Sports Marketing Strategy in Achieving the Marketing Objectives of the Economic Enterprise: Review
Summary of Article
This article written by Ghelazi M. et al sought to investigate the relationship between sport marketing strategies through sports sponsorship and the impact such marketing strategies have on increasing profitability of such companies. The paper delves into some important questions such as the definition of sports marketing, whether or not sports marketing mobilises fans to recognize the companies that sponsor these companies, how sports marketing through sponsorship promotes the positive mental image of the sponsoring company and whether such sponsorship has a direct impact on the consumer choosing products or services sold by the sponsoring company (Ghezail, Abdella and Mohammed).
This article put forth the argument that sports marketing through sponsorship has a symbiotic effect on both enterprises. It argues that the use of sponsorship in marketing helps increase the size of the market. Additionally, sponsorship helps integrate private enterprise sector with the sporting community. The sponsoring enterprise also gains added value to its products which occurs as a direct result of the branding of the products by the sponsored company. It also argues that this sponsorship directly influences the purchase decision of the public thereby boosting sales of the sponsoring company.
The theoretical basis of this argument is the fact that sports marketing involves the specific application of marketing principles on sport products and non-sport products through creating a nexus between these non-sport activities and sports. This argument, according to me, is to a large extent accurate based on the type of products that are advertised through sponsorship. Sport clubs that receive sponsorship from large multinationals play an active role in advertising non-sport related products such as mobile phones or insurance companies.
The authors argue that through quantitative analysis of the impact of sponsorship on sales of sponsoring companies, it is possible for sponsoring companies to achieve their market objectives through sponsorship programmes. However, they pinpoint that one of the shortfalls of using this method as a marketing strategy is that profitability may also vary with the success of the sponsored club. For instance, if a club was performing well and therefore enjoyed many fans, the company will also profit from this same influx in terms of sale of its products. Similarly, if the clubs’ performance drops and it loses its fans, the company may also experience a corresponding drop in the volume of sales it makes due to the clubs’ poor performance.
Relevance to Todays Sports Marketing
The relevance of the sponsorship marketing strategy in todays’ sports marketing industry is that the sports industry gaining popularity due to globalization and international cooperation. This creates an opportunity for corporations to take advantage of the growing fan base. Similarly, in a bid to improve performance, clubs can also take advantage of the growing demand for companies to expand their marketing activities through sponsorship programmes.
Clubs can also take advantage of the huge income streams of this companies to organize events that will also serve to increase their fan base as well as create awareness about the clubs both locally and internationally. Finally, there exist many ways in which sponsoring companies can positively engage in to support sports such as supporting sporting commissions, sponsoring clubs, sponsoring independent athletes, building sporting facilities, sponsoring events and engaging in marketing to create brand loyalty to clubs. These strategies not only help improve the profitability of this companies but also create a general positive attitude towards the sport encouraging more athletes and fans participate in the sport.