Sponsorship and Events

MKT3627 Sales Promotion

Sales Promotion, Events, Sales Promotion, Events, and Sponsorships and Sponsorships

Remark: Parts of the slides come from textbook publishers' presentation; There is no mean of violating or claiming as a writer of content.


Sponsorship

• An investment in an activity in return for access to the exploitable commercial potential associated with this activity.

• When companies support an event like • sport event, concert, or charity • ex. Olympics

• Financially or donate product/service


Sponsorship (Cont.)

• Mute non-verbal medium• Messages are created using visuals,

vocals, and context• Sponsorship may be less effective in

gaining attention


Sponsorship (Cont.)

• Objectives:1) Generation of awareness2) Promotion of positive message about

the product or company

• 4 Types of SPONSORSHIP:1. Event-related sponsorship2. Broadcast/Program sponsorship3. Cause-related sponsorship4. Ambush Marketing


1. Event-related sponsorship• i.e. sponsoring soccer competition or activity• Increase awareness or improve image

2. Broadcast/Program sponsorship• A brand can sponsor a sports program,

weather forecast or a soap• Billboarding: mentioning the name of a

sponsor• Product placement: sponsor's product

being used during the program to show to the audience• i.e. series/ James Bond

• Increase brand salience (via liking and attention to)

4 Types of SponsorshipBest Known Type


3. Cause-related sponsorship• A combination of PR, Sales Promo, and

corporate philanthropy (charity), based on profit-motivated giving to good causes

• Not just Charity, but Charity + integration of company's communication strategy

4 Types of Sponsorship (Cont.)The oldest form


3. Cause-related sponsorship (Cont.)• Transaction-based sponsorship (Cause-related marketing or point-of-purchase

politics)A type of sponsorship in which the company invests a pre-specified amount of money in a good cause every time a consumer buys one of the company's product.• i.e. a cause program to stop childhood

hunger

4 Types of Sponsorship (Cont.)


4. Ambush Marketing• Promotional stunts used at events by

companies that are not official sponsors.• Typically occurs when one big brand is

trying to dilute the presence of a rival that is sponsoring an event, thus diminishing the return on the official sponsor's investment.

• For example, • Nike ran its own soccer competition against

the World Cup whose official sponsor was Adidas.

• Because of the publicity, many consumers assumed Nike was the official World cup sponsor.

4 Types of Sponsorship (Cont.)


• A type of Public Relation (PR) activity

• Using a number of elements of the promotion mix to create an event for the purpose of reaching strategic marketing objectives

• Building a product's marketing program around a sponsored event

• i.e. a golf tournament

Event Marketing


• Can use to project right image for the brand

• Very Costly

• Objectives: 1. To build brand associations2. To increase the perceived value of the

brand in the consumer's mind

Event Marketing (Cont.)


• Blimps, balloons, inflatable• Skywriting plane

• Huge in size• 3D Shape

• Interactive and Internet Promotions

Other Promotional Supports


• Also known as = Continuity or Frequency program

• I.e. Frequent flier programs (Thai Airways Int'l)Membership programs (Carrefour I Wish Card)

• Objective: To increase customer retention

Loyalty Program


• Make use of databases• Mandates of Loyalty Programs:

1. Identify your best customers2. Connect with those best customers3. Retain the best customers, usually by

rewarding them for their patronage4. Cultivate new "best customers"

Loyalty Program (Cont.)


• Co-marketing• Co-branding• Licensing• Tie-ins

Partnership Programs


• When manufacturers develop marketing communication programs with their main retail accounts, instead of for them.

• Advertising and sales promotion build brand equity for both manufacturer and retailer.

• i.e. Tesco-Unilever November Theme

Co-marketing


• When two companies come together to offer a product

• i.e. King Power Duty Free logo on SCB credit card

Co-branding


• When an established brand "rents" that brand to other companies, allowing them to use its logo on their product and in advertising or events

• i.e. Disney cartoons on ice cream

Licensing


• Associations between complementary brands to create synergy (1+1=3)

• i.e. cross promotion and merchandising of Doritos chips and Salsa

• To spur impulse purchase• Leverage similar strength• Bigger impact in the marketplace

Tie-ins

Sponsorship and Events

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