Transcript Advertising and Marketing Communications: 266B

4550:
Sponsorship
Dr. Campbell
3/3/05 (– 3/8/05)
Sponsorship: Definition
A business relationship
in which a marketer provides
funds, resources, or services to
an individual, event,
or organization in order to gain
some rights and association
to be used for commercial
advantage.
Sponsorship Spending in North America
Year
1996
1997
1998
1999
2000
2001
2002
2003
Sports
$3.54
$3.84
$4.56
$5.10
$5.92
$6.4
$6.51
$7.1
($Billions)
(65%)
(65%)
(67%) (67%)
(68%)
billion
(68%)
Entertainment,
$566
$650
$680
$756
$817
$800
million
$893
$900
$512
$558
$612
$685
$740
$800
$800
$800
Causes
$485
$535
$544
$630
$700
$700
$800
$900
Arts
$327
$354
$413
$460
$548
$600
$600
$600
TOTAL
$5.43
$5.93
$6.80
$7.63
$8.70
$9.35
$9.7
$10.2
tours/attractions
Festivals, fairs,
Events
($Billions)
Sponsorship Marketing
• Reasons for growth
– Advertising is expensive and cluttered
– Can target customers effectively
•
Can be meaningful to target
– “Soft sell”
– Can create associations
•
“brand personality”
– Generates excitement
– “Payback” to the community
– Tie-in with corporate entertainment
Three Types of Sponsorship
• Sports Marketing
• Special Event Marketing
• Social Responsibility
– Cause-Related Marketing
– Social Marketing
Sponsorship: Sports Marketing
• Forms
– Athlete
– Athletic event
– Televised athletic event
– Award
Special Event Marketing
• Linking with a special event to build
awareness or relationship with target
audience
Cause-Related Marketing
• Cause-related marketing involves corporate
tie-in with non-profit organizations and
charities. The money or gifts a company
gives to a charitable cause are tied to
purchases made by consumers.
• Sharing common beliefs with consumers
Uses
• Provides a way to “connect” with
consumers
– Loyalty
– Relationship value
– Brand differentiation/positioning
• Reinforces and supports the brand
values/meaning in the target
consumer’s mind
Effects of CRM
Attitude toward firms
(JPPM 1998)
Positive
Negative
Attitude toward NPOs
Positive
Negative
Firms’ Motives
Help Firm - Profit
Help Firm & Others
Help Others & Firm
Help Others
Influence of CRM
None
Very little
Some
A Lot
87%
13%
93%
6%
47%
34%
16%
3%
24%
41%
6%
24%
Social Marketing
Corporate social marketing is an
initiative in which marketing personnel
who work for a corporation devote
significant amounts of time and effort
toward persuading people to engage
in a socially beneficial behavior
Evaluating Success
• “Is society better off because of this
program?”
• “Has corporate involvement allowed this
program to perform better than it would if it
were managed by only a nonprofit or
government agency?”
• (Has this improved our corporate position?)
Dimensions for
Social Responsibility Programs
• Social Responsibility Programs vary in
terms of:
– Tie to product sales
– Direct benefits to customers
• Most effective Social Responsibility
Programs have:
– Strong ties to product sales
– Direct benefits to customers
• Example: Kellogg’s All-Bran/National
Cancer Institute Dietary Fiber Program
Sponsorship: Advantages
Sponsorship: Potential Problems
Next Session…
• Wrap-up discussion of sponsorship and
alternative media
• Q & A for exam 3/10/05