While carrying out this activity of the companies sponsoring certain events or programs to other corporate or educational institutions it is a mutual gain for both the sides which includes the sponsors as well as the fund raising organization. Although we say that student’s involvement in such activities is not the right technique it is still considered to be an activity for school improvement which in turn depicts the schools presence in the eyes of the public and simultaneously markets itself.
Similarly the sponsor will gain the advantage as there are huge reasons which will motivate them to sponsor events and programs which are discussed below (Running Sport, 2008). Publicity – every company will want to be known on a higher profile for which they need to conduct a local publicity program or a higher publicity program depending on the need and the target segment identified. Corporate image – depicting a positive image to the external parties or general public as well as their employees has to be driven to encourage good customer relationship management by seeking sponsorships that will promote and build their image.
Public relations and community involvement – corporate social responsibility is a very important concept which profit organizations and non profit organizations do engage themselves in. This generates a huge network of relations among the local community because of their social responsive activities. Endorsement opportunities – As the public create an association with the qualities and public image of the endorser it is a requirement that the sponsors get the benefit of being recognized for their publicity and public relations.
Hospitality towards their clients – Usually sponsorships creates a hype of fun, entertainment and a great environment to participate which is a healthy situation that is created between the clients and their business associates. Direct Marketing – Sponsors are very much confidant of the need to seek sponsorships as this will urge the public to know about their products or services when they view the sponsors at various places put up by the client there by accelerating on the brand image.
Educational sponsorships – companies sponsor schools and educational institutions in order to build a strong rapport between the students, teachers, parents, institution which in turn will help the companies to have a good network with high performing students to finally absorb them after their completion of their studies. Patronage – Most of the time the sponsors don’t have a revenue generation aim but it just makes them feel good about their social activity as they may only look for recognition and for the purpose of creating a niche in terms of goodwill and image building. (Running Sport, 2008).
The clients should maintain a relationship with the sponsors even after the act has been accomplished because it is difficult to recruit new ones then maintaining and servicing the old ones. Sometimes the sponsors may surprisingly withdraw the support from the clients in which case too much dependence on the sponsor’s may prove to be bad for the clients. It has been also observed that the student’s contributions towards fundraising needs to be streamlined with the size of the organization so that a balance is being created towards the parties involved and the benefits received (Running Sport, 2008).