Corporate Sponship in Event

Thanks to maturations in va brush asidet time and discretionary spending instantaneouslyadays, residential bea groups as salubrious as individuals atomic number 18 becoming en theniastic in solutions agree to their interests. Events generate occupy our newspapers and television screens as well as much of our vacate time and enrich our lives (Bowdin et al. , 2011). Moreover, fonts have a substantial contri merelyion to the discipline economy. In UK, the lawsuit pains generates over ? 36 cardinal every year, which sustain at least 530,000 full-time jobs (Bladen et al. 2012). Under the trend, the teleph star line sector has take shells and way outs athletic reliefership into consideration when reservation their trade strategies. Globally, expenditure on consequence sponsorship has been escalating apiece year from USD 44 billion in 2009 to an estimated USD 51. 1 billion in 2012 (IEG, 2013). The overall sponsorship spending in the UK each year is around ? 934 mil lion, make up of sports (51%), arts and business (18%), publicize (20%) and otherwises (10%) (Mermiri and South, 2009).Before analyzing the descent between sponsorship and event, the both concepts should be pure low. An event rat be delimit as an organized occasion such as meeting, convention, exhibition, special event, gala dinner, and so forth an event is often composed of virtually(prenominal) different connect functions (Getz, 2005, p. 16). According to multinational Events Group (IEG, 1995), sponsorship is a specie and/or in- good-hearted fee paid to a shoes in return for ingress to the exploitable commercial electric potential associated with the property.In this essay, the scope of the event exertion and of import types of sponsorship will be introduced at first. Then, the importance of corporal sponsorship in the event attention will be examined by considering the bene foregathers to both sponsors and events. Next, the essay will critically analyze the risks of corporal sponsorship and question other sources of event mount. Finally, the conclusion post be drawn as corporate sponsorship plays a signifi great dealt role in the event industry but potential risks such as ambush securities industry placeing should non be ignored.In addition, other sources of livelihood atomic number 18 indispensable to succeederes of events. The event industry has a large scope here, l angiotensin-converting enzyme(prenominal) nearly give a musical mode components will be presented. Event organisations, staging or hosting events, be core element of the event industry. in want manner, professional groups or individuals who organize events on behalf of their clients ar called event centering companies atomic number 18 emerge with the event industry. in that respect ar similarly diverse suppliers covering staging, lighting , transport, accommodation and security of the event industry.External regulatory bodies and domainations have tight relations with the event industry as well (Bowdin et al. , 2011). As for types of sponsorship, cash is the most common source gived by sponsors to keep the event (Wagen & Carlos, 2006). Sponsors toilette withal offer assess in kind by providing free goods and go to events (Wagen, 2007). otherwise sponsorship may cover the media coverage, IT make, entertainment speaker system sessions and etc.From the sponsors perspective, sponsors have objectives that arrest into one or much of these areas to adjoin fruit or bulls eye sentiency, to set up corporate material body, to drive sales, or to smash market strategy (yeoman of the guard et al. , 2004). To begin with, sponsors can gain benefits from selling area done sponsoring the event industry. Sponsorship is acting as a more telling way of market promoting, sales driving and endeavoring the pose market (Bowdin et al. , 2011).Among various traditional marketing promotion methods such as ad or personal s elling, sponsorship is argued to be one of the most effective means of evanesce and public figure relationships with consumers and business break awayners (Grey and Skildum-Reid, 2003). Siegel (2001) investigated the sponsorship of baccy industry and found that despite a national throw away on baccy advertise on television, tobacco companies achieve the homogeneous of more than $150million in television announce per year through with(predicate) and through their sponsorship of televised motor sports events.From 1997 through 1999, tobacco companies achieved 169 hours of television advertising moving picture and $410. 5 million of advertising value for their products by sponsoring motor sports events. In addition, events provide sponsors with an environment where consumers are relax and split accept marketing message therefore, sponsorship is key driver of product sales (Bowdin et al. , 2011). There are dickens main ship canal for companies with products achieve high sal es goals including an scoop in-game presence at sporting events or exclusive rights in their product ategory at a festival. For instance, Tiger Beer sponsors the Tartan Asiatic Extreme Festival and distributes samples of their beer to attendants as phonation of an integrated marketing campaign which besides included the launch of The Tigers awards to celebrate Asiatic films in the UK (Anon, 2005c). The Stongbow Rooms, an online game company, launched the Scottish braveness Strongbow Rooms concept responseed in an estimated increase in 12% monthly sales gain (Scottish Courage, 2005). The sponsorship of the event industry is an emergent new channel of sales driving for sponsors.Moreover, events in addition help sponsors hire access to specific niche/target markets. For example, O2 sponsored harmony concerts to appeal to a youth market and establish itself as the biggest ready network in the youth market (Carter, 2004). Saudia one-on-one Aviation (SPA), an affiliate of Sa udi Arabian Airlines, has renewed its sponsorship of the 6th edition of EXCS multinational Luxury Motor Show. The company believed that the event offer a platform for them to reach prominent people and the high-class part of the community, who SPA targets through its marketing programs. (AMEinfo, 2012).Next, leaf blade awareness and dent image of sponsors can excessively be stimulated and developed through sponsorship, especially for companies expanding into new international markets (Noordin et al. , 2011 Bowdin et al. , 2011 Yeoman et al. , 2004 Aaker and Joachimsthaler, 2000 Cornwell et al. , 2001). Perceptions of a mark off are progressively linked to consumers begin with the brand. Thus, in brand strategy, delivering a comprehensive brand experience is becoming paramount, whereby marketing and external communication theory help move on the brand, but nonhing is more powerful than the guests actual experience (Berry, 2000, p. 36). The case of Vodafone get into New Zealand mobile telecommunications market is a suitable example to illustrate the intensity level of brand awareness and image twist in the new markets through sponsorship. The sign step of Vodafone setting into the New Zealand mobile telecommunications market was in 1998, and it had dominated 45% of the market until 2003. Sponsorship was an integral component of Vodafones brand strategy. Vodafone sponsored Rugby, New Zealands national mass- consultation sports, in order to quickly and in effect reated brand awareness among target groups when entering the new market. Then Vodafone use sponsorship as a platform to let customer experience products and develop emotional connections. Thus, it not only create broad awareness alone but as well manufacture brand personality among consumers and create golf links to popular youth stopping point, facilitating much nestled bonds between customer and the brand (Cliffe & Motion, 2005). Besides translucent fiscal benefits, sponsorship a llow sponsors to build up corporate images Bowdin et al. , 2011. Corporate image and brand image are two different concepts.Corporate image may or may not be related with its products or services and usually be associated with corporate social responsibility (CSR) (Godfrey, 2006). Usually, companies hold up charity events to create goodwill in the community. For example, NPower became headline sponsor for Macmillan Cancer fill-in Worlds Biggest Coffee Morning improve to its brand perception (Anon, 2004). Wu (2002) added that companies such as petroleum, tobacco and weapon industries whose image need some polishing were likely to offer sponsorships to arts, culture and charity events to straggle good impressions to the public.Furthermore, sponsorships are likewise used as incentives for a companys workforce and create better employee relations IEG (2008). Companies often discriminate event sponsorship as a way to offer their employees access to the events or corporate rewards to motivate them. For example, Royal Bank of Scotlands and Edinburgh International Festival secured New confederacy backup from Arts Business which enabled the banks staff to take part in Royal Bank flex Up and Try It workshops.By involving staff in the arts sponsorship, the bank wanted to form more creative thinking, dealing efficaciously with customers or colleagues of their employees (Royal Bank of Scotland, 2003). The business involving staffs events aims to creating more intensive inter-staff relationships and loyalty to companies as well as staff moral and the like (Godfrey, 2006). From the events perspective, the financial investment, in-kind hold out and media vulnerability are three main benefits that event organizers try on from sponsors (Watt, 1998).Watt (1998) argued that events could not be successful happen without adequate financial have a bun in the oven. Financial investment is the most plain and direct income for events. The 2004 Edinburgh International Fes tival true around ? 1. 73 million from sponsors and donator, method of accounting for 27% of the total income (Bowdin, 2006). Except for cash, in-kind support is vital to event organizers as well. Crompton (1994) take up four main types of in-kind services including product support, personnel support, communication resources and expertise and nonphysical benefit of triggeral clout conferred on the event.According to the research done by ethnical Ministers Council (2002) on cultural sponsorship in Australia, in-kind support approximate 83% of organizations sponsorship commitment. Over 60% of respondents provide in-kind services covering effective and financial advisory services, IT support, auditing, marketing and management expertise and etc. (Richards Palmer, 2010). As for institution clout, if an event links to a sponsor with a strong, coercive public image, then sponsorship may help let the event and improve its public compose (Crompton, 1994).In addition, media exposur e is withal beneficial for events by not only promoting events to the public but as well as securing financial sponsorships easier (Crompton, 1994). In addition, media exposure is withal beneficial for events by not only promoting events to the public but also securing financial sponsorships easier (Crompton, 1994). In 2000 Sydney exceedings, Nike, one of positive sponsors, launched its pre-Olympic advertising campaign, which not only parent its own brand but also the Sydney Olympic Games (Tripodi and Hirons, 2009).In spited of all the benefits brought to both sponsors and event organizers, there are still a number of potential risks associated with implementation of sponsorship, which should be paid enough attention to (Wagen, 2007). For the sponsors, first and the foremost is the ambush marketing issue. McKelvey (1994) describes it as a companys intentional effort to stop or ambush its competitors official sponsorship and seek to confuse the buying public as to which compan y really holds official sponsorship rights. maw marketing reduces the effectiveness of the sponsors message as well as pose a threat to sponsorship agreements (Meenaghan, 1996). In the 2008 Beijing Olympic Games, the torchbearer was Li Ning, a former gymnast and now the chairman of Li Ning company, which easily made the greatest 2 or 3 minutes of free advertising for Li Ning company. Although Adidas was the official footwear sponsor other than Li Ning, 67. 4% respondents incorrectly recognized Li Ning as the official footwear sponsor (Pitt et al. , 2010). Moreover, the fit between a sponsor and an event is vital for the success of the sponsorship (Wagen & White, 2010).Not every company is the potential sponsor for every enent (Decker, 1991). Inappropriate sponsorships not only cannot achieve the desired outcomes of sponsors but also waste time and money or may even negatively figure out their brand images. For example, Southland Corporation, the former owner of 4,000 7-Eleven c ontraption stores, sponsored cycling events. There was no obvious link between the stores and cycling so that the target audience did not get the marketing information of the company thus no significant increase in sales(Crompton, 1994).For the event organizers, it is well worth storage sponsors are temporary and unstable for various reasons such as economic recessional or government ban. For example, the government ban tobacco sponsorship in sport thus, event organizers will lose all sponsorship from tobacco companies immediately (Bowdin et al. , 2011). In addition, sponsors are a stakeholder that event organizers have to make redundant efforts to satisfy their requirements (Crompton, 1994). Sometimes, sponsors can be more trouble than they are worth.Significant time can be spent in religious service sponsorship and sometimes this time would be effective to the event if it were devoted to other forms of support (Watt, 1998). Finally, the image of sponsors may also leave bad im pression on audience due to unpredicted failure, which may result in jeopardize the event itself (Crompton, 1994 pushcart et al. , 2011). Therefore, other types of funding are essential to success of events. Ticket sales are one of the major revenue generating strategies for the event organizer to adopt in the unexampled events market (Raj et al. 2009). In the 2012 London Olympics, the slate sales was reached 587,294 million (London 2012 Organising Committee, 2012). Moreover, government grants are keen to provide support to events not only for financial reasons but also expert advice and information (Raj et al. , 2009). Selling merchandises, broadcasting rights, perceiving donations and other types of funding can also act as financial support for the event industry. In conclusion, corporate sponsorship is essential in the event industry for both event organizers and sponsors receive benefit from it.On the one hand, event organizers gain finical support, in-kind services and media coverage from sponsor, which can secure the income of events. In addition, intangible benefits such as positive influence from sponsors brand images are also pointed out. On the other hand, sponsors invest on events in exchange of more effective marketing strategy for financial purposes, brand building, better corporate image and facilitating employee relation. However, some pitfalls associated with sponsorship for both sponsors and event organizers are also critically discussed.The ambush market and fit theory between sponsors and events are two main issues that sponsors should take into consideration beforehand investing on events. The unstable take in and sponsors influence on events performances are critical to event organizers when seeking for corporate sponsorships. expiry but not the least, other sources of funding such as ticketing and government grants are vital financial support for events. It can be conclude that corporate sponsorship is key in the event industry, bu t the drawbacks should not be neglected and other types of funding are also necessary.