4550: Sponsorship Dr. Campbell 3/3/05 (– 3/8/05)

Sponsorship: Definition A business relationship in which a marketer provides funds, resources, or services to an individual, event, or organization in order to gain some rights and association to be used for commercial advantage.

Sponsorship Spending in North America Year Sports ($Billions) $3.54 (65%) $3.84 (65%) $4.56 (67%) $5.10 (67%) $5.92 (68%) $6.4 billion $6.51 (68%) $7.1 Entertainment, tours/attractions $566$650$680$756$817$800 million $893$900 Festivals, fairs, Events $512 $558$612$685$740$800 Causes$485 $535$544$630$700 $800$900 Arts$327 $354$413$460$548$600 TOTAL ($Billions) $5.43 $5.93$6.80$7.63$8.70$9.35$9.7$10.2

Sponsorship Marketing Reasons for growth –Advertising is expensive and cluttered –Can target customers effectively Can be meaningful to target –“Soft sell” –Can create associations “brand personality” –Generates excitement –“Payback” to the community –Tie-in with corporate entertainment

Three Types of Sponsorship Sports Marketing Special Event Marketing Social Responsibility –Cause-Related Marketing –Social Marketing

Sponsorship: Sports Marketing Forms –Athlete –Athletic event –Televised athletic event –Award

Special Event Marketing Linking with a special event to build awareness or relationship with target audience

Cause-Related Marketing Cause-related marketing involves corporate tie-in with non-profit organizations and charities. The money or gifts a company gives to a charitable cause are tied to purchases made by consumers. Sharing common beliefs with consumers

Uses Provides a way to “connect” with consumers –Loyalty –Relationship value –Brand differentiation/positioning Reinforces and supports the brand values/meaning in the target consumer’s mind

Effects of CRM (JPPM 1998) Attitude toward firms Positive 87% Negative 13% Attitude toward NPOs Positive 93% Negative 6% Firms’ Motives Help Firm - Profit 47% Help Firm & Others 34% Help Others & Firm 16% Help Others 3% Influence of CRM None 24% Very little 41% Some 6% A Lot 24%

Social Marketing Corporate social marketing is an initiative in which marketing personnel who work for a corporation devote significant amounts of time and effort toward persuading people to engage in a socially beneficial behavior

Evaluating Success “Is society better off because of this program?” “Has corporate involvement allowed this program to perform better than it would if it were managed by only a nonprofit or government agency?” (Has this improved our corporate position?)

Dimensions for Social Responsibility Programs Social Responsibility Programs vary in terms of: –Tie to product sales –Direct benefits to customers Most effective Social Responsibility Programs have: –Strong ties to product sales –Direct benefits to customers Example: Kellogg’s All-Bran/National Cancer Institute Dietary Fiber Program

Sponsorship: Advantages

Sponsorship: Potential Problems

Next Session… Wrap-up discussion of sponsorship and alternative media Q & A for exam 3/10/05