A buyer will purchase your product or service only if he knows about your product or company. Marketing involves all those actions and mediums through which a company tries to persuade its target audience to make a purchase. Marketing is extremely useful for a business as it creates awareness regarding a company or brand without which no one will spend on the offering done by the company.
Live marketing is an ultimate experience, offering easy and direct interaction between a company and its potential customers. As SMEs usually have a limited marketing budget, it is believed by many people that sponsorships may not work effectively or will fail to serve the desired results to the SMEs. Though it’s just the other way round. Sponsorship is not something associated only with global brands, it is an all-good marketing tool for SMEs as well. Sponsorships offer chances to display your company’s name & logo to the general public and to promote and share its ideas and vision. You can sponsor an event related to your industry or any general events like an award function or sports event. Some of the benefits of investing in sponsorship for SMEs are:
Local engagement: SMEs, being small in size and production, usually serve a limited area. Local audience is one of the main target audience for most of the SMEs. So, for SMEs engaging with local audience is a must. Sponsoring any event happening in nearby location will help you to get in touch with the local audience. Also local events involve local people and crowd which makes it more effective in terms of time and money.
Cost effective: Sponsorship is a cost effective marketing tool as compared to TV and radio commercials or outdoor marketing mediums. Such mediums are very much expensive and require larger marketing budgets, which are generally absent with SMEs.
Branding and recognition: Sponsorships help in branding your company by offering required attention of the target audience and create awareness about your company. For example, if your company has sponsored a sports event, the uniforms of the sportsmen may have the logo of your company on it or may be the sport event got named after your company’s name like SS Enterprises Tennis Tournament. Apart from that, all the promotional materials for the event, including banners, printed ads, TV commercials, etc. will also have your company’s name or logo. So, all these will help in establishing your firm as a commonly recognized entity.
Valuable relations: An event results in the gathering of people related to a particular industry which helps in making valuable social and commercial relations. As most of the buyers, distributors and partners of an SME are locally based, by sponsoring an event, your company gets a chance of developing new relations and boosting the older ones.
Sponsorship is a smarter way of marketing. No matter how small your business is, sponsorships will help you in getting new leads, buyers, partners and distributors. Events are the mines of opportunities, so get in and take the advantage. But the most important thing that you must do in order to get the maximum ROI on your sponsorship cost is to follow up. Once you have met a potential buyer or customer during your event, it is very important to contact them after the event to ensure development and conversion of business leads. So, Follow up is a must. Also, Events should be selected smartly as people generally relates the sponsor with the sponsored event. For example, DLF is known for sponsoring sports event.