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Sponsorship Source of some slides: Prentice Hall Peggy Simcic Brønn Sponsorship An investment in cash or kind, in an activity, in return for access to the exploitable commercial potential associated with that activity. (Meenaghan, 1991) A business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage. (Sleight, 1989) Peggy Simcic Brønn Sponsorships • Provide financial support for an activity or organization so that it can survive •Polish the sponsor’s image in ways that impact positively on the bottom line •Allow the company to be associated with the positive social values reflected by the person, activity or organization it sponsors Peggy Simcic Brønn Primary Communication Objectives Enhancement of corporate image Enhancement of brand image Customer loyalty Media Exposure Hospitality Sales Promotion Staff Motivation Community Relations Peggy Simcic Brønn Emergence as a global marketing medium Sports and arts -- transcend national and cultural barriers. Associate with large consumer economies. Governments’ policies on tobacco and alcohol advertising. Disillusionment with traditional media. Change in perception of sponsorship. Peggy Simcic Brønn Types of Sponsorships • Olympic Games • Sports Marketing • Broadcast Sponsorship • Popular Music • Cause Marketing Peggy Simcic Brønn Sporting Event Sponsorships • Improve image of company -- 78% • Build customer loyalty -- 74% • Build Brand Awareness -- 78% • Generate Sales -- 57% • Add Credibility to Company’s Messages • Create Higher Levels of Confidence in the Company • Should Be Integrated with Other Elements of Communication Strategy Source: Yeshin, T., Integrated Marketing Communication Peggy Simcic Brønn Broadcast sponsorship NRK using to circumvent advertising Not as prevalent in Norway Popular music Leif Vidar and Rolling Stones Fina and Ultima Pepsi and Michael Jackson Peggy Simcic Brønn Sponsorship of Causes -key concepts Mission Marketing Green Marketing Issues Management Corporate Responsibility Stakeholders (interessenter) Socially Responsible Capitalism Socially Responsible Investment Caring Capitalism Peggy Simcic Brønn Two levels: A mission or purpose for existing that includes more than creating shareholder value and profits. Corporate citizenship -- policy and practice of a corporation’s social involvement over and beyond its legal obligations for the benefit of society. Peggy Simcic Brønn Cause related marketing The process of formulating and implementing marketing activities that are characterized by contributing a specific amount to a non-profit organization that in turn causes customers to engage in revenue-providing exchanges. (Mullen, 1997) Linking a worthwhile charitable cause in a market to the growth of a business through the fusion of marketing, public relations, promotion, and special events. (C. Caywood, 1997) Peggy Simcic Brønn Ties a company and its products to a cause (Ptacek & Salazar, 1997) Dramatic way to build brand equity (Mullen, 1997) Can generate long-term value need for a company to survive and achieve competitive advantage (Collins, 1993) Results in growing market shares and customer loyalty (Stewart, 1998) Peggy Simcic Brønn Can help firms stay in tune with mood of public (Duncan & Moriarty, 1997) If price and quality are equal, customers likely to switch to brand with cause related marketing benefit (R&S Worldwide, 1993:1996) Positive effect on reputation through fulfilling stakeholders’ expectations for firms to be socially responsible (Fombrun, 1996) Peggy Simcic Brønn Good way to solve social problems (Ptacek & Salazar, 1997) Consumers have more positive image of firms that do something to ‘make the world a better place’ Peggy Simcic Brønn Benefits of Cause Marketing Creates more positive corporate culture (today every business is a people business) 5-10% response can be extremely profitable -- not everyone has to be moved for it to be successful A small added value can differentiate most brands Peggy Simcic Brønn Forms Charitable giving Red Cross, Redd Barna Direct sponsorships The arts, special projects, community initiatives, fund raising Issues advocacy Violence, discrimination, children workers, pollution Peggy Simcic Brønn Norway Maxbo Fund Storebrand -- Red Cross Tine -- Litago Farris -- Red Cross Stabekk Fotball -- environment Vålerenga -- ‘Mot Racism’ McDonald’s Canon Norge -- WWF Peggy Simcic Brønn Organizational Strategy (Mission statement reflecting corporate position on social responsibility) Corporate Social Responsibility Strategy (Strategy to carry out social responsibility) CSR Communication Strategy (Strategy for communicating organization’s position on social responsiblity) Marketing Communication Management Communication Peggy Simcic Brønn Organizational Communication 18 Key Questions Regarding Sponsorship: Is there a fit between the activity and the brand or corporate positioning? Is the sponsorship sufficiently distinctive? Are there other sponsors associated with the event? Does the activity have an existing identity or does one need to be created? Can the sponsorship be undermined by competitors, for example by buying perimeter boards, signage or other activities such as hospitality to associate themselves with the event? Peggy Simcic Brønn Key questions: Who are the audiences for the event -both live and in terms of the expected media coverage? What exploitation opportunities exist? Is there synergy with the current advertising platform or other marketing communications activity? Peggy Simcic Brønn Sponsorship Type % Sector DK Sports Ger. NL S. Afr. Swe. Switz. UK USA* 60 56 69 67 58 56 67 6 Arts 87 15 20 7 17 24 16 Brdcst. 13 15 8 7 7 16 20 10 16 17 9 3 8 Others *Broadcast not included Source: ESOMAR Newsbrief no. 4, April 1999 Peggy Simcic Brønn 27