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 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

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 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

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 corporation’s 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 (R&S Worldwide, 1993:1996) • 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’ • McDonald’s • 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 organization’s position on social responsiblity) Management Communication Organizational Communication Marketing Communication Peggy Simcic Brønn

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