3-1 Chapter 3 Introduction to Sponsorship McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved
3-2 Sponsorship’s Role Another promotional tool for marketers Sponsorship should have a synergistic effect on promotional efforts Sponsorship fits with promotional mix –Part of Integrated Marketing Communications (IMC)
3-3 Integrated Marketing Communications (IMC) Plan Advertising Personal selling Sales promotion Public relations / Publicity Sponsorship Key is how they work in harmony Sponsorship is NOT advertising
3-4 Advertising’s Advantages Persuasive message –Words and images used to convey ideas Standardization –Everyone receives identical message Guaranteed audience reach –Circulation; TV Ratings; Radio ratings
3-5 Advertising’s Advantages (Cont’d) Evaluation of effectiveness –Can use measures such as CPM –Can measure impact on sales –Create and run ad after concept and copy testing Turnkey –May be stand-alone tactic not supported by other IMC elements
3-6Sponsorship Definition: Relationship between a marketer and a property in which the marketer pays a cash or in-kind fee for access to the exploitable commercial potential of the property Many types of properties represent sponsorship opportunities
3-7 Sponsorship’s Advantages Credibility Image Prestige Internal morale Sales opportunities Access to live audience
3-8 Sponsorship Spending by Category (2005) Sports (69%) Entertainment, tours and attractions (10%) Cause-related marketing (9%) Festival, fairs and annual events (7%) The Arts (5%)
3-9 Sponsorship Spending
3-10 Key Sponsorship Concepts Participants –Sponsor – Party seeking association (e.g., Fuji) –Sponsee – Property owner (e.g., FIFA) Linkages –Self-Evident – Adidas Products used in event –Strategic – Fuji Film and FIFA have similar target markets
3-11 Key Sponsorship Concepts Leveraging – Must support sponsorship with additional strategic elements (e.g., event-oriented advertising) Ambush Marketing – Non-sponsors’ efforts to create misperception that they are sponsors, which lowers value for actual sponsors
3-12 Re-Visit Types of Sponsorships Traditional Special cases of sponsorship: –Endorsements – Personality sponsor –Venue Naming Rights – Building sponsor –Licensing – Sponsorship involving trademark
3-13 Controversial Issues Does sponsorship cause/allow higher prices? Do large multinational companies have an unfair advantage? Do some sponsorships seem illogical (No Fit)? Do some sponsorships feature unwholesome products?
3-14 Closing Capsule Sponsorship has emerged as a key element of many firms’ IMC plans Sponsorship spending is growing, but only accounted for roughly $30.4 billion (US) in 2005 Most sponsorship money goes to sports