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PARTNER NEGOTIATION
Assignment: Partner Negotiation
Background Information
A non-profit event planner is involved in negotiations with a sponsor, a corporate client dealing in the organic snack market. The current sponsorship plan expires in 45 days. Both organizations were affected negatively by the Covid-19 pandemic and intended to capitalize on various financial incentives to get their businesses back on track. The event planner intends to increase the sponsorship packages for mid-level sponsors to increase their financial incentives while increasing sponsors’ benefits from the deal. On the other hand, the sponsors intend to increase the Return on Investment (ROI) from their new deal. From the new deal, mid-level sponsors benefit from; having their logos on event registration, three shout-outs on social media platforms one month prior to an event, logos printed on all event materials, targeted emails sent to attendees with the sponsor’s logo, and logo placed on the post-event evaluation. To achieve this, the event planner intends to increase their virtual and hybrid options, which will increase their sponsor’s brand awareness.
On the part of the sponsor, it is critical to realign their strategic financial contributions during the recovery from Covid-19. Therefore, it is critical to understand the Return on Investments (ROI) before renewing their sponsorship deal. Moreover, the sponsor intends to ensure that the event planner effectively utilizes virtual and hybrid options for continued engagement with their attendees.
Tactics and Strategies Used in Planning for the Negotiation
Brand Awareness and Target Market
The sponsor intends to increase their ROI by increasing brand awareness to the target market, including the event planner’s attendees (Cornwell & Kwon, 2020). For the event planner, it is critical to show how their digital approaches will help the sponsor gain more market by advertising their products using their logos to their attendees. However, considerations are made during this process to ensure that both parties are protected. For the event planner, it is critical to offer sponsorship benefits that will not make their services less pleasant. This is addressed by offering little shout-outs, including three every week in the buildup month for an event. For the sponsor, it is critical to determine the reach of the new virtual and hybrid options to guarantee that their products are effectively advertised. This involves using marketing data provided by the event planner to determine the market reach and whether the organization is getting an ROI.
Realistic
From the negotiation, both parties need to be realistic by understanding each other’s position following losses incurred during the Covid-19 pandemic. For the event planner, an increase in sponsorship packages will help them recover from the consequences of the pandemic. However, the event planner is also realistic by offering increased benefits from the packages. On the other hand, the sponsor understands that the event planner is experiencing difficulties brought about by the pandemic. As such, they understand that grievances from their past sponsorship deals were not caused by the event planner directly. This strategy allows for seamless negotiations that enable both parties to reach a meaningful and beneficial sponsorship deal.
Tie Sponsorship to the Brand
The event planner will reach a deal that meets business requirements made by the sponsor. The event planner will figure out the corporation’s needs, including accessing potential clients and improving their brand awareness (Woisetschläger, Backhaus, Cornwell, 2017). Such consideration will create a good negotiation environment as the sponsor clearly understands how they will get a positive ROI.
Negotiations Worksheet and Agreement
The following worksheet is a breakdown of both parties’ negotiations with considerations from each side. The worksheet also formulates a beneficial agreement between the event planner and sponsor, which will positively impact and help them recover from the pandemic and rebuild their operations.
Event Planner
The Sponsor
Objective
Get increased sponsorship packages that will help with Covid-19 recovery.
Provide additional benefits for mid-level sponsors by introducing virtual and hybrid options for increased advertisement and engagement.
Realign their strategic contributions during Covid-19 recovery.
Make sure the event planner is effectively utilizing virtual spaces for continued engagement with attendees.
Issues & Interests
The main interests are to receive increased sponsorship packages that will provide adequate finances for dealing with Covid-19 recovery.
The main interests include improve Return on Investment from their financial contributions & ensure that the event planner is effectively utilizing virtual and hybrid options for brand awareness.
BATNA & WATNA
BATNA: Sell sponsorship packages to other organizations that will help the organization recover from consequences of the pandemic.
WATNA: No deal, no financing.
BATNA: Negotiate new sponsorship deals with other event planners who offer similar packages.
WATNA: The sponsor will miss out on the new virtual and hybrid offerings that could lead to increased brand awareness.
Options
The event planner has an option to offer their sponsorship packages to other organizations. However, the current sponsor is better aligned with the sponsorship practices that could lead to better outcomes from the negotiation.
Accept the new benefits offered by the event planner which will effectively increase their brand awareness and access potential customers. This will also involve an increase in investments made towards the sponsorship.
Supporting Arguments
The sponsor offers organic products which will be beneficial to the consumers and can also be used in events. This will drive down the cost of running events and leverage the organization’s position in event planning.
The event planner is a non-profit organization which means they are frugal about their spending and their efforts will have a positive impact on the community which amounts to Corporate Social Responsibility (CSR). The sponsor will also benefit from the new virtual and hybrid options included in the sponsorship deal
Possible Concessions
The event planner is facing a difficult period following lockdowns and shutdowns due to Covid-19. The financing provided by the sponsor will help leverage this situation and help the event planner get back on track.
A lot of attendees which will result in increased brand awareness and deals. Also, new virtual and hybrid options such as social media will increase brand awareness and aid in the marketing of company products.
Agreement
The organization will increase its virtual and hybrid options where they will post information about sponsors through logos, shout-outs on social media, and targeted e-mails to their attendees. The sponsor will increase their sponsorship packages by providing added financial incentives in the deal.
Terms of the Agreement:
The event planner will increase their virtual and hybrid options where they will promote sponsor products through social media and targeted emails to their attendees.
The event planner will provide information about social media reach to determine how many attendees or clients they have reached over a period of time to determine ROI.
The sponsor will increase their sponsorship packages that will help the event planner recover from the Covid-19 pandemic.
Ultimately, the agreement between the two parties must be beneficial and meet the parties’ requirements. The agreement will ensure that both parties thoroughly enjoy the benefits of the sponsorship agreement.
References
Cornwell, T. B., & Kwon, Y. (2020). Sponsorship-linked marketing: Research surpluses and shortages. Journal of the Academy of Marketing Science, 48(4), 607-629.
Woisetschläger, D. M., Backhaus, C., & Cornwell, T. B. (2017). Inferring corporate motives: How deal characteristics shape sponsorship perceptions. Journal of Marketing, 81(5), 121-141.
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