Transcript sponsorship & advertising

Sport Sponsorship
Chapter 11
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OBJECTIVES
• Appreciate the history of sponsorship
• Understand the place of sponsorship in the promotions mix
• Know the difference of sponsorship and advertising
• Understand the corporate objectives associated with sport
sponsorship
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HISTORY OF SPONSORSHIP
• 1896 Kodak purchased advertising in the first official
Olympic program
• 1928 Coca-Cola donated 1000 cases of soft drinks to the
US Olympic team
• Until 1970 corporate sponsorship was done for
philanthropic reasons.
• Sponsorship attitude changed in the 80’s and companies
devoted substantial resources towards sponsorships
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3
RELATIONSHIP OF SPONSORSHIP
TO MARKETING
• Sponsorship is part of the promotional mix
• Marketing begins with identifying the needs and wants of
consumers
• Worldwide expenditure on sponsorship has grown from
US$500 million in 1982 to an estimated $37 billion in 2007
(IEG, 2006).
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RELATIONSHIP OF SPONSORSHIP
TO MARKETING
Promotion Mix:
Tools used to communicate information about a product, its
function characteristics, price, place to inform and persuade
consumers and influence their purchase decisions.
• Sponsorship is an important part in the marketing
communications mix along with advertising, public relations,
sales promotions and selling.
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5
SPONSORSHIP & PHILANTHROPY
• Both sponsorship and philanthropy offer funds, resources to
sport organizations, they differ in the nature of what they
expect in return.
• Sponsorships became not so much a form a social
corporate behaviour but an important promotional tool and
business expense.
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SPONSORSHIP & ADVERTISING
• What differentiates sponsorships from advertising is the
association between the two parties
• In sponsorship the message is coded, delivered, and
decoded in collaboration with the sponsee
• This process occurs independently in advertising.
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7
CORPORATE OBJECTIVES AND
SPONSORSHIPS
3 Groups of Objectives:
1.
Broad corporate objectives (image base)
2.
Marketing objectives (brand promotion)
3.
Media objectives (cost effectiveness)
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CORPORATE OBJECTIVES AND
SPONSORSHIPS
Objectives for corporate involvement in sport
sponsorship often are:
1.
Increasing public awareness of company or brand
2.
Generating media benefits
3.
Achieving sales objectives
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CORPORATE OBJECTIVES AND
SPONSORSHIPS
Objectives for corporate involvement in sport
sponsorship often are:
1.
Altering public perception of the company, or image
2.
Identifying the company with particular market segments
3.
Creating a competitive advantage through exclusivity
4.
Gaining opportunities in terms of hospitality
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IMAGE
• The opportunity to capitalize on image association/transfer
makes sponsorship attractive businesses as a
communication tool.
• The majority of companies involved in sponsoring are
attempting to meet an image objective.
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IMAGE
Three factors can affect one’s perception of a particular
event:
1.
Event type
2.
Event characteristics
3.
Individual factors
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SPONSORSHIP OBJECTIVES
Reaching the Target Market:
Corporations searching for an optimal event or team to sponsor
need to find a link between their product and the event.
Sales
The major objective of sponsorship is to improve the bottom line.
When integrated with other elements of the promotional mix,
sponsorship can influence the buyer to purchase.
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SPONSORSHIP OBJECTIVES
Media Benefits:
Media exposure and coverage has been identified as a key
benefit sought from sponsorship as well as a key objective of
sponsorship programs.
Exclusivity:
Exclusivity and/or blocking the competition are key requirements
for all major sponsors of sports.
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SPONSORSHIP OBJECTIVES
Hospitality
Corporate partners use hospitality benefits to reward their own
personnel or used to induce their clients to renew or sign new
agreements.
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Questions?
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