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On-site Brand Activity Segmentation
Many marketers make a fatal error when they evaluate a sponsorship opportunity before deciding to make an investment. The marketer looks at the property's fan demographics, and if the profile of the average fan matches that of the company's target demo, the marketer is more likely to invest in the sponsorship. The problem is that the property's fans don't fall into one demographic pile. What we refer to as "umbrella targeting" may result in a lower return on the sponsor's investment, or worse, damage to the sponsor's brand.
Effectively segmenting brand activities does not mean providing one's best customers with pro-am spots at the golf tour stop title sponsored by one's company. That is a customer activity. What is does mean is targeting different groups with messages and activities specific to different products and services. In some cases, on-site segmentation is easier than in others.
For example, due to the seating layout at a horse track, a commercial and consumer equipment sponsor of a thoroughbred racing league can identify groups on-site for targeted product messages. The sponsor can target fans in the picnic area and grandstand with lawn and garden equipment demonstrations, parts coupon distribution, and giveaway items. Fans in upscale dining areas, who may own larger estates, would receive product videos and financing information. And finally, occupants of the owners' boxes, who also own large horse farms and use heavier equipment, might be visited before racing begins by a relationship manager.
For a financial services sponsor of a major pro sports team, segmenting brand activities may prove to be more challenging. Frequently, financial services sponsors are provided with signage, tickets, ATM placement and media as part of their sponsorship packages.
Activation may be limited to player appearances at bank branches and a credit-card application kiosk on the concourse. Sign up and get a free t-shirt. If the team agrees to share fan demographics such as household income (season ticket holders must agree to provide for distribution), the sponsor's brokerage arm or private client group can efficiently provide activities such as on-site investment seminars and analyst report distribution. And why not offer exclusive hospitality areas for corporate suite holders to meet with the M&A group or investment-banking unit?
Sponsors should be even more careful not to alienate consumers through umbrella brand or product messaging. An automobile sponsor may want to display its newest luxury car in the arena lobby. The fan who can afford only the lowest priced seat may react positively and aspire to purchase such a car down the road. However, he won't be exposed to cars in his price range. Even worse, that fan may think that the sponsor is completely out of touch with his reality and may decide to never consider the sponsor's lower-priced models.
The result of on-site segmentation is a more personalized brand experience for the fan and an effective marketing activity for the sponsor. It should be noted that properties that take a service-oriented approach, and actively assist sponsors in identifying unique groups among their fan bases, would likely see higher sponsor renewal rates.
