Sponsoring something (or someone) is the act of financially supporting an event, activity, person or organization, or by providing products or services. The person or group providing support, similar to a benefactor, is called a sponsor. A number of psychological and communication theories have been used to explain how commercial sponsorship works to influence consumer audiences. Most use the idea that a brand (sponsor) and an event (sponsored) are linked by sponsorship in memory and, therefore, thinking about the brand can trigger associations related to the event. Cornwell, Weeks and Roy (2005)[2] published a detailed review of the theories used to explain the effects of commercial sponsorship. Although the sponsor (the sponsored property) may be non-profit, unlike philanthropy, sponsorship is done with the expectation of a commercial return. Even if there is a good match between the sponsor and the event, it is still important for a company to promote the event and its commitment in order to benefit from it. After all, sponsorship is a form of advertising, even if it is a non-profit or charitable event. Possible ways to promote event sponsorship are billboards, print and broadcast advertising, and direct mail. Corporate sponsors may also find it helpful to issue press releases about the event to the media, as well as contribute articles and editorials to publications that reach the target audience.
Consumer product marketers may also conduct joint promotions with retailers, such as: Vouchers and bindings. The sales cycle for sponsor sales is often a lengthy process that involves finding leads, creating tailor-made proposals based on a company`s business goals, finding the right contacts in a company, soliciting buy-in from multiple stakeholders, and finally negotiating benefits/prices. Some sales can take up to a year and sellers report spending between 1 and 5 hours researching each business considered a potential sponsorship. [5] As in most years of the last two decades, the growth rate of sponsorship will outpace advertising and promotion, according to IEG. Corporate sponsorship also offers marketers a unique opportunity to position their products in the market. With corporate sponsorship – as opposed to traditional marketing techniques – the company, the product and the sponsored event or thing tend to be connected in the minds of consumers. By sponsoring an event or funding the broadcast of an event, a sponsor can become visible while connecting with the values of the event. The event generates the audience and projects the values associated with the event`s activities.
Each referral vehicle has certain associated images in the mind of the consumer that are transferred to the sponsor. The relaxation of the television industry`s legislation on product placement has led to a small but increasing increase in sponsorship of television programmes in the UK. However, commercial sponsorship of British sports teams and players is a multi-billion pound industry. For example, Adidas became a sponsor and supplier of Manchester United`s shirt for ten seasons, under a guaranteed minimum value sponsorship deal of £750 million (over $1.1 billion). [9] These are the terms used by many sponsorship professionals to refer to how a sponsor benefits under a sponsorship agreement. Leverage has been defined by Weeks, Cornwell and Drennan (2008) as “the act of using collateral marketing communications to capitalize on the commercial potential of the connection between a sponsor and Sponsee”, while activation has been defined as “communications that encourage engagement, participation or participation of the sponsoring public with the sponsor”. [6] The benefits of corporate sponsorship can be greatly diminished by competitive tactics known as “ambush marketing” when competitors take steps to divert an event audience from the sponsor and focus on themselves. Ambush marketing tactics include sponsoring media coverage of an event rather than the event itself, sponsoring a subcategory of an event, sponsoring individual athletes or teams involved in an event, or scheduling advertisements that coincide with the event. While this practice is considered unethical by paid sponsors and event owners, others consider it an integral part of contest advertising.
Event sponsorship, in particular, is an attractive option because it allows a business access to diverse audiences, including employees, policymakers and government regulators, as well as consumers. It can be a particularly effective marketing tool for companies involved in international trade, as sponsorship overcomes language and cultural barriers. Many marketers believe that business sponsorship is superior to other methods because it allows customers to react immediately to new product offerings. The events offer business leaders the opportunity to meet their customers face-to-face. They also offer customers the opportunity to try a company`s products first-hand. In comparison, marketing research tools such as focus groups can be expensive and may not appeal to the right people, while questionnaires or market surveys usually don`t give potential customers a chance to try the product. A company can benefit from sponsorship in several ways. Harvey Meyer, an employee of Nation`s Business, promotes a wide range of potential benefits: “[Sponsorship] can improve a company`s image and visibility; distinguishing the firm from its competitors; help build closer relationships with current and potential clients; present products and services; unloading obsolete inventory; and allow the company to compete more effectively with larger companies that have much larger advertising budgets. In addition, tickets to sponsored events can be used as incentives for employees, suppliers and customers and to promote employee retention. And promoters say that if sponsorship is well thought out and strategic, they can increase revenue — in the long term and in the short term — as they enhance the community through the events they support. “Given this trend of consumers associating sponsors with events, it is important for corporate sponsors to choose events that fit well with the image of their products.
In fact, small businesses shouldn`t connect to a thing or event without first seriously considering the potential downsides of a sponsorship opportunity. For example, effective sponsorship often requires the active participation of companies and part of their workforce. In addition, some companies are reluctant to sponsor because they fear facing litigation or being harassed by organizers of other events. After all, belonging to a poorly organized community event or one that goes against local tasteful norms can be very costly for a small business. With that in mind, small business owners should always conduct background checks on events or organizations they wish to sponsor. Talking to current and past sponsors is a great way to learn more about the event from someone other than their organizers. It should be noted that the growing popularity of corporate sponsorship has led many market research companies to help companies select, implement, and evaluate sponsorship opportunities. However, these services can be prohibitive for small businesses. In an article on recent corporate sponsorship trends titled “Why Sponsors Sponsors,” author Jim Karrh lists the four criteria that nonprofit fundraisers expect most companies to use when evaluating their sponsorship application. The four criteria are: For immigration purposes, the guarantor means a petitioner.