Up until a few years ago, it was not uncommon for a company to sign a sports sponsorship as a result of a particular passion of one of their senior executives. As the price of entry has risen, those cases have become the exception and not the rule. In today's competitive marketing climate, companies use sponsorships in order to make a meaningful connection to their target audience.

Sponsorships are another tool companies have to help them achieve their marketing goals. Sponsorships need to fit into an integrated marketing plan that may also
include advertising, public relations, direct marketing, the Internet, etc.

That said, sponsorships can achieve many different goals, and it's important for companies to identify exactly how they plan on using them. Will the primary goal be to drive traffic? To increase consumer sales or business sales? To strengthen brand awareness? To enhance employee morale? More often than not, the goal is a combination of several of these and more.

Once the goals are clear, and the right property is identified, there are a number of things that can be done to make this sponsorship a true marketing asset. Here are a few:

1. Negotiate Based on Need. Negotiating isn't solely about offers and counters and agreeing on a price somewhere in the middle. Most sponsorship contracts start out containing similar rights and benefits. If you identify how your company will leverage this particular property in advance, you can negotiate for more of the assets you need and less of those you don't, and this will directly impact the cost. If, for instance, entertaining clients isn't important, don't pay for extra luxury suites. If you're going to use the property in multiple ad campaigns, then negotiate for additional production days. It is wise to examine these variables before the deal is signed. Otherwise, you will end up paying for something additional during the term of your agreement or underutilizing something you paid for.

2. Establish Benchmarks. You've identified a sponsorship that's going to help you achieve specific objectives. Now you need to establish benchmarks in these areas. With sponsorship costs continuing to rise across the board, accountability is critical. Establishing accurate benchmarks is the first step to effective measurement. Often, this can be done with existing information (sales data, customer satisfaction measures, brand awareness, etc.).

3. Educate to Build Momentum. Sponsorships are exciting because they allow you to tap into the passions of your target audience. But you can't do it alone. Sponsorships are usually most successful when everyone involved in achieving the business goals of the company (i.e. employees, agencies, marketing partners, retailers) genuinely embraces them. So spend time educating these key audiences on the specific assets you have and how you plan on using them. Engage them in the sponsorship and let them help you make it a success.

4. Activate. Now that you have the support of others in your organization, it's time to make the sponsorship work. You've clearly identified your objectives and negotiated for the assets you need. Now put them to work. Use the sponsorship wherever it's appropriate - in trade advertising, consumer promotions, employee incentives, etc... The sponsorship motto for the future will be, "Sponsor less, activate more." In other words, buy the minimum amount of rights you need and leverage them as much as possible.

5. Measure, Measure, Measure. If it's not measurable, it's not truly successful. There is no standard for measuring ROI in sponsorships, and this means that measurement can easily be overlooked. Don't let it. Remember, you established benchmarks before getting started. Now follow through to determine how far the needle has moved.

Of course, every company is different. More than anything know what you're getting into before you get into it. Done right, sponsorship marketing can be an effective marketing tool, a powerful brand enhancement and a rallying cry for an entire company.