Essay On Sponsorship Categories and Objectives
Companies have over the years employed various marketing techniques and have witnessed considerable increase in market share due to using such innovative marketing techniques. One of the contemporary and popular technique that companies today employ is marketing through sponsorship. Companies benefit from good publicity as a result of being associated with teams and athletes and the athletes benefit from financial support from these companies. Chapter four of the book covers sponsorship concepts and objectives, and components. The author, in explaining the benefits of sponsorship, identifies the six main sponsorship categories. These categories include, sports, entertainment tours and attractions, causes, arts, festivals fairs and annual events and finally associations and membership organizations (Fullerton , 2007).
When companies spend their money on these sponsorship programs they have certain objectives in mind. The author categorises sponsorship objectives into five main objectives. The first objective being, to drive sales. The end goal of large firms in creating sponsorships is to establish a competitive advantage through such practices in order to gain substantial market share. The second objective of sponsorship is to improve the image of the organization. This may be seen as good corporate social responsibility by the society. The third objective of sponsorship is to create greater awareness of the company and also the goods and services they offer. The fourth objective of sponsorship is providing hospitality opportunities and the final objective involves enhancing employee morale (Fullerton , 2007).
Sponsorship Categories and Objectives-essay On Sponsorship Categories and Objectives
Sports sponsorship is one of the largest growing category of sponsorship today. Large companies have invested heavily in teams and sport events. It therefore follows that it would be important for any company that invests heavily in these teams to earn good returns on their investment. For instance, let us consider the sponsorship of Manchester United Football Club by AIG. The questions we would need to answer is whether or not such sponsorship is a good strategy for AIG and whether or not their intended objective is likely to be achieved through such sponsorship. One of the objectives that such sponsorship may be aimed at is to increase sales and also increase awareness. The sponsorship of Manchester United therefore allowed AIG to gain popularity and therefore more Manchester United fans take up their services as a result of this popularity. Sports sponsorship is therefore strategically viable for the sponsor.
The second category which sponsors invest heavily in is that of the entertainment, tours and attractions industry. This is the second largest category and for good reason. One of the main objectives of such sponsorship is that companies want their product to gain popularity. For example, Belaire, a French owned family alcoholic beverage production company, boasted increase in popularity through its endorsement of a number of rappers globally. Through this strategy, their products have become more popular with a growing number of fans. This can be linked directly to the endorsement of these artists and the marketing done through their music videos. Entertainment sponsorship is therefore a very good strategy end more specifically in achieving the objective of creating product awareness.
The third category that companies invest in is causes. In my view, the main objective intended to be achieved through such sponsorship is boosting the image of the company. When companies engage in funding for a good cause, they are seen to be responsible and caring towards the society. This in turn improves their social standing and more people wish to be associated with the company. Sponsorship of causes is therefore an effective strategy in boosting the social image. For instance, FedEx’s sponsorship of St Jude Children’s hospital greatly improves their image.Essay On Sponsorship Categories and Objectives
The fourth category of sponsorship is Arts. Companies engage in sponsorship programmes to reach a wide market through encouraging visual and performing arts. For instance, Audi’s sponsorship of the San Diego Sponsorship. In my view, this form of sponsorship, although efficient, is however limited in scope. The effectiveness of the strategy largely depends on the popularity of the performances sponsored. This holds true also for the fifth category which involves the sponsorship of festivals, fairs and annual events. For instance, Olympus Camera sponsorship of Fashion Week in New York.Essay On Sponsorship Categories and Objectives
Associations and membership organizations is the final category of sponsorship. It involves sponsorship of small groups such as professional women’s groups as well as other small organizations. This category attracts the smallest amount of fees and for good reason. This sponsorship is limited in achieving its objective due to the fact that it deals with a smaller number of people. Nonetheless, such sponsorships are entered into for a specific purpose and therefore from a strategic point of view, these sponsorships may at times be viable. For instance, the American Bar Association.
Fullerton , S. (2007). Sports Marketing. McGraw-Hill Education.