The Sponsoring in the world of sport 1998

Exemple de page de The Sponsoring in the world of sport

Maxence Buatois

Sponsoring in the world of sport

Outline :

• Introduction, sponsoring definition

• Part 1 : advantages of the sponsoring

• Part 2 : different strategies and techniques so as to sponsor

• Part 3 : Figures and examples

• Conclusion and sources

Sponsorship was created during the ancient roman period. In fact Cesar supported gladiator battles in order to get more votes on behalf of people.

Sponsoring in the world of sport is a means of advertising (below the line), such as public relations, sales promotion and other communications. The sport sponsorship is part of companies’ marketing strategy. It’s a commercial agreement between a company and a sport, an event, a federation, a sport team, a stadium or a sport star. It usually involves the right to associate the name of the company, or a brand, with the sports organisation. This multilateral deal provides financial or technical support to the activity sponsored. For examples, the sponsor can provide equipment, services or management expertise instead of money. This support is a good way for sports organisations to promote and to develop their sport.

In return for these contributions, the sports organisation will allow the company to use his name or his brand in several commercial activities. Each sport, event, or star conveys some particular values and it is a good way for companies to improve their image. The need of notoriety and image association encouraged the sponsorship development.

Currently, it’s the third marketing media and it represents 5.7% of the total advertising budget for the companies.

In Europe there is an association which regulates the sponsorship. Indeed, the association was formed in October 2003 by the merger of the European Sponsorship Consultants Association (ESCA) and the Institute for Sports Sponsorship (ISS). It is called European Sponsorship Association. The 225 members from 14 different countries work for the development of the sponsorship business, but also for the arts and culture, environment and charities.

The main advantage of the sponsoring is the improvement of the company's image. Each sport owns particular values. Therefore the company enjoy a values transfer because consumers associate them to the company's brand. The brand's image is a set of the consumer's perceptions about the brand. The brand's image comes from three different sources :

• The use of the product and the after sales service

• The available advertising (press, tv, radio...)

• The association between the brand and other entities ( particular events)

The brand's image is very important for a company. It allows her to be different from her competitors. This benefit interest brands which already have important budget rather than little companies.

Sponsoring also allows companies to increase their visibility. Events enjoy large media-related coverage in classic media and in electronic media too. For examples, we can easily see advertising hoardings around the football stadium. This technique is less expensive than buying a broadcast advertisement. Further more, much people can see your ad. Indeed you enjoy the same television audience and you also enjoy the attendance in the stadium.