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Tuesday, June 21, 2011

How to Handle Sponsorships

Sponsorship, especially on exchange deal is one marketing tool that is, in my opinion, the most cost-effective.

Sponsorship asked from restaurants have better retention in people's minds rather than advertisements. Sponsorships usually have the following:

  • Sponsorship requests come from company's with a targeted audience, which if matched with yours, will be a good activity.
  • Sponsorships allow you to do other things on-premise or during the event like flyering, streamer display, inclusion in tri-media, printed materials and online promotions.
  • Exchange deals for restaurants gives the customers try the food. The cost will also be lesser for restaurants because of the added profit margin on food.
If you get a letter for sponsorship, review it based on the following:
  • Are the people in this event or activity same as my target market?
  • Is it still in my budget?
  • Will my name be seen among all the other sponsors?
  • What other activities am I entitled to?
  • Will signing up for the sponsorship bring good mileage for my restaurant?
  • Is the event aligned with the company's values and principles?
Admittedly, there will be sponsorships that will be beyond your need. Example, there might be a great artist coming to Manila and you are located in another city. You may be able to afford it but being based in another city, the event might not be a good activity for you.

There will also be activities that might be congruent with your thrust or company principles. Example, you are a family restaurant and the event is for a bikini open contest. Great event but not in tandem with your values.

If you decide and if the requesting party or organizer agrees, an exchange deal is the best arrangement for restaurants. Exchange deals can be partial or full barter deals. Partial meaning you pay part in cash and part in services or product. Remember to compute the full or partial barter based on your selling or published price not on your food cost. This way, you save by actually jsut spending for food cost. There might be arrangements for discounts or gift certificates. Compute all these based on your selling price.

Other things to check:
LOGO. Make sure your logo is placed properly.
COMPANY NAME. Your company name should be spelled correctly. Sometimes, it is better to use your company name together with your logo to build your brand and at the same time, identify your company properly.
POSTERS OR STREAMERS. Ask to be able to place your streamers in the venue or to distribute flyers.

Sponsorships are great! Do not instantly shun just about any letter that comes your way. It is a great way to spread the word about your place.

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