Sponsorship

1

• Sponsorship

Source of some slides Prentice Hall
2
Sponsorship

• An investment in cash or kind, in an activity, in
  return for access to the exploitable commercial
  potential associated with that activity.
  (Meenaghan, 1991)
• A business relationship between a provider of
  funds, resources or services and an individual,
  event or organization which offers in return some
  rights and association that may be used for
  commercial advantage. (Sleight, 1989)

3
Sponsorships

• Provide financial support for an activity or
  organization so that it can survive
• Polish the sponsors image in ways that impact
  positively on the bottom line
• Allow the company to be associated with the
  positive social values reflected by the person,
  activity or organization it sponsors

4
Primary Communication Objectives

• Enhancement of corporate image
• Enhancement of brand image
• Customer loyalty
• Media Exposure
• Hospitality
• Sales Promotion
• Staff Motivation
• Community Relations

5
Emergence as a global marketing medium

• Sports and arts -- transcend national and
  cultural barriers.
• Associate with large consumer economies.
• Governments policies on tobacco and alcohol
  advertising.
• Disillusionment with traditional media.
• Change in perception of sponsorship.

6
Types of Sponsorships

• Olympic Games
• Sports Marketing
• Broadcast Sponsorship
• Popular Music
• Cause Marketing

7
Sporting Event Sponsorships

• Improve image of company -- 78
• Build customer loyalty -- 74
• Build Brand Awareness -- 78
• Generate Sales -- 57
• Add Credibility to Companys Messages
• Create Higher Levels of Confidence in the
  Company
• Should Be Integrated with Other Elements of
  Communication Strategy

Source Yeshin, T., Integrated Marketing
Communication
8

• Broadcast sponsorship
• NRK using to circumvent advertising
• Not as prevalent in Norway
• Popular music
• Leif Vidar and Rolling Stones
• Fina and Ultima
• Pepsi and Michael Jackson

9
Sponsorship of Causes -- key concepts

• Mission Marketing
• Green Marketing
• Issues Management
• Corporate Responsibility
• Stakeholders (interessenter)
• Socially Responsible Capitalism
• Socially Responsible Investment
• Caring Capitalism

10
Two levels

• A mission or purpose for existing that includes
  more than creating shareholder value and profits.
• Corporate citizenship -- policy and practice of a
  corporations social involvement over and beyond
  its legal obligations for the benefit of society.

11
Cause related marketing

• The process of formulating and implementing
  marketing activities that are characterized by
  contributing a specific amount to a non-profit
  organization that in turn causes customers to
  engage in revenue-providing exchanges.
• (Mullen, 1997)
• Linking a worthwhile charitable cause in a market
  to the growth of a business through the fusion of
  marketing, public relations, promotion, and
  special events.
• (C. Caywood, 1997)

12

• Ties a company and its products to a cause
  (Ptacek Salazar, 1997)
• Dramatic way to build brand equity (Mullen, 1997)
• Can generate long-term value need for a company
  to survive and achieve competitive advantage
  (Collins, 1993)
• Results in growing market shares and customer
  loyalty (Stewart, 1998)

13

• Can help firms stay in tune with mood of public
  (Duncan Moriarty, 1997)
• If price and quality are equal, customers likely
  to switch to brand with cause related marketing
  benefit (RS Worldwide, 19931996)
• Positive effect on reputation through fulfilling
  stakeholders expectations for firms to be
  socially responsible (Fombrun, 1996)

14

• Good way to solve social problems (Ptacek
  Salazar, 1997)
• Consumers have more positive image of firms that
  do something to make the world a better place

15
Benefits of Cause Marketing

• Creates more positive corporate culture (today
  every business is a people business)
• 5-10 response can be extremely profitable -- not
  everyone has to be moved for it to be successful
• A small added value can differentiate most brands

16
Forms

• Charitable giving
• Red Cross, Redd Barna
• Direct sponsorships
• The arts, special projects, community
  initiatives, fund raising
• Issues advocacy
• Violence, discrimination, children workers,
  pollution

17
Norway

• Maxbo Fund
• Storebrand -- Red Cross
• Tine -- Litago
• Farris -- Red Cross
• Stabekk Fotball -- environment
• Vålerenga -- Mot Racism
• McDonalds
• Canon Norge -- WWF

18
Organizational Strategy (Mission statement
reflecting corporate position on social
responsibility)
Corporate Social Responsibility
Strategy (Strategy to carry out social
responsibility)
CSR Communication Strategy (Strategy for
communicating organizations position on social
responsiblity)
Marketing Communication
Management Communication
Organizational Communication
19
Key Questions Regarding Sponsorship

• Is there a fit between the activity and the brand
  or corporate positioning?
• Is the sponsorship sufficiently distinctive?
• Are there other sponsors associated with the
  event?
• Does the activity have an existing identity or
  does one need to be created?
• Can the sponsorship be undermined by competitors,
  for example by buying perimeter boards, signage
  or other activities such as hospitality to
  associate themselves with the event?

20
Key questions

• Who are the audiences for the event -- both live
  and in terms of the expected media coverage?
• What exploitation opportunities exist?
• Is there synergy with the current advertising
  platform or other marketing communications
  activity?

21
Sponsorship Type
Sector DK Ger. NL S. Afr. Swe. Switz. UK USA
Sports 60 56 69 67
58 56 67 Arts 87
15 20 7 17 24
16 6 Brdcst. 13 15
8 7 7 16
20 Others 10 16
17 9 3 8
27 Broadcast not included
Source ESOMAR Newsbrief no. 4, April 1999