Transcript Chapter 1

Chapter 3
Introduction to
Sponsorship
McGraw-Hill/Irwin
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©2007 The McGraw-Hill Companies, All Rights Reserved
Sponsorship’s Role
• Another Promotional Tool for Marketers
• Sponsorship Should Have a Synergistic Effect
on a Marketer’s Promotional Efforts
• Sponsorship Fits with Promotional Mix
• Integrated Marketing Communications (IMC)
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Integrated Marketing
Communications (IMC) Plan
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Advertising
Personal Selling
Sales Promotion
Public Relations / Publicity
Sponsorship
• Key Is How They All Work in Harmony
• Sponsorship Is NOT Advertising
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Advertising’s Advantages
• Persuasive Message
– Words and Images Used to Convey Ideas
• Standardization
– Everyone Receives an Identical Message
• Guaranteed Size of Audience Reached
– Circulation; TV Ratings; Radio Ratings
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Advertising’s Advantages (Cont’d)
• Evaluation of Effectiveness
– Measures such as CPM Can Be Applied
– Measure Impact on Sales
– Concept Testing Prior to Using Advertisement
• Turnkey
– May Be a Stand-Alone Tactic That Is Not
Supported by Other Elements of the IMC
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Sponsorship
• A Relationship between a Marketer and a
Property in Which the Marketer Pays a
Cash or In-Kind Fee in Return for Access
to the Exploitable Commercial Potential
Associated with the Property
• Many Types of Properties that Represent
Sponsorship Opportunities for a Marketer
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Sponsorship’s Advantages
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Credibility
Image
Prestige
Internal Morale
Sales Opportunities
Access to Live Audience
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Sponsorship Categories
• Sports
• Entertainment, Tours & Attractions
• Cause-Related Marketing
• Festival, Fairs & Annual Events
• The Arts
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Sponsorship Spending by
Category (2005)
• Sports (69%)
• Entertainment, Tours & Attractions (10%)
• Cause-Related Marketing (9%)
• Festival, Fairs & Annual Events (7%)
• The Arts (5%)
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Sponsorship Spending
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Key Sponsorship Concepts
• Participants
– Sponsor – Party Seeking Association (Fuji)
– Sponsee – Property Owner (e.g. FIFA)
• Linkages
– Self-Evident – adidas products used in event
– Strategic – Fuji Film and FIFA have similar
target markets
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Key Sponsorship Concepts
• Leveraging – Must Support Sponsorship
with Additional Strategic Elements (e.g.
Event-Oriented Advertising)
• Ambush Marketing – Non-Sponsors often
try to Create the Misperception among
Consumers That They Are a Sponsor
(Diminishes Value for the Actual Sponsor)
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Re-Visit Types of Sponsorships
• Traditional
• Special Cases of Sponsorship
– Endorsements – Personality Sponsor
– Venue Naming Rights – Building Sponsor
– Licensing – Sponsorship Involving Trademark
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Controversial Issues
• Do Higher Prices Result from Sponsorship
• Do Large Multinational Companies Have
an Unfair Advantage
• Sponsorships May Seem Illogical (No Fit)
• May Feature Unwholesome Products
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Closing Capsule
• Sponsorship Has Emerged as a Key
Element of Many Firms’ IMC Plans
• Sponsorship Spending Is Growing, But
Only Accounted for Approximately $30.4
Billion (US) in 2005
• Most Sponsorship Money Goes to Sports
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