Event and Cause Sponsorships INTEGRATED MARKETING COMMUNICATIONS IN ADVERTISING AND PROMOTION CHAPTER 19 Event and Cause Sponsorships © 2010 South-Western, a part of Cengage Learning All rights reserved.

Chapter Objectives After reading this chapter you should be able to: Understand event sponsorships and how to select appropriate events. Appreciate the reasons underlying the growth of event sponsorships Know what factors a company should consider when selecting an event to sponsor. Understand how and why companies ambush events. Appreciate the importance of measuring sponsorship performance. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–2

Chapter Objectives (cont’d) After reading this chapter you should be able to: Recognize the nature and role of cause-related marketing (CRM). Appreciate the benefits of CRM programs. Understand that accountability is a key consideration for cause-oriented as well as event-oriented sponsorships. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–3

Sponsorship Marketing Is an exchange between a sponsor [such as a brand] and a sponsee [such as a sporting event] whereby the latter receives a fee and the former obtains the right to associate itself with the activity sponsored Is the marketing of the association by the sponsor Both activities are necessary if the sponsorship fee is to be a meaningful investment © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Why the Growth in Sponsorships Help firms to avoid the clutter in advertising media Help firms respond to consumers’ changing media habits Help firms gain the approval of various constituencies Can enhance brand equity by increasing consumer awareness and by enhancing the brand’s image Enable marketers to target their marcom efforts to specific geographic regions and lifestyle groups © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Event Sponsorship Event Sponsorship Is a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity Factors in Selecting Sponsorship Events Image matchup Target audience fit Sponsor misidentification Clutter Complement other marcom efforts Economic viability © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Event Sponsorship (cont’d) Creating Customized Events Choosing to develop events rather than sponsoring existing events Provides a brand total control over the event Can be more effective but less costly Ambushing Events Occurs when companies that are not official sponsors undertake marketing efforts to convey the impression that they are © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Event Sponsorship (cont’d) Measuring Success The brand marketer must specify objective(s) that the sponsorship is intended to accomplish. In measuring the results, there has to be a baseline against which to compare some outcome measure. This baseline is typically a premeasure of brand awareness, brand associations, or attitudes prior to sponsoring an event. Measure the same variable (awareness, associations, etc.) after the event to determine whether there has been a positive change from the baseline level. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Cause Sponsorships Cause-Related Marketing (CRM) Entails alliances that companies form with nonprofit organizations to promote their mutual interests. Based on the idea that a firm will contribute to a cause every time the customer undertakes some action that supports the firm and its brands Requirements for Successful CRM Fit—Does the brand naturally related to the cause? Accountability—Will the CRM yield sufficient returns on investment or achieve non-financial objectives © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Cause Sponsorships (cont’d) Benefits of Cause-Related Marketing (CRM) Enhances corporate or brand image Thwarts negative publicity Generates incremental sales Increases brand awareness Broadens customer base Reachs new market segments Increases sales at retail level © 2010 South-Western, a part of Cengage Learning. All rights reserved.

KitchenAid’s CRM Program Figure 19.1 KitchenAid’s CRM Program © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Tyson’s Share Our Strength CRM Program Figure 19.2 Tyson’s Share Our Strength CRM Program © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Nabisco Brands CRM program required a Ritz-brand proof of purchase Figure 19.3 Nabisco Brands CRM program required a Ritz-brand proof of purchase © 2010 South-Western, a part of Cengage Learning. All rights reserved.