As a club, league or other grassroots soccer organization designing corporate and business sponsorship proposals, be aware these terms are different. I am referring to a marketing distinction, not a legal one.
Corporate sponsorship involves an entity that has multiple distribution points. It may be a manufacturer, or seller of brands through other businesses. It may cover a wide geography, or represent diverse products and services (Chevrolet, State Farm Insurance, Century 21, Proctor & Gamble, Home Depot, Coca Cola, etc.).
A business sponsor generally has a more localized distribution; has end-user customers, and may be the final seller in a corporate structure (i.e. car dealership, insurance or real estate office, pizzeria, dry cleaner, dentist, local soft drink distributor, etc.)
As an example, the McDonald's Corporation is one company with thousands of franchisees. Many entities manage portions of McDonald's marketing budget. Its policy prohibits putting corporate marketing dollars into activities that benefit only a local area. Generally, your proposal should go to the individual McDonald's in your club's service area. If the proposal affects multiple restaurant trading areas, approval comes from the local McDonald's marketing cooperative. Individual restaurants and the area-marketing cooperative have limited budgets for discretionary projects. Corporate marketing generally requires impact over large geographic areas through highly efficient media. Most large corporations use a similar layered structure.
Terms it helps to understand:
Marketing refers to all of the disciplines used to influence a customer purchase or transaction.
Advertising (signs, broadcast, print, electronic, etc.) occurs when the company purchasing the exposure controls the size, duration, frequency, and content of a message.
Public Relations is getting a third party (journalist, radio personality, etc), over whom you have no control (they are not compensated by you for their effort) to offer an assessment, or (hopefully) to imply a recommendation about your product or service. You attempt to influence it, but you do not control what, when or how a journalist communicates.
Promotion is the directing of a specific offer, to a target audience, at a designated time, in exchange for a specific action.
"Come see the funniest movie of the year! (Advertising) The local movie reviewer gives the movie "two thumbs up". (Public Relations) "Buy two admission tickets and get two free soft drinks after 8:00 pm." (Promotion)
Ad agencies make money by aggregating a client's marketing dollars in the most concentrated media. They have no incentive to divert portions of their budget (and revenue) to you. The more money they divert from their media buy, the less efficient and unprofitable it is for them. They defend their turf with clients by arguing against diluting media efficiency and impact.
PR firms and promotional agencies get compensation to implement publicity and marketing programs. Often, they search for targeted, cost-efficient, and creative programs or activities for their clients. Without an element of involvement on their part, for which they can earn client compensation, these firms have no incentive to recommend a client invest in your programs. Potential sponsors are unlikely to allocate new or incremental funds for your soccer sponsorship. The money to fund your proposal comes from some preexisting budget. Appeal to the keeper of the wrong budget, and your request risks rejection.
Additional business is the most powerful promise you can make to a potential local sponsor. Do your homework, and offer distinctive club activities, programs, or events with specific appeal to a sponsor. Almost any business — plumbing, accounting, medical, retail, etc., should be open to a plan that encourages new sales.
Turn the tables on an unsuspecting sponsor and create "Swamp Days" before asking for a "Proceeds Day." Have supporters of your club mention the club each time they do business with a targeted sponsor during a concentrated period. This way, you demonstrate business the merchant derives through the club. Focus on the sponsor's tangible return on its investment. Businesses operating on a 25% profit margin have to get four dollars back in incremental sales to break even on each dollar they spend. Get $100 sponsorship and you should generate at least $400 in additional sales. Businesses seldom sponsor just for "exposure." Businesses need customers. Businesses typically have more money to invest in lead generation and sales efforts than they give in donations.
Jim Paglia is a nationally recognized brand strategist who lives outside Chicago. He has an extensive background in soccer ranging from the NASL, to NCAA Division I, to World Cup 1994, and 30 years of club administration and coaching.