The role of sponsorship in the marketing communications mix
Tony Meenaghan International Journal of Advertising Vol. 10, No. 1, 1991
Title: Author(s): Source: Issue:
The role of sponsorship in the marketing communications mix Tony Meenaghan International Journal of Advertising Vol. 10, No. 1, 1991
The role of sponsorship in the marketing communications mix
Tony Meenaghan
This article examines the development of commercial sponsorship as a legitimate marketing communications option available to management. Initial attention focuses on the causes of sponsorship emergence, the current developments in this growing industry and the prospects therein. Sponsorship 's role on behalf of management is
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In 1984 comparative figures for sponsorship as a percentage of total advertising spend showed considerable variation even among the more developed economies. As can be seen from Table 3, sponsorship in Italy was estimated at nine per cent of total advertising expenditure compared with only 1.4 per cent in the US market (AGB, 1986). These estimates of sponsorship spending do not include the expenditure which is necessary to ensure the proper exploitation of the chosen sponsorship. The acknowledged industry norm is that expenditure at least equal to the direct sponsorship costs is necessary for adequate exploitation. TABLE 3: SPONSORSHIP EXPENDITURE AS A PERCENTAGE OF ADVERTISING EXPENDITURE IN 1984 (US$ MILLION)
Country Italy US UK West Germany Netherlands Advertising expenditure 2,580 73,380 5,670 5,192 2,003 Sponsorship expenditure 226 1,000 157 98 55 % 8.8 1.4 2.8 1.9 2.8
Source: Advertising Associations Driving forces behind sponsorship 's development The dramatic growth of commercial sponsorship as a marketing activity is probably due to the following
You are in the role of a researcher employed by a marketing magazine and have been asked to investigate a number of promotional activities that may form the basis of future articles in editions of the magazine.
The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.
Advertising costs have risen in recent times and is becoming an expensive way to promote their
Sponsorship is a cash in-kind fee paid to a property normally in sports, arts and entertainment in return for access to the commercial publicity associated with that product. For example a company may provide equipment for a famous athlete and ask in exchange for its logo to appear on its clothing and other assets in order for the company to receive brand recognition.
The National Football League (NFL) and NASCAR thrive on sponsors and vice versa. An NFL game is by far the most watched single game event in the country and gaining popularity exponentially worldwide. Their championship, the Super Bowl, is arguably the most watched television program in that particular year. In NASCAR, the Daytona 500 is their “Super Bowl” and is a very large event in its own right. Corporations all over the world jump on these mega advertising vehicles with the hope that their name is popularized which will result in profitability. In many cases, most of those who do buy airtime during NFL games, the Super Bowl, and during the major NASCAR races are very visible names and products that we already know
T A B L E O F C O N T E N T S
Sponsorships are one of the most important parts of a nonprofit organization. Sponsorship helps other provide for smaller businesses that are being funded by the state. Also Sponsors do tend to come up with a payment plan involving how payments are arranged. "Corporate Sponsorship support is a payment by a business to a nonprofit to further the nonprofit 's mission that is generally recognized by the nonprofit with an acknowledgement that the business has supported the nonprofit 's activities, programs, or special
Traditional marketing and Sport Marketing have similarities and differences. Being able to understand the similarities and differences would help someone comprehend both principles. Both principles share the Marketing Mix or 4P’s of marketing. The 4P’s are product (or service), place, price, and promotion. As defined by McCarthy and Perreault (1988), the marketing mix refers to the controllable variables the company puts together to satisfy a target group. I will explain the differences of the 4ps in traditional marketing and sports marketing.
First and foremost, these sports organizations “have found sponsorship necessary as a means of offsetting rising costs and expanding promotional opportunities” (Irwin, Sutton, & McCarthy, 2008, p.146). When it pertains to deciding what sponsors will go where there is one large factor to consider. Is the sponsorship the right match for the demographic of the community? Would you want your organization to partner with a company that had no established business in the area? Would that make much sense for the company trying to establish a sponsorship either? Years ago, sponsorships did not have as much logic behind them, however, today to be determined successful, they need to pay dividends for both companies. According to Irwin, Sutton, & McCarthy,
Your sponsorship is not only a charitable donation, but also an advertising opportunity. We will be including your
Showcasing sponsor’s logo in e-book, posters, newsletter, blogs, podcasts and social networks make a positive perception of your organization and will increase brand awareness or affinity of your organization. In addition, the screen credits are a crucial area, these are how the audience will positively judge organization brand and credibility. Furthermore, this documentary film series provides an amazing opportunity to share
Active sponsor engagement aims at helping to scope the project and guide the team to success. Go through the case study and two examples, it is unclear to say that the sponsor conducted the project or participated in the team meeting. It is hard to estimate sponsors leading the team and
As a kind of social marketing communications tool, sponsorship creates mutual benefits for both the sponsor and
Ms Violet, our beautiful marketing lecturer, has taught us well and I think that we can help you identify some of the segmentation variables for the Arowana market! Overall, the customers can be segmented in terms of three bases - Geographical, Demographic and Behavioural. For geographical variables, the main target market would be the Asia Pacific region. This is because superstitions about fortune and luck are the most prevalent in their cultures.
Egypt possesses one of the fastest growing markets in the entire Middle East and North African region, one of its leading growth factors comes in advertising. The recent figures calculated until the end of 2011 concludes that it has surpassed the growth levels of spending in advertising as compared to many of the regional markets such as UAE with a total of more than $700 million invested in the Egyptian market. Here, the categories of firms which spent more on advertising include telecom and public utilities. Also, many foreign firms are choosing to invest in Egypt making the industry more competitive as well as giving the advertising industries more opportunities to expand and excel in their growth.