Premium Essay

Sport Sponsorship, Return on Investment?

In: Business and Management

Submitted By ralpho
Words 12736
Pages 51
A study into the use of sponsorship as a marketing tool for sports organisations and its importance in the marketing communication mix

Ralph Cartwright


Over the last few decades, the viewing of sport has continued to gather attention and be targeted and integrated by marketers as a part of the communication mix for organisations and brands. Therefore, the aim of this research project is to analyse the effectiveness of sport Sponsorship for Companies as a marketing tool. Supported by examples the researcher will explore an array of factors concerning the issues facing companies that invest large amounts of money into sports events, teams and athletes hoping for a return on investment each year. This project will also inform the reader of the strategies of selection sponsors go through when identifying which team, athlete or event to choose based on their objectives and type of industry. From this information, the project will then identify the positives and negatives of sport sponsorship, as it is obvious that not all organisations will benefit from this type of communication tool. Various examples and case studies concerning sponsorship and organisations will be identified and examined throughout.

Contents Page
Chapter 1 – Introduction of Study 5
1.1 Background 5
1.2 Study Purpose 6
1.3 Study Objective 7
1.4 Study Structure 7
1.5 Rationale of the research 8

Chapter 2 - Literature Review 9
2.1 Literature Review Introduction 9
2.2.1 Sport Marketing 9
2.2.2 Sport Sponsorship and Marketing Communications 10
2.2.3 Media effects in commercial sponsorship 10
2.2.4 Sports Sponsorship of Successful Strategies 11
2.3 The Emergence of Sponsorship and Sports Marketing 11
2.3.1 Sports Sponsorship the future 12
2.4 History of Corporate Sponsorship 13

Similar Documents

Premium Essay

Howa Da

...SMS12.4 paper 5 Does Sponsorship Pay Off pp352-364 KT2 20/7/11 21:23 Page 352 Does sponsorship pay off? An examination of the relationship between investment in sponsorship and business performance Keywords sponsorship spend investment business performance indicator Compound Annual Growth Rate Abstract CASE STUDY Jonathan A. Jensen Adjunct Professor Columbia College Chicago, 618 S. Michigan Avenue Suite 700, Chicago, IL 60605, USA Tel: + 312 933 2940 Email: Anne Hsu Account Director Relay Worldwide, 375 Hudson Street, 13th Floor, New York, NY 10014 Tel: + 212 471 5495 Email: Peer reviewed Do corporations who invest in sponsorship perform better? Examining five years of sponsorship spending data and business performance indicators of more than 50 US-based corporations, this case study analyses the relationship between a company’s investment in sponsorship and its business performance. The results indicate that as a group corporations that consistently invested in sponsorship outperformed market averages and those who spent at an above average level outperformed those who spent at a below average level. Executive summary In 2009, North American-based companies spent a total of US$16.51 billion on sponsorship, 68% of which (US$11.28 billion) was spent with sports properties such as the US Olympic Committee, the National Football League and hundreds of local teams and athletes......

Words: 7551 - Pages: 31

Free Essay


...Sport MarHeting Quarteriy, 2006, 15, 184-189, © 2006 West Virginia University Nike's Corporate Interest Lives Strong: A Case of Cause-Related Marketing and Leveraging Colleen McGlone and Nathan Martin ( involved in CRM, as well as addresses ethical dilemmas that may arise when these campaigns are being considered by both corporations and non-profit organizations. Nike's Corporate Interest Lives Strong: A Case of Cause-Related Marketing and Leveraging Sport Sponsorship Corporate sponsorship of athletes, facilities, and events is not a new phenomenon in the sport marketing wodd. Sponsorship appears td be everywhere, from sponsored stadiums and fields to apparel and clothing. This surge in sponsorship has not only increased the expense of sponsorship, but it has also created an environment where cutting through advertising clutter has become more difficult. With changing consumer habits and the need to target specific lifestyle segments, corporations are looking to use s]5ort sponsorship more frequently as a means to meet a variety of objectives (Belch & Belch, 1995; Shimp, 1997). Specifically, sport sponsorship is "a business relationship between a provider of funds, resources, or services and a sport event or organization, which offers in return specific rights that may be used for commercial advantage" (Howard & Crompton, 2004, p. 434). Of all the commercial advantages a corporation may seek to exploit through sport sponsorship (e.g. image building, brand building,...

Words: 3825 - Pages: 16

Free Essay

Now Lets Hear from Our Sponsors

...Now Let’s Hear From Our Sponsors Look around in a stadium or arena of your favorite sports team. You will see advertisements or sponsors everywhere you go. Majority of new stadiums and fields opening up across the country has names of companies in their name. From professional sports through even high school, that’s how sports make their money. The advertisement in the media relating the teams to their product also shows up to the public eye. With the amount of income coming from companies willing to put their name on the team’s jerseys, does it affect how the players perform on the field? Everywhere in a stadium there are advertisements. In NASCAR each driver has a huge logo on their hood of the car also many stickers on the side. Are sponsorships making sports a business to have an enjoyable time or just to make money? I believe that sponsorships gives sports a good reputation because it bring business to cities across the country and sports today do more with their sponsorships such as charities and fundraisers for the less fortunate. The sports industry today has an annual income of over $23 billion in the United States (Professional Sports Average Salary). The growth of sports gives the economy better standing because of the increasing revenue. With sponsored stadiums and teams across the country, businesses invest their money to advertise themselves from sports teams. MetLife was the first sponsor to claim a corner of the building of the New York......

Words: 1414 - Pages: 6

Premium Essay


...Introduction Since it was established in Germany in 1949, by Adolf Dassler, Adidas has been synonymous with the sporting industry. Today, Adidas is a global public company and is one of the largest sports brands in the world. It is a household brand name with its three stripes logo recognised in markets across the world. The company’s product portfolio is vast, ranging from state-of-the-art sports footwear and clothing to accessories such as bags, watches, eyewear and other sports-related goods and equipment. Employing over 46,000 people worldwide, the Adidas Group consists of around 170 subsidiaries including Reebok, TaylorMade, Adidas Golf, Rockport and CCM-Hockey. The Group's headquarters are in Herzogenaurach, Germany. In the second quarter of 2013 the Group’s revenue was €3.383 billion. Adidas and the Olympic Games The Adidas brand is built on a passion for sports excellence and innovative design to help athletes perform to the best of their ability. It is therefore no surprise that Adidas has supported many iconic athletes to achieve great things at the Olympic Games. In the UK, Adidas has partnered and supplied Team GB since 1984. The company’s heritage with the Olympic Games dates back to the Games in Amsterdam in 1928 when Adidas’ running shoes were debuted. Footwear and clothing by Adidas has been seen on athletes at every Olympic Games since. In fact, all British medal-winning athletes at the last 8 Olympic Games wore Adidas products. There are countless......

Words: 1815 - Pages: 8

Free Essay

Onside Outlook

...S P O N S O R S H I P BACK to the sponsorship < future 15 15 5 2 M 20 152-M-20 1 2015 Onside OutlOOk Back To THE FUTURE oF DoUBLE-DigiT iRisH sponsoRsHip gRowTH the irish sponsorship market is set to return back to a future of double digit growth reminiscent of the momentum last evidenced in the mid-noughties. onside estimates an uplift in investment in the area of 12% in 2015 in ireland, reaching a new high of €152 million. 12% 10 8 6 4 2 0 Onside estimates an upli in investment in the area of 12% in 2015 in Ireland. €152 Reaching a new high of €152 million. M Looking Back 2014 delivered significantly better than expected results for the irish sponsorship industry, with 47% of sponsors increasing their spend last year, and 61% of rights holders in the market reporting an increase in their sponsorship revenues (7% more than had planned). onside estimates sponsorship spend rose by 9% to €136 million last year, with the annual onside sponsorship industry survey 2015 showing that 73% of sponsors in ireland are now spending more than 10% of their overall marketing and communication budget on sponsorship. events such as the FiFA World Cup, breakthrough new initiatives such as the Coke Zero dublin bikes partnership, major deals such as the iRFu’s new kit deal with Canterbury and strong performances from certain rights holders in Rugby, GAA and Broadcast sponsorship, all helped fuel the largest annual growth so far this decade. the Question was......

Words: 1513 - Pages: 7

Premium Essay

Volvo-Integraated Marketing Communication Case Study

...The Use of Integrated Marketing Communications in the Volvo Ocean Race This following defines and describe marketing communications and the concept of integrated marketing communications, then moving on to a discussion of sponsorship Marketing Communications Definition Marketing communications: The communication of information which facilitates or expedites the exchange process. The role of marketing communications is to inform, persuade, remind, reassure the customers and differentiate the organisation in the minds of the customers. There are three requirements for successful marketing communications : RELEVANCE ORIGINALITY IMPACT Communication is about engaging with your target market; Sender encoding => Message (Medium) => Receiver encoding There are several categories of marketing communications, such as Advertising, Personal selling, Public Relations, Sales promotion, Direct marketing, Internet/Interactive, Post-Modern. In a group, these are known as the “Communication Wheel” Increasing focus on communications Traditionally, marketing communications were based on the premise that sale of a product must be immediate or direct for advertising to be considered effective. For example, a good advertisement should: • Attract attention (awareness) • Stimulate interest • Create a desire • Bring about action (AIDA......

Words: 3895 - Pages: 16

Premium Essay

Bend It Like Beckham Case Study

...flourishing sports market. Journal of consumer Marketing, 22(5), 257-264. • Purpose of the study See how word of mouth affects sports market in women • Methodology adopted Media habits of 118 girls used to generate result using theory of consumer socialization • Findings Hypothesis were found true and females are influenced significantly by WOM • Managerial implications This study is limited to USA, other parts give a unexplored market • Conclusion WOM is a good influencer for teen girls in the US region w.r.t. sports market 2. Dix, S., Phau, I., & Pougnet, S. (2010). “Bend it like Beckham”: the influence of sports celebrities on young...

Words: 1626 - Pages: 7

Premium Essay

Patty's Foods

...Distribution: In-Home (retailers where products are bought for home consumption) * Out-of-Home (foodservice outlets where products are bought ready for consumption). Raw Materials -> Manufacturers -> Distributors -> Retailers -> Customers (See 2.9) * Both categories increased in revenue * In-Home Sales * Out-of-Home Sales * New products, across all channels increased Sales – owners assisted to rapid entry into the market * Deserts business growing, Nanna’s & Creative gourmets and maintaining market leadership. * Change in internal sales management – investment into sales resources. * Relocation of fruit packing operation from NSW to Bairnsdale (Vic). This reduced cost base of product and enable the product to remain very competitive PROFITABILITY * Manufacturing efficiencies are the key driver for profitability * Increased economies of scale through investment. * Strong relationship with major supermarkets INTERNAL * Monetary incentives to staff * Maintain and build up high performance culture STRATEGIC FRAMEWORK * Build the base * Develop & grow * Expand & extend How would you define the industry to be analysed? Under the frozen food industry it would be considered broad for it is not limited to just one style of food type the provide:- 1 Savoury...

Words: 1904 - Pages: 8

Premium Essay

Watch and Read

...considerations of celebrity advertising, and potential risks of celebrity advertising. Next, we develop several propositions and discuss the conclusions and managerial implications of the research. Field of research: Celebrity advertising, Celebrity endorsers, Sponsorship, Celebrity spokespeople 1. Introduction A celebrity endorser is “an individual who is known to the public (actor, sports figure, entertainer, etc) for his or her achievements in areas other than that of the product class endorsed” (Friedman & Friedman 1979). Sponsorship is defined as “providing support for and associating the organization‟s name with events, programs, or even people such as athletes or teams” (Peter & Donnelly 2006). Corporations have chosen both sponsorship and celebrity endorsement as means to increase exposure and brand awareness, as well as reposition their products. The terms celebrity endorsement and sponsorship will be used interchangeably in this report. It has been estimated that about 10% of the dollars spent on television advertising are used in celebrity endorsement advertisements (Agrawal & Kamakura 1995). Because of its importance, it is imperative for managers to be able to determine what impact a particular sponsorship will have on different aspects of a brand‟s performance such as brand preference, brand loyalty, and, ultimately, sales and profitability (Aaker 1991; Keller 2008). In this paper I will review selected aspects of research on celebrity advertising,......

Words: 6450 - Pages: 26

Premium Essay

Social Media

...archiving in any information storage or retrieval system) requires written permission. To request permission, use our Web site (, call or e-mail: Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 e-mail: To request a free copy of our article catalog, please contact: MIT Sloan Management Review 77 Massachusetts Ave., E60-100 Cambridge, MA 02139-4307 Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 Fax: 617-258-9739 e-mail: How Social-Cause Marketing Affects Consumer Perceptions A market research technique called conjoint analysis can help managers predict what kind of affinity marketing program is likely to offer the best return on investment for their brand. Paul N. Bloom, Steve Hoeffler, Kevin Lane Keller and Carlos E. Basurto Meza H ow should companies determine the best way to allocate marketing dollars between conventional promotional programs and affinity marketing programs? The former simply stress the benefits of buying a specific brand, while the...

Words: 5977 - Pages: 24

Free Essay

Ipl vs World Cup. Marketer's Perspective & IPL? Cricket is religion in India & Cricketers are worshiped by a billion Indians. Despite the overdose of cricket, Indian public have certainly given a thumbs up to the mega event and there is certainly no reason, why this craze should not increase as the tournament progresses. Statistics have proved that ever since the commencement of the world cup, the viewership and advertisement revenues of General entertainment channels (GECs), are under tremendous pressure. As per data from TAM Media research, the Hindi entertainment genre’s market share declined from nearly 30% to 27% between the last week of January & the first week of March when the world cup began. Similarly, market share for sports channels airing world cup matches like ESPN & Star Sports, grew about 4% in the same period. Further Gross Rating points (GRPs), of the top 4 Hindi entertainment channels-Star Plus, Zee Ent., Colors...

Words: 1550 - Pages: 7

Free Essay

Football Marketing Plan

...Environment Ferris State Athletics currently has fifteen different sports teams with seven being male teams and eight female varsity sports teams. The male sports are ice hockey, football, basketball, cross-country, track and field, tennis, and golf. The women’s sports are basketball, cross-country, golf, soccer, softball, tennis, track and field, and volleyball. All the teams except the hockey team are Division II teams playing in the Great Lakes Intercollegiate Athletic Conference (GLIAC). The hockey team currently plays in the Western Collegiate Hockey Association (WCHA) of NCAA Division I. There is a home venue for all Ferris’ sports teams in Big Rapids for example Top Taggart Field, Jim Wink Arena, Ewigleben Ice/Sports Arena, FSU Soccer Field, Katke Golf Course, FSU Racquet Center, and FSU Softball Field. The Ferris State Athletics logo is a bulldog with the school colors Crimson ("Ferris Red") and Gold ("Ferris Gold"). The Athletic Department is led by Athletic Director, Perk Weisenburger a Michigan native and previous Associate Athletics Director for External Operations at University of Nevada. Weisenburger is assisted in his duties by Associate Athletic Director, John Coles. Coles hired in 2008, is also a Michigan native and was previously employed by Big Rapids High School as the Activities and Athletics Director/Assistant Principal. (Staff) The athletic department is located in Ewigleben Sports Complex. The Athletic Department’s goal is to give......

Words: 3950 - Pages: 16

Free Essay

Business of Sport

...Sports have been the most popular form of recreation for people since time immemorial. The money made in the sport business from each league is ranging from 280 million dollars to yearly revenue of nine billion dollars (2012 Statistic Brain Research Institute). Sport leagues are being marketed more now than they were before in many ways like other major companies are. Leagues, organizations, and athletes are globalizing their trade and further increasing popularity in other parts of the world (Froetschel). Sports are becoming a growing business in America’s market because of the revenue it has produced for our economy, the marketing aspect in which it promotes fair play and sportsmanship, and, the globalization of sports is giving organizations and leagues a way to promote themselves in foreign countries. According to the book Principles and Practice of Sport Management the definition of revenue is defined as money that is made or paid to a business or organization (Masteralexis, Barr and Hums). As of 2011 over 414 billion dollars have been spent in sports and the number is increasing rapidly (Masteralexis, Barr and Hums). Alone in college sports revenue has exceeded twelve billion dollars in 2011 alone. Big time athletic programs were spending anywhere from 45 million dollars to 126 million dollars, and generating revenue from numbers as low as 68 million dollars to 150 million dollars, making the profit anywhere from thirteen million dollars to up to twenty-seven million......

Words: 1679 - Pages: 7

Free Essay

Strategic Paper

...SAMPLE S T R ATEGIC BUSINESS PLAN An Internet Sports Entertainment Portal This document was written by: "Business Solutions for eCommerce" The "Digital Coast's" leading ebusiness consulting firm, established on the belief that there is a critical need for objective and creative analyses of the strategic possibilities of eCommerce and Internet technology. eStrategy Partners provides both the strategic expertise of traditional management consulting firms and the technical planning capability and accountability of Internet professional service companies. "eStrategy" -- the identification, design and implementation of business solutions for eCommerce. Copyright & Disclaimer This business plan is presented here to benefit and promote the services of eStrategy Partners, LLC. The information and ideas herein are the confidential, proprietary, sole, and exclusive property of eStrategy Partners, LLC This plan should not be construed as an offer to sell securities in, Inc. 2 Non-Disclosure Agreement You are being furnished with confidential information that has been prepared by eStrategy Partners, LLC (The "Company"), and you may be furnished with additional information by the Company or by its representatives or agents in connection with evaluating a possible transaction with the Company. By your acceptance and as a condition hereof, you agree to treat all information concerning the Company which......

Words: 10425 - Pages: 42

Premium Essay

Unit 1 P1

...The Promotional Mix For this task I have to describe the promotional mix used for two different businesses. The first promotional mix I have chosen is for the Samsung galaxy s4. I will be describing how the promotional mix that is used to promote the product. The second promotional mix I have chosen is for Lynx Apollo Marketing mix The marketing mix is the combination of four major tools of marketing otherwise known as the 4ps • Product • Promotion • Price • Place Promotional mix The traditional 4ps of the marketing mix are appropriate for dealing with tangible products such as a car or a pair of football boots. But for services such as banking and retailing the 4ps cannot be applied. So an extended marketing mix – the 7ps – is used • People • Processes • Physical evidence In order to develop a successful promotional mix for a product, it is important for a business to first, understand the nature of the customers and their needs and wants. The business needs to act to the information about their customers and create marketing activities that deliver something of value to customers. To implement marketing activities the business uses the marketing mix. Advertising The American marketing associations definition of advertising is: ‘advertising is a paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor’. Advertising is the method used by a wide variety of organisations to; • Communication a message......

Words: 1027 - Pages: 5