Peggy Simcic Brønn

Sponsorship

Source of some slides: Prentice Hall

Peggy Simcic Brønn

Sponsorship

An investment in cash or kind, in an activity, in return for access to the exploitable commercial potential associated with that activity. (Meenaghan, 1991)

A business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage. (Sleight, 1989)

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Sponsorships

• Provide financial support for an activity or organization so that it can survive

•Polish the sponsor’s image in ways that impact positively on the bottom line

•Allow the company to be associated with the positive social values reflected by the person, activity or organization it sponsors

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Primary Communication Objectives

Enhancement of corporate imageEnhancement of brand imageCustomer loyaltyMedia ExposureHospitalitySales PromotionStaff MotivationCommunity Relations

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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.

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Types of Sponsorships

• Olympic Games

• Sports Marketing

• Broadcast Sponsorship

• Popular Music

• Cause Marketing

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Sporting Event Sponsorships

• Improve image of company -- 78%

• Build customer loyalty -- 74%

• Build Brand Awareness -- 78%

• Generate Sales -- 57%

• Add Credibility to Company’s Messages

• Create Higher Levels of Confidence in the Company

• Should Be Integrated with Other Elements of Communication Strategy

Source: Yeshin, T., Integrated Marketing Communication

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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

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Sponsorship of Causes -- key concepts

Mission MarketingGreen MarketingIssues ManagementCorporate ResponsibilityStakeholders (interessenter)Socially Responsible CapitalismSocially Responsible InvestmentCaring Capitalism

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Two levels:

A mission or purpose for existing that

includes more than creating shareholder

value and profits.

Corporate citizenship -- policy and practice

of a corporation’s social involvement over

and beyond its legal obligations for the

benefit of society.

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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)

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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)

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Can help firms stay in tune with mood of public (Duncan & Moriarty, 1997)

If price and quality are equal, customers likely to switch to brand with cause related marketing benefit (R&S Worldwide, 1993:1996)

Positive effect on reputation through fulfilling stakeholders’ expectations for firms to be socially responsible (Fombrun, 1996)

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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’

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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

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Forms

Charitable giving Red Cross, Redd Barna

Direct sponsorships The arts, special projects,

community initiatives, fund raisingIssues advocacy

Violence, discrimination, children workers, pollution

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Norway

Maxbo FundStorebrand -- Red CrossTine -- LitagoFarris -- Red CrossStabekk Fotball -- environmentVålerenga -- ‘Mot Racism’McDonald’sCanon Norge -- WWF

Peggy Simcic Brønn 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

organization’s position on social responsiblity)

MarketingCommunicatio

n

ManagementCommunicatio

n

OrganizationalCommunicatio

n

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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?

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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?

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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