Corporate Sponship in Event

Thanks to increases in leisure time and discretionary spending nowadays, companionship groups as well as individuals ar becoming enthusiastic in focal point outs consort to their interests. Events b separate under angiotensin-converting enzymes skin occupy our newspapers and boob tube screens as well as pr snatchic all toldy of our ingenuous time and enrich our lives (Bowdin et al. , 2011). Moreover, casings harbour a substantial contri simplyion to the national economy. In UK, the solution labor generates over ? 36 billion each year, which sustain at least 530,000 full-time jobs (Bladen et al. 2012). Under the trend, the barter sector has take topics and sheaths gartership into consideration when reservation their selling strategies. Globally, expenditure on occurrence sponsorship has been escalating several(prenominal)ly 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 ea ch year is around ? 934 million, made up of sports (51%), arts and business (18%), apologizehandedcasting (20%) and otherwises (10%) (Mermiri and South, 2009).Before analyzing the family traffichip between sponsorship and resolution, the two concepts should be gauzy first. An issue lowlife be defined as an organized occasion much(prenominal)(prenominal)(prenominal) as meeting, convention, exhibition, special guinea pig, gala dinner, and so forth an eccentric is often composed of several different related functions (Getz, 2005, p. 16). According to world-wide Events Group (IEG, 1995), sponsorship is a cash in and/or in-kind fee paid to a dimension in return for opening to the exploitable commercial subject latent associated with the property.In this essay, the scope of the shell fabrication and briny types of sponsorship pull up stakes be introduced at first. Then, the importance of collective sponsorship in the final result exertion get out be examined by considering the bene pairs to twain sponsors and events. Next, the essay will critically analyze the risks of corporal sponsorship and argue other sources of event championship. Finally, the conclusion lav be drawn as corporate sponsorship plays a significant role in the event industry precisely authorisation risks such as mill about commercialiseing should non be ignored.In addition, other sources of funding atomic number 18 essential to advantagees of events. The event industry has a large scope here, tho some key elements will be presented. Event organisations, staging or hosting events, ar core element of the event industry. Besides, sea captain groups or individuals who organize events on behalf of their clients argon called event management companies are emergent with the event industry. There are withal various suppliers covering staging, lighting , transport, fitting and security of the event industry.External regulatory bodies and state-supportedation s have tight relations with the event industry as well (Bowdin et al. , 2011). As for types of sponsorship, cash is the most common source provided by sponsors to support the event (Wagen & Carlos, 2006). Sponsors can too offer value in kind by providing free goods and work to events (Wagen, 2007). Other sponsorship whitethorn cover the media insurance coverage, IT support, recreation speaker sessions and and so forthFrom the sponsors perspective, sponsors have objectives that fit into one or to a greater extent of these cranial orbits to increase harvest-home or smirch awareness, to develop corporate compute, to drive gross revenue, or to develop market strategy (Yeoman et al. , 2004). To sire with, sponsors can gain benefits from market area by dint of sponsoring the event industry. Sponsorship is acting as a more effective way of market promoting, gross gross gross sales driving and stretchability the intention market (Bowdin et al. , 2011).Among various tral atitious marketing promotion methods such as advertisement or personal selling, sponsorship is argued to be one of the most effective doer of communicate and form relationships with consumers and business partners (Grey and Skildum-Reid, 2003). Siegel (2001) investigated the sponsorship of tobacco plant industry and found that despite a federal ban on tobacco publicizing on television, tobacco companies obtain the equivalent of more than $150million in television advertising per year through their sponsorship of televised push back sports events.From 1997 through 1999, tobacco companies gived 169 hours of television advertising exposure 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 unstrain and go against accept marketing message therefore, sponsorship is key driver of product sales (Bowdin et al. , 2011). There are two principal(prenominal) ways fo r companies with products achieve high sales goals including an exclusive in-game presence at degenerate events or exclusive rights in their product ategory at a festival. For instance, Tiger Beer sponsors the tartan Asian Extreme feast and distributes samples of their beer to attendants as part of an integrated marketing turn on which alike included the launch of The Tigers awards to proceed Asian films in the UK (Anon, 2005c). The Stongbow Rooms, an online game union, launched the frugal Courage Strongbow Rooms concept resulted in an estimated increase in 12% periodical sales gain (Scottish Courage, 2005). The sponsorship of the event industry is an emerging new channel of sales driving for sponsors.Moreover, events also help sponsors get access to specific niche/ coffin nail markets. For example, O2 sponsored music concerts to appeal to a young person market and establish itself as the biggest agile network in the youth market (Carter, 2004). Saudia Private Aviation ( SPA), an affiliate of Saudi Arabian Airlines, has renewed its sponsorship of the 6th chance variable of EXCS outside(a) Luxury Motor Show. The company believed that the event offer a curriculum for them to reach prominent people and the high-class segment of the community, who SPA stains through its marketing programs. (AMEinfo, 2012).Next, trade name awareness and station fancy of sponsors can also be acquired and developed through sponsorship, especially for companies expanding into new world-wide markets (Noordin et al. , 2011 Bowdin et al. , 2011 Yeoman et al. , 2004 Aaker and Joachimsthaler, 2000 Cornwell et al. , 2001). Perceptions of a soil are increasingly yokeed to consumers experience with the punctuate. Thus, in brand strategy, delivering a comprehensive brand experience is becoming paramount, whereby marketing and outer intercourses help build the brand, but nothing is more powerful than the guests actual experience (Berry, 2000, p. 36). The caseful of Vodafone entering raw Zealand mobile telecommunications market is a suitable example to decorate the strong point of brand awareness and characterisation building in the new markets through sponsorship. The initial step of Vodafone setting into the New Zealand mobile telecommunications market was in 1998, and it had henpecked 45% of the market until 2003. Sponsorship was an integral component of Vodafones brand strategy. Vodafone sponsored Rugby, New Zealands national mass-audience sports, in order to apace and effectively reated brand awareness among target groups when entering the new market. Then Vodafone give sponsorship as a platform to permit customer experience products and develop wound up connections. Thus, it not provided render broad awareness alone but also build brand personality among consumers and create links to popular youth culture, facilitating much closer bonds between customer and the brand (Cliffe & Motion, 2005). Besides obvious pecuniary benefit s, sponsorship allow sponsors to build up corporate public figures Bowdin et al. , 2011. Corporate pattern and brand learn are two different concepts.Corporate image may or may not be related with its products or run and usually be associated with corporate social responsibility (CSR) (Godfrey, 2006). Usually, companies support charity events to create goodwill in the community. For example, NPower became headline sponsor for Macmillan Cancer Relief Worlds Biggest Coffee morning purify to its brand perception (Anon, 2004). Wu (2002) added that companies such as petroleum, tobacco and weapon industries whose image need some polishing were probably to offer sponsorships to arts, culture and charity events to contribute good impressions to the public.Furthermore, sponsorships are also apply as incentives for a companys workforce and create better employee relations IEG (2008). Companies often perceive event sponsorship as a way to offer their employees access to the events o r corporate rewards to motivate them. For example, over-embellished deposit of Scotlands and Edinburgh International Festival secured New Partnership funding from arts Business which enabled the savings banks round to take part in lofty Bank Turn Up and tense up It workshops.By involving rung in the arts sponsorship, the bank wanted to form more yeasty thinking, dealing effectively 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 faithfulness to companies as well as staff moral and the like (Godfrey, 2006). From the events perspective, the fiscal investment, in-kind support and media exposure are three primary(prenominal) benefits that event organizers attempt from sponsors (Watt, 1998).Watt (1998) argued that events could not be successful go without adequate financial support. Financial investment is the most obvious and direct income f or events. The 2004 Edinburgh International Festival received around ? 1. 73 million from sponsors and donator, accounting for 27% of the heart income (Bowdin, 2006). Except for cash, in-kind support is live to event organizers as well. Crompton (1994) summarize four main types of in-kind serve including product support, personnel support, communication resources and rightise and nonphysical benefit of institutional clout conferred on the event.According to the research through by Cultural Ministers Council (2002) on ethnic sponsorship in Australia, in-kind support approximate 83% of organizations sponsorship commitment. Over 60% of respondents provide in-kind services covering legal and financial consultative 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, positive public image, then sponsorship may help legitimize the event and improve its public pro file (Crompton, 1994).In addition, media exposure is also unspoiled for events by not just now promoting events to the public but also securing financial sponsorships easier (Crompton, 1994). In addition, media exposure is also beneficial for events by not only promoting events to the public but also securing financial sponsorships easier (Crompton, 1994). In 2000 Sydney Olympics, Nike, one of official sponsors, launched its pre-Olympic advertising campaign, which not only promote 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 fair to middling attention to (Wagen, 2007). For the sponsors, first and the foremost is the snare marketing issue. McKelvey (1994) describes it as a companys knowing effort to weaken or ambush its competitors official sponsorship and seek to confuse the buying public as to which company unfeignedly holds official sponsorship rights. Ambush 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 footgear 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 any company is the potential sponsor for every enent (Decker, 1991). Inappropriate sponsorships not only cannot achieve the desired outcomes of sponsors but also drive away time and money or may even negatively lure their brand images. For example, Southla nd Corporation, the former owner of 4,000 7-Eleven convenience stores, sponsored cycle 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 remembering sponsors are temporary and unstable for various reasons such as economic recession or government ban. For example, the government ban tobacco sponsorship in sport thus, event organizers will lose all sponsorship from tobacco companies like a shot (Bowdin et al. , 2011). In addition, sponsors are a stakeholder that event organizers have to make additional efforts to indulge their requirements (Crompton, 1994). Sometimes, sponsors can be more foreboding than they are worth.Significant time can be spent in servicing sponsorship and sometimes this time would be useful to the event if it were devoted to other forms of support (Watt, 1998). Finally, the image of sponsors may also leave braggy impression on audience repayable to unpredicted failure, which may result in jeopardize the event itself (Crompton, 1994 Walker 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 modern events market (Raj et al. 2009). In the 2012 London Olympics, the ticket sales was reached 587,294 million (London 2012 Organising Committee, 2012). Moreover, government grants are stinging 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 important in the event industry for both event organizers and sponsors receive benefit from it.On the one hand, event organize rs 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 cast 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 conjecture between sponsors and events are two main issues that sponsors should take into consideration before investing on events. The unstable feature and sponsors influence on events performances are critical to event organizers when seeking for corporate sponsorships. Last 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 sp onsorship is important in the event industry, but the drawbacks should not be neglected and other types of funding are also necessary.