Sponsorship marketing is typically done for promotional purposes, to generate publicity, or to obtain access to a wider audience than your budget can afford. Although you may think of corporate sponsorship's as in-kind donations, that's not longer the case. It's a booming $11 billion dollar industry according to IEG's 2004 industry report.

Sponsorship marketing is done financially or through the provision of products or services to support an event, activity, person, or organization where two or more parties benefit from the arrangement. The key to building successful sponsorship programs is to match the correct products or services with the people who want to purchase them.
How it Works
What attracts a sponsor is "eye balls". The more people or targeted impressions you can deliver to a sponsor, the more money or services you will be able to attract. It's that simple.
Any organization can start a marketing sponsorship program. Of course the success of it depends on: what your organization does, who your customers are, and how you structure the exposure for the sponsor.
Getting Started-Seven Steps to Building a Sponsor Program
1. Define your product / service
Be as specific as possible about what your organization has to offer. While your organization's activities are the main product, other products or services can also be considered as offerings to sponsors including: sales materials, uniforms, preferential booking of facilities or discount rates.
2. Define the Target Market
A sponsorship marketing strategy will only by successful if it is aimed at the appropriate group of people. You can quickly identify your target market by looking at your current customers and considering common factors that they share.
- Demographics age, sex, marital status, occupation, ethnic groups, religion, education, etc
- Psychographics behavioral groups such as skiers,