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

2. Copyright © 2009 Nelson Education Ltd. All rights reserved.2 OBJECTIVES 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 sponsorshipUnderstand the corporate objectives associated with sport sponsorship

3. Copyright © 2009 Nelson Education Ltd. All rights reserved.3 HISTORY OF SPONSORSHIP 1896 Kodak purchased advertising in the first official Olympic program1896 Kodak purchased advertising in the first official Olympic program 1928 Coca-Cola donated 1000 cases of soft drinks to the US Olympic team1928 Coca-Cola donated 1000 cases of soft drinks to the US Olympic team Until 1970 corporate sponsorship was done for philanthropic reasons.Until 1970 corporate sponsorship was done for philanthropic reasons. Sponsorship attitude changed in the 80’s and companies devoted substantial resources towards sponsorshipsSponsorship attitude changed in the 80’s and companies devoted substantial resources towards sponsorships

4. Copyright © 2009 Nelson Education Ltd. All rights reserved.4 RELATIONSHIP OF SPONSORSHIP TO MARKETING Sponsorship is part of the promotional mixSponsorship is part of the promotional mix Marketing begins with identifying the needs and wants of consumersMarketing begins with identifying the needs and wants of consumers Worldwide expenditure on sponsorship has grown from US$500 million in 1982 to an estimated $37 billion in 2007 (IEG, 2006).Worldwide expenditure on sponsorship has grown from US$500 million in 1982 to an estimated $37 billion in 2007 (IEG, 2006).

5. Copyright © 2009 Nelson Education Ltd. All rights reserved.5 RELATIONSHIP OF SPONSORSHIP TO MARKETING Promotion Mix: Tools used to communicate information about a product, its function characteristics, price, place to inform and persuade consumers and influence their purchase decisions. Sponsorship is an important part in the marketing communications mix along with advertising, public relations, sales promotions and selling.Sponsorship is an important part in the marketing communications mix along with advertising, public relations, sales promotions and selling.

6. Copyright © 2009 Nelson Education Ltd. All rights reserved.6 SPONSORSHIP & PHILANTHROPY Both sponsorship and philanthropy offer funds, resources to sport organizations, they differ in the nature of what they expect in return.Both sponsorship and philanthropy offer funds, resources to sport organizations, they differ in the nature of what they expect in return. Sponsorships became not so much a form a social corporate behaviour but an important promotional tool and business expense.Sponsorships became not so much a form a social corporate behaviour but an important promotional tool and business expense.

7. Copyright © 2009 Nelson Education Ltd. All rights reserved.7 SPONSORSHIP & ADVERTISING What differentiates sponsorships from advertising is the association between the two partiesWhat differentiates sponsorships from advertising is the association between the two parties In sponsorship the message is coded, delivered, and decoded in collaboration with the sponseeIn sponsorship the message is coded, delivered, and decoded in collaboration with the sponsee This process occurs independently in advertising.This process occurs independently in advertising.

8. Copyright © 2009 Nelson Education Ltd. All rights reserved.8 CORPORATE OBJECTIVES AND SPONSORSHIPS 3 Groups of Objectives: 1.Broad corporate objectives (image base) 2.Marketing objectives (brand promotion) 3.Media objectives (cost effectiveness)

9. Copyright © 2009 Nelson Education Ltd. All rights reserved.9 CORPORATE OBJECTIVES AND SPONSORSHIPS Objectives for corporate involvement in sport sponsorship often are: 1.Increasing public awareness of company or brand 2.Generating media benefits 3.Achieving sales objectives

10. Copyright © 2009 Nelson Education Ltd. All rights reserved.10 CORPORATE OBJECTIVES AND SPONSORSHIPS Objectives for corporate involvement in sport sponsorship often are: 1.Altering public perception of the company, or image 2.Identifying the company with particular market segments 3.Creating a competitive advantage through exclusivity 4.Gaining opportunities in terms of hospitality

11. Copyright © 2009 Nelson Education Ltd. All rights reserved.11 IMAGE The opportunity to capitalize on image association/transfer makes sponsorship attractive businesses as a communication tool.The opportunity to capitalize on image association/transfer makes sponsorship attractive businesses as a communication tool. The majority of companies involved in sponsoring are attempting to meet an image objective.The majority of companies involved in sponsoring are attempting to meet an image objective.

12. Copyright © 2009 Nelson Education Ltd. All rights reserved.12 IMAGE Three factors can affect one’s perception of a particular event: 1.Event type 2.Event characteristics 3.Individual factors

13. Copyright © 2009 Nelson Education Ltd. All rights reserved.13 SPONSORSHIP OBJECTIVES Reaching the Target Market: Corporations searching for an optimal event or team to sponsor need to find a link between their product and the event. Sales The major objective of sponsorship is to improve the bottom line. When integrated with other elements of the promotional mix, sponsorship can influence the buyer to purchase The major objective of sponsorship is to improve the bottom line. When integrated with other elements of the promotional mix, sponsorship can influence the buyer to purchase.

14. Copyright © 2009 Nelson Education Ltd. All rights reserved.14 SPONSORSHIP OBJECTIVES Media Benefits: Media exposure and coverage has been identified as a key benefit sought from sponsorship as well as a key objective of sponsorship programs. Exclusivity: Exclusivity and/or blocking the competition are key requirements for all major sponsors of sports.

15. Copyright © 2009 Nelson Education Ltd. All rights reserved.15 SPONSORSHIP OBJECTIVES Hospitality Corporate partners use hospitality benefits to reward their own personnel or used to induce their clients to renew or sign new agreements.

16. Copyright © 2009 Nelson Education Ltd. All rights reserved. Questions?