Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a...
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Transcript of Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a...
![Page 1: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/1.jpg)
Chapter 15
Sport Sponsorship
![Page 2: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/2.jpg)
Introduction• What is sponsorship?
– Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property
• One of most prolific forms of sport marketing• Sponsorship fees often exceed $10,000,000 per year
and are structured as multiyear deals• Provides a company with association, value,
exposure, and opportunities to leverage their affiliation to achieve marketing objectives
![Page 3: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/3.jpg)
History• Increasing commercialization of sports has led to
tremendous growth in sport sponsorship.– $11.3 billion spent on sport sponsorships in 2009
• 1984 Los Angeles Olympic Games– Watershed year in the evolution of sport
sponsorship (President Peter Ueberroth)• Ueberroth became commissioner of MLB
– Raised sponsorship bar for major professional sport leagues
• Less-is-more philosophy – 2-2-1 Plan
![Page 4: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/4.jpg)
History: Reasons for Sponsorship Growth• Increased media interest in
sports.• Companies can “break
through the clutter” of traditional advertising.
• Sponsorship can reach its target consumer through consumers’ lifestyles.
© Gheorghe Roman/ShutterStock, Inc.
![Page 5: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/5.jpg)
History: Reasons for Sponsorship Growth (cont.)• Enable corporate marketers to reach specific
segments, such as the following:– Heavy users, shareholders, and investors; or
specific groups that have similar demographics, psychographics, or geographic commonalities
• Today sport sponsorship has become a discipline involving serious research, large investments, and strategic planning
![Page 6: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/6.jpg)
Sales Promotion: In-Venue Promotion
• Increase the amount of “value-added” benefits that teams provide their paying customers
• Traditional giveaways: Sponsor underwrites the cost of a “premium” item in exchange for its logo on the item and advertising support that prepromotes the event
• Continuity promotions: Require fans to attend multiple games to obtain giveaways
• Success of promotion varies widely based on time of season, teams’ win–loss record, day of promotion, opponent, and perceived quality of the item
• Incremental increase in fans
![Page 7: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/7.jpg)
Sales Promotion: In-Store Promotion• Companies often leverage sponsorships at retail level• Premiums
– Merchandise offered free or at a reduced price as an inducement to buy a different item or items
• Contests/sweepstakes• Sampling
– One of the most effective sales promotion tools to induce consumers to try a product
• Point-of-sale or point-of-purchase materials – Used by marketers to attract consumers’ attention to
their product/service and their promotional campaign at the retail level
• Coupons
![Page 8: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/8.jpg)
Cross-Promotion• Joining together of two or more companies to
capitalize on a sponsorship is becoming increasingly popular and effective
• Creates more “bang for their buck” under the premise that two sponsors working together can generate more interest and awareness among targeted sport consumers
• Used to gain exposure in nontraditional and unexpected retail settings
• It has become increasingly important to think outside the box as to how sponsors can be joined to increase the overall effectiveness of sponsorship investments
![Page 9: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/9.jpg)
Sponsorship Packages: Sponsor Benefits
• Exclusivity in one’s product or service category• Official designations
– Leagues and teams offer multiple designations tied to the sport and to the sponsor’s product or service category
• Rights to utilize the sport organization’s intellectual property in advertising and promotion campaigns
• Advertising support• In-stadium signage and promotional announcements• Access to tickets • Potential new business through access and opportunity
![Page 10: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/10.jpg)
Sponsorship Packages: League/Team Benefits
• Rights fee• Multiyear commitment• Advertising commitment• Commitment to team-oriented promotions
![Page 11: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/11.jpg)
Sponsorship Platforms• Governing body sponsorship
– Entails securing “official sponsor” status• Team sponsorship
– Appropriate platform for local/regional companies or companies with smaller marketing budgets
• Athlete sponsorship – Involves some type of endorsement of the
sponsor’s product or service
![Page 12: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/12.jpg)
Sponsorship Platforms• Media channel sponsorship
– Companies that purchase advertising or programming during sport-related broadcasts
• Facility sponsorship – Enables companies to tie directly to the event
atmosphere • Event sponsorship
– Tie directly to event atmosphere• Sport-specific sponsorship
– Enables company to direct its sponsorship efforts to a specific sport
![Page 13: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/13.jpg)
Evaluating Sport Sponsorship
• Vital due to growing financial commitments necessary to effectively activate sport sponsorship programs
• No one exact formula for measuring ROI • For ROI, companies use the following:
– Internal feedback, sales/promotion bounceback measures, print media exposure, television media exposure, primary consumer research, dealer/trade response, and syndicated consumer research
![Page 14: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/14.jpg)
Evaluating Sport Sponsorship• Difficult to determine precisely how much
incremental sales are directly attributable to a specific sponsorship program.
• Many companies conduct periodic consumer surveys to determine ROI.
• Companies often hire professional sport research firms to perform media evaluation research that examines corporate sponsorship and brand exposure through television and print media coverage of sports events.
![Page 15: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/15.jpg)
Sponsorship Agencies• Many companies engaged in sport
sponsorship outsource the negotiation and/or implementation of their sponsorship programs
• Rely on agencies because they do not possess the expertise, the experience, or the resources to negotiate and implement sponsorship programs
![Page 16: Chapter 15 Sport Sponsorship. Introduction What is sponsorship? –Cash and/or in-kind fee paid to a property in return for access to the exploitable commercial.](https://reader035.fdocuments.us/reader035/viewer/2022062300/56649dcf5503460f94ac3ad3/html5/thumbnails/16.jpg)
Current Issues• Ethnic marketing
– Sport organizations have begun to adopt strategies to target ethnic groups more effectively.
• Overcommercialization – Do consumers have an emotional
threshold for accepting a constant bombardment of corporate names, logos, and messages?
• Gambling – Sport organizations have
embraced gambling as a growing source of sponsorship revenue.
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