2007:004

M A S T E R ' S T H E S I S

Sport SponsorshipA Marketing Communication Tool

in Swedish Companies

Malin Johansson Therese Utterström

Luleå University of Technology

Master's thesis Marketing

Department of Business Administration and Social SciencesDivision of Industrial marketing and e-commerce

2007:004 - ISSN: 1402-1552 - ISRN: LTU-DUPP--07/004--SE

ACKNOWLEDGEMENT The process of writing this thesis has been enlightening, exciting and sometimes hard. Several hours have been spent in school during the fall working with this thesis, and therefore it is of great pleasure to long for the Christmas holiday. Without the support of others, first and foremost the support from our supervisor Manucher Farhang, the produce of this thesis would not have been possible. Special thanks are given to him due to his exceptional support, knowledge and constructive feedback. Extraordinary thanks are also given to the respondents, Stefan Erixon at Nåiden Bygg AB and Mats Eklund at NCC, which provided us with useful information for this thesis. Moreover we would like to thank other people that have been involved in this thesis that have either directly or indirectly helped us during the process. At last we would like to announce that we are grateful to our friends and families for their support and understanding during this fall. We hope that this thesis will inspire the reader to learn more about advertising and especially in the sport sponsorship aspect. This subject represents an area that should be of interest for many companies, since it might be the only or major marketing effort for some companies.

Luleå December 2006

Malin Johansson & Therese Utterström

ABSTRACT Sponsorship is of great importance since it is the part of the promotional mix that supports the interest of the company by associating it with a specific event. Moreover, sponsorship may be the major or only marketing effort for some companies whereby it is further important to consider it as a powerful option when deciding upon marketing tools. The purpose of this thesis is therefore to provide a better understanding of sport sponsorship as a marketing communication tool in Swedish companies. In order to reach this purpose, research questions focus on the objectives, selection process, and evaluation of effectiveness of sport sponsorship. Based on the research questions, a literature review was conducted that resulted in a conceptual framework presenting a foundation for the data to be collected for this study. A qualitative, case study methodology was used, using documentations and interviews of two Swedish companies within the same field of business. The general result of the study is that several objectives of sport sponsorship are commonly used, and the objectives may be either constant or inconstant depending on sponsored unit. The most frequently used objectives of sport sponsorship are however the corporate related objectives, such as corporate image, client entertainment, and employee relations. Further results of the study are that companies base their selection of a specific sport sponsorship on several criteria, for instance, managerial interest, the chosen sport’s ability to deliver the marketing message, and the interest of the present and potential employees. In addition the decisions can be made from a client perspective and the values of the company. Moreover, based on the results, companies do not formally evaluate the effectiveness of sport sponsorship whatsoever. Instead, organizations try to find more informal methods for measurement.

SAMMANFATTNING Sponsring är av stor betydelse eftersom det är den del av marknadsföringsmixen som stöder företagets intresse genom att associera det med en speciell händelse. Eftersom sportsponsring kan vara den största eller enda marknadsföringssatsningsen för vissa företag, så är det vidare viktigt att ha detta område i åtanke vid bestämmandet av marknadsförings verktyg. Syftet med denna uppsats är därför att uppnå en bättre förståelse för sportsponsring som ett marknadsförings verktyg inom svenska företag. För att uppnå detta syfte så fokuserar forskningsfrågorna på motiven, valet, och utvärderingen av effektiviteten av sportsponsring. Detta resulterade vidare i en teoretisk sammanfattning och ett begreppsmässigt system som grund för insamlingen av data för studien. Metoden som tillämpades för studien var en kvalitativ fallstudie som genomfördes genom dokumentation och intervjuer på två svenska företag inom samma bransch. De generella resultaten av studien är att flera motiv för sporsponsring ofta används, och att dessa motiv kan vara antingen konstanta eller variera beroende på den sponsrade enheten. De mest använda motiven för sportsponsring är dock företagsrelaterade motiv som företagets image, kund underhållning och relationer till anställda. Ytterligare resultat av studien är att företag grundar deras val av en specifik sportsponsring på flera kriterier, som till exempel ledningens intresse, den valda sportens möjlighet att leverera marknadsföringsmeddelandet, och intresset hos den nuvarande och potentiella personalen. Dessutom kan besluten tas utifrån ett kundperspektiv och från företagets grundläggande värderingar. Där till kommer att företag inte formellt utvärderar effektiviteten av sportsponsring över huvudtaget. Istället försöker de hitta mer informella, alternativa metoder för utvärdering.

TABLE OF CONTENTS 1 INTRODUCTION.............................................................................................................................................. 1

1.1 BACKGROUND ......................................................................................................................................... 1 1.2 PROBLEM DISCUSSION........................................................................................................................... 4 1.3 RESEARCH PURPOSE & RESEARCH QUESTIONS............................................................................... 6 1.4 DEMARCATIONS ...................................................................................................................................... 6 1.5 THESIS OUTLINE ...................................................................................................................................... 6

2 LITERATURE REVIEW.................................................................................................................................. 7 2.1 OBJECTIVES OF SPORT SPONSORSHIP ................................................................................................ 7

2.1.1 Corporate Objectives............................................................................................................................ 9 2.1.2 Marketing Objectives.......................................................................................................................... 11 2.1.3 Media Objectives ................................................................................................................................ 12 2.1.4 Personal Objectives............................................................................................................................ 12

2.2 SELECTION PROCESS OF SPORT SPONSORSHIP .............................................................................. 12 2.2.1 The Sport Event Pyramid.................................................................................................................... 14 2.2.2 The Athletic Platform.......................................................................................................................... 14 2.2.4 Criteria for Sponsorship..................................................................................................................... 15

2.3 EVALUATION OF SPORT SPONSORSHIP EFFECTIVENESS ............................................................ 18 2.3.1 Stages of the Evaluation Process........................................................................................................ 21 2.3.2 Media Exposure Measurement ........................................................................................................... 21 2.3.3 Assessing Communication Results...................................................................................................... 22 2.3.4 Measuring Sales Results ..................................................................................................................... 22 2.3.5 Feedback from Participating Groups ................................................................................................. 23

2.4 CONCEPTUAL FRAMEWORK ............................................................................................................... 24 2.4.1 Conceptualization of RQ1: Objectives of Sport Sponsorship ............................................................. 24 2.4.2 Conceptualization of RQ2: Selection process in Sport Sponsorship .................................................. 25 2.4.3 Conceptualization of RQ3: Effectiveness Evaluation of Sport Sponsorship....................................... 26

3 METHODOLOGY........................................................................................................................................... 27 3.1 RESEARCH PURPOSE............................................................................................................................. 27 3.2 RESEARCH APPROACH ......................................................................................................................... 27 3.3 RESEARCH STRATEGY.......................................................................................................................... 28 3.4 DATA COLLECTION METHOD ............................................................................................................. 28 3.5 SAMPLE SELECTION.............................................................................................................................. 30 3.6 DATA ANALYSIS .................................................................................................................................... 30 3.7 QUALITY STANDARDS.......................................................................................................................... 31

3.7.1 Validity ............................................................................................................................................... 31 3.7.2 Reliability ........................................................................................................................................... 32

4 EMPIRICAL DATA........................................................................................................................................ 33 4.1 CASE 1 NÅIDEN BYGG AB..................................................................................................................... 33

4.1.1 Objectives of Sport Sponsorship......................................................................................................... 33 4.1.2 Selection Process in Sport Sponsorship.............................................................................................. 35 4.1.3 Evaluation of Sport Sponsorship Effectiveness................................................................................... 36

4.2 CASE 2 NCC.............................................................................................................................................. 36 4.2.1 Objectives of Sport Sponsorship......................................................................................................... 37 4.2.2 Selection Process in Sport Sponsorship.............................................................................................. 38 4.2.3 Evaluation of Sport Sponsorship Effectiveness................................................................................... 39

5 DATA ANALYSIS ........................................................................................................................................... 40 5.1 WITHIN CASE ANALYSIS...................................................................................................................... 40

5.1.1 Within Case Analysis of Nåiden Bygg AB .......................................................................................... 40 5.1.2 Within Case Analysis of NCC............................................................................................................. 44

5.2 CROSS CASE ANALYSIS........................................................................................................................ 47 6 FINDINGS, CONCLUSIONS AND IMPLICATIONS ................................................................................ 53

6.1 FINDINGS AND CONCLUSIONS ........................................................................................................... 53 6.1.1 RQ1: How can the objectives of sport sponsorship be described?..................................................... 53 6.1.2 RQ2: How can the selection process in sport sponsorship be described?.......................................... 54 6.1.3 RQ3: How can the evaluation of sport sponsorship effectiveness be described?............................... 56

6.2 IMPLICATIONS........................................................................................................................................ 56 6.2.1 Implications for Management............................................................................................................. 57 6.2.2 Implications for Theory ...................................................................................................................... 57 6.2.3 Implications for Further Research ..................................................................................................... 58

LIST OF REFERENCE ..................................................................................................................................... 59 APPENDIX A - INTERVIEW GUIDE ............................................................................................................. 62 APPENDIX B - INTERVJUGUIDE.................................................................................................................. 64 APPENDIX C – 50 STÖRSTA BYGGFÖRETAGEN I SVERIGE ............................................................... 66

LIST OF FIGURES AND TABLES List of Figures 1.1 The Elements of Sponsorship 2 2.1 The Sponsorship Process 7 2.2 Hierarchy of Objectives for the Marketing Communication Mix 7 2.3 Sponsorship Acquisition Model 13 2.4 The Sport Event Pyramid 14 2.5 Factors Influencing Sponsorship Choice 15 2.6 Criteria for Sponsorship 17 2.7 Control Phase of the Strategic Sports Marketing Process 19 2.8 ROI Return on Investment 23 2.9 Integration of Sport Sponsorship 24 3.1 Figure of Cases 30 List of Tables 2.1 Objectives for Corporations Involved in Sponsorships of Sports 9 3.1 Sources of Evidence: Examples, Strengths and Weaknesses 29 5.1 Summary Matrix of the Analysis of RQ1 48 5.2 Summary Matrix of the Analysis of RQ2 50 5.3 Summary Matrix of the Analysis of RQ3 52

INTRODUCTION

1 INTRODUCTION This chapter will provide an introduction of the chosen topic. The background is first presented, continuing with the problem discussion where the research area is discussed. After the problem discussion the research purpose and the research questions will be presented. Finally, demarcations and an outline of the thesis are described.

1.1 BACKGROUND According to Dolphin (2003), the concept of sponsorship originates in the Greek and Roman era and the word is derived from the Greek word horigia, meaning guarantor. Lately, and for over hundred years, it has made a noticeable impression, and due to its relatively brief history the sponsorship industry has made considerable strides. Today, it is very rare to find any public event that is not sponsored in one way or another. (ibid.) Meenaghan (1991) states that sponsorship is an element of marketing communications within the broader context of the marketing mix of product, price, distribution and marketing communications. Czinkonta and Ronkainen (2004) further claim that in order to achieve marketing communication objectives, tools of the promotional mix, such as advertising, personal selling, publicity, sales promotion, and sponsorship are commonly used. Moreover, Meenaghan (1991) argues that sponsorship is similar to the advertising tool in regards of the money invested for commercial purposes. The author further states that sponsorship although, must not be confused with corporate giving, such as charity, endorsement and patronage, where the objectives are philanthropic with the expected returns to be to society and not to the company itself (ibid.). According to Grönkvist (2000), marketing via events, is commonly called event marketing. Behrer and Larsson (1998) further define event marketing as an effort for coordinating communication of an event, where the event is an activity which assembles the target group at the same situates, or a meeting in which an experience is created and a message is exchanged. In addition, Behrer and Larsson (1998) and Grönkvist (2002) argue that event marketing is an effort by using the event for integrated communication, both within the actual event, and beyond. Sponsorship is further a method for communication and marketing, where the communication takes place trough traditional media, where the sponsor purchases the rights for exposure in connection with an event (ibid.).

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Furthermore, sponsorship marketing involves investments in events or causes with the purpose of achieving various objectives, as increasing sales, enhancing a company’s brand image and reputation, as well as increasing brand awareness (Shimp, 1997). Grönkvist (2000) continues by explaining sponsorship as association marketing, a business agreement for communication, marketing and purchase, where the sponsorship is built on a commercial union between two parties where a company pays for commercial rights in order to achieve an association in connection with an event, a person or a project. Polonsky and Speed (2001), moreover claim that sponsorship programs are of increasing importance in the marketing activities of companies worldwide, as they present opportunities for business, provide community involvement, and counter adverse publicity. Moreover, sponsorship programs build goodwill among staff, opinion formers and decision makers as well as increase company, product or brand awareness, reinforce or alter perceptions of brand or product, indirect increase sales and identify brand or product with a particular market segment. (ibid.) In addition, Meenaghan (1991) explains sponsorship as an investment, in cash or in kind, in

INTRODUCTION

an activity in return for access to the utilizable potential associated with an activity. Essentially a sponsor is buying both the exposure potential which the activity has in terms of audience, as well as the image associated with that activity in terms of how it is perceived. According to Gillis (2006) sponsorship is moreover a good way of creating brand notice, as sport, music and the arts areas make a connection with consumers in a way that is beyond even the most emotional product categories. Olkkonen (1999) further explains the concept of sponsorship as a business relationship between two parties; the sponsor and its stakeholders, and the sponsored and its stakeholders, as shown in figure 1.1. Sponsorship

Stakeholders of the sponsored

Corporate Strategy

Marketing Strategy

Communication- Strategy

Sponsorship- Strategy

Sponsor Sponsored

Sponsorship consultancy

Sponsorship opp.

- sports - culture - social targets

Type of sponsored

- individual - group - organization

Stakeholders of the sponsor

Television Radio Newspaper/ Magazines

Mass Media

Figure 1.1 The Elements of Sponsorships Source: Adapted from Olkkonen (1999, p.102)

The sponsorship activities presented in the figure include consistency of sponsorship activities with the sponsor’s strategy, different sponsorship opportunities, types of the sponsored party, and stakeholders of the sponsored and the mass media. Furthermore, the author suggest that sponsorship can be divided into different categories based of the targets of the sponsoring organizations, in the same way as sponsorship can be categorized into sports, cultural, and social sponsorship. However, these categories are not mutually exclusive, and companies usually sponsor several targets from different categories at the same time, and thereby the groups may overlap. (ibid.) Since opinions differ regarding the definitions of sponsorship as a concept, the thesis will be founded on the following definition by Busby and Digby (2002); “Sponsorship is a business relationship between a provider of funds, resources or services and an individual, event or organization. The provider is offered rights and association with the individual, event or venue in return for the finance, goods or services, which have been provided” (p.13).

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Consequently, sponsorship is nowadays an increasingly popular medium of corporate communication especially for companies in the consumer market, and the use of sponsorship

INTRODUCTION

is believed to continue to grow as long as sponsors are satisfied and they are receiving value (Dolphin, 2003; Meenaghan, 1991). Dolphin (2003) and Meenaghan (1991) continue to explain the growth in sponsorship programmes as a result of companies’ alternative ways to promote products beyond government restrictions regarding tobacco and alcohol advertising. The authors further mention the increasing cost of media advertising as another justification of the escalation, since sponsorship programmes is a highly cost-effective marketing communication tool, compared with traditional advertising. Moreover can the increased use of sponsorship programmes as a marketing communication tool be explained by the matured market, where sponsorships positively influence customer’s perceptions of its image. Successful sponsorships further identify qualities and values in television programs, community, event or venue being sponsored, and transferring the sponsor's values of the brand and company. (ibid.) Moreover, Busby and Digby (2002), Meenaghan (1991) and Olkkonen (1999) explains that sponsorship is both more obvious for the audience and achieves distinctiveness in a higher level than the traditional advertising, due to the rapidly increasing noise in the mass media that in turn decreases the effectiveness of these types of advertising. Sponsorship may also achieve media coverage by sponsoring popular sports, or cultural or persons toward which/whom an increasing amount of media attention is directed, as the demand for sports and cultural television programs are constantly increasing. The development in telecommunication and broad cast media further offer the ability to attract audiences worldwide. Busby and Digby (2002) continue by saying that marketer's have nowadays realized the potential of the new media such as Internet, CD-ROMs, computer games and digital television, since they capture an entire generation and is today at the centre of many consumer's lives. The new media is further an ideal vehicle for building interactive relationships with prospects and customers (ibid.). According to Dolphin (2003), over 75 percent of total sponsorship concerns sporting activities, for example the provision of uniforms and the funding of stadiums. As explained by Quester and Farrelly (1998) sport sponsorship means that firms generally attempt to connect the brand with highly publicized sports individuals and/or events. A further definition is given by Amis, Slack and Berrett (1999) saying that sport sponsorship involves the allocation of scarce resources with the aim of attaining certain organizational objectives. Hence, sport sponsorship has often been described in the marketing literature as a strategic activity. The authors explain that to be able to develop a sport sponsorship agreement into a distinctive competence, it is essential that it possess three component parts. The first requirement is that the sponsorship is able to offer a significant increase to the perceived customer value of the product or service that the company offers. To manage this requirement the company must ensure that it yields a noteworthy quality or cost advantage. Second, in order for the company to differentiate from its competitors, the distinctive competence must be unique. Thus, sponsorship assets are required to either be uniquely held or contribute more to the company than to any of its competitors. The third, and final requirement, is that the competence must be able to use in several areas, it must be extendable. Considering this, companies must escape from the often held view of regarding a particular sponsorship as being valuable only in a single area. (ibid.)

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Dolphin (2003) continues by saying that the prominence of sports sponsorship depends on its flexibility as a communication tool as well as the opportunities that it give for association with increasingly commercially driven phenomena like sports heroes. Moreover, sport sponsorship is popular because it exposes the company’s investment to participants and the watching spectators. It has been proved that the spectators value the role of sponsors, for example 59 percent of US fans reported that they personally gain from corporate sponsorship

INTRODUCTION

as it is the sponsorship that makes the race possible. Motor racing and football are known to be the sports that attract most sponsorship. (ibid.) Furthermore, Quester and Farrelly (1998) note that companies in Australia have embraced the tool of sport sponsorship enthusiastic, which could be explained by the love of sport that grips the population in this country. According to the authors the estimated efforts in sport sponsorship were expected to rise even more to the 2000 Sydney Olympics since the sponsorship program started with the sponsors IBM and Telstra paying $A100 million and Westpac Bank $A50 million. Whereas, Official Olympic sponsors like Coca Cola and Eastmen Kodak each sponsored the Atlanta games with US$40 million. (ibid) Turley and Shannon (2000) claim that what makes sport facilities an interesting application of this type of advertising is that since respondents are inside facilities for two hours or longer, and since many spectators visit multiple games over a season, there is a possibility of high number of exposure to individual ads. For example, a study on advertisements in college basketball arenas and football stadiums confirmed that 72.6 percent of the respondents indicated that they noticed in-arena advertisements and almost 70 percent were able to correctly identify at least one of the advertisements. Furthermore, advertising messages in sports arenas are rather unique since such ads appear in what can often be considered as an emotionally charged environment. Some of the elements associated with the complex environment of a sports arena are cheerleaders, dance teams, mascots, and other fans at the games, vendors, the public address announcers, referees, coaches and the game itself. Studies of this environment showed that the environment can influence a number of behaviours and attitudes, such as satisfaction, repurchase intentions, desire to stay in a facility, pleasure, and perceived value. The authors further state that one of the reasons for placing ads in sports arenas is that advertisers wish that some of the excitement and affiliation associated with the home team will shift to the product or organization. However whether this excitement inhibits or encourages the processing of the information in the advertisement is not well understood at this point. (ibid.)

1.2 PROBLEM DISCUSSION As mentioned in the previous section sponsorship has become an increasingly popular medium and its status increases, and as a result sponsorship has shifted from a tactical to a more purposeful strategic focus (Fahy, Farrelly & Quester, 2004). Moreover, since the market for sponsorship itself has become intensely competitive and challenging in order to attain a competitive advantage, it is significant that sponsorship investments are carefully managed to guarantee their effectiveness (ibid.). For companies such as McDonalds, Nike, and Coca Cola, the effort in time and money devoted in sport sponsorship could make it a skill in which world leadership is worth striving for. However, for most companies it is more realistic to consider sponsorship as one of a number of skills that, together with other activities, can contribute to an area of competence within the company, like marketing and communication. (Amis, et al., 1999)

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To apply for a donation and to propose for a sponsorship relationship differs considering the goals and the language. Hence, companies may have a variety of objectives to engage in a sponsorship activity. (Dolphin, 2003) According to Pope (1998), three broad categories of sponsorship objectives have been identified and accepted in sport marketing literature, namely: media objectives (cost effectiveness, reaching target markets), marketing objectives (brand promotion, sales increase), and corporate objectives (mostly image related). Additionally, Dolphin (2003) explains that sponsorship assists other marketing activities to

INTRODUCTION

communicate messages to a variety of stakeholders. The consumer is the primary target for corporate sponsorship activity, since a well selected sponsorship has the ability to drive particular brand values, as well as it offers a chance for companies to reach consumers through their hearts and minds. Sponsorship can further enhance corporate image, increase awareness of the brand, stimulate the sales of products and services, as well as leverage corporate reputation. (ibid.) This is also confirmed by Amis et al. (1999), saying that raising public awareness of a brand or company, and altering or enhancing company or brand image and reputation, are mentioned as the major reasons for a company to enter a sponsorship agreement. The results from a study made by Liu, Srivastava and Woo (1998) further confirm that organizations use sport sponsoring as a tool to promote their products as well as their organizations. Since image and reputation are resources that could make it possible for a company to secure a competitive advantage, sport sponsorship should be regarded as a significant source that may help companies to guarantee a position of a competitive advantage (Amis, et al., 1999). Another issue of importance in the area of sponsorship is the selection of sponsors (Pope, 1998). Ivarsson and Johansson (2004) further state that once the role of sponsorship has been established, the management process in the sponsorship selection is next. (ibid.). Selecting an appropriate cause is occasionally a matter of fitting the brand to a cause that is naturally related to the brand’s attributes, benefits, or image as well as it should relate closely to the target market’s interest. Developing relationships with customers, and create better relationships with trade should also be the main objective when choosing sponsors. Regarding the budget constraints, companies that sponsor events should also be able to support the sponsorship activities with proper advertising. (Shimp, 1997) The study made by Liu et al. (1998) additionally show that there did not appear to be a set of conditions that could be used as a standard, although the major selection criteria proved to be via the establishment of an overall corporate policy. Dolphin (2003) claims that despite the rapid growth of sponsorship, little is known about its effectiveness since sponsorship messages are more difficult to control than those originated from other parts of the communication mix. Sponsorship success is also dependent upon whether or not the objectives are reached, and few organizations make any attempts to evaluate the effectiveness, as the true costs is difficult to determine. In the same order Polonsky and Speed (2001) state that awareness, interest and attitude are relatively difficult for the sponsor to observe. Hence, sponsorship may be evaluated by measuring exposures of the brand name generated, or customer knowledge of the sponsorship relationship. If it is impossible to observe or attribute the relationships between sales activity and sales outcomes, behaviour of sales personnel and reward for behaviours that are thought to influence sales outcomes may be examined. (ibid.) In addition, evaluation is complicated if measurement goals have not been set up before the actual sponsorship takes place. Moreover, no single evaluation form can measure the whole aspect of the sponsorship, but several methods may work as support to each other. (Busby & Digby, 2002; Grönkvist, 2000;) The measurement of sponsorship effectiveness can take place either before, during or after the actual sponsorship has taken place (Busby & Digby, 2002; Meenaghan, 1991).

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At present, sport sponsorship is an increasingly popular tool of the marketing communication mix among corporations world wide (Olkkonen, Tikkanen & Alajoutsijärvi, 2000), although researchers agree that the topic of sport sponsorship is sparely examined (Dolphin, 2003; Olkkonen, et al., 2000; Shannon, 1999). Research in the area of sponsorship is relatively new, but the processes are continually being refined and developed according to Busby and Digby

INTRODUCTION

(2002). Sport sponsorship is today a common marketing strategy within companies, and the need to justify expenditures on sponsorship has increased, which has on the other hand led to the type of sponsorship research where the need for planning/setting up objectives, selection, and evaluation for sponsorship programs are emphasized (Olkkonen, 1999). Moreover, a great part of the literature about sponsorship has its main focus on large corporations and international events. Yet, the possible benefits for small businesses sponsoring small or regional events are remarkable. (Dolphin, 2003) While the degree of the use of sport sponsorship as a marketing communication tool may differ in different countries, according to Olkkonen (1999) the value of sponsorships rights in 1996 in Sweden was equivalent with 154 million dollars, which was 0,9 percent of the total worlds figure. Since the topic has only been subject to few comprehensive studies in Sweden, thus it would be of interest to further investigate the topic.

1.3 RESEARCH PURPOSE & RESEARCH QUESTIONS Based on the problem discussion above, the purpose of this study is to provide a better understanding of sport sponsorship as a marketing communication tool in Swedish companies. The three research questions outlined will serve in order to accomplish the purpose. RQ1. How can the objectives of sport sponsorship be described? RQ2. How can the selection process in sport sponsorship be described? RQ3. How can the effectiveness of sport sponsorship be evaluated?

1.4 DEMARCATIONS Due to the time limit, we have decided to only focus on the subject of sport sponsorship from the sponsoring company’s perspective. This study has been further narrowed by only examining the use of sport sponsorship in two Swedish companies operating within the building construction industry in the area of Norrbotten.

1.5 THESIS OUTLINE This master’s thesis is divided into six interrelated chapters. Chapter one provides a background of the area of marketing communication, specifically focused on sponsorship, and sport sponsorship as a part of the marketing communication mix. Following the background is the problem discussion, narrowing down to purpose, research questions, and demarcations. Chapter two continues with presenting previous literature concerning the research area in addition to a conceptual framework. In chapter three the methodology of the research is presented, with its descriptions and justifications. The fourth chapter includes all the collected empirical data gathered, and the data is further analyzed in chapter five. The conclusions are drawn, the implications are stated and by that the research questions are answered and the research purpose is fulfilled in chapter six.

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LITERATURE REVIEW

2 LITERATURE REVIEW In this chapter an overview of previous studies related to the research area will be presented. The theoretical overview will start by presenting theories on sport sponsorship, including its objectives, selection process, and effectiveness evaluation. Finally a conceptual framework based in theory is displayed. In order to carefully develop sponsorship programs, companies worldwide commonly use a systematic process for designing a sport sponsorship program (shown in figure 2.1). The marketing exchange can be seen from two perspectives, that of the sponsor as well as that of the sponsored entity. (Shank, 1999) As mentioned in 1.4 this study is based on the sponsoring company’s perspective. Moreover, from this point and forward, the word sponsorship will be equal with the concept of sport sponsorship, since sport sponsorship contributes to about 75 percent of the world’s total sponsorship according to Dolphin (2003).

Sponsorship Objectives (budgeting)

Sponsorship acquisition

(Implementing) & Evaluating sponsorship

Figure 2.1 The Sponsorship Process Source: Adapted from Shank (1999. p.370).

According to Shank (1999), when developing sponsorship programs, decisions are based on objectives and budgets, since the most meaningful objectives will never be reached without the money. After the objectives and budget have been set up, the specific sport sponsorship opportunity is chosen from the available, that is further implemented and evaluated. Based on the discussion in the previous chapter sponsorship objectives, selection process in sponsorship (sponsorship acquisition), and evaluation of sponsorship will further be examined. (ibid)

2.1 OBJECTIVES OF SPORT SPONSORSHIP When designing a sponsorship program the first stage is to carefully outline the sponsorship objectives (Meenaghan, 1991; Olkkonen, 1999; Shank, 1999). Due to the diverse range of definitions and classifications of sponsorship, the concept of sponsorship also offers several objectives, which can be utilized in different kinds of situations (Olkkonen, 1999). According to Olkkonen (1999) and Shank (1999) sponsorship is one form of promotion where the sponsorship objectives should be linked to the broader promotional planning process and its objectives, as illustrated in figure 2.2. These objectives serve in order to achieve the higher marketing goals which in turn originate from the objectives of the organization (ibid.).

Overall Company Objective

Marketing Objective

Advertising Objective

Publicity Objective

Personal Selling Objective

Sales PR Objective

Figure 2.2: Hierarchy of Objectives for the Marketing Communication Mix Source: Meenaghan (1983, p. 15)

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LITERATURE REVIEW

According to Shank (1999) sponsorship objectives can in the same way as advertising objectives be categorized as either direct or indirect, where direct sponsorship objectives have a short-term focus on increasing sales as a result of impact on consumption behaviour. Indirect sponsorship objectives on the other hand focuses on enhancing sales by creating awareness and a desired image of the product before the consumers purchase the product. However, the primary objectives of sport sponsorship stated by the author is awareness, competition, reaching target markets, relationship marketing, image building, and sales increase from the sponsor’s perspective. Although, in a single sponsorship campaign, several objectives can be achieved, and objectives can moreover refer to strengthen the company brand, building goodwill among decision makers and opinion formers, in addition to displaying a socially concerned company to the public. (ibid.) Meenaghan (1991) further states that a company has an extensive variety of audience with whom it wish to communicate, such as the internal public, the key decision-makers and the company’s target markets. The author also explains that sponsorship play a major role in encouraging staff pride, rewarding effort, and in communicating the values of the organization to its staff. In addition to Shank (1999) and Meenaghan (1991) state that when considering the key decision-makers, sponsorship also has the ability to create goodwill among opinion-formers and decision-makers, as sponsorship most commonly is built around a particular event and has moreover the ability to offer corporate hospitality to the guests of the occurrence. Busby and Digby (2002) argue that sponsorship objectives need to be deliverable, measurable and integrated to the overall corporate and marketing strategy. These objectives can also deliver incentivising customers, enabling data capture and database building, developing customer loyalty, enhancing community relation, revitalizing brand/corporate image and niche targeting. Moreover, as measurable activities, the authors include increase in sales, new sales leads, retention of customers, staff recruitment, positive impact on perceptions of brand/company and increase in trade distribution (ibid.). Moreover, the pioneering study of sport sponsorship made by Meenaghan (1983) divides sponsorship objectives in relation to target markets into corporate objectives and brand objectives, such as broad corporate objectives, product related objectives, sales objectives, media coverage, guest hospitality and personal objectives. This classification of sponsorship objectives includes the organizational features on the corporate and product level, as well as visibility and interactive relationship aspects in the appearance of media coverage and guest generosity, sales aspects in regards of the sales objectives and personal aspects in the form of personal objectives. (ibid) Meenaghan (1983) moreover claims that several of the objectives may frequently overlap as well as an interaction of the objectives is commonly used in sponsorship campaigns, as for instance, the corporate image affects the product image in the same way as the corporate image is affected by guest hospitality. Nevertheless, Pope (1998) and Dolphin (2003) state that media objectives, corporate objectives, marketing objectives and personal objectives are four broad categories of sponsorship objectives that generally are acknowledged and accepted in the literature of sport marketing. This theory is presented in table 2.1.

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LITERATURE REVIEW

Corporate Objectives

Marketing Objectives

Media Objectives Personal Objectives

Public awareness

Business relations Generate visibility Management interest

Corporate image

Reach target market

Generate publicity

Public perception

Brand positioning Enhance ad campaign

Community involvement

Increase sales Avoid clutter

Financial relations

Sampling Target specificity

Client entertainment

Government relations

Employee relations

Compete with other co.

Table 2.1 Objectives for Corporations Involved in Sponsorship of Sport. Source: Adapted from Pope (1998, p.2)

2.1.1 Corporate Objectives Dolphin (2003) notes that the major drivers behind sponsorship may be to alter public perception, increase community involvement, build relationships, and create goodwill. According to Abratt, Clayton and Pitt (1987), broad corporate objectives have their basis in developing a favourable public perception of a firm, increasing public awareness of the company and its products, as well as creating goodwill among a company’s stakeholders.

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The most basic objective with sponsorship is to generate awareness, or raise levels of knowledge of a company’s products and services, product lines, or corporate name (Dolphin, 2003; Meenaghan, 1991; Olkkonen, 1999; Shank, 1999). Olkkonen (1999) further states that achieving, increasing or sustaining awareness of a company or its brands/products is one of the most important tasks of a company’s marketing activities, especially within marketing communication. The concept of awareness can moreover be linked to the hierarchy of effects models, which assumes that there is a series of steps that potential customers must pass through in a chronological order, from unawareness to purchase. However, creating awareness aims to generate a positive atmosphere around a sponsoring company towards the general audience, but does not automatically aim at directly locating prospective customers. (ibid) Moreover, Shank (1999) claims that based on the broader marketing strategy the sponsors must understand on which level to target; e.g. to promote an individual product or the company name. The author further notes that sponsorship can generate widespread awareness in a short period of time which is especially important for a new company or a company with a new product. In order to make the consumers aware of the sponsor’s relationship with the event, the sponsor normally designs a promotional program around the event, as well as make sure that the company’s promotional mix elements are integrated. (ibid.)

LITERATURE REVIEW

According to Olkkonen (1999), people’s attitudes and actions are conditioned by the image of an object, as image is a set of beliefs, ideas and impressions that an individual holds regarding an object. Meenaghan and Shipley (1999) argue that various elements of brand identity contribute to the development of brand image, where marketing communication is particular important in achieving brand image effects. Within communications, two separate elements; the message and the medium combine to deliver brand image values. Regarding sponsorship the message and media elements are inextricably linked and imagery is delivered by association with particular events and activities. (ibid.) Olkkonen (1999) continues by noting that a successful image conveys a message that establish a product’s/company’s character and value proposition in a distinctive way so that it is impossible to confuse it with similar messages from competitors, as well as it delivers emotional power so that it hits both the hearts and the minds of the customers. According to Shank (1999) and Dolphin (2003) building or maintaining an image is the most important reason for a company to engage in a sport sponsorship activity. This is due to the fact that the sponsor associates itself and/or its brands with the images generated by the sponsored personality, team or sporting event. Meenaghan and Shipley (1999) additionally argue that sponsorship allows the sponsored company to live in the reflection of the sponsored activity, which differ somewhat from the approach offered by traditional media, as well as it enables the sponsor to suggest associations for the brand. Moreover, Shank (1999) claims that the more matching image of the endorser with the image of the product being promoted, the more effect will be brought to the marketing message. Olkkonen (1999) also explains the basic idea of image building as a company that is sending a set of signals and cues (identity) which further creates a basis for perception by its various audiences (image). Meenaghan (1983) continues by stating that sponsorships with a particular set of personality attributes can help a company to achieve a particular image which in turn can change or reinforce public perception of a company, including its products and its services. Changes in image may moreover, be achieved through visibility, visual expression, or via interactive relational aspects. In addition, Olkkonen (1999) notes that a company further has the ability to build an image through sponsored events, although it cannot be implanted in the public’s mind overnight nor seeded by one marketing vehicle separately. Olkkonen (1999) moreover explains that when comparing product level with the broad corporate level, image could be built into products and adjusted for a company. Product image is thereby manipulable, whilst the company image is less easy to control as it contributes as an outcome of performance determined by a mix of non-manageable and controllable variables (ibid.). Meenaghan (1991) and Abratt et al. (1987) state that all business operations exist within an environment, and to some extent the success of a company is a result of organizations interaction with the environment in which it operates. Sponsorship may thereby be explained as a way to display the product/service in front of the market, as it also provides a great function for the company to give a return to the community by which it is supported (ibid.). Meenaghan (1991) continues by arguing that the involvement in the community is consequently an important corporate objective, since sponsors get involved in improving the life of the community at either a local or national level, by showing manner of good citizenship. Furthermore, sponsorship has more direct impact on the community than any other promotion medium (Meenaghan, 1983).

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LITERATURE REVIEW

According to Shank (1999) one of the most important issues for marketers in competitive marketing environment of today is to build long-term relationships with customers and clients in order to put the principles of marketing into work. The community is therefore of interest for the sponsor, as many corporate sponsors believe that returning something to the community is an important part of sponsoring a sporting event (ibid.). In addition, Dolphin (2003) argues that companies are increasingly concerned if they are seen to be fulfilling their societal obligation in respectful and responsible manner. Olkkonen (1999) further claims that stakeholder relationships may be created interactively via sponsorships by inviting important representatives of various stakeholders to a sponsored event and enhancing the relationship on an individual level at informal occasions. Meenaghan (1991) also states that sponsorships thereby provide companies with the opportunity to create goodwill among opinion formers and decision makers, as well as companies can use sponsorship in order to assure their shareholders and policyholders, who is of especially importance in the areas of banking, insurance and finance (ibid). Another benefit of sponsorship as a marketing vehicle is its ability to assist employee relations by simply sponsoring activities and events with which the employee can identify. Although the idea of assist staff relations is in many cases pursued solely with the interest of senior management in mind. (Meenaghan, 1983) Another corporate objective of importance is the guest hospitality that creates entertainment, which according to Jobber (2001) creates opportunities both for the consumer and the trade, whereby sponsoring of sport activities can be highly effective. Abratt et al. (1987) further explain sponsorship as an opportunity to entertain potential and existing customers in an informal, suitable environment. In addition Meenaghan (1983) states that a guest can often include opinion formers and decision makers in business as well as government organizations, trade acquaintances, dealers, wholesalers, and retailers. The author moreover claims that there are various ways in providing hospitality, as special events often can be arranged in order to put the customer under some kind of obligation of future purchase (ibid.). Shank (1999) argues that to stamp out and meet any competitive threats is another primary objective. Many companies claim that they are not that interested in sponsorship programs, but that they have to be involved within these, since their competitors do so. However, when engaged in a sport sponsorship activity there is a risk that the sponsoring company may be harmed by competitors that use planned efforts or campaigns by an organization in order to associate themselves indirectly with an event, with the aim to gain at least some recognition and benefits associated with being an official sponsor (ambush marketing tactics). (ibid.)

2.1.2 Marketing Objectives According to Shank (1999) reaching new target markets is also an objective of importance of sponsorship programs since sponsorship has the ability to reach people who are attracted to sports entities because they share a common interest. Sport sponsorship therefore represents a natural vehicle for psychographic segmentation of consumers, and reaching consumers with similar tastes in activities, interest and opinions (ibid.).

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Sponsorship is moreover used in order to achieve product and brand related objectives, since many objectives are the same as under corporate related objectives, such as increased awareness of product/brand, strengthen or changed market perception of the product/brand, and identifying the product/brand with a particular market segment (Meenaghan, 1983).

LITERATURE REVIEW

Companies thereby try to link brand name with a particular sponsorship in order to achieve product-related objectives. (Abratt, et al., 1987; Meenaghan, 1983). Although, increased sales is in general the most used objective for sport sponsorship programs, since organizations certainly would not spend money to lend their names to stadiums or events if they did not know that they would get something in return for their investment (Abratt, et al., 1987; Olkkonen, 1999; Shank, 1999). Meenaghan (1983) further claims that sponsorship can be extended to most elements of the marketing communication mix, with the ability to assist the movement of the buyer towards the point of actual sale. Sponsorship is therefore an important stimulus when purchasing is seen as a multi-stage, multi-influence activity, in the same way as it may influence sales in a more direct manner (ibid.). However, regardless of the various sponsorship objectives, organizations must evaluate how the sponsorship will help them achieve their unique marketing objectives, whereby increased sales of the sponsorship activity is the most comprehensible method for the measurement. (Abratt, et al., 1987; Olkkonen, 1999; Shank, 1999) Meenaghan (1983) additionally state that the use of sponsorship in order to create public awareness of the company, further may assist the prospecting and selling tasks of the sales force.

2.1.3 Media Objectives Abratt, et al. (1987) and Meenaghan (1983) argue that the achievement of media coverage is another objective of significance for companies involved in sponsorship activities. The coverage of an event is particularly important for companies that consider brand-, and company awareness as the main reasons for entering a sponsorship program. However, media coverage is more an intermediate objective rather than an end or final objective as market awareness. Moreover, the increasing use of new media offers new opportunities for sponsorship, as worldwide events supply the platform for global media coverage. (ibid.) Dolphin (2003) and Meenaghan (1983) further note that sponsorship can enhance the promotional message by cutting through the noise usually affecting traditional mass media advertising. Meenaghan (1983) further states that the achievement of media coverage is of special importance for companies in the alcohol and tobacco industry, since most governments have restrictions on advertisements of these products.

2.1.4 Personal Objectives Meenaghan (1991) claims that sponsorship has the capacity of delivering personal satisfaction, which also is of significant importance for the company. Abratt et al. (1987) continue by saying that personal objectives reflect the hobbies, interests, and personal views of the management of a company, whereby the decision to sponsor a sport and the selection of a sport are constantly influenced by the personal views of the decision-maker. Meenaghan (1983) additionally states that sponsorship unitarily provides a unique opportunity to achieve rigorously defined communication targets simply by impulses in the executive’s own personality, regardless of motivation.

2.2 SELECTION PROCESS OF SPORT SPONSORSHIP

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After the sponsorship objectives have been studied and financial resources have been allocated, the next step is for the company to make decisions concerning the appropriate sponsorship opportunity (Meenaghan, 1991; Shank, 1999). Due to the growing complexity of sponsorship relationships along with the potential conflicts that this harbours, marketers have

LITERATURE REVIEW

become more aware of the need for clear strategic justification to support their choice of partner (Fahy, et al., 2004). Of the several worthy causes, only a few are relevant to the interests of any brand and its target market. Selecting an appropriate cause is about matching the brand to a cause that is related to the brand’s attributes, benefits, or image in a natural way. Moreover, the choice of sport sponsorship should be closely related to the interests of the target market. (ibid.) Shank (1999) further states that in order to understand the evaluation and selection of sponsorship opportunities, a conceptual model of the corporate decision making-process of sport sponsorship acquisition is commonly used by sponsoring companies (presented in figure 2.3).

Buying centre composition

Aquisition of sport sponsorship proposals

Purchase decision

Interaction

process

Buying

grid

Figure 2.3 Sport Sponsorship Acquisition Model Source: Adapted from Shank (1999, p. 388)

According to Shank (1999) the process starts with the acquisition of sponsorship proposals which generally is an automatic process where organizations receive several sponsorship possibilities from sports entities wishing to secure sponsors. Connected to the sponsorship proposal, potential sponsors seek information regarding demographic profile of fans at the event, cost per number of people reached, length of contract, media coverage, value-added promotions, and sponsorship benefits. The next step is to form the buying centre, which is a group consisting of four to five individuals who is responsible for evaluating and choosing the sponsorship. Usually, these roles are named gatekeepers, influencers, decision makers, and purchasers. (ibid.) McCook, Turco and Riley (1997) further define gatekeepers as those individuals in the company who make the decision on what and how much information that is being passed on to key decision makers. These individuals are the committee members who receive the first sponsorship proposal, and can integrate receptionists, assistants, and even consulting firms. Influencers are known as those individuals who have some type of connection or information regarding the sponsorship requester and can include senior managers as well as other company employees. The ultimate decision maker differ depending on the level and cost of the sponsorship, where small sponsorship proposals often are referred to local or regional managers, whereas large proposals are taken care of by the corporate staff. The final role, which is the purchaser, has the responsibility to negotiate with the event manager. (ibid.) Shank (1999) further argues that it is important that the sponsorship requester is aware of who these individuals are before submitting the proposal in order to meet the unique needs of each individual in the buying centre. To make the purchase decision is the next step in the sponsorship acquisition model; generally it takes an organization three to six weeks to make this final decision. The purchase decision contains three interrelated steps. At first the company needs to consider the wanted scope of the sponsorship, for example international versus local sponsorship. In order to do this, a simple scheme for categorizing sponsorship opportunities has been developed, which is called the Sport Event Pyramid. (ibid.)

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2.2.1 The Sport Event Pyramid According to Shank (1999), the Sport Event Pyramid, displayed in figure 2.4 consists of five levels which are global events, international events, national events, regional events, and local events, and is commonly used in order to determine the scope of the sponsorship

Global Events

International Events

National Events

Regional Events

Local Events

1

2

3

4

5

Figure 2.4 The Sport Event Pyramid Source: Authors own model

Shank (1999) further explains that Global Events are at the top of the pyramid, as it have the broadest coverage, are exposed comprehensively worldwide, and generate a great deal of interest among consumers in events such as the Olympic Games. The next level in the ladder is the International Events, which have a high level of interest in a broad geographic region. International events include for example the European Cup Soccer, America’s Cup, Pan- American Games and Wimbledon. Interest among consumers in a single country or in two countries is on the other hand categorized as a National Event, with extremely high levels of interest for events such as the World Series and the Super Bowl in the United States. An event with an even narrower graphic focus is categorized as a regional event. Local events, at the lowest level of the Sports Event Pyramid, attract an even smaller segment of consumers that have a high level of interest in the event, in a more narrowed geographic level. The idea of the pyramid is to give marketers an understanding of what level of sponsorship that is logical in regards of corporate sponsorship objectives and budgets. (ibid.)

2.2.2 The Athletic Platform According to Shank (1999), after the first level of sponsorship is reached through the Sport Event Pyramid, the next step is to choose the appropriate athletic platform based on the sponsorship objectives, budget and geographic scope. A marketer can furthermore choose from a broad spectrum of athletic platforms, such as athletes, teams, sports, leagues, and events. (ibid.) Athletes Shank (1999) explains that individual athletes have the ability to create an immediate association with a product in the consumer’s mind, as well as they have tremendous credibility with the target audience. Meenaghan (1991) argues that sponsorships of an athlete can involve motives, such as bring about name and brand awareness of the sponsor. Shank (1999) continues by stating that athletes as promoters for a brand are one of the most prevalent exceptional styles of sports sponsorship, due to the fact that athletes reflect credibility, and in some cases, even attractiveness. Moreover the athletes stand for knowledge, skill, special expertise and trustworthiness of the marketing massage (ibid.). However, sponsorship of individual persons often include payment of an agreed amount of money, payment of transportation costs, the exclusive use of a product or sport equipment, or combinations of these. The risk with this type of sponsorship is still the loss of performance by the participant, or injury with results in a loss of publicity and exposure. (Meenaghan, 1991) Shank (1999) additionally states that successful athletes who promote products most commonly participate in the sport they demonstrate, which lead to athlete-athletic product match-up, shown for example in the cases of Michael Jordan, Tiger Woods, Pete Sampras and Brett Hull.

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Teams According to Shank (1999) teams can serve as the athletic platform at any level of competition. Meenaghan (1991) further argues that when sponsoring an individual team, the team may receive money, equipment, managerial expertise, coaching assistance, transport or combinations of these. The author continues by explaining that if the sponsored team does badly in competition, one risk with the sponsorship is that the company will not receive very much publicity, as it probably will be eliminated from the competition at an early stage or not receive much media coverage. Another risk is that if the sponsored team is involved in adverse publicity (such as crowd violence and disturbances) it can also rebound on the sponsor. (ibid.). Meenaghan (1991) also explains that neighbourhood firms often sponsor the local teams in a regional league, where the sponsoring in general involves team’s kit, or a limited amount of money to the sports club. Sponsoring of local teams is a common occurrence when a senior member of management of the firm, or a member of his/her family is a member of the team. This type of sponsoring has moreover been proved to impact staff relations and morale, especially when the firm’s workers are actively involved. (ibid.) Sports/league Companies can further choose to sponsor sports or leagues in addition to sponsoring teams. General Motors has for example chosen to sponsor the WNBA, with the advantage that few companies are sponsoring women’s sports or leagues, and that those that do so create a unique position in order to differentiate themselves. Thus, leagues have lately been trying to organize themselves in order to be attractive to sponsors. (Shank, 1999) Events Events are the athletic platform most commonly associated with sports marketing, since events as an athletic platform provide advantages as increasing awareness and enhance the image of the sponsor. Moreover, an event often allows the consumer a forum to purchase the sponsor’s products. Disadvantages, like other athletic platforms, are although the sponsorship clutter, e.g. sponsors competing with other sponsors of the attention of the target audience. A way to go beyond this problem is thus to become the official sponsor (the title sponsor) of an event. (Shank, 1999)

2.2.4 Criteria for Sponsorship According to Meenaghan (1983) once the general decisions regarding the level of sponsorship and the specific athletic platform is made, a marketer should carefully consider the choices of sponsorship before moving on. However, Brassington and Pettitt (2000) have offered a number of factors that needs to be considered before a sponsorship decision are made, as displayed in figure 2.5.

Sponsorship choice

Lenght of impact

Compatibility with objectives

Uniqueness/ exclusivity

Relevance Spin-off PR/mkt opportunities

Figure 2.5 Factors Influencing Sponsorship Choice Source: Brassington and Pettitt (2000, p.813)

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To begin with, companies must consider relevance of the sponsorship, since it is essential that it exists a match between the chosen sponsorship and the company’s target market. Another consideration may be the length of impact since one-off events, unless they are very high profile, tends not to have the capacity to build the continuity or establish the name familiarity that sponsoring a sport league or series of events would offer. (ibid.) This is further strengthen by Turley and Shannon (2000), as the authors state that ads appearing inside an arena need eight to twenty times more exposure than a television commercial does to reach the same result. Hence, it may be of decisive importance that the company’s target audience are able to notice and process the information given in the advertisements a number of times (ibid.). According to Brassington and Pettitt (2000) a third consideration is uniqueness, however it is not always possible to be a sole sponsor, in particular for a large international event or where the costs are very high. For example, sponsoring a league may provide uniqueness, such as Allied Dunbar’s decision to sponsor Rugby’s Premiership League. Allied Dunbar managed to increase its awareness profile, not only by sponsoring the league but also through the associated television coverage and live debate. The potential for spin-off promotion and other marketing activities from the sponsorship is another important consideration. Spending more money on advertising and promotion may maximize the impact of the actual sponsorship. For example, sporting events provides a focus for corporate hospitality along with an opportunity for sales promotion themes. A final consideration is the importance of ensuring that the activity is compatible with the sponsor’s overall promotional objectives. If a company gets involved with sponsorship only because the marketing director loves soccer it will cloud judgement over the real fit with the commercial objectives, and raise the cost of effectiveness of the sponsorship into question. Therefore, sponsorship decisions should be as calculated and unemotional as any other advertising decision. (ibid.) Meenaghan (1991) further states that the ability to fulfil objectives, coverage of the defined target audience, the level of coverage of the target audience, and the costs associates with the sponsorship program is a classification of sponsorship criteria that are generally used as a ground to the selection decisions of individual companies. The ability to fulfil objectives The ability to fulfil the stated objectives is a key criterion of any sponsorship proposal. Due to the fact that any sponsorship has it own personality and perception in the audience mind, it is further important ant to create and develop image and awareness. Coverage of the defined target audience Moreover, it is of significance to match the sponsorship activity with the defined target market. The matching process includes demographic, geographic, and lifestyle variables. The level of coverage of the target audience The likely amount of exposure as well as the size of the audience likely exposed to the company’s message is further important determinants in the selection process. The potentially exposed audience can be measured in terms of participants, on-site fans and media coverage, depending on the sponsoring activity being proposed. Media coverage also represents a useful bonus for companies seeking corporate hospitality, or a basis of involvement for branded goods companies. The costs associated with the sponsorship program

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Finally, the cost of the actual sponsorship activity is by nature a key criterion when selecting sponsorships. The cost of leveraging a sponsorship program includes the additional effort,

LITERATURE REVIEW

largely promotional, which must be invested by the sponsor in order to make use of the opportunity provided as a result of securing the rights of a particular sponsorship. (ibid.) Furthermore, Shank (1999) presents the following suggestions for selecting a sponsorship: • Does the sponsorship offer the correct positioning? • Does the sponsorship provide a connection to the brand? • Is the sponsorship difficult for competitors to imitate? • Does the sponsorship reach the right audience? • Does the sponsorship appeal to the target audiences’ lifestyle, personality, and values? • In what ways does the sponsorship merge into current corporate goals and strategies? • Can the sponsorship be used for hospitality to embrace important potential and current

customers? • Can employees be involved in the sponsorship? • How will the sponsorship effectiveness be evaluated? • Is the sponsorship affordable? • How easy will it be to plan the sponsorship annually? • Is the sponsorship a complement to the current promotion mix? According to McCook et al. (1997) another method for selecting a sponsorship, dealing with both pre and post sponsorship selection, is the Sprint Sponsorship Vision Project. This process rates specific criteria which have been weighted accordingly. Through the support of the following criteria, the company can evaluate and rank the different proposals according to their perceived effectiveness. • The revenue prospect for the company. • The capability to integrate the product into the sporting event. • The cost of the sponsorship. • The exposure to the company’s target market. • The company image improvement gained from the sponsorship. • The company’s competitive advantage achieved in the marketplace through the

sponsorship. • The hospitality/entertainment possibilities for the company that are gained through the

sponsorship. • The sponsorship opportunity to demonstrate the company’s commitment to the

community.

Product Development & Brand Awareness 7%

Corporate Policy 37 %

Not Sure 14 %

Large TV Audience & Corporate Hospitality & Product Sales 7%

Local & Brand Awareness 14 %

High Profile & Media Coverage & Advertising 14%

No Conflict-Co.’s Products 7 %

Figure 2.6 Criteria for Sponsorship Source: Adapted from Liu, Srivastava and Woo (1998, p. 106)

In addition, the study conducted by Liu et al. (1998) show that no set of conditions concerning companies’ criteria for providing sports sponsorship can be applyed as a standard. The results from the study by Liu et al. (1998) are possible to classify into seven specific categories, as shown in figure 2.6. All of the twenty-six participating organizations used one of the seven sets of conditions as their selection criteria for supporting a particular sport. Thirty-seven percent of the participating

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LITERATURE REVIEW

companies’ selection criteria were through the establishment of an overall corporate policy. Fourteen percent of the responding companies applied brand awareness and the immediate locality of a sponsoring sport as their selection criteria. Moreover, fourteen percent used media coverage, product advertising, as well as the high profile of the sport that it was related with, as their condition for providing sports sponsorship. The share of companies that were unsure about their organizations’ selection criteria showed to be fourteen percent as well. The balance twenty-one percent of participating companies was divided as follows: seven percent of the companies sponsored a sport as long as there was no conflict with its organization’s products and those of a competitor. Moreover, the activity or event that the company was sponsoring must be of a high calibre within its particular sporting environment. Another seven percent used the sports sponsoring to increase brand awareness among its consumers, and assist its product development within the market place. Finally, seven percent stated that their sponsorship activities were highly dependent on them earning corporate hospitality, the sale of products, and attaining a large television audience from the sporting activity or event that it was involved with. (ibid.) Liu et al. (1998), further argue that it is worth noting that all the companies that participated in the study use the sports sponsoring as a way of promoting their own products and their organizations. Hence, the majority of the companies tend to select a sport that would attract their target market. The results from the study are further strengthened by McCook et al. (1997) stating that corporate exclusivity is the major criteria for sport sponsorship selection. In addition, increased company/brand awareness, reinforced company/brand image, signage at events, ability to target audience, and increased sales/trial of product/service are known as significant criteria. In addition, Walliser (2003) offer additional selection criteria to use when selecting sponsorship activities, such as perceived similarity between the sponsors product and sponsored activity, similarity between targets of sponsor and sponsored, the status and image of the potential sponsored party and its eagerness to collaborate, geographical reach, contact frequency and quality, expected sponsorship costs and benefits, the type of rights received, and the opportunity to add the sponsorship to the present marketing strategy.

2.3 EVALUATION OF SPORT SPONSORSHIP EFFECTIVENESS According to Shank (1999) the return of sport sponsorship may be measured, where the explanation is based on defining the objectives, establishing a pre-sponsorship benchmark against which to measure, as well as maintaining consistent levels of promotion and advertising so it is possible to differentiate the effect of sponsorship. Although the lack of a universal method for measuring sponsorship is a problem often dropped, not because they do not have measurement value, but because no one has actually measured the value. The absence of a single standardize measurement is though an opportunity as it means sponsors can tailor their measurement systems to determine their specific objectives. (ibid.)

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Busby and Digby (2002) continue by saying that the demand for accountability has grown as the use of sponsorship has increased, and since companies nowadays are more willing to pay higher prices for events, and those bracing themselves for uncertain economic scenarios have an increased need to justify costs. As the need for accountability in sponsorship has increased and the discipline has gained credibility as a marketing communication tool, measurement and evaluation have become even more important to all parties involved in sponsorship activities. Measurement plays a crucial role in a successful sponsorship process, not simply to estimate the success of a program and further develop it, but it is essential to safeguard and justify sponsorship budgets internally against the competing demands of other elements of the

LITERATURE REVIEW

marketing mix. Evaluation further contributes to an important part of a sponsorship strategy, both in the pre-stages of a project and in the post-event analysis of a sponsorship programme. In order to be truly valuable, sponsorship measurement methodologies should reflect an understanding on how sponsorship works, as there is no single universal measurement method. (ibid.) In order to measure the effectiveness of a sport sponsorship activity, Shank (1999) has outlined three types of strategic control in the strategic sports marketing process; planning-assumption control, process control and contingency control displayed in figure 2.7.

Control phase of the strategic marketing

process

Planning assumptions

control

Process control

Contingency control

Figure 2.7 Control Phase of the Strategic Sports Marketing Process Source: Adapted from Shank (1999, p.504)

Shank (1999) further explains that planning-assumption control often is necessary during the planning phase to make assumptions about future events or contingencies about which there are no complete information, since individual planners may perceive and interpret data differently. Thereby, the strategic sports marketing plan is based on a number situation-specific premises and assumptions. The assumptions should further be considered in terms of control, where the external environment factors and sports industry factors are the two categories of most concerns for sports marketers. Regarding external environment the factors may include technology, inflation, interest rated, regulation, and demographic and social changes. The sports industry in which a sports organization operates influence the organizations regarding competitors, suppliers, league regulations, and leadership. Although, the control of planning-assumption does not evaluate how well the actual plan is progressing nor take into account the aspects of the internal and external environment that could not be detected during the planning phase when the premises were developed. Thus, effective control must consider the additional process control and contingency control. (ibid.) Shank (1999) continues by stating that the process control measures and evaluates the effects of actions that already have been taken in an effort to execute the plan. Due to changes in premises and contingencies, sports marketers use to review the plan and the implementation process, which should either change the strategic plan or the implementation process, in the light of events and actions that have occurred during the implementation of the plan. The benefits of this control is that marketers may minimize the allocation of resources into a strategic plan, or leading implementation process to achievements of objectives and goals deemed important by the sports organization. Monitoring strategic thrusts, receiving milestones and financial analysis are measures commonly used during the process control phase. (ibid.)

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The third form of control, contingency control, is according to Shank (1999) based on the assumption that sports marketers operate in an uncertain and unpredictable surrounding and

LITERATURE REVIEW

that the constantly changing internal and external environments may lead to the need to re-evaluate of strategic choices. The goal of contingency control is thus; to constantly scan the relevant environments for internal and external contingencies that could affect the marketing planning process. Daily dealings often leads up to an unpredicted event, lead to a focus in the form of a crisis, where previously unimportant or unnoticed happenings become more problematic until an actual crises requires some action. The aim with contingency control is although to learn to notice these signals and to properly prepare a plan of action in place to cope with if a crisis occurs. Sport scandals and crises are not infrequent, and therefore it is useful to plan so that the chosen response can be both faster and more effective. A crisis plan may include well-defined organizational response strategies, specific methods for a more efficient and effective response, a plan for effectively dealing with potential media impact and enhance image as well as efficient ways of handling other problems that might occur. Organizations may moreover benefit from an informal and formal crisis response plan, as the foundation of any crisis plan should offer priorities for proactive and reactive response under a variety of circumstances. (ibid.) Shank (1999) further notes that monitoring strategic thrust attempts to measure, evaluate, or monitor the strategic direction of the overall strategic plan. Sponsorship is one strategic thrust of special interest to sports organizations and organizations marketing their products through sports activities. Determining the effectiveness of a sponsorship program is becoming more and more important as the costs of sponsorship continue to rise. Some of the more popular ways of measuring sponsorship effectiveness is: (ibid.) • Mentions and number of stories in popular media such as newspaper, televised shows and

magazines serves as a measure of exposure. Awareness is furthermore assessed through media equivalencies, determining the length of “free” time the sponsor has accumulated through television coverage.

• Both before (pre) and after (post) the event sales figures for products and services can be examined in order to estimate the potential impact of the sponsorship. Scrutinize sales for the sponsorship period versus the same time period in prior years or measuring sales in the immediate area versus national sales may be another way of tracking sales. Additionally sales might be tied directly to the sponsored event, as discounts for products might be offered with proof of attending the event (show ticket etc.). Competitive reaction and supplementary sales promotions will further influence the sales statistics.

• Primary market research conducted in the form of in-depth interviews may also assess consumer attitudes towards different products and services, as well as the sponsored event. The interviews are used to estimate the event and its sponsors, and awareness of events and sponsors’ products and services.

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Furthermore, Busby and Digby (2002) explain that in order to make a successful evaluation and measurement of a sponsorship activity, it is important to have set up clear goals, and know what the sponsor wants from the sponsorship, as well as to have narrowly-defined objectives and measurable goals. A company could also try to increase trade against a competitor, whereby it is important to know where it stands before entering a sponsorship program. Nevertheless, many companies do not overlook this aspect of pre-sponsorship research and so weaken the chances of running a sponsorship of success, driven by business objectives. The authors further claim that marketing variables should not be changed during the actual sponsorship as well as when evaluating. It is important to note that negative data may not indicate that the sponsorship is wrong, which only may result from that the sponsors had failed to externally communicate their involvement more widely, but was aware of doing

LITERATURE REVIEW

so and could make improvements to the sponsorship program rather than piece it altogether. Finally, evaluation can only be effective if it is done based on reliable and relevant information, and sponsors also need to take the long-term impact of sponsorship under consideration, since the effects of sponsorships programs may be delayed because that sponsorship is generating good-feelings. (ibid.) In addition, Dolphin (2003) notes that the effectiveness of a sponsorship campaign can be measured through the attitudinal effects, direct market effects, impact on stock prices attitudes toward sponsorship, perceptions of the quality of leverage advertising, and the visibility of the campaign. As argued by Polonsky and Speed (2001), due to the lack of direct measure of outcomes, firms evaluating a sponsorship program often rely on using observable factors thought to influence outcomes. Hence, a company may evaluate its sponsorship by measure the exposure rates of the brand name generated, or knowledge of the sponsorship relationship. These kinds of methods of measurement do not reflect any direct beneficial outcomes and more commonly sponsorship is generally thought of as creating outcomes that are focused on the early stages of the hierarchy of effects, such as awareness, interest and attitude, which are difficult for the sponsors to observe. Thereby, it is not surprisingly quite difficult to evaluate the return of the investment in sponsorship as the measurement of sponsorship effectiveness is connected with how sponsorship influences consumers. Then as a result, measurement is largely dependent on advertising effect models and consumer surveys, as effects of sponsorship in general is similar to evaluating advertising effects. Thus, when clear objectives are set up and the campaign background, target group, campaign objectives and action standards are considered, the measurement of the effects is easier since the sponsor thereby can measure the consumers’ attitudes towards other sponsorship marketing communication activities of the sponsors surrounding the sponsored cause or event, and towards the consumers' willingness to activities. (ibid.) Although, when measuring sponsorship effects it is difficult to distinguish between the effects of sponsorship and the effects of other marketing tools, especially when sponsorship is used simultaneously with other promotion and advertising activities (Olkkonen, 1999).

2.3.1 Stages of the Evaluation Process According to Busby and Digby (2002), it is crucial to set up realistic objectives in order to evaluate the effects of a sport sponsorship program. Busby and Digby (2002) and Meenaghan (1991) further state that the sponsor may thereby consider the evaluation of the sponsorship activity at the outset, meaning the awareness levels amongst the target audience, attitudes to brand and other factors, or think about it when tracking process in order to check how the sponsorship activity is going, and if there are any strong positive or negative pointers to adjust or change. Finally, the sponsors could at the end of the sponsorship program evaluate to what extent the objectives have been met and how these have been evaluated and measured, as well as if this experience will have any impact on future sponsorship strategy. (ibid.) • At the outset • Tracking Process • Final Evaluation

2.3.2 Media Exposure Measurement

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Meenaghan (1991) argues that the level of media coverage gained as an outcome of sponsorship activities is frequently used by companies as an indicator of performance. Brassington and Pettitt (2000) and Meenaghan (1991) further state that one possible method

LITERATURE REVIEW

for measurement is to establish how much air time on television or radio, or how many column inches in the print media, that were given to the sponsored event. However, a problem with this method of measurement is that it takes place after the event, and therefore only can help to decide whether to continue with future involvement. (ibid.) However, it is important to note that the level of media coverage merely indicated the extent of the publicity resulting from the sponsorship activity, and thereby this method of measurement can not evaluate the effectiveness of the exposure gained unitarily (Meenaghan, 1991).

2.3.3 Assessing Communication Results According to Meenaghan (1991), there is also a tendency to evaluate sponsorship results in communications rather than in sales increase, due to the basic communication objectives. Pre- and post-tests on awareness and image can therefore be carried out to measure whether the sponsorship was noticed and what improvement it has made on awareness levels, attitudes and opinions about the sponsor (Brassington & Pettitt, 2000). Meenaghan (1991) further suggest evaluation of unprompted/prompted name awareness, and unprompted/prompted awareness of the company as a sports sponsors as well as attitudes towards sponsorship. Sponsoring companies also attempt to evaluate sponsorship results by focusing on the degree to which respondents associate the company or the product with the sponsored activity, which can be correlated with classification variables such as sex, age, and social class (ibid.). According to Busby and Digby (2002), reputation and image build strong brands and increases sales and is therefore of significant importance when measuring a sponsorship program, since brand equity takes all factors that constitute to a brand’s value under consideration. Nowadays, many companies include the concept of brand equity on their balance sheet. Sponsorship can moreover be one of the major contributors to the perceived quality of a brand, which further can be seen as one of the most significant aspects of a brand. Brand equity has furthermore direct impact on sales performance as well as a brands ability to sustain a price premium and a firms overall financial performance. The impact analysis measures the indirect marketing benefits of an activity compared with the costs. Impression management can be used to predict consumer attitudes before commencing sponsorship activities. The drawback is however that the correlation to sales and consumer attitude may vary. (ibid) The authors further explain that the impact can be quantified with impression measurement and a value can be assigned through: (ibid.) • Venue signage • Other trademark exposure • Media spots • Editorial mentions and exposures • Sampling totals • Other product related activity

2.3.4 Measuring Sales Results Due to the indirect nature of sponsorship amongst the more powerful impact of other marketing activities, it is unlikely that measuring sales results would yield important findings proving a casual link between sponsorship and sales (Brassington & Pettit, 2000). In addition, Meenaghan (1991) claims that many sponsors point to sales results as evidence of sponsorship effects, even if providing conclusive proof of this effect is difficult since it has to be separated from other ongoing marketing activities.

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LITERATURE REVIEW

Furthermore, Shank (1999) states that in order to fully interpret and control the process of strategic marketing plan implementation, it is further important to understand the financial information of the company. In regards of process control, accounting system provide a ready comparison of present financial performance with past performance. Budgeted goals and industry standard, as well as reports and financial statements can be used to make appropriate strategic decisions. The accounting system can also provide a way of collecting and processing information that can be used in the strategic sports marketing process. The income statement and the balance sheet summarize both money transactions of the organization or marketing department/division. Income statement is a good method of measurement of customer satisfaction and efficiency within the operation, whilst balance sheets provide a review of the financial health of the organization as well as a summary of the worth of the organization, what has been invested in assets, how they were financed and who has claims against the assets. (ibid.) Shank (1999) additionally states that more useful when measuring the effectiveness of a sponsorship program is although the ratio analysis. Financial ratios are calculated from income statements and balance sheets, and explain the progress and success of the strategic sports marketing plan, and if the marketing strategy continues to provide an appropriate fit with internal and external contingencies. There are several types of financial ratios, such as gross profit margin, net profit margin, return on total assets, asset turnover, current ratio, debt-to-assets load, inventory turnover and accounts receivables turnover, which also can be divided into profitability ratios, liquidity ratios, leverage ratios, activity ratios, and other ratios. Profitability ratios serve with an indication of how profitable the company is during a period of time, where liquidity ratios on the other hand provide an indication of the ability for the company to pay off short-term commitments without selling off assets. In order to measure the extent to which creditors finance the organization leverage ratios is often used, whereas activity ratios are more commonly used when measuring the sales productivity and utilization of assets. Other ratios can for example determine return to owners in dividends, the percentage of profits paid out in dividends, or discretionary funds. (ibid.) Busby and Digby (2002) further suggest a measurement of the return of investment (ROI) (shown in figure 2.8) as a ratio analysis of profit achieved by the basic operations of a company or brand. The return of the investment can further being regarded as a useful indicator of efficiency and effectiveness of a company or brand.

sales x profit = profit

investment sales investment Figure 2.8 ROI Return on Investment Source: Busby and Digby (2002, p.24)

2.3.5 Feedback from Participating Groups According to Brassington and Pettitt (2000), using obtained feedback as a measurement method is perhaps easiest to implement when the sponsorship is targeting a small well-defined audience, for example those asked to attend a sponsored concert and its associated hospitality. Meenaghan (1991) further states that monitoring guest opinions can provide a measure of sponsorship impact even where company staff and local community are being targeted. The participants, spectators, activity organizers and the company’s sales force may moreover work as useful sources of measurement.

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LITERATURE REVIEW

2.4 CONCEPTUAL FRAMEWORK A conceptual framework explains, in graphically or narrative form, the major things to be studied, such as the key factors, constructs or variables, as well as a conceptual framework explains the presumed relationship between them. Frameworks can moreover be rudimentary or elaborate, theory-driven or commonsensical, as well as descriptive or casual. (Miles & Huberman, 1994) In order to answer the stated research questions in chapter one, this conceptual framework will cork as a ground for our data collection. Of the theories and concept presented, the most relevant for our research are chosen. The theories in the conceptual framework are presented in the same way as they were in the literature review, since the theories are supported by others and summarize the area of research in a suitable way.

Objectives

Selection Process

Effectiveness

Sport sponsorship

Figure 2.9 Integration of Sport Sponsorship Source: Authors own model

The theories chosen for the study are based on the three integrated parts of sponsorship. This can be explained as the effectiveness evaluation is linked to the objectives, since an evaluation without clearly stated objectives is difficult. In the same way the objectives are connected with the selection process, given that when objectives are well defined a company may find it easier to select a particular sponsorship. Moreover, when evaluating the effectiveness of a sponsorship, measurement can be done on the chosen sponsorship selection criteria.

2.4.1 Conceptualization of RQ1: Objectives of Sport Sponsorship The literature most relevant to answer the first research question how the objectives of sport sponsorship can be described. To be able to answer this question the decision has been made to base the study on the theories by Abratt et al. (1987), Meenaghan (1983), Meenaghan (1991), Olkkonen (1999), and Shank (1999). These theories are summarized by Pope (1998). • Corporate objectives - public awareness - corporate image - public perception - community involvement - financial relations - client entertainment - government relations - employee relations - compete with other companies • Marketing objectives - business relations - reach target market - brand positioning - increase sales - sampling

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LITERATURE REVIEW

• Media objectives - generate visibility - generate publicity - enhance ad campaign - avoid clutter - target specificity • Personal objectives - management interest The reason for choosing the objectives involved in sport sponsorship presented by Pope (1998), is that this theory includes the major objectives found in the literature review concerning sport sponsorship objectives. Also, many of these objectives have been supported by Abratt et al. (1987), Meenaghan (1983), Meenaghan (1991), Olkkonen (1999) and Shank (1999). The use of several theories makes the study extensive.

2.4.2 Conceptualization of RQ2: Selection process in Sport Sponsorship The literature most relevant to answer the second research question how the selection process in sport sponsorship can be described. In order to answer this question the decision has been made to base the study on the following criteria presented by McCook et al. (1997), which generally are used when selecting a specific sponsorship activity. • The revenue prospect for the company • The capability to integrate the product into the sporting event • The cost of the sponsorship • The exposure to the company’s target market • The ability to improve the company’s image • The possibility to achieve a competitive advantage in the market place • The hospitality/entertainment possibilities that are gained through the sponsorship • The opportunity to demonstrate the company’s commitment to the community • Corporate exclusivity • Increased sales/trial of product/service In order to make this study more extensive, some of the criteria presented by Liu et al. (1998) will be included as well. • Increased brand awareness • Corporate policy Moreover, Walliser (2003) has provided some criteria relevant for this study. • The status and image of the potential sponsored party • Perceived similarity between the sponsors product and sponsored activity • Similarity between targets of sponsor and sponsored • Geographical reach • The types of rights received • The opportunity to add the sponsorship to the present marketing strategy

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LITERATURE REVIEW

The reason for choosing the selection criteria presented by McCook et al. (1997) and Liu et al. (1998) is that these theories includes the most relevant factors. The decision to choose Walliser (2003) is that the study is relatively recently made and therefore can be considered to be relevant in the subject of sport sponsorship today. In addition, Meenaghan (1991) will work as support. By using several authors this study can be considered to be extensive.

2.4.3 Conceptualization of RQ3: Effectiveness Evaluation of Sport Sponsorship The literature most relevant to answer the third research question how the effectiveness of sport sponsorship can be evaluated. In order to answer this question the study will be based on the following sponsorship evaluation methods offered by Brassington and Pettitt (2000). • Media exposure measurement

- air time on television or radio - column inches in the print media

• Assessing communication results - pre- and post-tests on awareness levels - pre- and post-tests on attitudes and opinions

• Measuring sales results • Feedback from participating groups The reason for choosing the theory by Brassington and Pettitt (2000) is that it is recently made and therefore can be considered relevant for this study. When reviewing the literature it was noticed that there seem to be a lack of universal methods for measuring sponsorship, however, this theory presented some specific guidelines that can be applied no matter what type of sponsorship method used. Meenaghan (1991) further works as a supportive source of this theory as he has outlined a nearly identical framework for measuring the effectiveness of a sponsorship program. Additionally, Busby and Digby (2002) and Meenaghan (1991) present three steps crucial for the sponsor to consider in order evaluating the effects of a sport sponsorship programme. • At the outset

- awareness levels and attitudes to brand among the target audience • Tracking process

- how the sponsorship activity is going, and if there are anything to adjust or change • Final evaluation

- if the objectives have been met, and how these have been evaluated and measured

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METHODOLOGY

3 METHODOLOGY In this chapter the methodology used in order to gather data for the research questions will be presented. The chapter will include the following discussions: research purpose, research approach, research strategy, data collection methods, expected models of analysis, and quality standards. Finally, the means of how to increase validity and reliability are discussed.

3.1 RESEARCH PURPOSE As stated by Saunders, Lewis and Thornhill (2000), as well as by Eriksson and Wiedersheim-Paul (1997), there are three purposes to use when carrying out scholarly research. These purposes are referred to as exploratory, descriptive, and explanatory. Exploratory studies are discovering investigations that are suitable when researchers are searching for new insights to problems and want to measure phenomena in a new light (Eriksson & Wiedersheim-Paul, 1997). Researchers that are using exploratory studies must be prepared to modify their research directions in case new data and insights arise, hence this type of research is flexible and adjustable. Additionally, exploratory research has a tendency to start with an extensive research area and narrow down as the research develops. (Saunders, et al., 2000) Descriptive research becomes appropriate in when the purpose is not to find causes to the research problem, but rather to describe the situation (Saunders, et al., 2000). This purpose is suitable when a structured research problem has been stated (Eriksson & Wiedersheim-Paul, 1997). As explained by Bernard in Miles and Huberman (1994), description means” making complicated things understandable by reducing them to their component parts” (p.90). Moreover, descriptive and exploratory researches could be directly linked to each other as researchers might have begun with wanting to gain insights to a problem, and after having stated it their research becomes descriptive (Saunders, et al., 2000). Explanatory research aims to find cause/effect relationships between given variables. Besides to having to come up with a well-defined research problem, hypotheses need to be stated to be able to accomplish that. (Eriksson & Wiedersheim-Paul, 1997) According to Bernard in Miles and Huberman (1994), explanation is defined as “making complicated things understandable by showing how their component parts fit together according to some rules” (p.90), namely theory. This study is primarily descriptive as we review literature, develop a framework, and collect data on companies’ objectives with sport sponsorship, in addition to the selection process, as well as the effectiveness evaluation.

3.2 RESEARCH APPROACH Qualitative research is based on transforming what have been observed, reported or registered into written words (Denscombe, 1998). The words can be assembled, sub clustered, and broken into semiotic segments (Miles & Huberman, 1994). The authors continue by saying that the words can be organized to allow the researcher to contrast, compare, analyze, and bestow patterns upon them (ibid.). Moreover, qualitative research has a tendency to be associated with description, since it is based on detailed and thorough descriptions of occurrences and people (Denscombe, 1998).

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METHODOLOGY

Since the purpose of this study is to provide a better understanding of how small and medium sized Swedish companies use sport sponsorship as a marketing communication tool, and as the research questions are stated in a way where the answers would rather contribute to an understanding of social phenomena, this study is to be regarded as a qualitative research. Moreover, we want to gain in depth information through our specific research questions. Our aim is not to generalize in any way; instead this thesis focuses on adding to theory by achieving a better understanding of the chosen research area. With the focus on qualitative research, the following step in the methodology is to find a suitable research strategy.

3.3 RESEARCH STRATEGY The purpose with this study is to provide a better understanding of sport sponsorship as a marketing communication tool in Swedish companies. According to Yin (1994) a case study gives the researcher the opportunity to conduct direct observations and systematic interviewing. Case study can also be defined as “the essence of a case study, the central tendency among all types of case study, is that it tries to illuminate a decision or set of decisions: why they were taken, how they were implemented, and with what result.” (p.12). As further explained by the author case studies are most useful when “a ‘how’ or ‘why’ question is being asked about a contemporary set of events over which the investigator has little or no control.” (p.9). (ibid.) Considering the reasons that are mentioned above, case study is the most appropriate to use in order to answer the research questions, and by that reach the purpose of this study. In addition, case studies mostly include qualitative research and provide the possibility to use several sources of evidence, which is called triangulation. (ibid.)

3.4 DATA COLLECTION METHOD After having determined the most appropriate research strategy it is necessary to decide on how to collect the empirical data (Yin, 1994). As explained by Eriksson and Wiedersheim-Paul (1997) there are two types of data, secondary and primary data. While secondary data is data that already has been collected by other researchers with different purposes in mind, primary data is data gathered by a person on his/her own with a specific purpose in mind (ibid.). According to Yin (1994) there are six important sources of evidence for case studies, these are documentation, archival records, interviews, direct observations, participant-observations, and physical artefacts. Moreover, none of these six sources has a complete advantage over the others. Because the various sources are highly complementary, a good case study strives to use as many sources as possible. (ibid.) The data gathered in order to answer the research questions of this study, and by that reach the research purpose is collected from both primary and secondary sources. The sources of evidence used in this study are interviews and documentation. These two sources are outlined and explained, including each one’s strengths and weaknesses in table 3.1.

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METHODOLOGY

Source of evidence Strengths Weaknesses Documentation; for example letters, agendas, administrative documents, formal studies or evaluations, and newspaper clippings.

Stable: can be reviewed repeatedly. Unobtrusive: not created as a result of the case study. Exact: contains exact names, references, and details of an event. Broad coverage: long span of time, many events, and many settings.

Retrievability: can be low biased selectivity, if collection in incomplete. Reporting bias: reflects (unknown) bias of author. Access: may be deliberately blocked.

Interviews; can be of an open-ended, focused, or survey nature.

Targeted: focuses directly on case study topic. Insightful: provides perceived casual inferences.

Bias due to poorly constructed questions. Response bias. Inaccuracies due to poor recall. Reflexivity: interviewee gives what interviewer wants to hear.

Table 3.1 Sources of Evidence: Examples, Strengths and Weaknesses Source: Adapted from Yin (2003, p.86)

According to Yin (2003) documentary information is the most common used source in every case study topic, and is primary used in order to corroborate and augment evidence from other sources. Documents are important when verifying the correct spelling and titles or names of organizations that possibly could have been mentioned in an interview. In this research, documentation was mainly used to achieve background information about sport sponsorship. Documentation is to be regarded as secondary data, as it first was gathered to serve a different purpose. (ibid.) The interview is one of the most important sources of case study information. The interviews will seem to be guided conversations rather than structured queries, meaning that although there will be pursuing a consistent line of inquiry, the actual stream of questions in a case study interview is likely to be fluid rather than rigid. Most commonly, case study interviews are of an open-ended nature, in which the key respondents are asked about the facts of a matter as well as their opinions about events. A second type of interview is a focused interview, in which a respondent is interviewed for a short period of time, for example an hour. In such a case, the interview may still remain open-ended and assume a conversational manner, but it is more likely to be following a certain set of questions derived from the case study protocol. The third type of interview entails more structured questions, along the lines of a formal survey, which could be designed as part of a case study and produce quantitative data as part of the case study evidence. (Yin, 2003)

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In this study we decided to conduct focused interviews because we had a certain set of questions that needed to be answered in order for us to gather relevant data to our research questions. Still, we aimed to keep the interviews open-ended to some extent in order to maintain the flexibility of the interviews in addition to the opportunity of investigating. The interviews were conducted in Swedish and we used an interview guide as a base to guideline our discussion. In order to give the respondents time to prepare for the interviews, the interview guides were sent in advance. In addition to the interviews, data was collected from the chosen companies’ homepages and annual reports with the aim of gathering information to be able to describe the companies’ background.

METHODOLOGY

3.5 SAMPLE SELECTION When suitable sources of evidence have been determined, the next crucial step is to find relevant and manageable samples to collect the empirical data from. In the sample selection for this study we have chosen to look at companies within Sweden that are involved in sport sponsorship. Due to the limited frame of time, and since we wanted to conduct personal interviews, we have chosen two companies located in Sweden, Luleå. This resulted in the choice of two companies sponsoring the elite hockey team Luleå Hockey, NCC and Nåiden Bygg AB. The two companies are in the building construction industry and the researchers have good connections in both of the chosen companies. In order to reach appropriate respondents from the companies we called the main offices and got in contact with Mats Eklund at NCC and Stefan Erixon at Nåiden Bygg AB, since they seemed to be the most suitable persons to answer the research questions. In order to compare the companies we have chosen to do two separate case studies; the first case is the Chief Executive Officer at Nåiden Bygg AB and the second case is the head of department at NCC (see figure 3.1).

Case 1 Nåiden Bygg AB

Stefan Erixon, CEO

Case 2 NCC Region Norrbotten

Mats Eklund, Head of Department

Figure 3.1 Figure of Cases Source: Authors own model

Case Study of two Swedish companies - Same field of business

- Different size

According to Yin (2004), the evidence gathered from several case studies is often considered more compelling, and the overall study is therefore considered as being more robust. On the other hand, the rationale for single-case designs usually cannot be satisfied by multiple cases. In addition, the conduct of a multiple-case study can demand extensive resources and time beyond the means of a single student or independent research investigator. Hence, the decision to undertake multiple-case studies cannot be taken lightly. (ibid.)

3.6 DATA ANALYSIS After the data have been selected and the empirical data have been gathered, the process of analyzing the data takes place with the aim to find answers to the earlier stated research questions. According to Yin (1994) data analysis means examining, categorizing, tabulating, or in other ways recombining the evidence with the aim to address the initial proposition of the study. To analyze evidence from case studies is especially difficult as the strategies and techniques have not been well defined in the past. Still, all investigations should begin with a general analytic strategy that will treat the evidence fairly, produce compelling analytic conclusions, and rule out alternative interpretations. In order to describe in what specific ways case study analysis should be conducted, two types of general analytic strategies are available. The strategy that is most commonly used is when the theoretical propositions that initially led to the case study should be followed; the other strategy is that a descriptive framework is developed to organize the case study. (ibid.) According to Miles and Huberman (1994) there are two forms of analysis to use on case study data: with-in case analysis and cross-case analysis. With-in case analysis is explained as comparing the data collected against the theory used in the study, whereas cross-case analysis compares data gathered from different cases with each other (ibid).

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METHODOLOGY

Qualitative data analysis is focusing on data in the form of words which need to be processed in form of analysis done in three stages (Miles & Huberman, 1994). This analysis is defined by the authors as consistent of “three concurrent flows of activities” (p.10). These three stages are presented as (ibid.): • Data reduction: the process of selecting, focusing, simplifying, abstracting, and

transforming the gathered data. The purpose in this stage is to organize the data in order to draw and verify final conclusions. (ibid.)

• Data display: when the data is reduced, it should be displayed in an organized, compressed way simplifying conclusion drawing (ibid.).

• Conclusion drawing and verification: in this third stage the researcher decides the

meaning of occurrences, noting regularities, patterns, explanations, possible configurations, casual flows, and propositions (ibid.).

This study relies on the theoretical propositions that led to the case studies. The data will be compared to existing theory by conducting a with-in case analysis. The three stages presented above are followed when the empirical data of this study is analysed (Miles & Huberman, 1994). First, the data concerning each research question was reduced by choosing and simplifying the essential parts needed in order to answer the stated research questions. In the next step the empirical findings within the cases will be evaluated to existing theory in a with-in case analysis. In this study the conclusions will be made by noting regularities, irregularities, and how the empirical data matched with existing theory. In addition, a cross-case analysis will be used, comparing the gathered data from the two cases with each other.

3.7 QUALITY STANDARDS In order to ensure the quality of the research and reducing the possibility of receiving the wrong answers, attention must be paid to specific emphases on research design, namely reliability and validity (Saunders, et al., 2000).

3.7.1 Validity

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Validity is defined as the measuring instrument’s capability to measure exactly what is supposed to be measured (Eriksson & Wiedersheim-Paul, 1997). Moreover, validity is the researcher’s ability to use his/hers methods to study what was planned to be studied, rather than studying something else (Gummesson, 2000). According to Yin (1994) there are three different types of validity for case studies: construct validity, internal validity, and external validity. Construct validity means establishing correct operational measures for the concepts that are studied and it can be increased by using three different tactics. The first tactic is to use multiple sources of evidence, the second one is to establish a chain of evidence, and the third one is to have key informants review draft case study reports. Internal validity is defined as establishing a casual relationship where certain conditions are shown to lead to other conditions and is not suitable in descriptive or exploratory studies, only in studies with explanatory research approaches. External validity means establishing the area to which a study’s findings can be generalized. According to Yin (1994), it is possible to reach high external validity when using case studies, since case studies are based on analytical generalizations that strive to generalize findings in theory. In order to increase construct validity of this research both interviews and documentations will be used. Moreover, effort

METHODOLOGY

has been put into finding the most appropriate respondents from the companies. We were also careful to ensure that the respondents really understood the questions. As the interviews were conducted in Swedish and later translated to English, the risk for interpretation errors increased. However, we decided to conduct the interviews in Swedish since the respondents otherwise might have misunderstood our questions or felt constrained with the language barrier and thereby not have talked as freely. In order to further avoid misunderstandings, the interview guides were sent in advance. Additionally, we used a tape recorder during our interviews to be able to double-check the answers in order to reduce the possibility for interpreting or translating the answers wrong. The conclusions will be limited to the generalization of the two cases. In addition, the conclusions will be drawn following the same order as stated in the conceptual framework. Finally, implications for further research will be provided, thereby increasing the external validity.

3.7.2 Reliability The aim with reliability is to ensure that later investigators would arrive at the same findings and conclusions if following the exactly same procedures described by an earlier investigator, and conducting the same case study all over again. The purpose with reliability is to reduce the errors and biases in a study. (Yin, 1994) In order to make this research as reliable as possible, we have throughout this thesis explained the procedures of our research. Moreover, we have designed an interview guide reflecting the conceptualization of our research questions. Also, the thesis has been organized in a way so that any reader or researcher can retrieve any required material. Personal biases might have been present during the interviews to some extent; hence the results could be questioned because of the influence from the respondent in addition to our own attitudes and values.

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EMPIRICAL DATA

4 EMPIRICAL DATA This chapter will present the empirical data gathered from the two case studies. To begin with, background information as well as data collected from the first case study will be presented, and thereafter, background information and the data collected from the second case study will be offered. The data collected will be presented in the same order as the research questions. Hence, this chapter will include objectives of sport sponsorship, the selection process in sport sponsorship, and the evaluation of sport sponsorship effectiveness.

4.1 CASE 1 NÅIDEN BYGG AB Nåiden Bygg AB is a wholly owned company of Norrland, founded in Luleå in 1974. Nåiden Bygg AB is ranked as one of the 20.000 largest companies in Sweden, and one of the fifty largest within the building construction industry today (see appendix C for total list). Nåiden Bygg AB is mainly effective in the county of Norrbotten with offices and operations in the areas of Luleå, Piteå and Skellefteå. The company is currently employing 100 people, with an annual turnover of approximately 300 million SEK. The company has sponsored sport activities and sport teams ever since the foundation of the firm in 1974, although it experienced a notable change with the shift of company owners in 1998 when the use of sport sponsorship as a marketing communication tool increased remarkably. The company management sponsor sports primarily due to the personal interest, with local sports teams as the main focus, since the company operates at a regional level. At present, the company spends roughly 80 percent of its total marketing budget on sport sponsorship activities, and is currently engaged in sponsorships for teams such as Luleå Hockey, Bergnäsets AIK, Luleå Basket, and sports clubs as Luleå Golfklubb, Piteå Golfklubb, as well as activities around harness racing at Bodentravet. In addition, the company put a lot of effort in sponsoring sports aimed for young people and children, since it is important to get the youth involved in sport activities, as it provide benefits for a further healthy and active lifestyle. The sponsorship can be carried out in different forms by the company, such as a sign board or rolling sign within an arena, logotype prints on the sport equipment or outfit, as well as sponsoring of a specific activity in connection to a sport event. Usually the company provides the sports team or sports club with a certain amount of money in exchange for the exposure rights in connection with the sport. Stefan Erixon, the CEO at Nåiden Bygg AB, provided us with Nåiden Bygg AB’s objectives, selection, and methods of evaluation of sport sponsorship.

4.1.1 Objectives of Sport Sponsorship According to the respondent, the company has three major objectives with sport sponsorship; objectives related to the personal interest of the management, objectives regarding business relationships, and objectives of generating visibility of the company. The company therefore supports sports teams or sports clubs in the Northern Sweden that the management or some of the employees is either interested or involved in. The management further finds these teams or clubs as important sources for creating visibility and publicity for the company, as many of their customers and cooperation partners share the same specific sport interest. The objectives may thereby change depending on the sponsored sport unit. However, the objectives are not concerned with increasing sales, as the company is in a field of business where it does not sell a customer product, and the company gets contracts simply by counting on offers.

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EMPIRICAL DATA

Concerning the corporate objectives of sport sponsorship, the company generally focuses on the corporate image, client entertainment, employee relations, and in some degree the public awareness and public perception. The company finds it important to create and sustain their image of a company that is fulfilling their societal obligation in a respectful manner by caring for the local sports clubs in Luleå, Piteå and Skellefteå. It is further of significance for the company to show the public that it support sports, as it may create goodwill among co-workers, customers and cooperation partners. The corporate objectives can also in some extent concern financial relations, as it in some cases may be pressures from the society forcing the company to engage in sponsorship programs. The most important objective for the company is although the ability of sport sponsorships to create client entertainment and improving/sustaining employee relations, since the field of business requires strong relationships in order to survive and grow as a company. The sponsorship also works as a motivator for the employees as they can see by the sponsored unit that the company cares for their interests. Government relations and the objective to compete with other companies are although not considered as corporate related objectives by the company. The respondent further explains that the marketing objectives of sport sponsorship are somewhat the same as the corporate objectives, as one of the company’s key motives is to build/sustain business relationships. The managerial interest is moreover used as a determinant in the marketing objectives, as it may be easier to put some sponsorship efforts in sport clubs and teams in which they find interest by themselves or by other stakeholders or relations. Brand positioning might also work as an objective at some levels, such as in new markets as Skellefteå. In general the management considers the company as already established in the customers mind in the area of Luleå and Piteå, as the most local partners already know Nåiden Bygg AB on a professional ground. The CEO of Nåiden Bygg AB therefore considers brand positioning as an objective of sport sponsorship as less important in this area. As mentioned earlier, the objectives of increase sales and sampling is difficult to take under consideration in this field of business, as the company do not sell a customer product, and since the management do not think that the company would achieve more contracts and increase the turnover simply by sport sponsorship. The CEO further believes that a sign board on the workplace is of more value to the company. However, the marketing objective of reaching target market was neither considered by the company. Furthermore, the respondent states that the company uses media objectives of sport sponsorship in order to generate visibility, generating publicity, as well as to avoid clutter. Due to the reason that the company has decided to use sport sponsorship as a marketing communication tool, it is more effective to put lot of efforts in fewer sports teams/clubs/activities that achieves much publicity and reach a wider audience than spread it out to many smaller units in the surrounding areas of the cities. This is of significance, especially in the cities where the company mainly operates. The CEO explains that when the company decided to expand the activity to Skellefteå it was really important to reach the potential customers, cooperation partners and other stakeholders as soon as possible, and thereby the decision of sponsoring the major sport team in Skellefteå, Skellefteå AIK. However, the publicity does not always offer benefits for the company, such in the case of the youth teams in the surroundings of Luleå, where one team may demand sponsoring from the company, simply by the reason that a neighbouring team had achieved an amount of money. Although, this does not concern a large sum of money for the company, and it is rather a question of avoiding clutter and sustain consistency in the sponsorship programs. To enhance advertising campaign or to target specificity were although not considered as media related objectives of sport sponsorship by the company.

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EMPIRICAL DATA

Personal objectives, including management interests, of sport sponsorship is although the main objective of sport sponsorship for the company. As mentioned, the managerial, in addition to the interest of the employees, is the main objectives when engaging in a sport sponsorship program by the company.

4.1.2 Selection Process in Sport Sponsorship Concerning the sponsorship selection process, Nåiden Bygg AB has certain criteria that it bases the decision on. However, all decisions are taken by the senior management after internal discussions and motivations. The selection is also mainly dependent on the managerial interest in the specific sport, and the ability they find in the sport to deliver their marketing message. The interest of the employees also has a significant impact on the sport sponsorship choice, as the management takes into account other interests beside their own. According to the CEO, the criteria of most impact for the selection process is the revenue prospect of the company, the cost of the sponsorship, the exposure to the company’s target market, the hospitality/entertainment possibilities that are gained through the sponsorship, as well as the status and image of the potential sponsored party. The revenue prospect for the company is often unconsciously taken into consideration when selecting sport sponsorships, although it is never measured. Thus, the cost of the sponsorship is more carefully considered, as the company nowadays tries to allocate larger pots of money to fewer sports, although the discussion between the managers always concerns what the money could have done for a smaller sports team or club in terms of prosperity and future development. The key determinant is though the exposure abilities for the company, and how many potential customers, cooperation partners and other stakeholders that recognize the sign board or other sponsorship marketing efforts. The choice is thereby always based on the exposure abilities, as the company set a high value in the marketing possibilities within the arena, as well as the size and location of the sports arena. Moreover, the ability to improve the company’s image toward important stakeholders is at some levels taken under consideration, as it may show the cooperation partners that the company cares both for the sports, and for the community. However, in general the company tries to deliver a good work to the contractor instead of prove their involvement in the community. The most important criterion in the selection process of sport sponsorship is though the hospitality and entertainment possibilities that are gained through the sponsorship, due to the company’s important contact network. This is especially important for sponsorship proposals that may interest the stakeholders of the company, which makes it easier to arrange customer activities and meetings in connection with special events, sometimes even extra sponsored, through a specific match or race. Furthermore, the status and image of the potential sponsored party is also an important determinant of the selection of sponsorships since the company wants the sponsorship efforts to be visible for the target audience. According to the respondent, the similarity between the targets of sponsor and sponsored has some impact on the decision making process regarding sponsorship proposals, since the company does not want to sponsor an unethical sport/event or activity as well as it does not support an unethical behaviour by the participants in the sports, and do not want to be connected with these kind of behaviour. On the other hand, the company likes to sponsor teams or clubs that gives a positive response of the sponsorship by showing appreciation. However, the CEO believes that the achieved response of gratefulness somewhat depends on the amount of money spent on the team or club.

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EMPIRICAL DATA

Moreover, the choice of sponsorship is to some extent determined by the geographical reach of the sponsorship. The company has decided to mainly sponsor sports at a regional level, as its business operations also is on that level and thereby it does not need to be seen on a national or international level. The capability to integrate the product into the sporting event, the possibility to achieve a competitive advantage in the market place, the corporate exclusivity, the possibility to increase sales/trial of product/service, the possibility to increase brand awareness, the corporate policy, the perceived similarity between the sponsor’s product and the sponsored activity, the types of rights received, and the ability to add the sponsorship to the present marketing strategy are although not considered as criteria by the company when selecting sponsorships.

4.1.3 Evaluation of Sport Sponsorship Effectiveness When considering the evaluation of sport sponsorship effectiveness, the company does not formally evaluate the effectiveness of the sponsorships. However, since the company has made the decision to sponsor local teams or clubs based on the interest by some employees, it is notified by its employees whether they like the sponsorship of that club or not. If the company for example decides to remove the financial support from one local club, the company would get direct response from the employees of that action. Concerning the larger sport teams or clubs the company checks if the sports team or clubs business is conducted properly such as given the company the right rate of exposure and the right number of tickets due to the sponsorship agreement. According to the CEO, the company simply measures the effectiveness of a sponsorship indirectly through the response from participating groups of the event, which may alter between the three owners. The communication results, including awareness and attitudes, could also be notable before and after a specific sport event. The company does not have any other method for measuring the effectiveness of a sport sponsorship other then the above described. Hence, Nåiden Bygg AB does not evaluate by measuring the media exposure or the sales results. Neither do the company measure during the tracking process of the sponsorship. Although, the three owners of the company have meetings where they evaluate which sponsorship that is worth to maintaining for the next season, and which one to retire from due to the responses from the participating groups and employees. The CEO of Nåiden Bygg AB additionally states that it is important for the image of the county of Norrbotten to have successful athletic teams, as it reflects a positive image of healthiness and team spirit of the county, which is also of importance for Nåiden Bygg AB.

4.2 CASE 2 NCC

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NCC is one of the leading building- and real estate developing companies in Scandinavia. NCC is active throughout the whole value chain in its efforts to create environments for work, living, and communications. The company develops residential and commercial property projects. Moreover, NCC builds offices, industrial facilities, housing, roads, civil engineering structures and other types of infrastructure. NCC also offers input materials used in construction, such as aggregates and asphalt. The company also conducts paving and

EMPIRICAL DATA

maintenance operations in the roads sector. The Group’s primary geographical focus is on Scandinavia. Since NCC is a national company the decision has been made to limit the study to focus on NCC in the county of Norrbotten. NCC in Norrbotten has 400 employees and an annual turnover of 800 millions SEK, with approximately 0,1-0,2 percent aimed for sport sponsorship. The company has been involved in sport sponsorship since 1987, and at the moment the sponsorship is mainly focused on Luleå Hockey and Plannja Basket. In addition, NCC sponsors Luleå Basket, Kiruna Hockey, and other local sport associations working in Piteå, Boden, Luleå, Gällivare and Kiruna. The reason why NCC use sport sponsorship as a promotional strategy is that the company consider it to be the type of media that is most attractive, both internally and among their clients. Moreover, sport has a great impact in the media, especially on a local level. Concerning Plannja Basket and Luleå Hockey, the sponsorship has an impact on a national level as well. Another important reason is that many of the employees and clients have a past within sport. Mats Eklund, head of department at NCC in Norrbotten, was interviewed for this case.

4.2.1 Objectives of Sport Sponsorship NCC has set several different objectives for its sport sponsorship. The objectives are constant, which means that they do not change considering the sponsored activity. The most important objectives for the company are the corporate objectives which include strengthening NCC as a trademark. The company wants people to think of NCC as “a building company that is also involved in sport”, it creates an identity for NCC as a local organisation that is engaged in sponsorship. Moreover, the company want to be a part of the discussion in the community. Another important objective of sport sponsorship is the possibility to have profitable client activities, and to some extent a type of personnel cares. For example, in November NCC invites 80-100 clients to a basketball match with Plannja Basket which is an opportunity to make many connections during one evening, and in January or February the company invites a smaller amount of clients to attend a Luleå Hockey match. NCC has no interest in having financial relations with other sponsors. However, the company want to appear together with its most important clients, LKAB and SSAB, since the company believes that it is beneficial for NCC to be associated with them. Moreover, government relations and competing with other companies are not considered as important objectives for the company.

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Considering the marketing objectives of sport sponsorship, NCC has stated business relations as its most important objective. For example, Plannja Basket has a supplier that NCC has much collaboration with which has given NCC a logotype that is clearly visible on the basketball team’s outfit. On Luleå Hockey’s outfit NCC only has a small logotype since the company feels that it is more important to appear together with LKAB and SSAB. Moreover, one employee at NCC is a member of the hockey team’s board where also one employee at LKAB is seated. The factors mentioned above are all important for NCC in order to create personal relations. To increase sales, reach target market, brand positioning, and sampling are not objectives that are of significance for the company. Since their businesses are based on

EMPIRICAL DATA

professional offers, and since NCC is only building for companies, the company do not believe that sponsoring sport will give them more jobs. Media objectives are very important for NCC since the company wish to generate visibility and publicity through sport sponsorship. Sport has a great interest in the media, and since many of NCC’s clients are interested in sport, the sponsoring activities give NCC and their clients a common topic to discuss in order to strengthen their relations in a natural way. Enhance ad campaign, avoid clutter, and target specificity are not regarded as objectives for NCC. According to NCC, personal objectives are not considered when sponsoring sport. Mats Eklund explains that even though he is interested in hockey and basketball, the company is not allowed to sponsor sports because of personal interests. It is important that the decision to sponsor a specific team or event can be explained internally. NCC has a decision order meaning that Mats Eklund cannot decide sponsoring for more that 5,000 SEK by himself, and the head of region at NCC is allowed to decide sponsoring up to 50,000 SEK. This decision order exists in order to prevent the company from giving away money without any purpose. It is the head of NCC Sweden that makes the final decision considering sponsorship. NCC believes that it is more beneficial to sponsor a few sport activities with more money than to sponsor a large amount of activities with less money. However, if one employee at NCC has a son or daughter involved in a sport association NCC sometimes sponsor that association with a small amount of money in order to keep the employees motivated. Moreover, if some of its clients are interested in golf, the company has a client activity during the summer to keep them satisfied.

4.2.2 Selection Process in Sport Sponsorship NCC has three aspects concerning the selection of a specific sport sponsorship, namely, client perspective, the company’s personnel, and what NCC stands for. Regarding the company’s staff, both the present and future personnel are considered when selecting a specific sponsorship. NCC is striving to employ more women to the company so in order to create an identity among women the decision was made to sponsor the female basketball team, Luleå Basket. NCC has a policy concerning its sponsorship, which includes that the sponsorship must be in agreement with the company’s values. Also, the company must follow the rules that are set up concerning sponsorship. However, NCC is not so restricted by this policy, and what is decided to be sponsored varies a great deal across the country. Due to this policy, and since NCC has a budget aimed for sponsorship, it is easier for them to say no to sponsorship offers.

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The cost of the sponsorship is one important factor that NCC considers when selecting a specific sponsorship, the company need to feel that what NCC earn from the sponsorship agreement is worth the cost of it. Even though reaching the target market is not considered as an important objective of sport sponsorship, the exposure to the company’s target market is regarded as an important criterion when selecting a specific sponsorship. The status and image of the potential sponsored party is also a significant criterion as the sponsorship has to be in agreement with the values of NCC. The company does not want to be associated with dirty money, and since NCC wants to distance the company from the macho image existing in the building industry, NCC would never sponsor boxing. NCC also considers the types of rights received from the sponsorship agreement, including a sort of sponsorship package. This

EMPIRICAL DATA

sponsorship package can for example mean that leaders and players from Luleå Hockey and Plannja Basket must take part in the client activities. It is very appreciated among the clients if the leader for the team meet them before the game and explain how he has planned it, or if the players of the team meet the clients after the game and answer questions. Therefore, the hospitality/entertainment possibilities that are gained through the sponsorship can be considered as a specific criterion. An additional selection criterion considered by NCC when selecting a specific sport sponsorship is to check which companies that are currently sponsoring the potential event. Some criteria not considered by NCC when selecting a specific sponsorship are the revenue prospect for the company, the capability to integrate the product into the sporting event, the ability to improve the company’s image, the possibility to achieve a competitive advantage in the market place, the opportunity to demonstrate the company’s commitment to the community, the corporate exclusivity, the possibility to increase sales/trial of product/service, the possibility to increase brand awareness, the perceived similarity between the sponsor’s product and the sponsored activity, and the similarity between the targets of sponsor and sponsored. Additionally, the geographical reach is not regarded as an important criterion since NCC in Norrbotten act locally and every region is responsible for its own geographical area. The opportunity to add the sponsorship to the present marketing strategy is neither considered in the selection process.

4.2.3 Evaluation of Sport Sponsorship Effectiveness According to Mats Eklund, NCC evaluates the sport sponsorship effectiveness by measuring the feedback from participating groups. The company measure how many percent of the people invited to an event that are actually attending. Moreover, the company listens to the client’s opinions and there is a constant dialogue concerning the value of the sponsoring activities for the company. However, NCC does not measure the media exposure, communication results, or sales results. During the sponsorship process, NCC evaluates the interest among its clients. If the interest tend to decrease it is important to change direction of the sponsorship. NCC go through the sponsorship costs once a year (the outset), and discuss if the company sponsor too much or maybe too little. Recently the company has been trying to limit the number of sponsorships because many of them do not provide any value to NCC. The company does not measure at the end of the sponsorship.

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DATA ANALYSIS

5 DATA ANALYSIS This chapter will present an analysis of the empirical data presented in the previous chapter. A within-case analysis will be conducted in order to compare the data from both cases with our conceptual framework. Thereafter, a cross-case analysis will be presented where similarities and differences between the two cases will be revealed.

5.1 WITHIN CASE ANALYSIS In this section the empirical data gathered in the previous chapter will be analyzed. Within-case analyses of the two cases will be compared with the theory by Pope (1998), regarding objectives with sponsorship as presented in the conceptual framework. Moreover, the theories by Shank (1999), Ollkonen (1999), Meenaghan (1983), and Abratt et al. (1987) will be used in support to Pope. Secondly, the empirical data will be compared with the theories by McCook et al. (1997), Liu et al. (1998), Walliser (2003) and Meenaghan (1991) in order to analyse the selection process of a sport sponsorship. Finally, the evaluation of sport sponsorship effectiveness will be analysed by comparing the empirical data of the cases with the theories conducted by Brassington and Pettitt (2000), Busby and Digby (2002) and Meenaghan (1991) as previously described in the conceptual framework.

5.1.1 Within Case Analysis of Nåiden Bygg AB Objectives of Sport Sponsorship The four main objectives for companies to engage in sport sponsorship are according to the theory by Pope (1998), the corporate, marketing, media and personal objectives. Nåiden Bygg AB’s main objectives to engage in sport sponsorship is to support local team or clubs, sponsor sports of personal interest to the head management as well as sports of interest and value for the employees and other stakeholders of the company, In addition, the company strives to create company visibility in order to build, sustain or improve relationships. These correspond to Pope’s (1998) definitions of all the main objectives, especially concerning community involvement, management interest, employee relations, business relations and generate visibility. Thereby, the data from Nåiden Bygg AB are in general consistent with the theory by Pope (1998). Concerning the relative importance of the corporate objectives, the gathered data indicates that the company in general focuses on the corporate image, client entertainment and employee relations, as these objectives may reflect the core values of the company to the public audience. Pope (1998) states that corporate objectives, including these three, are a part of a company’s strategy of sport sponsorship which indicates that the case findings and the theory by Pope (1998) are consistent. Image building is also explained by Shank (1999) as the most important reason for a company to engage in sport sponsorships, as a sport activity provide a company with the benefit of association with the images generated by a sponsored personality, team or sporting event. The objective of client entertainment is further in line with the theory by Abratt et al. (1987), suggesting that sport sponsorship can be highly effective as it may offer opportunities of guest hospitality in a relaxed, proper environment. Moreover, employee relationships correspond to the theory by Meenaghan (1983) explaining that sponsorship also has the ability to assist employee relations by sponsoring sport activities of the interest of the staff.

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DATA ANALYSIS

Nåiden Bygg AB may also consider the financial relations in some cases, as there may exist pressure on the company to engage in sport sponsorship by that reason. This is also explained by Meenaghan (1983), saying that companies may use sponsorship in order to assure their policyholders and shareholders. However, the objectives of public awareness, public perception and community involvement are also considered in some degree by the company, as the company aim to sustain its image of a company that is doing something good for the community by sponsoring sport activities, both on the senior and junior level which must be done by creating awareness and perception of the cause. Government relations, and the objective of competing with other companies, explained in the theories by Pope (1998), Shank (1999) and Meenaghan (1991) were although not considered as corporate objectives by the company. The findings from the case signify that the main marketing objective considered by the company is the business relations, which is a result of the similarity with the corporate related objectives of building and sustaining relationships. According to Pope (1998) business relations is a part of the marketing objectives, hence the case is in line with the theory. This further corresponds to the theory by Meenaghan (1983) claiming that many marketing objectives are the same as under corporate related objectives. For the company brand positioning might work as an objective in new markets, as the company find itself already established in its present markets. This is further in line with the theories by Shank (1999) and Abratt et al. (1987) and Meenaghan (1983). Although, Abratt et al. (1987), Olkkonen (1999), and Shank (1999) state that increase sales is the most common marketing objective to engage in sport sponsorship programmes. However, this is not an objective of importance for the company, since it does not sell a product of which it could estimate the increase in sales. Neither the company believes that the sponsorship would increase the amount of contracts achieved, as Nåiden Bygg AB principally count on offers to get its contracts. The same goes with sampling, that is not of significance for the company. A sign board on the work place is believed to be of more marketing value than all the marketing objectives mentioned by Pope (1998) according to the CEO of Nåiden Bygg AB. Concerning the relative importance of the media objectives, Nåiden Bygg AB is in line with the theory by Pope (1998), as the company use marketing objectives in order to generate visibility, generate publicity and to avoid marketing clutter. These objectives are further discussed by Meenaghan (1983) and Abratt et al. (1987), stating that media coverage is of especial importance for companies considering brand- and company awareness as their main reason for investing in a sport sponsorship. Meenaghan (1983) additionally notes that sponsorship has the ability to avoid media clutter, common in traditional advertisements. Pope (1998) also includes the objectives of enhance advertising campaign and the ability to target specificity as media objectives. These are, however, not considered as marketing objectives by the company. In addition, the company is striving to put more sponsorship efforts in fewer sports, in order to increase the amount of marketing at fewer places, instead of sponsoring a lot of small sport teams in the surroundings of Luleå. By doing so the company aims to achieve more publicity and reach a higher number of audiences.

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Furthermore, empirical data show that the most important objective for engagement in sport sponsorship is nevertheless, the personal objectives. The managerial interest in the sport units is most often the objective for engagement in a sport sponsorship programme. Although, the interest of the employees is the next most important determinant to engage in sport sponsorship, of earlier mentioned reasons. Thereby, the case is consistent with the theory by Pope (1998). Meenaghan (1991) also argues that sponsorship can deliver personal satisfaction

DATA ANALYSIS

that is furthermore of importance for the company. Therefore, the decisions to engage in sport sponsorship often are influenced by the personal views, hobbies and interest of the head management of a company (Abratt et al., 1987). Selection Process in Sport Sponsorship Concerning the selection of a particular sport sponsorship, Nåiden Bygg AB mainly base its selection on the managerial interest in the specific sport and the ability of the sponsorship to deliver the company’s marketing message. Furthermore the decisions are based on the interest and/or involvement of the employees within a specific sport. According to the CEO of Nåiden Bygg AB, the revenue prospect for the company is often unconsciously taken under consideration when selecting sport sponsorships. This case data is in line with the theory by McCook et al. (1997). Since the company try to spend more money on fewer sports, the cost of the sponsorship is always seriously taken under consideration by the company. This makes the data coherent with the theories by McCook et al. (1997) and Meenaghan (1991), as the authors state that the cost of the sponsorship activity is by nature a key criterion when selecting sponsorships. Another determinant used by the company is the ability of exposure to the company’s target market, and how many potential customers, corporation partners and other stakeholders that might recognize the sponsorships efforts. McCook et al. (1997) includes this criterion in the theory, which makes the case of Nåiden Bygg AB consistent with the theory. In addition, Meeneghan (1991) states that the likely amount of exposure as well as the size of the audience likely exposed to the company’s message is an important determinant in the selection process. The ability to improve the company’s image toward important stakeholders is another criterion of importance for the company. This may prove that the company cares both for the sports as well as for the community. Although, in general the company try to deliver a well performed work to the contractor of the building, instead of put efforts to improve the company’s image toward stakeholders. Since McCook et al. (1997) has presented this criterion as generally used when selecting a specific sponsorship activity, the data and the theory can be said to be consistent. According to McCook et al. (1997), the possibilities of hospitality and entertainment are a considered criterion in the selection process of sport sponsorship. This criterion is nevertheless, the most important criterion for Nåiden Bygg AB when selecting a specific sports sponsorship, as the company put a lot value in its network relationships. According to the CEO of the company, this is of especial importance for sponsorship proposals that may interest the stakeholders of the company. Hence, the case data is in line with the theory by McCook et al. (1997). By the same reasons as for the hospitality and entertainment abilities of a sponsorship, the status and image of the potential sponsored party is of high importance for the company. The company also uses this as a motive for simply sponsor large sport units. As this criterion is presented in the theory by Walliser (2003), the data and the theory are coherent.

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The similarity between the targets of sponsor and sponsored have some impact on the selection process, since the company does not want to support any unethical sport/event/activity. Nåiden Bygg AB neither wants to become connected with unethical

DATA ANALYSIS

behaviour of sport participants. Moreover, the company likes to sponsor teams or clubs that show appreciation and are positive to the sponsorship. This criterion is further a part of the selection theory by Walliser (2003). According to Walliser (2003), the geographical reach of the potential sponsorship is an important criterion for companies. Nåiden Bygg AB bases the sponsorship decisions on geographic reach and has decided to simply sponsor sports in the areas where the company is operating. However, Nåiden Bygg AB does not consider the capability to integrate the product into the sporting event, the possibility to achieve a competitive advantage in the market place, the corporate exclusivity, or the possibility to increase sales/trial of product/service, which is all included in the theory by McCook et al. (2003). Moreover, the company does not consider the possibility to increase brand awareness and the corporate policy, which are important criteria according to Liu et al. (1998). According to Walliser (2003) the perceived similarity between the sponsor’s product and the sponsored activity, the types of rights received, and the ability to add the sponsorship to the present marketing strategy are criteria considered in the selection process. However, these criteria are not considered by Nåiden Bygg AB. Evaluation of Sport Sponsorship Effectiveness Nåiden Bygg AB does not formally evaluate the effectiveness of sponsorship, however some indicators can be used to evaluate the value in terms of relationship building after the sponsorship has taken place. Since Nåiden Bygg AB measures the sponsorship after it has taken place, the data is coherent with the theories by Busby and Digby (2002) and Meenaghan (1991), stating that the sponsor may consider the outset, the tracking process and/or making a final evaluation of the sponsorship programme. Considering the evaluation of sponsorship effectiveness Brassington and Pettitt (2000) outline four methods that might be used when evaluating the effectiveness in regards of sport sponsorship. Some of the methods are somewhat considered by Nåiden Bygg AB, but mostly at an informal level. According to Brassington and Pettitt (2000) the first method, media exposure measurement, measure the air time on television or radio, and the space in print media, gained by the efforts in sponsorship. Meenaghan (1991) additionally argues that companies often use the media exposure to measure the effectiveness of sport sponsorship. However, this is not a method used by the company when evaluating the effectiveness of a sport sponsorship. Instead, the company tries to check if the company is given the right rate of exposure and the right number of tickets as a part of a sponsorship agreement. The method of assessing communication results that Brassington and Pettitt (2000) mention is neither used by Nåiden Bygg AB when measuring sport sponsorship effectiveness.

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Since the company does not sell an actual consumer product, the approach of measuring increased sales is not of use for the company. Brassington and Pettitt (2000) and Meenaghan (1991) state that the method of measurement is a useful tool for companies to use in order to get evidence of their sponsorship efforts. Although, the company does not believe that it would achieve more contracts by simply sponsoring sports.

DATA ANALYSIS

More important for Nåiden Bygg AB is, however, to measure the feedback from participating groups. Brassington and Pettitt (2002) state that this method of measurement is the easiest to implement for companies targeting a small, well-defined audience. In addition Meenaghan (1991) states that monitoring guest opinions are in terms of measurement even when company employees and local community are being targeted. Nåiden Bygg AB mainly measures the effectiveness of a sponsorship activity by listening to employee opinions and response from participants groups. The data is thereby coherent with the theories by Brassington and Pettitt (2000) and Meenaghan (1991). Moreover, Nåiden Bygg AB evaluates the effectiveness of a sport sponsorship activity by discussing the achieved responses by the three owners of the company in order to get the feedback more objective.

5.1.2 Within Case Analysis of NCC Objectives of Sport Sponsorship The data from the case indicates that corporate objectives are the most important objectives for the company. These objectives include strengthening NCC as a trademark, to create an identity for the company, and to be a part of the discussion in the community. Moreover, the company mentions the possibility to have profitable client activities by inviting clients to sport events, and to some extent personnel care, as objectives of sport sponsorship. Pope (1998) suggests that corporate related objectives are involved in sponsorship of sport. Moreover, Abratt et al. (1987) state that corporate objectives have their basis in developing a favourable public perception of the firm, increasing public awareness, and creating goodwill among the company’s stakeholders. Olkkonen (1999) further claims that stakeholder relationships may be created interactively through sponsorships by inviting important representatives to a sponsored event. Hence, the data from the study are in line with the theories by Pope (1998), Abratt et al. (1987), and Olkkonen (1999). According to Pope (1998), financial relations, government relations, and competing with other companies, are considered as corporate related objectives. However, NCC does not consider these objectives when sponsoring sports. Concerning marketing objectives, NCC explains that business relations are the only objective considered when sponsoring sports. Pope (1998) states that marketing objectives, including business relations, are a part of a company’s strategy when sponsoring sports. Thus, the case data and the theory by Pope (1998) are consistent. According to Shank (1999) and Pope (1998), reaching target markets is also considered as a marketing objective. Moreover, Pope (1998) considers brand positioning, sampling, and increase sales as marketing objectives. Abratt et al. (1987), Olkkonen (1999), and Shank (1999) further argue that organisations not would spend money on sponsoring sport events or stadiums if they did not know that they would get something in return. However, NCC does not consider these objectives as important. Since their businesses are based on professional offers, and since the company is only building to other companies, NCC does not believe that sponsoring sport will give more jobs. Media objectives are of great significance for NCC as the company wish to generate visibility and publicity through sport sponsorship. Pope (1998) states that media objectives are involved in sport sponsoring. In a similar manner, Meenaghan (1983) and Abratt et al. (1987) state that achievement of media coverage is an important objective for sport sponsorship. Pope (1998) considers enhance ad campaign, avoid clutter, and target specificity, as media objectives. However, these objectives are not regarded as important for NCC.

44

DATA ANALYSIS

According to Pope (1998), companies have personal objectives when sponsoring sports. Abratt et al. (1987) state that personal objectives reflect the hobbies, interests, and personal views of the management of a company, and that the decision to sponsor a sport is constantly influenced by the personal views of the decision-maker. However, NCC does not have personal objectives of sport sponsorship as the company is not allowed to sponsor sports because of personal interests. Selection Process in Sport Sponsorship NCC has three aspects concerning the selection of a specific sport sponsorship, namely, client perspective, the company’s personnel, and what NCC stands for. Moreover, the company has a corporate policy concerning its sponsorship, which includes that the sponsorship must be in agreement with the company’s value. This data is coherent with the study by Liu et al. (1998), stating that most companies use its policy as a selection criterion. McCook et al. (1997) present the cost of the sponsorship as a selection criterion. In addition, Meenaghan (1991) states that the cost of the actual sponsorship activity is a key criterion when selecting sponsorships. The cost of the sponsorship is one important criterion that NCC considers when selecting a specific sponsorship, it is essential for the company to feel that what NCC earns from the sponsorship agreement is worth the cost of it. NCC considers the exposure to the company’s target market to be an important criterion when selecting a specific sport sponsorship. This criterion is further included in the theory by McCook et al. (1997). Moreover, Meenaghan (1991) states that the likely amount of exposure, in addition to the size of the audience exposed to the company’s message, is a significant determinant in the selection process. The status and image of the potential sponsored party is considered by NCC in the selection process as the company does not want to be associated with, for example, dirty money. This data is in line with the theory by Walliser (2003). Concerning the types of rights received from the sponsorship agreement, NCC explains that it is a considered criterion when selecting a specific sponsorship and that it includes a sort of sponsorship package. This package can for example mean that leaders and players from Luleå Hockey take part in NCC’s client activities, which is very appreciated among the clients. This data is consistent with the theory by Walliser (2003), and the theory by McCook et al. (1997) which include the hospitality/entertainment possibilities gained from the sponsorship as a selection criterion. McCook et al. (1997) also mention the revenue prospect for the company, the capability to integrate the product into the sporting event, the ability to improve the company’s image, the possibility to achieve a competitive advantage in the market place, the opportunity to demonstrate the company’s commitment to the community, corporate exclusivity, and increased sales/trial of product/service, as selection criteria. However, none of these criteria are included in the selection process by NCC. Moreover, Liu et al. (1998) presents increased brand awareness as a selection criterion, which is not the case for NCC.

45

Walliser (2003) states that companies considers the perceived similarity between the sponsors product and sponsored activity, the similarity between targets of sponsor and sponsored, the

DATA ANALYSIS

opportunity to add the sponsorship to the present marketing strategy, and the geographical reach, when selecting a specific sponsorship. However, none of these criteria are considered by NCC in the selection process. In addition to the theories, NCC mentions that the company explores which other companies that are currently sponsoring the potential event before selecting it. Evaluation of Sport Sponsorship Effectiveness The theory by Brassington and Pettitt (2000) presents four methods to use in order to evaluate the effectiveness of sport sponsorship. The first is media exposure measurement, which measure air time on television or radio, or column inches in the print media. Moreover, Meenaghan (1991) states that this measuring method is frequently used by companies as an indicator of performance. Still, NCC does not measure the media exposure when evaluating sport sponsorship effectiveness. Assessing communication results, both pre- and post-tests, is another measuring method according to Brassington and Pettitt (2000). This method is neither used by NCC when measuring the effectiveness of sport sponsorship. According to Brassington and Pettitt (2000), companies can measure sales results when evaluating the effectiveness of sport sponsorship. However, NCC does not believe that sponsoring sport will give the company more jobs and therefore sales results are not used as a measuring method. NCC use the feedback from participating groups when evaluating sport sponsorship by measuring how many percent of the people invited to an event that are actually attending, listening to the client’s opinions, and by having a constant dialogue concerning the sponsorship’s value for the company. Brassington and Pettitt (2000) present this method as a way to evaluate the effectiveness of sport sponsorship. Moreover, Meenaghan (1991) states that the participants, spectators, activity organizers, and the company’s sale force may work as a useful source of measurement. Thus, the case data can be said to be in line with the theories by Brassington and Pettitt (2000) and Meenaghan (1991). Concerning when to evaluate sport sponsorship effectiveness, Busby and Digby (2002) presents three steps crucial for the sponsor to consider. At first, the company should consider the outset, which may be the awareness levels and attitudes to brand among the target audience. However, NCC states that the company does not measure the outset of the sponsorship. The second step, according to Busby and Digby (2002), is to measure the tracking process of the sponsorship. Since NCC checks the interest among its clients during the sponsorship process, this data is in line with the theory by Busby and Digby (2002). Finally, Busby and Digby (2002) state that companies should evaluate at the end of the sponsorship programme, which NCC does by going through the sponsorship costs once a year and by discussing if the company should sponsor more or less in the future.

46

DATA ANALYSIS

5.2 CROSS CASE ANALYSIS In order to carefully distinguish similarities and differences between the two companies of study, a cross-case analysis is conducted. Objectives of Sport Sponsorship In order to carefully distinguish similarities and differences between the two companies of study, a cross-case analysis is conducted. Concerning the relative importance of the general objectives, the main objectives of Nåiden Bygg AB are personal objectives, objectives concerning relationships and objectives of creating visibility of the company. NCC on the other hand put more value in the objectives of creating an identity, strengthening the trademark and to prove its involvement in the community. The cross-case analysis thereby reveals that the two companies have different main objectives. Moreover, the objectives of sport sponsorship of NCC are constant whereas the ones of Nåiden Bygg AB are inconstant, and may change depending on sport unit. Concerning the corporate objectives, the corporate image, client entertainment, and employee relations are of highest importance according to Nåiden Bygg AB. NCC’s objectives for engagement in sport sponsorship are based on objectives in a wider spectrum, such as public awareness, corporate image, public perception, community involvement, client entertainment, and employee relations. The cross-case study thereby indicates that the two companies shares the objectives of corporate image, client entertainment and employee relations. Although, Nåiden Bygg AB considers objectives such as public awareness, public perception and community at some levels, depending on the sponsored sport unit, which proves on further similarities between the two companies. However, neither of the companies considers financial relations, government relations and to compete with other companies as objectives when deciding to engage in a sport sponsorship programme which moreover, leads to similarities of the companies. Another indication revealed of the cross-case analysis is that both of the companies consider business relations as a part of their marketing objectives. The companies have been proved to have the same marketing objectives, however Nåiden Bygg AB somewhat consider brand positioning in some specific cases. Objectives of reach target market, increase sales and sampling were not considered, hence further similarities between the two companies are confirmed. Concerning the media objectives, both Nåiden Bygg AB and NCC consider objectives of generate visibility and generate publicity. Indications from the cross-case analysis thereby reveal that the companies share the same media objectives and consider them as essential. However, Nåiden Bygg AB also considers the media objective of avoiding clutter as important, which in that way contributes to a difference between the companies. Nevertheless, the major dissimilarity between the companies is that Nåiden Bygg AB considers the personal objective and the management interest as its major determining objective of sport sponsorship, whereas the personal objective was not considered by NCC. In order to simplify and reduce the data discussed, a matrix will be displayed in table 5.1.

47

DATA ANALYSIS

Case 1 Nåiden Bygg AB

Case 2

NCC Region Norrbotten

Main objectives Management interest Employee and business relations Generate visibility

Create an identity Strengthen the trademark Community involvement

Constant objectives NO YES Considered Theory Fit Considered Theory Fit Corporate objectives (Pope 1998, Abratt et al. 1987, Shank 1999, Meenaghan 1983, Meenaghan 1991, Ollkonen 1999)

+ +

Public awareness SW YES Corporate image YES YES Public perception SW YES Community involvement SW YES Financial relations NO NO Client entertainment YES YES Government relations NO NO Employee relations YES YES Compete with other companies NO NO Marketing objectives (Pope 1998, Abratt et al. 1987, Shank 1999, Meenaghan 1983 & Ollkonen 1999)

+ +

Business relations YES YES Reach target market NO NO Brand positioning SW NO Increase sales NO NO Sampling NO NO Media objectives (Pope 1998, Abratt et al. 1987 & Meenaghan 1983)

+ +

Generate visibility YES YES Generate publicity YES YES Enhance ad campaign NO NO Avoid clutter YES NO Target specificy NO NO Personal objectives (Pope 1998, Abratt et al. 1987, Meenaghan 1983, Meenaghan 1991)

+ -

Management interest YES NO Considered by the company: YES/NO/SOMEWHAT (SW) + Data fits the theory – Data does not fit the theory +/- Data fit only partial theory ? New data Table 5.1 Summary Matrix of the Analysis of RQ1. Selection Process in Sport Sponsorship

48

Concerning the selection process in sport sponsorship, the two companies main selection criteria is found to differ somewhat. Nåiden Bygg AB mentions the managerial interests, the chosen sport’s ability to deliver the marketing message, and the interests of the employees as important criteria. Whereas NCC mentions client perspective, the company’s personnel, and what NCC stands for as main aspects concerning the selection of a specific sport sponsorship.

DATA ANALYSIS

Nåiden Bygg AB states the revenue prospect for the company as a criterion in the selection process, while NCC does not consider this since the company does not believe that sponsoring sports will provide more job offers. However, both of the companies studied mention the cost of the sponsorship and the exposure to the company’s target market as important selection criteria. The status and image of the potential sponsored party is found to be significant for both cases in the selection process, although the motives differ. NCC explains that this criterion is considered since the sponsorship has to be in agreement with the values of NCC, whilst Nåiden Bygg AB states that it is an important determinant as the company wants the sponsorship to be visible for the target audience. The ability to improve the company’s image is in some levels considered in the selection process by Nåiden Bygg AB, as it may demonstrate that the company cares both for the sports and for the community. However, NCC does not at all include this criterion in the selection process. Another difference worth noting is that NCC has a policy concerning its sponsorship selection and the company also has rules that most be followed, which is not the case for Nåiden Bygg AB. Moreover, NCC considers the types of rights received from the sponsorship agreement when selecting a specific sport sponsorship, while Nåiden Bygg AB does not include this in the selection process. Since both NCC and Nåiden Bygg AB considers client entertainment as essential in order to build business relations the hospitality/entertainment possibilities gained from the sponsorship is a criterion in the selection process for both of the companies. Nåiden Bygg AB states that the similarity between the targets of sponsor and sponsored has some impact on the decision making process, which is not the case for NCC. In addition, the company mentions the geographical reach as a determinant in the selection process since Nåiden Bygg AB has decided to mainly sponsor sports at a regional level. Even though NCC also mainly acts locally, the company does not consider the geographical reach of the sponsorship as every region is responsible for its own geographical area. NCC also explains that before selecting a specific sport sponsorship, the company explores which companies that are already sponsoring the potential event. Neither of the two companies regard the capability to integrate the product into the sporting event, the possibility to achieve a competitive advantage in the market place, the corporate exclusivity, the possibility to increase sales/trial of product/service, the possibility to increase brand awareness, the perceived similarity between the sponsor’s product and the sponsored activity, or the opportunity to add the sponsorship to the present marketing strategy as criteria in the selection process. In order to simplify and reduce the data discussed, a matrix will be displayed in table 5.2.

49

DATA ANALYSIS

50

Case 1

Nåiden Bygg AB

Case 2

NCC Region Norrbotten

Main selection criteria The managerial interests The chosen sport’s ability to deliver the marketing message The interests of the employees

Client perspective The company’s personnel What NCC stands for Which companies that is currently sponsoring the event ?

Considered Theory Fit Considered Theory Fit The revenue prospect for the company (McCook et al., 1997)

YES + NO -

The capability to integrate the product into the sporting event (McCook et al., 1997)

NO - NO -

The cost of the sponsorship (McCook et al., 1997 & Meeaghan, 1991)

YES + YES +

The exposure to the company’s target market (McCook et al., 1997 & Meenaghan, 1991)

YES + YES +

The ability to improve the company’s image (McCook et al., 1997)

SW + NO -

The possibility to achieve a competitive advantage in the market place (McCook et al., 1997)

NO - NO -

The hospitality/entertainment possibilities (McCook et al., 1997)

YES + YES +

The opportunity to demonstrate the company’s commitment to the community (McCook et al., 1997)

YES + NO -

Corporate exclusivity (McCook et al., 1997)

NO - NO -

Increased sales/trial from product/service (McCook et al., 1997)

NO - NO -

Increased brand awareness (Liu et al., 1998)

NO - NO -

Corporate policy (Liu et al., 1998)

NO - YES +

The status and image of the potential sponsored party (Walliser, 2003)

YES + YES +

Perceived similarity between the sponsor’s product and sponsored activity (Walliser, 2003)

NO - NO -

Similarity between targets of sponsor and sponsored (Walliser, 2003)

SW + NO -

Geographical reach (Walliser, 2003)

YES + NO -

DATA ANALYSIS

The types of rights received (Walliser, 2003)

NO - YES +

The opportunity to add the sponsorship to the present marketing strategy (Walliser, 2003)

NO - NO -

Considered by the company: YES/NO/SOMEWHAT (SW) + Data fits the theory – Data does not fit the theory +/- Data fit only partial theory ? New data Table 5.2 Summary Matrix of the Analysis of RQ2. Evaluation of Sport Sponsorship Effectiveness When considering the evaluation of sport sponsorship effectiveness the cross-case analysis reveals that neither of the companies of study formally evaluates the effectiveness of sport sponsorship, instead, the companies try to find other more informal alternatives for their measurement. In the case of Nåiden Bygg AB these methods are to check that the company has received the right rate of exposure and the right number of tickets due to the sponsorship agreement. Moreover, the company tries to carefully listen to the opinions regarding sponsorship of its employees. NCC, on the other hand, check the percent of participants that appear on its sponsorship activities in addition to a yearly cost check up of the sponsorship programmes. These data confirm that the companies are alike since they do not evaluate sponsorship as a formal matter; although they are different due to their alternative ways of measuring the effectiveness of a sponsorship programme. Furthermore, the cross-case analysis reveals that neither of the companies uses media exposure measurement, which proves on further similarities between the companies. In the opposite, the cross-case analysis indicates evidence that the companies are different in regards of assessing communication results. Nåiden Bygg AB somewhat may notice small changes in awareness, attitudes and opinions after the end of a sponsorship programme or a sponsorship activity, by simply listening to the personnel and other stakeholders. In contrast, NCC put less effort in measuring the effectiveness of the communication. Due to the field of business, neither of the companies measures the sales results. The analysis thereby signifies more similarities of the two companies. Both of the companies put feedback from participating groups as their main method of evaluation, which provide evidence on further correspondence between the companies. Nåiden Bygg AB additionally evaluates the effectiveness of a sponsorship by discussing the feedback from the participating groups among the three owners of the company, in order to determine and assess the validity of the response. In a similar manner, NCC has a constant dialogue concerning the company’s value of the sponsoring activities. Since, neither Nåiden Bygg AB or NCC measure their efforts of sport sponsorship in a formal way, they furthermore do not consider when to evaluate so highly. The methods of measuring the efforts by the outset is therefore not of value for the companies, which indicates similarities of the companies. Even though, NCC sometimes evaluates the effectiveness during the tracking process as well as at the end of a sponsorship programme. Nåiden Bygg AB on the other hand mainly keeps track of the responses and opinions of the sponsorship programme after a sponsorship activity. These comparisons further provide proof that the companies measure the effectiveness of a sponsorship activity or programme at the same time of reference, except from the data from NCC, that also measure the results during the actual sponsorship

51

DATA ANALYSIS

Matrix 5.3 is developed in order to simplify and reduce the data of the evaluation of sport sponsorship effectiveness. Case 1

Nåiden Bygg AB Case 2

NCC Region Norrbotten Main evaluation method Feedback participating groups

Employee opinions Given the right rate of exposure? Given the right no. of tickets?

Feedback participating groups Percent of participants? Cost evaluation?

Considered Theory Fit Considered Theory Fit Media exposure measurement (Brassington and Pettitt, 2000)

- -

Air time on television or radio NO NO Column inches in the print media NO NO Assessing communication results (Brassington and Pettitt, 2000)

+/- -

Pre/post-tests awareness levels SW NO Pre/post-tests attitudes & opinions SW NO Measuring sales results (Brassington and Pettitt, 2000)

NO - NO -

Feedback from participating groups (Brassington and Pettitt, 2000)

SW +/- SW +/-

The outset (Busby & Digby 2002, Meenaghan 1991)

NO - NO -

Tracking process (Busby & Digby 2002, Meenaghan 1991)

NO - YES +

At the end of sponsorship prog. (Busby & Digby 2002, Meenaghan 1991)

YES + YES +

Considered by the company: YES/NO/SOMEWHAT (SW) + Data fits the theory – Data does not fit the theory +/- Data fit only partial theory ? New data Table 5.3 Summary Matrix of the Analysis of RQ3.

52

FINDINGS, CONCLUSIONS AND IMPLICATIONS

6 FINDINGS, CONCLUSIONS AND IMPLICATIONS By drawing conclusions based on the theory and analysed data, this final chapter will serve in order to provide answers to the research questions stated in chapter one. Further, findings will be presented and hopefully the stated purpose with the thesis will be reached. Moreover, implications for management, theory and future research will be provided.

6.1 FINDINGS AND CONCLUSIONS This section will serve in order to provide conclusions of the three research questions stated in chapter one. The research questions will be answered in separate sections respectively, based on the data analysis provided in the previous chapter, as well as the theories reviewed in chapter two.

6.1.1 RQ1: How can the objectives of sport sponsorship be described? The analysis of the two case studies has revealed that several objectives of sport sponsorship, as discussed in the theories, may be identified in the companies. Moreover, the fact that objectives of sport sponsorship are constant or inconstant may also vary depending on company and the type of sponsored unit. Corporate related objectives along with the marketing objective of business relations, as well as the media objectives of generate visibility and publicity are the most commonly stated objectives in the cases. However, companies seem to consider different objectives within the main corporate objective. Though, similar objectives found in the cases are the corporate image, client entertainment and employee relations, which can be related to the field of business as well as that the studied companies mainly operates within a business to business environment. Furthermore, companies may also consider the public awareness, public perception and community in different degrees, which can be related to the size, geographical reach and target market of the company. As a result, when setting a high value in considering public awareness, corporate image and public perception a company can be perceived to be promotion orientated, whilst a company considering the client entertainment and employee relations can be said to be more relation orientated. However a relation orientated company, may consider brand positioning as a marketing objective, even though it does not consider the corporate related objectives of awareness and perception. Further findings of the analysis of the two cases signify that financial relations, government relations and the objective of compete with other companies are not considered as companies objectives to engage in sport sponsorship. The findings further indicates that companies within the building construction industry commonly put a high value in relationship building, where the marketing objective of business relations is of high importance. The objectives of reach target market, increase sales and sampling are though of no importance to the companies of study. This research further reveals that companies within the same field of business may consider the media objectives of generate visibility and generate publicity, since the sport sponsorship is by some companies the major effort they put in marketing. These media objectives are thereby essential to these types of companies. Companies may also regard the sport sponsorship as a way to avoid clutter in the marketing.

53

FINDINGS, CONCLUSIONS AND IMPLICATIONS

The major findings of the study imply that companies consider the personal objectives differently. In a minor regional company, the management interest may have huge impact on the sport sponsorship objectives, as the company is not centrally organized, and is capable to make decisions on a regional level. The case is though the opposite in a major national company, were decisions tend to be centrally organized. In order to briefly wrap up the conclusions of how the objectives of sport sponsorship can be described, the main conclusions are as follow: • Objectives may be constant or inconstant depending on company and sponsored unit. • Corporate objectives such as corporate image, client entertainment and employee

relations. • Marketing objectives such as business relations. • Media objectives such as generate visibility and publicity.

6.1.2 RQ2: How can the selection process in sport sponsorship be described? The findings indicate that companies base their selection of a specific sport sponsorship on several criteria. This study indicates that managerial interests, the chosen sport’s ability to deliver the marketing message, and the interests of the present and potential employees, are main criteria in the selection process. Additionally, decisions can be made from a client perspective and the values of the company. The findings regarding the revenue prospect as a selection criteria were not consistent. The study indicates that companies may use this criterion in the selection process, whereas other companies may not. The decision to not consider this criterion is caused by the belief that sponsoring sports will not provide more job offers for the company, which can depend on the type of industry the company is operating in. Since companies nowadays tries to spend a large amount of money on fewer sports, and as companies need to feel that what they earn from the sponsorship agreement is worth the cost of it, the cost of the sponsorship tends to be an important selection criterion. It is found to be important for companies that many potential customers, cooperation partners and other stakeholders recognizes the sign board or other marketing efforts. Hence, the choice to sponsor a sport event is based on the exposure abilities, as the company set a high value in the marketing possibilities within the sport arena, as well as on the size and location of the sports arena. Considering the corporate policy as a selection criterion, the findings imply that companies may include this in the selection process, although it is not a necessity. In the case of sport sponsorship, such a policy can contain rules that the company must follow when deciding on a sport sponsorship proposal. Companies do not have to be so restricted by these rules; instead they can be set up in order to make it easier for companies to motivate the decision to sometimes say no to a sponsorship offer. The findings of this study indicate that companies to some extent consider the sponsorship’s ability to improve the company’s image. The reason for considering this criterion in the selection process may be to show important stakeholders that the company cares for the sports, as well as for the community where the sponsoring takes place.

54

FINDINGS, CONCLUSIONS AND IMPLICATIONS

The findings regarding the importance of the status and image of the potential sponsored party indicates that it is a significant criterion for companies in the selection process. This can be said to depend on companies striving for the sponsorship to be in agreement with the values of the company. Moreover, it is essential for companies that the sponsorship is visible for the target audience, which is another motive for attempting to sponsor large sports units instead of small local teams or clubs. The types of rights received from the sponsorship agreement are found to be considered to some extent. The findings imply that such rights may include a sponsorship package, which means that leaders and players of the sponsored teams take part in the companies’ client activities. Due to this finding, it can be said that the hospitality/entertainment possibilities gained from the sponsorship is another criterion considered in the selection of a specific sponsorship. This is especially important if a company considers sponsorship proposals that may interest the stakeholders, which may simplify the arranging of client activities. The similarity between the targets of sponsor and sponsored may have some impact on the selection of a specific sport sponsorship. This may be explained by the reason that companies do not want to sponsor an unethical sport activity or event, neither do companies want to support an unethical behaviour by the participants of the sport. The findings of the study imply that the geographical reach of the sponsorship may have some influence on the decision to sponsor a sport. This may be the case if a company has decided to mainly sponsor sports at a regional level and therefore does not need to be seen on a national or international level. In a similar manner, the reason for not including the geographical reach into the selection process seem to be that a company that operates locally is only responsible for its own geographical area and therefore does not need to consider this criterion. An additional finding regarding the selection of a specific sport sponsorship is that companies may find it important to explore which companies that are already sponsoring a potential event. This may be explained by the indication that companies find it beneficial to appear, and to be associated, together with important clients when sponsoring sports. The findings of this study indicate that companies do not regard the following selection criteria as important: the capability to integrate the product into the sporting event, the possibility to achieve a competitive advantage in the market place, the corporate exclusivity, the possibility to increase sales/trial of product/service, the possibility to increase brand awareness, the perceived similarity between the sponsor’s product and the sponsored activity, or the opportunity to add the sponsorship to the present marketing strategy. Following statements will summarize how the sport sponsorship selection process can be described. • Managerial interests, the chosen sport’s ability to deliver the marketing message, and the

interests of the present and potential employees are of great significance in the selection process.

• The decision to not consider the revenue prospect is caused by the belief that sponsoring sports not will provide more job offers for the company.

• The cost of the sponsorship is an important selection criterion. • Companies set a high value in the marketing possibilities within the sport arena, as well as

on the size and location of the sports arena.

55

FINDINGS, CONCLUSIONS AND IMPLICATIONS

• The corporate policy can be regarded as a selection criterion, although it is not a necessity. • Companies can to some extent consider the sponsorship’s ability to improve the

company’s image. • The status and image of the potential sponsored party is a significant criterion for

companies in the selection process. • The types of rights received from the sponsorship agreement are considered to some

extent. • The similarity between the targets of sponsor and sponsored may have some impact on the

selection of a specific sport sponsorship. • The geographical reach of the sponsorship may have some influence on the decision to

sponsor a sport. • Companies may find it important to explore which companies that are already sponsoring

a potential event.

6.1.3 RQ3: How can the evaluation of sport sponsorship effectiveness be described? Based on the case findings it can be said that companies not formally evaluate the effectiveness of sport sponsorship, instead they try to find more informal alternatives for their measurement. Moreover, the findings imply that the methods used differ between companies. In order to evaluate the effectiveness of the sponsorship agreement companies may investigate if they have received the right rate of exposure and the right number of tickets from the sponsored team or club. Moreover, the findings indicate that companies highly value the opinions of their employees and clients regarding sport sponsorship. Another evaluation method is to look over the percent of invited clients that appear on the sponsorship activities to see if the interest tends to decrease, in such cases the company may have to change the direction of the sponsorship. The communication results, including awareness and attitudes, can also be noticed before and after a specific sport event in order to evaluate the effectiveness. Also, the findings indicate that companies go through the sponsorship costs annually and discuss if the company should sponsor more or less the following year. In order to briefly sum up how the evaluation of sport sponsorship effectiveness can be described, the main conclusions are as follow: • Companies investigate if they have received the right rate of exposure and the right

number of tickets from the sponsored team or club. • Companies highly value the opinions of their employees and clients regarding sport

sponsorship. • Companies examine the percent of invited clients that appear on the sponsorship

activities. • The communication results can be noticed before and after a specific sport event. • Companies evaluate the effectiveness by looking over the sponsorship costs annually.

6.2 IMPLICATIONS This final section will provide recommendations for managers at sponsoring companies, as well as managers in sport associations using sport sponsorship as a marketing communication tool. Moreover, recommendations for theory and further research will be provided in the following subsections.

56

FINDINGS, CONCLUSIONS AND IMPLICATIONS

6.2.1 Implications for Management The foremost implication is directed toward managers at sport sponsoring companies. Preferable for a company deciding to engage in a sport sponsorship activity is to initially state clear objectives, since these works as a foundation for the sport sponsorship selection process, as well as the final evaluation of the effectiveness of the actual sport sponsorship activity. Hence, clear objectives serves to simplify the selection process, as well as it may form a ground for the effectiveness evaluation. Consequently it might be vital that a sport sponsoring company beforehand carefully consider its objectives of a sport sponsorship program, since it may provide further advantages that may be essential for a successful sponsorship. In concern of the sport sponsorship selection process, a manager may benefit from clearly stated objectives. The criteria to select a specific sport sponsorship activity will simply fall in the hands of a manager, if the before preparation is done properly. If using the already stated objectives as a foundation, a company could also preserve itself from unwanted proposals, or may have a reason to deny them in a respectful manner. A further recommendation is to thoroughly control and evaluate the effectiveness of a sport sponsorship activity. The findings of this thesis indicate that few companies tend to put any effort in the measurement process, even though companies spend large sums of money on sport sponsorship activities. This is somewhat surprisingly nowadays since almost every other part of a business operation is strictly controlled and followed up. There may therefore be of importance for a manager to follow up the sport sponsorship activity, as it might be the only, or major marketing effort for some companies, especially within the building construction industry. Furthermore, sport sponsorship as a marketing communication tool should therefore be treated as a powerful tool in order to seize these benefits. To sponsor sport is an excellent way of reaching important relations within a company network, as well as it may improve employee relations. For some companies, sponsorship is the only way of promoting the company, and thereby the company should try to see beyond the actual investment and realize that they actually gain more than the concrete rate of exposure. Suggested is also for a company to use the possibilities of client entertainment, gained by a sport sponsorship activity, since important clients, relations and contacts of a company might be interested in a sport or an event sponsored by the company. An invitation of important customers will both strengthen the relationship between the company and its customers and increase loyalty. By arranging events or activities in connection to a sport sponsorship program is furthermore an excellent way of integrating a sponsorship into the marketing strategy.

6.2.2 Implications for Theory Existing theories within the area of sport sponsorship have both provided a base for the conceptual framework as well as supplied this study with the stated purpose and research questions. The overall purpose with this study was to provide a better understanding of sport sponsorship as a marketing communication tool in Swedish companies. In order to gain this understanding the study has viewed the sport sponsorship objectives, selection process and evaluation of effectiveness.

57

FINDINGS, CONCLUSIONS AND IMPLICATIONS

Moreover, in order to fulfil the purpose, the study has described how companies use sponsorship as a marketing communication tool by comparing the sport sponsorship strategies of two companies. Conclusions have further been drawn by comparing the data collected from the two cases with the existing theories. The main part of the findings of this study is coherent with the existing theories, apart from some minor divergences. Moreover, it has been found during the work of this study that there are a lot of theories within the area of sponsorship, though there are only a few of them focusing completely on sport sponsorship. This study is thereby made in order to contribute to the theories, as well as to give an idea of how sponsorship theory can be applied to sponsorship related to sport.

6.2.3 Implications for Further Research Even though sport sponsorship has been used as a marketing communication tool for a long time, the area of research within sport sponsorship is still limited. Moreover, sport sponsorship provides a company the possibility to avoid the present problem with media clutter within traditional advertising where it should be of current concern to further investigate this alternative method of advertising. Moreover, several issues related to the research purpose have arisen, during the progress of this study, which should be of further concern of research. This study is furthermore conducted in order to provide a better understanding of sport sponsorship as a marketing communication tool, with two cases of study. As the study is constructed in a quite narrow manner with simply Swedish companies as preferences, the area of sport sponsorship deserve a more extensive and quantitative research in order to achieve results that can be generalized. In addition, following areas are of interest of further research. • Sport sponsorship as a marketing communication tool within an international, global or

multinational company. • Sport sponsorship as a marketing communication tool across national borders. • Sport sponsorship in a small vs. large corporation. • Sport sponsorship in different fields of business.

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LIST OF REFERENCE

LIST OF REFERENCE Abratt, R., Clayton, B.C., & Pitt, L.F. (1987). Corporate Objectives in Sports Sponsorship. International Journal of Advertising, 6 (4), 299-311. Amis, J., Slack, T., & Berrett, T. (1999). Sport Sponsorship as Distinctive Competence. European Journal of Marketing, 33 (3/4), 250-272. Behrer, M., & Larsson, Å. (1998). Event Marketing – Att Använda Evenemang som Strategisk Resurs i Marknadsföringen. Göteborg: Novum Grafiska AB. ISBN 91-86460-98-6. Brassington, F., & Pettitt, S. (2000). Principles of Marketing (2nd ed.). London: Prentice Hall. Busby, R., & Digby, W.W. (2002). Measuring Successful Sponsorship – Evaluation Strategies for Justifying Investment. (2nd ed.). London: International Forum of Sponsorship. Czinkota, M.R., & Ronkainen I.A. (2004). International Marketing (7th ed.). Mason, Ohio: Thomson/South western. Denscombe, M. (1998). Forskningshandboken- För småskaliga forskníngsprojekt inom samhällsvetenskaparna. Lund: Studentlitteratur. Dolphin, R.R. (2003). Sponsorship: Perspectives on its Strategic Role. Corporate Communications: An International Journal, 8 (3), 173-186. Eriksson, L.T., & Wiedersheim-Paul, F. (1997). Att Utreda Forska och Rapportera. Malmö: Liber/Ekonomi AB. Fahy, J., Farrelly, F., & Quester, P. (2004). Competitive Advantage Through Sponsorship: A Conceptual Model and Research Propositions, 38 (8), 1013-1030. Gillis, R. (2006). Wortwhile Associations. Marketing. (Business Source Elite). Grönkvist, U. (2000). Sponsring & Event Marketing. Näsviken: Björn Lundén Information AB. ISBN 91-7027-261-X. Gummesson, E. (2000). Qualitative Methods in Management Research (2nd ed.). London: Sage Publications. Ivarsson, C., & Johansson, M. (2004). Sport Sponsorship: As a Promotional Tool (Bachelor’s Thesis). Luleå University of Technology, IES, 97187 Luleå. Jobber, D. (2001). Principles and Practice of Marketing (3rd ed.). Maidenhead: McGraw Hill. Keller, K. L. (2001). Mastering the Marketing Communication Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs. Journal of Marketing Management, 17 (7/8), 819-847. Kotler, P. (2003). Marketing Management (11th ed.). Upper Saddle River, NJ: Prentice Hall.

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Liu, J., Srivastava, A., & Hong, S.W. (1998). Transference of Skills Between Sports and Business. Journal of European Industrial Training, 22 (3), 93-112. McCook, K., Turco, D., & Riley, R. (1997). A Look at the Corporate Sponsorship Decision-Making Process. Cyber-Journal of Sport Marketing. [On-line]. Available: http://www.ausport.gov.au/fulltext/1997/v1n2/mcook.htm [2006, November 13.]. Meenaghan, J.A. (1983). Commercial Sponsorship. European Journal of Marketing, 17 (7), 5-73. Meenaghan, T. (1991). The Role of Sponsorship in the Marketing Communication Mix. International Journal of Advertising, 10 (1), 35-47. Meenaghan, T., & Shipley, D. (1999). Media Effect in Commercial Sponsorship. European Journal of Marketing, 33 (3/4), 328-348. Miles, M.B., & Huberman, M.A. (1994). Qualitative data analysis (2nd ed.). Thousand Oaks: Sage Publications. Olkkonen, R. (1999). Forging Links Between Marketing and Sponsorships – A Theoretical Investigation. Åbo: Publications of the Turku School of Economics and Business Administration. Olkkonen, R., Tikkanen, H., & Alajoutisjärvi, K. (2000). Sponsorship as Relationships and Networks: Implications for Reserarch. Corporate Communications: An International Journal, 5 (1), 12-18. Polonsky, M.J., & Speed, R. (2001). Linking Sponsorship and Cause Related Marketing – Complementarities and Conflicts. European Journal of Marketing, 35 (11/12), 1361-1389. Pope, N. (1998). Overview of Current Sponsorship Thought, The Cyber-Journal of Sport Marketing. 2 (1) [On-line]. Available: http://pandora.nla.gov.au/pan/34957/20030621/www.ausport.gov.au/fulltext/1998/cjsm/v2n1/pope21.htm [2006, November 15]. Quester, P., & Farrelly, F. (1998). Brand Association and Memory Decay Effects of Sponsorship: the case of the Australian Formula One Grand Prix. Journal of Product and Brand Management, 7 (6), 539-556. Saunders, M., Lewis, P., & Thornhill, A. (2000). Research Methods for Business Students. Harlow: Pearson Education Limited. Shank, M.D. (1999). Sports Marketing – A Strategic Perspective. Upper Saddle River: Prentice-Hall Inc. ISBN 0-13-621871-7. Shannon, J.R. (1999). Sports Marketing: An Examination of Academic Marketing Publication. Journal of Services Marketing, 13 (6), 517-535. Shimp T.A. (1997). Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications (4th ed.). Fort Worth: The Dryden Press. ISBN 0-03-010352-5.

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Turley, L.W., & Shannon, J.R. (2000). The Impact and Effectiveness of Advertisements in a Sports Arena. Journal of Service Marketing, 14 (4), 517-534. The Largest Companies in the Nordic Countries [On-line]. Available: http://www.largestcompanies.com [2006, November 24]. Walliser, B. (2003). An International Review of Sponsorship Research: Extension and Update. International Journal of Advertising, 22, 5-40. Yin, R.K. (1994). Case Study Research: Design and Methods (2nd ed.). Thousand Oaks, CA: Sage Publications. Yin, R.K. (2004). Case Study Research: Design and Methods (3rd ed.). Thousand Oaks, CA: Sage Publications. Company Websites NCC Website [On-line]. Available: http://www.ncc.info/templates/GenericPage____4654.aspx [2006, November 27]. Nåiden Bygg AB Website [On-line]. Available: http://www.naidenbygg.se/cgi-bin/naiden/offer/newAdminViewOffers.cgi [2006, November 24]. Interviews Eklund, Mats, Head of Department at NCC in Norrbotten, Luleå 2006, November 27 at 10.30-11.00. Erixon, Stefan, Chief Executive Officer and head responsible for sponsorship at Nåiden Bygg AB, Luleå 2006, November 24 at 10.00-11.00.

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APPENDIX A

APPENDIX A - INTERVIEW GUIDE General Information Company: Name/position respondent: Field of business: Annual turnover (SEK): Number of employees: Percent of marketing budget aimed for sport sponsorship: Type/s of sport sponsorship activity/activities currently engage in: Why do the company use sport sponsorship as a promotional strategy? When did the company start sponsoring sport activities? In which ways does the company sponsor sports? Which sports? Objectives of Sport Sponsorship 1. What are your objectives of sport sponsorship? Are they constant or do they change considering the sponsored sport unit? 2. Do you have corporate related objectives of sport sponsorship? If yes, what are they?

- public awareness - corporate image - public perception - community involvement - financial relations - client entertainment - government relations - employee relations - compete with other companies

3. Do you have marketing objectives of sport sponsorship? If yes, what are they? - business relations - reach target market - brand positioning - increase sales - sampling

4. Do you have media objectives of sport sponsorship? If yes, what are they? - generate visibility - generate publicity - enhance ad campaign - avoid clutter - target specificity

5. Do you have personal objectives of sport sponsorship? If yes, what are they? - management interest

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APPENDIX A

6. Have you anything to add regarding the objectives of sport sponsorship? Selection Process in Sport Sponsorship 7. How do you select a specific sport sponsorship? 8. Do you have specific criteria that you consider in your choice of a sport sponsorship? If yes, what are they?

- The revenue prospect for the company - The capability to intergrate the product into the sporting event - The cost of the sponsorship - The exposure to the company’s target market - The ability to improve the company’s image - The possibility to achieve a competitive advantage in the market place - The hospitality/entertainment possibilities that are gained through the sponsorship - The opportunity to demonstrate the company’s commitment to the community - The corporate exclusivity - The possibility to increase sales/trial of product/service - The possibility to increase brand awareness - The corporate policy - The status and image of the potential sponsored party - The perceived similarity between the sponsor’s product and the sponsored activity - The similarity between the targets of sponsor and sponsored - The geographical reach of the sponsorship - The types of rights received - The opportunity to add the sponsorship to the present marketing strategy

9. Have you anything to add regarding the selection of sport sponsorship? Evaluation of Sport Sponsorship Effectiveness 10. How do you evaluate the effectiveness of sport sponsorship?

- Measure the media exposure (the air time of television or radio, or space in print media)? If yes, how?

- Measure communication results (pre- and post-tests on awareness level, attitudes, and opinions)? If yes, how?

- Measure sales results? If yes, how? - Measure the feedback from participating groups? If yes, how?

11. When do you evaluate effectiveness of sport sponsorship?

- Measure the outset (awareness levels and attitudes to brand among the target audience)?

- Measure the tracking process (how the sponsorship activity is going)? - Measure at the end of the sponsorship programme (if the objectives have been met,

and how these have been evaluated and measured)? 12. Have you anything to add regarding the evaluation of sport sponsorship effectiveness?

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APPENDIX B

APPENDIX B - INTERVJUGUIDE Allmän information Företag: Namn/position svarande: Bransch: Årlig omsättning (SEK): Antal anställda: Procent av marknadsföringsbudget tillägnad åt sport sponsring: Typer av sportsponsrings aktiviteter engagerade i för närvarande: Varför använder sig företaget av sport sponsring som en marknadsföringsstrategi? När började företaget sponsra sport aktiviteter? På vilka sätt sponsrar företaget sport? Vilka sporter? Mål med Sportsponsring 1. Vad är era mål med sportsponsring? Är de konstanta eller ändras de beroende på vad som

sponsras? 2. Har ni företagsrelaterade mål med sportsponsring? Om ja, vilka är de?

- uppmärksamhet hos allmänheten - företagets image - allmänhetens uppfattning - engagemang i samhället - finansiella förbindelser - underhållning för kunder - statliga förbindelser - relationer med anställda - konkurrera med andra företag

3. Har ni marknadsförings mål med sportsponsring? Om ja, vilka är de?

- affärsrelationer - nå ut till målmarknaden - positionera varumärket - öka försäljningen - varuprövning

4. Har ni mediarelaterade mål med sportsponsring? Om ja, vilka?

- generera synlighet - generera publicitet - intensifiera reklamkampanj - undvika virrvarr - mål noggrannhet

5. Har ni personliga mål med sportsponsring? Om ja, vilka?

- intresse hos ledningen

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APPENDIX B

6. Har ni något att tillägga angående målen med sportsponsring? Val av Sportsponsring 7. Hur väljer ni en specifik sportsponsring? 8. Har ni specifika kriterier som ni beaktar i erat val av sportsponsring? Om ja, vilka?

- inkomstmöjligheten för företaget - förmågan att integrera produkten i sportevenemanget - kostnaden för sponsringen - exponeringen åt företagets målmarknad - förmågan att förbättra företagets image - möjligheten att få en konkurrenskraftig fördel på marknaden - gästfrihets/underhållnings möjligheter vunna från sponsringen - möjligheten att påvisa företagets engagemang i samhället - företagets ensamrätt - möjligheten att öka försäljning av produkter/tjänster - möjligheten att öka medvetenheten om varumärket - företags policy - vilken status och image den potentiella sponsrade enheten har - den förstådda likheten mellan den sponsrandes produkt och den sponsrade aktiviteten - likhet i målen för sponsorn och den sponsrade - sponsringens geografiska räckvidd - vilka typer av rättigheter som företaget får - möjligheten att tillägga sponsringen till den nuvarande marknadsföringsstrategin

9. Har ni något att tillägga angående valet av sport sponsring? Utvärdering av Effektivitet av Sportsponsring 10. Hur utvärderar ni effektiviteten av sportsponsringen?

- mäter exponeringen i media (sändningstid i tv eller radio, eller utrymme i tryckmedia)? Om ja, hur?

- mäter kommunikations resultat (före- och efter tester på medvetenhetsnivå, attityder och åsikter)? Om ja, hur?

- mäter försäljningsresultat? Om ja, hur? - mäter responsen från deltagande grupper? Om ja, hur?

11. När utvärderar ni effektiviteten av sportsponsringen?

- mäter i början av sponsringen (målgruppens medvetenhet och attityder om varumärket)

- mäter under processen (hur sponsringsaktiviteten går) - mäter i slutet av sponsringsprogrammet (har målen blivit nådda och hur har dessa

utvärderats och mätts) 12. Har ni något att tillägga angående utvärderingen av sportsponsringens effektivitet?

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APPENDIX C

APPENDIX C – 50 STÖRSTA BYGGFÖRETAGEN I SVERIGE

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APPENDIX C

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APPENDIX C

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