Copyright © 2009 Nelson Education Ltd. All rights reserved. Sport Sponsorship Chapter 11

Copyright © 2009 Nelson Education Ltd. All rights reserved.

Sport SponsorshipSport Sponsorship

Chapter 11 Chapter 11

2Copyright © 2009 Nelson Education Ltd. All rights reserved.

OBJECTIVESOBJECTIVES

• Appreciate the history of sponsorshipAppreciate the history of sponsorship

• Understand the place of sponsorship in the promotions mixUnderstand the place of sponsorship in the promotions mix

• Know the difference of sponsorship and advertisingKnow the difference of sponsorship and advertising

• Understand the corporate objectives associated with sport Understand the corporate objectives associated with sport sponsorshipsponsorship


HISTORY OF SPONSORSHIPHISTORY OF SPONSORSHIP

• 1896 Kodak purchased advertising in the first official 1896 Kodak purchased advertising in the first official Olympic programOlympic program

• 1928 Coca-Cola donated 1000 cases of soft drinks to the 1928 Coca-Cola donated 1000 cases of soft drinks to the US Olympic teamUS Olympic team

• Until 1970 corporate sponsorship was done for Until 1970 corporate sponsorship was done for philanthropic reasons.philanthropic reasons.

• Sponsorship attitude changed in the 80’s and companies Sponsorship attitude changed in the 80’s and companies devoted substantial resources towards sponsorshipsdevoted substantial resources towards sponsorships


RELATIONSHIP OF SPONSORSHIP RELATIONSHIP OF SPONSORSHIP TO MARKETINGTO MARKETING

• Sponsorship is part of the promotional mixSponsorship is part of the promotional mix

• Marketing begins with identifying the needs and wants of Marketing begins with identifying the needs and wants of consumersconsumers

• Worldwide expenditure on sponsorship has grown from Worldwide expenditure on sponsorship has grown from US$500 million in 1982 to an estimated $37 billion in 2007 US$500 million in 1982 to an estimated $37 billion in 2007 (IEG, 2006).(IEG, 2006).


RELATIONSHIP OF SPONSORSHIP RELATIONSHIP OF SPONSORSHIP TO MARKETINGTO MARKETING

Promotion Mix:Promotion Mix:

Tools used to communicate information about a product, its Tools used to communicate information about a product, its function characteristics, price, place to inform and function characteristics, price, place to inform and

persuade persuade consumers and influence their purchase decisions.consumers and influence their purchase decisions.

• Sponsorship is an important part in the marketing Sponsorship is an important part in the marketing communications mix along with advertising, public relations, communications mix along with advertising, public relations, sales promotions and selling.sales promotions and selling.


SPONSORSHIP & PHILANTHROPYSPONSORSHIP & PHILANTHROPY

• Both sponsorship and philanthropy offer funds, resources to Both sponsorship and philanthropy offer funds, resources to sport organizations, they differ in the nature of what they sport organizations, they differ in the nature of what they expect in return.expect in return.

• Sponsorships became not so much a form a social Sponsorships became not so much a form a social corporate behaviour but an important promotional tool and corporate behaviour but an important promotional tool and business expense.business expense.


SPONSORSHIP & ADVERTISINGSPONSORSHIP & ADVERTISING

• What differentiates sponsorships from advertising is the What differentiates sponsorships from advertising is the association between the two partiesassociation between the two parties

• In sponsorship the message is coded, delivered, and In sponsorship the message is coded, delivered, and decoded in collaboration with the sponseedecoded in collaboration with the sponsee

• This process occurs independently in advertising.This process occurs independently in advertising.


CORPORATE OBJECTIVES AND CORPORATE OBJECTIVES AND SPONSORSHIPSSPONSORSHIPS

3 Groups of Objectives:3 Groups of Objectives:

1.1. Broad corporate objectives (image base)Broad corporate objectives (image base)

2.2. Marketing objectives (brand promotion)Marketing objectives (brand promotion)

3.3. Media objectives (cost effectiveness)Media objectives (cost effectiveness)



Objectives for corporate involvement in sport Objectives for corporate involvement in sport sponsorship often are:sponsorship often are:

1.1. Increasing public awareness of company or brandIncreasing public awareness of company or brand

2.2. Generating media benefitsGenerating media benefits

3.3. Achieving sales objectivesAchieving sales objectives



Objectives for corporate involvement in sport Objectives for corporate involvement in sport sponsorship often are:sponsorship often are:

1.1. Altering public perception of the company, or imageAltering public perception of the company, or image

2.2. Identifying the company with particular market segmentsIdentifying the company with particular market segments

3.3. Creating a competitive advantage through exclusivityCreating a competitive advantage through exclusivity

4.4. Gaining opportunities in terms of hospitalityGaining opportunities in terms of hospitality


IMAGEIMAGE

• The opportunity to capitalize on image association/transfer The opportunity to capitalize on image association/transfer makes sponsorship attractive businesses as a makes sponsorship attractive businesses as a communication tool.communication tool.

• The majority of companies involved in sponsoring are The majority of companies involved in sponsoring are attempting to meet an image objective.attempting to meet an image objective.


IMAGEIMAGE

Three factors can affect one’s perception of a particular Three factors can affect one’s perception of a particular event:event:

1.1. Event typeEvent type

2.2. Event characteristicsEvent characteristics

3.3. Individual factorsIndividual factors


SPONSORSHIP OBJECTIVESSPONSORSHIP OBJECTIVES

Reaching the Target Market:Reaching the Target Market:

Corporations searching for an optimal event or team to sponsor Corporations searching for an optimal event or team to sponsor need to find a link between their product and the event. need to find a link between their product and the event.

SalesSales

The major objective of sponsorship is to improve the bottom line. The major objective of sponsorship is to improve the bottom line. When integrated with other elements of the promotional mix, When integrated with other elements of the promotional mix,

sponsorship can influence the buyer to purchasesponsorship can influence the buyer to purchase.



Media Benefits:Media Benefits:

Media exposure and coverage has been identified as a key Media exposure and coverage has been identified as a key benefit sought from sponsorship as well as a key objective of benefit sought from sponsorship as well as a key objective of sponsorship programs.sponsorship programs.

Exclusivity:Exclusivity:

Exclusivity and/or blocking the competition are key requirements Exclusivity and/or blocking the competition are key requirements

for all major sponsors of sportsfor all major sponsors of sports..



HospitalityHospitality

Corporate partners use hospitality benefits to reward their own Corporate partners use hospitality benefits to reward their own personnel or used to induce their clients to renew or sign new personnel or used to induce their clients to renew or sign new agreements.agreements.

Copyright © 2009 Nelson Education Ltd. All rights reserved.

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Copyright © 2009 Nelson Education Ltd. All rights reserved. Sport Sponsorship Chapter 11