Peggy Simcic Brønn Sponsorship Source of some slides: Prentice Hall

Peggy Simcic Brønn Sponsorship zAn investment in cash or kind, in an activity, in return for access to the exploitable commercial potential associated with that activity. (Meenaghan, 1991) zA business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and association that may be used for commercial advantage. (Sleight, 1989)

Peggy Simcic Brønn Sponsorships Provide financial support for an activity or organization so that it can survive Polish the sponsor’s image in ways that impact positively on the bottom line Allow the company to be associated with the positive social values reflected by the person, activity or organization it sponsors

Peggy Simcic Brønn Primary Communication Objectives zEnhancement of corporate image zEnhancement of brand image zCustomer loyalty zMedia Exposure zHospitality zSales Promotion zStaff Motivation zCommunity Relations

Peggy Simcic Brønn Emergence as a global marketing medium zSports and arts -- transcend national and cultural barriers. zAssociate with large consumer economies. zGovernments’ policies on tobacco and alcohol advertising. zDisillusionment with traditional media. zChange in perception of sponsorship.

Peggy Simcic Brønn Types of Sponsorships Olympic Games Sports Marketing Broadcast Sponsorship Popular Music Cause Marketing

Peggy Simcic Brønn Sporting Event Sponsorships Improve image of company -- 78% Build customer loyalty -- 74% Build Brand Awareness -- 78% Generate Sales -- 57% Add Credibility to Company’s Messages Create Higher Levels of Confidence in the Company Should Be Integrated with Other Elements of Communication Strategy Source: Yeshin, T., Integrated Marketing Communication

Peggy Simcic Brønn zBroadcast sponsorship yNRK using to circumvent advertising yNot as prevalent in Norway zPopular music yLeif Vidar and Rolling Stones yFina and Ultima yPepsi and Michael Jackson

Peggy Simcic Brønn Sponsorship of Causes -- key concepts zMission Marketing zGreen Marketing zIssues Management zCorporate Responsibility zStakeholders (interessenter) zSocially Responsible Capitalism zSocially Responsible Investment zCaring Capitalism

Peggy Simcic Brønn Two levels: zA mission or purpose for existing that includes more than creating shareholder value and profits. zCorporate citizenship -- policy and practice of a corporation’s social involvement over and beyond its legal obligations for the benefit of society.

Peggy Simcic Brønn Cause related marketing zThe process of formulating and implementing marketing activities that are characterized by contributing a specific amount to a non-profit organization that in turn causes customers to engage in revenue-providing exchanges. (Mullen, 1997) zLinking a worthwhile charitable cause in a market to the growth of a business through the fusion of marketing, public relations, promotion, and special events. (C. Caywood, 1997)

Peggy Simcic Brønn zTies a company and its products to a cause (Ptacek & Salazar, 1997) zDramatic way to build brand equity (Mullen, 1997) zCan generate long-term value need for a company to survive and achieve competitive advantage (Collins, 1993) zResults in growing market shares and customer loyalty (Stewart, 1998)

Peggy Simcic Brønn zCan help firms stay in tune with mood of public (Duncan & Moriarty, 1997) zIf price and quality are equal, customers likely to switch to brand with cause related marketing benefit (R&S Worldwide, 1993:1996) zPositive effect on reputation through fulfilling stakeholders’ expectations for firms to be socially responsible (Fombrun, 1996)

Peggy Simcic Brønn zGood way to solve social problems (Ptacek & Salazar, 1997) zConsumers have more positive image of firms that do something to ‘make the world a better place’

Peggy Simcic Brønn Benefits of Cause Marketing zCreates more positive corporate culture (today every business is a people business) z5-10% response can be extremely profitable -- not everyone has to be moved for it to be successful zA small added value can differentiate most brands

Peggy Simcic Brønn Forms zCharitable giving yRed Cross, Redd Barna zDirect sponsorships yThe arts, special projects, community initiatives, fund raising zIssues advocacy yViolence, discrimination, children workers, pollution

Peggy Simcic Brønn Norway zMaxbo Fund zStorebrand -- Red Cross zTine -- Litago zFarris -- Red Cross zStabekk Fotball -- environment zVålerenga -- ‘Mot Racism’ zMcDonald’s zCanon Norge -- WWF

Peggy Simcic Brønn18 Organizational Strategy (Mission statement reflecting corporate position on social responsibility) Corporate Social Responsibility Strategy (Strategy to carry out social responsibility) CSR Communication Strategy (Strategy for communicating organization’s position on social responsiblity) Marketing Communication Management Communication Organizational Communication

Peggy Simcic Brønn Key Questions Regarding Sponsorship: zIs there a fit between the activity and the brand or corporate positioning? zIs the sponsorship sufficiently distinctive? zAre there other sponsors associated with the event? zDoes the activity have an existing identity or does one need to be created? zCan the sponsorship be undermined by competitors, for example by buying perimeter boards, signage or other activities such as hospitality to associate themselves with the event?

Peggy Simcic Brønn Key questions: zWho are the audiences for the event -- both live and in terms of the expected media coverage? zWhat exploitation opportunities exist? zIs there synergy with the current advertising platform or other marketing communications activity?

Peggy Simcic Brønn Sponsorship Type % Sector DKGer.NLS. Afr. Swe.Switz.UKUSA* Sports Arts Brdcst Others * Broadcast not included Source: ESOMAR Newsbrief no. 4, April 1999