes." They are the
characteristics found in everything we do. They represent <Team Name>’s
corporate culture, our way of doing things, our "corporate personality." They
should shine through by implication in everything that is presented to the
business community.)
<TEAM NAME>'s implicit themes are (Samples):
Corporately
1. <Team Name> is the premier sponsorship service provider of in the

___________ racing series.
2. <Team Name>’s prices are worth the quality received. In other words,
premium cost = premium results.
3. <Team Name> labors over the details.
Through our people
1. <Team Name> is a company with great people of high integrity and values.
2. Our sponsors and business associates are our best friends.
3. Our people are our best asset.
139
Characteristics of <Team Name>
(A <Team Name> characteristic is a strong positive statement that positions the

team in the marketplace or which distinguishes its value in the marketplace.)
We have identified the following as good candidates for team positioning

statements:
1. Corporate entity organization

2. Provider of complete marketing solutions in our series
3. Provides single-source responsibility for all marketing programs
4. Experienced in motor sports marketing racing for over 20 years
5. Provides excellent marketing programs
6. Excellent reporting and ROI results
Explicit Themes
(In discussing <Team Name> with sponsors and the potential sponsors, your
employees must have a firm understanding of what the team does. This
understanding must be articulated in a statement that is best described as
<Team Name>’s theme.)
By analyzing these six characteristics, we can construct the theme:
<Team Name> is a top tier race team delivering complete sponsor marketing
solutions to companies and large organizations. Sponsorship services include
design and deployment of comprehensive sponsorship promotions, including
facilities and supporting systems. We provide single-source responsibility for
complex promotional programs linked to the excitement and fan interest of racing
events."
<Team Name> Theme Matrix
Brand / Targets Major Benefits Positioning Line

Sponsorship
service Offering
Sponsorship Automotive -Complete -We deliver
Sales Matrix Industry, Local sponsor complete
Offerings and Regional marketing sponsorship
Companies, solutions marketing
Internet, Telecom, -Single-source programs /
Consumer Goods, responsibility systems
Service -Strong team / -We deliver ROI
Companies organization -We deliver a
-Experience "sponsorship-in-a-
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-Reliable service box."

delivery for
sponsors
Qualifiers
(A qualifier is a statement made about <Team Name> that ensures a sponsor

that the team can deliver what it promises.)
<TEAM NAME>'s 10 Qualifiers
1. <Team Name> is a global racing organization.

2. <Team Name> provides automated sponsorship management.
3. <Team Name> implements strict quality control and quality assurance
programs.
4. <Team Name> has worked with a variety of technologies.
5. <Team Name> has a unique organizational approach to marketing
deployment.
6. <Team Name> provides financial and budget controls.
7. <Team Name> has years of experience in managing vendor relations on
behalf of sponsors.
8. <Team Name>’s racing control office ensures quality and effective
communication.
9. <Team Name> provides complete documentation and training.
10. <Team Name>‘s people are skilled professionals with the technical expertise
to handle sponsors' needs.
*Marketing/Sponsor Search Job Descriptions
Marketing Manager/VP
Note: The V.P., Marketing has the responsibility of overseeing the entire
Marketing effort. His role is to provide guidance, direction, and advice as well as
determine the policies and procedures for marketing processes. Along with the
Team Manager, he/she manages the marketing effort and its critical duties.
Along with this responsibility, he/she has the specific task of ensuring the delivery
of top quality proposals to prospective sponsors.
Every contact with people inside and outside <Team Name> presents an
opportunity to maximize awareness of the team. These opportunities should be
analyzed and methods developed so we can get the most out of each contact for
the least expense. See the "Brand Identity Contacts Matrix" that can be used to
analyze and implement a brand identity program.
141
The Marketing Manager/VP is responsible for opening the door for <Team
Name> with potential new sponsors. He/she shall work with the market research
he has developed to identify viable pursuit candidates and Proposal
opportunities.
High quality press releases sent to targeted media lists are critical in gaining
respect and attention in the sports world. New <Team Name> racing,
sponsorship inventory offerings and other news items are worthy of attention.
<Team Name> is aggressive in informing the industry of its accomplishments.
1. Proposal Process
The "<Team Name> Proposal Process" ensures that the team presents a
well-written, esthetically pleasing and to the point document to the
prospective sponsor. This procedure enables <Team Name> to stand out
from the crowd of other bidders and gives the team a valuable tool when
presenting to the sponsor.
• Function as the Marketing Team Leader (or delegate that responsibility when
necessary) and assume the leadership role
• Develop and define the proposal sponsorship inventory
• Ensure the pursuit plan is followed during each contact and proposal
• Develop and plan the sponsorship offering inventory
• Communicate and negotiate all issues of concern with each proposal
• Develop effective implementation plans and teams for sponsorship offerings
• Ensure top quality proposals are produced and delivered on time
• Assist in developing and implementing strategic marketing objectives of
<Team Name> International.
• Manage marketing budget
• Manage team image
• Negotiate contract terms with outside agencies and suppliers
• Achieve satisfactory profit/loss ratio and market share in relation to preset
standards and industry and economic trends
• Implement lead development strategies and processes
• Plan, promote and execute sales meetings and community and hospitality
events
• Prepare and distribute Telecom Weekly and Monthly Reports
• Find opportunities using Internet news and RFP and procurement postings -
convert findings into leads
• Read newspapers, business journals and trade publications for new business
openings and corporate announcements
• Identify and achieve a connection between marketing strategies and sales
strategies
• Quickly respond to hot leads
142
Marketing Process
• Ensure control of marketing results and take appropriate corrective action if

necessary
• Establish and maintain relationships with industry leaders and key community
and other strategic partners
• Resolve conflicts and facilitate changes in structure of marketing team to
ensure swift response to marketing problems and opportunities
• Monitor and maintain consistent corporate image
• Monitor competitive sponsorship inventory and marketing activities
• Identifies market potential, pricing and marketing strategies
• Defines promotional activities and publicity for sponsorship inventory
• Develops sponsorship inventory strategies
• Manages resources to execute assigned programs
• Coordinates program planning with the potential sponsor to ensure
identification of appropriate manufacturing schedules, goals, design criteria,
costs and similar considerations
• Manages pre-contract liaison with the potential sponsor
• Coordinates details of program within the organization
• Reviews changes in scope and communicates to appropriate management
• Coordinates sponsorship inventory introduction and market exploitation
• Identify brand opportunities
• Maximize brand identity opportunities by developing and implementing a
brand identity program for each opportunity
• Manage the costs associated with branding to obtain most value per dollar
spent
• Monitor and analyze the effectiveness of brand identity programs
• Develop and implement a brand identity program for each sponsorship
inventory (consistent with sponsorship inventory business and marketing
plan)
• Develop and implement a brand identity program and sponsorship inventory
positioning for each new sponsorship
• Manage the marketing program for each new sponsorship
• Establish a marketing and public relations advisory team to meet regularly
• Train employees to promote referrals
• Create a press kit and keep it current
• Take an editor or journalist to lunch
• Have publicity photographs taken and use in press kits and other mailers
• Review trade magazines for PR opportunities
• Develop press releases for recent racing successes and other newsworthy
items
• Update media list often and develop and maintain a schedule of regular
mailings
• Obtain opportunities for radio and television appearances by top <TEAM
NAME> execs
143
• Create a TV show and sell it to local TV stations

• Seek out cooperative mailing and promotional opportunities with <Team
Name> sponsors and strategic partners
• Promote <Team Name> in cooperative campaigns with sponsors and
strategic partners
2. Marketing Research
Dedicated marketing research efforts ensure that <TEAM NAME> is

immediately aware of up-to-the-minute market information. An aggressive
program for identifying new entrants into the market and newly issued
Sponsorship Proposal opportunities is a daily practice. Opportunities are
immediately brought to the attention of the Director of Marketing.
• Conduct marketing research on current and new sponsorship opportunities

concepts and provide feedback for future sponsorship inventory development
• Guide preparation of marketing activity reports and present to team
management
• Analyze marketing programs and adjust strategies to increase effectiveness
(See Brand Identity Matrix)
• Collect competitors' ads and literature; study for information about strategy,
sponsorship inventory features and benefits – report findings to team
management
• Maintain the potential sponsor database
• Solicit sponsors for information on improving sponsorship services
• Develop " the sponsor Satisfaction Survey" and distribute to sponsors
• Ask former sponsors why they left
• Identify new markets
• Identify new sponsorship inventory ideas
• Identify new opportunities inventory for new markets
• Develop business plans and market strategies for new sponsorship inventory
• Join racing-related list-serves
• Subscribe to Internet related news groups for motor sports and marketing
• Develop and test new mailing lists
• Create a direct mail list of "hot prospects"
• Develop marketing reports and analyses
• Develop reports on marketing research results
• Data collection and input
• Perform targeted Internet research for proposal request notices
3. Sales Literature/Hero Cards
<Team Name> sales literature is designed to provide the tools necessary for
presenting <Team Name> to the sponsorship prospect as a sports team that
144
can meet their needs. Sales literature is also used for mailings and trade
show handout.
• Include testimonials from existing sponsors in your literature

• Develop brochures and promotional materials for new sponsorship inventory
and/or markets
• Develop mailing and promotional campaigns using sales literature and
promotional materials
4. Proposal Presentation
The <Team Name> Sponsorship Proposal presentation is designed to

present <Team Name>’s sponsorship inventory to potential sponsors in a
succinct and well-organized manner. It focuses on the team capabilities and
deliverables giving the sponsor a clear view of our ability to meet their specific
needs.
5. Pursuit Strategies
<TEAM NAME>'s pursuit strategies include developing an account plan, an

action plan, identifying opportunities and potential business revenues.
• Keep regular contact with present and past sponsors

• Return phone calls promptly
• Send hand-written "Thank you" notes
• Send birthday cards and appropriate seasonal greetings
• Photocopy interesting articles and send to sponsors and the potential
sponsors with "FYI" note
• Send a book or other appropriate item to a sponsor with handwritten note
• Give sales literature to contacts and friends
• Start every day with two cold phone calls
• Remind sponsors of the sponsorship inventory and sponsorship services they
are not using. Bridge from sponsorship inventory we are providing
• Display sponsorship inventory and sponsorship service samples in office or
conference room
• Call and/or send mail to former sponsors trying to reactivate them
• Stay alert to trends that might impact your target market, sponsorship
inventory or promotion strategy
• Read market research strategies
• Learn how to bridge from explicit needs to implicit needs - ask questions
6. Implementation, Delivery and Selling Over Time
The sale at <Team Name> begins when the sponsor says, "Yes." Sponsorship
services and program delivery are the keys to obtaining repeat business. A
145
major number of new opportunities come from referrals made by satisfied

sponsors. The <Team Name> sales executive remains active with existing
sponsors, reporting regularly on racing status, dealing with concerns and
managing the relationship over time.
Team Identity Contacts
(This section allows you to plan and manage your Team Identity for your local
community, other businesses and sponsors. It is a table where you can itemize
the various contacts the team makes, what your targets are for those contacts
and how you will make an impression on that contact – impression means mental
impression that people will remember about the team. It is an excellent tool
because, at the end of the year, you can ask yourself which contacts benefited
the team and how you might want to increase or decrease each type of contact.
On this chart, the estimated frequency would mean the number of times you
made an impression on a specific number of individuals. So that if you raced,
let’s make an example, a 200 lap race and there were 70,000 people in the
stands, you made 14 million impressions during the race alone.)
146
Contact Targets Contact Impression Estimated

Opportunity Frequency
1. Initial Automotive, <Team Name> name, 1-5 per
Sponsorship Regional, Local, theme, discriminators contact
Contact - Phone National, Known and qualifiers
Contact Sponsors, Non-
sponsors that would
benefit – Special
Targets that you
have identified
2. Initial Sales Call Automotive, <Team Name> name, # people in
Regional, Local, Sponsorship Proposal, meeting
National, Known brochure, Powerpoint
Sponsors, Non- Presentation
sponsors that would
benefit – Special
Targets that you
have identified
3. Trade Shows Automotive, <Team Name> name, , 75 - 100 +
Regional, Local, Presentation, T-shirts, per show
National, Known pens, hats, team/driver
Sponsors, Non- autographed cards, etc.
sponsors that would as needed
benefit – Special
Targets that you
have identified
4. Web Site Automotive, Web Site, logo, <Team 2000 per
Regional, Local, Name> Theme, week
National, Known discriminators,
Sponsors, Non- qualifiers, and
sponsors that would sponsorship services,
benefit – Special sponsor logos,
Targets that you promotions
have identified, fans
and customers of
sponsors
5. Internet Automotive, Banner Exchanges, 10,000 per
Advertising Regional, Local, <Team Name> logo, Month
National, Known theme, discriminators
Sponsors, Non- and qualifiers
sponsors that would
benefit – Special
Targets that you
147
and customers of
sponsors
6. Magazine Automotive, Display Ads, <Team 50,000 per
Advertising Regional, Local, Name> logo, theme, Month
National, Known discriminators and
Sponsors, Non- qualifiers
sponsors that would
benefit – Special
Targets that you
and customers of
sponsors
7. Racing Track Automotive, <Team Name> sign, 200,000 per
Regional, Local, logo, golf shirt, sponsor event
National, Known logos and other
Sponsors, Non- promotions
sponsors that would
benefit – Special
Targets that you
and customers of
sponsors
8. Uniforms Automotive, <Team Name> logo 50,000 per
Regional, Local, event
National, Known
Sponsors, Non-
sponsors that would
benefit – Special
Targets that you
and customers of
sponsors
9. Sponsorship / Automotive, <Team Name> logo, 100 per event
Team Brochure Regional, Local, Theme, Discriminators
National, Known and Qualifiers
Sponsors, Non-
sponsors that would
benefit – Special
Targets that you
have identified
10. Sr. Staff / Driver Automotive, <Team Name> logo, 20 – 100 per
Public Regional, Local, Theme, Discriminators event
Appearances National, Known and Qualifiers,
Sponsors, Non- Sponsorship Proposal
sponsors that would and Brochure
benefit – Special
148
Targets that you

and customers of
sponsors
11. Sponsor Racing Existing and <Team Name> logo, 2,000 per
Reporting Prospective Theme, and qualifiers Year
Sponsors
12. Proposal Automotive, <Team Name> logo, 10-15 per
Presentation Regional, Local, Theme, Discriminators, Week
National, Known Qualifiers and
Sponsors, Non- Sponsorship services
sponsors that would
benefit – Special
Targets that you
and customers of
sponsors
13. The Sales Automotive, <Team Name> logo, 1 or more per
Process - Regional, Local, Theme, Discriminators, meeting
Identify Sponsor National, Known Qualifiers, Corporate
Needs Sponsors, Non- Profile Brochure,
sponsors that would Sponsorship services
benefit – Special as needed
Targets that you
and customers of
sponsors
Recognition of National, Known Qualifiers, Corporate
Needs Sponsors, Non- Profile Brochure,
sponsors that would Sponsorship services
benefit – Special as needed
Targets that you
and customers of
sponsors
Process - Linked Regional, Local, Theme, Discriminators, meeting
Sales National, Known Qualifiers, Corporate
Sponsors, Non- Profile Brochure,
sponsors that would <TEAM NAME>
benefit – Special Presentation,
Targets that you Sponsorship services
and customers of
149
sponsors
Decision to Buy National, Known Qualifiers, Corporate
Sponsors, Non- Profile Brochure,
sponsors that would <Team Name>
have identified, fans Slick Sheets as
and customers of needed, Shirts, Pens,
sponsors etc., as needed
Process - Regional, Local, Theme, Discriminators, meeting, 20 -
Leverage the National, Known Qualifiers, Corporate 50 on site
Relationship Sponsors, Non- Profile Brochure,
sponsors that would <Team Name>
have identified, fans Slick Sheets as
and customers of needed, Shirts, Pens,
sponsors etc., <Team Name>
signs as needed
Sales and Promotion Calendar
(This is a simple way of planning your activities and getting them onto one sheet
that you can put up somewhere such as on a white board calendar. It can help
you know what your marketing and sponsor search priorities are month to month.
Make sure you use it to plan only those “macro-level” activities that you should
be doing – remember you should always be looking for sponsorship)
January
February
March
April
May
• Planning meeting for next year’s sponsor search
• SWOT Analysis
• Develop/Refine Target List
150
June
July
August
September
October
November
December
Annual Marketing Budget
(This form is designed to help you plan your budget for sponsorship search and
team recognition. It will help you keep within your goals)
Expenditures Quarter Quarter 2 Quarter 3 Quarter 4 Total

1
Advertising
-Magazine
-Trade Directory
Promotions
-Calendars
-Giveaways
-Trade Shows
-Hospitality
Printed Material
Brochures
Sponsorship
Proposal
Consulting
Posters
Newsletters
Thank
You/Holiday
Cards
Community
Advertising/Donati
151
ons
-Programs
-Sponsorships
Organizational
Memberships
Donations
-Fundraisers
-Special Events
Other Marketing
Expenses
Measurement of Success
(After you’ve done all this, you need to know how to measure your success. How
much did you decide that you needed at the beginning of the year and how much
did you obtain? What was your percent effective? I like to set a goal for myself
each year and put it up on the wall to remind me of how close I am to the goal.
Some use a thermometer-like chart that shows their goal, how much they’ve
attained to date and the percent effective. Keep in mind, your goal has to be
reached before you start racing next year, so plan your activities accordingly.)
152
$6,000,000
$5,000,000
$4,000,000
Dollars
$3,000,000
Total
$2,000,000
$1,000,000
$0
v
n
n
r
c
g
p
al
Ju
t
r
b
y
Ap
Ma
Oc
No
Ja
Ju
Au
Se
De
Fe
Ma
Go
153
Appendix A. Resources
Motor sport and Sport Marketing Books
New Century Marketing Concepts combs the world and the World Wide Web to
find products useful for the sports team. Whether you are a racer or a
professional sports team, these products can help you run your business, find the
financing you need or be competitive in your sport.
To find out more, email sales@insmkt.com or log on to

http://www.insmkt.com/fund.htm
TEAM MARKETING REPORT
To see these products online go to http://www.insmkt.com/tmrprod.htm
For 2004 Sports Sponsor FactBook go to http://www.insmkt.com/ssf.htm
Now Available Up-to-date names and numbers for thousands of decision makers
in all areas of sports marketing.
For 2004 Sports Sponsor FactBook CD-Rom disk go to http://www.insmkt-

com/ssfdisk.htm
Available Now! The interactive digital version of the 2003 Sports Sponsor
FactBook, available for both Windows and Macintosh computers.
For Motorsport Sponsor FactBook go to http://www.insmkt.com/msfb.htm
Up-to-date names and numbers for thousands of decision makers in all areas of
motorsports marketing.
For Great Sports Promotion Ideas Volume I go to

http://www.insmkt.com/gspi.htm
For a mere ten cents per idea, you'll get hundreds of proven ways to create
excitement-and increase revenue-for your property.
For Great Sports Promotion Ideas Volume 2 go to

http://wwwjnsmkt.com/gspi2.htm
Hundreds of proven revenue-generating sports promotion ideas.
For 2003 Inside the Ownership of Professional Sports go to

http://wwwjnsmkt.com/ownership.htm
154
Available Now! The most complete collection of pro sports ownership and
financial information available anywhere.
For Team Marketing Report Newsletter go to

http://www.insmktcom/tmrnewsltr.htm
The Source for Successful Sports Marketing Ideas
For Complete Sports Leases on CD-Rom go to

http://www.insmkt.com/sportsleases.htm
Over 110 complete sports leases on three searchable CD-ROMs, including 76

major league agreements and 35 minor league agreements!
For Naming Rights Deals go to http://www.insmkt.com/nrd.htm
Updated to include deals through Spring 2001! Available now! A complete report
on the financial, marketing and legal aspects of naming rights agreements.
For Legal Issues in Sports Sponsorship go to http://www.insmkt.com/legal.htm
Legal Issues in Sports Sponsorship covers important legal issues sports

executives face in today's sponsorship marketplace.
For Team Marketing Report Hall of Fame go to http://www.insmkt.com/fame.htm
To celebrate 13 years of reporting innovative, revenue-generating ideas for

sports marketers worldwide, the flail of Fame is an electronic, searchable
collection of all 13 volumes ... 156 issues and more than 1,500 pages stocked full
with thousands of relevant stories and proven ideas that will lead to increased
revenues.
For Sports Employment Guide go to http://www.insmkt.com/employ.htm
Team Marketing Report's Sports Employment Guide is the ultimate resource for
students trying to secure positions in the sports industry and for veteran
executives looking to relocate to a new area.
For Interactive Sports Strategies go to http://www.insmkt.com/strats.htm
90 percent of all online ventures fail and sports teams are not immune to this.
Interactive Sports Strategies is a guidebook for developing revenue-generating
business plans for sports properties on the Internet.
For Marketing Outrageously go to http://www.insmkt.com/marketing.htm

155
Looking for ways to increase your sales by 50%, 75%, 100+% from one of the
country's top sports marketers? Continuing from his best-selling fee to the
Eskimos book, former New Jersey Nets President Jon Spoelstra explains the
immense revenue-generating potential of outrageous marketing concepts.
For Sports Advertising Process go to http://www.insmkt.com/sportsad.htm
For Sponsors: How to Get One, How to Keep One by Nina Murphy go to
http://www.insmkt.com/money4.btm
To learn more about New Century Marketing Concepts Sports Marketing

Services go to http://www.insmkt.com/fund.htm
How to Write a Sponsorship Proposal: http://www.insmkt.com/money.htm.

156
Appendix B. Demographics
Being involved in motor sports sponsorship has to be a good decision. That
involvement should appeal to the people who love racing. It should encourage
them to do business with the companies who sponsor events or teams. The
sponsor must have a product that appeals to people who follow races. So the
first issue in motor sports marketing is demographics.
Who is the race fan? What is he/she like, how much does he/she make, where
does he/she live, and how does the race fan spend his/her money? If you know
your own company demographics, then it is easy to match those demographics
to the statistics that identify the race fan and TV viewer of racing. Let's take a
look at the demographics of race fans. Below, you will find some charts on
Championship Auto Racing Teams (CART) and NASCAR describing their race
fans.
157
Indy Racing League/CART

158
NASCAR
Demographics
Male/Female Ratio
60% MALE
40% FEMALE
INCOME U.S POP NASCAR FANS INDEX

50 – 75,000 18% 22% 122
75 – 100,000 12% 12% 100
100,000+ 9% 8% 89
AGE U.S POP NASCAR FANS INDEX

18 - 34 32% 32% 100
35 - 44 21% 26% 124
45 - 54 19% 19% 100
REGION U.S POP NASCAR FANS INDEX

NORTHEAST 32% 20% 100
MIDWEST 21% 24% 104
159
SOUTH 19% 38% 109

WEST 21% 19% 90
Attendance
13 MILLION FANS
ATTENDED NASCAR’S FOUR NATIONAL RACING SERIES
IN 2001
17 OF 20 HIGHEST ATTENDED
SPORTING
EVENTS IN THE U.S. ANNUALLY ARE NASCAR EVENTS
THE 2002 SCHEDULE

INCLUDES 2,200 SANCTIONED NASCAR EVENTS
ELEVEN NASCAR TRACKS

SEAT MORE THAN 100,000 FANS
Merchandising
PERCENTAGE OF NASCAR FANS WHO AGREED WITH THE

FOLLOWING STATEMENTS
89% “When I see a NASCAR logo on something, I know it
will be a quality product.”
82% “NASCAR related products are always a good value
for the money”
72% “If I see a NASCAR logo on something, I am much
more likely to buy it than I am to buy a similar
product that is not NASCAR related.”
72% “I buy NASCAR related products because I am a fan
of a specific driver.”
Ratings
Time Spent Following NASCAR (Per Week)

(TV, Print, Radio and Internet)
FANS 2001 2000 % CHANGE
HARDCORE FANS 8.6 HRS. 6.0 HRS. +43%
CASUAL FANS 3.1 HRS. 2.4 HRS. +29%
NASCAR WINSTON CUP TV VIEWER DEMOGRAPHICS

160
AGE 2001 2000 % CHANGE

18+ 6,833,000 4,899,000 +38%
18 – 34 1,570,000 1,139,000 +39%
18 - 49 4,183,000 2,978,000 +40%
These charts will give you a general idea of current racing demographics for these
popular forms of racing today. You can obtain specific demographic information for a
particular series from the sanctioning body. The important question is how do your
customer demographics stack up against racing demographics? If you find a good match,
then you could benefit from motor sports sponsorship of some type.
However, do not be fooled if the demographics do not match. Many companies have been
very successful using motor sports to appeal to the spouses of race fans. Even though
men make up a majority of race fans, many men bring their wives or girl friends to the
races. Some females are bigger fans then many men. Companies like Tide, the Family
Channel and many others have successfully used motor sports to appeal to wives and
families. Others have used racing just to let the world know they exist or to develop
camaraderie and a winning attitude among their employees. The appeal of auto racing is
universal.

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1

The Fundamentals of the Sponsor

By Robert Villegas, Jr.

Copyright 2004 New Century Marketing Concepts

The Fundamentals of the Sponsor

by Robert Villegas, Jr.

The Fundamentals of the Sponsor Search

Chapter 1. What is Sponsorship?

Indeed, there is great interest in racing nationally and internationally. Television

Let me quote from the USAC FF2000 Media Guide:

• Drivers support sponsors by wearing brand or corporate apparel at public

• Products can be showcased at the track through hospitality functions and

• Cross marketing programs between several corporate sponsors present

• In-store product displays using a racing theme coupled with a driver

A Race Team is a business made up of car owners, mechanics, drivers and

Types of sports sponsorship activities -

Advertiser: included in a printed game program and/or a team or league media

Team Sponsor: sponsor of a motor sports or cycling team

Racing teams, in general, have three basic types of sponsors:

2) Secondary level sponsors purchase secondary status on racecar and team

"There is a famous story that circulates in the Marketing Department at Great

What do these companies have in common?

Brand or logo exposure such as that found on billboards, banners, display

The psychology of developing product impressions on the minds of consumers is

One of the most inexpensive ways to develop sign impressions is to sponsor a

me some product, I need to be entertained at the highest level.... How about

One company I am aware of monitors the growth in business from customers

In addition, the racetrack is a great way to meet other company executives in

Generally, a large or medium sized company will go through a long process in

At this point, it is a good idea to develop an inventory of promotional programs

1. To appeal to your customers and potential customers-to increase business.

3. To enjoy watching and participating in the success of your sports personality.

Here are some suggestions on how to maximize your investment.

• Develop a "Fantasy Team Member" competition where the winner has a

• Develop additional signage opportunities at tracks, retail locations, etc., where

• Create a sponsor Booster Club for additional hospitality and promotional

• Create a cost-effective literacy campaign or other charity program using the

• Develop cross-promotional campaigns with retail extensions and suppliers.

• Set up product sampling opportunities at racetracks and other events.

• Develop Rent-a-Tent parties at the track for product displays.

• Execute Scratch-Off Card Promotions.

• Pursue Event sponsorship for the sponsors or supplier/s.

• Demographics - Do your demographics match the demographics of motor

Enhance and improve your existing marketing plan

• Review the plan

o Develop programs and promotions

o Determine additional budget/s

• Implement new programs and promotions

• What will you do?

• How will you do it?

• Who will be responsible?

• How will you measure results?

• Who will report when?

Sponsorship that pays

• Contests and awards

Show Me the Money

There are other opportunities, such as offering contingency awards or prize

When market share increases as a result of a specific initiative, you want to

Without such an assessment, you have no way of knowing which elements of

Motor sports sponsorship can be a rewarding way to become involved in your

Chapter 2. The Sponsorship Sales Matrix

Developing an effective sponsorship proposal can be a daunting task, especially

The Sponsorship Sales Matrix presented in this document can also be an

Sponsorship Sales Matrix