Corporate Sponship in Event

Thanks to augments in leisure time and discretionary spending nowadays, community groups as advantageously as individuals argon becoming enthusiastic in progenys according to their interests. Events turn over occupy our new-fangledspapers and television screens as well as much of our poverty-stricken time and enrich our lives (Bowdin et al. , 2011). Moreover, items consume a substantial contri neverthelession to the national economy. In UK, the takings exertion generates over ? 36 zillion either(prenominal) division, which sustain at least 530,000 full-time jobs (Bladen et al. 2012). Under the trend, the business heavens has take occurrences and outcomes sponsorship into consideration when making their foodstuffing strategies. Globally, expenditure on font sponsorship has been escalating each 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 most ? 934 zillion, made up of sports (51%), liberal arts and business (18%), publicise (20%) and other(a)s (10%) (Mermiri and South, 2009).Before analyzing the dealingship amid sponsorship and issue, the two concepts should be clarified first. An publication brush aside be delimit as an workd occasion such as meeting, convention, exhibition, special consequence, laugher dinner, etc. an event is often com identifyd of several different tie in functions (Getz, 2005, p. 16). According to International Events Group (IEG, 1995), sponsorship is a cash and/or in-kind present paid to a property in return for access to the exploitable commercial potential associated with the property.In this essay, the scope of the event industry and main types of sponsorship provide be introduced at first. Then, the importance of corporate sponsorship in the event industry will be examined by considering the bene run intos to both sponsors and events. Next, the essay will critically analyze the risks of corporate spons orship and discuss other sources of event funding. Finally, the conclusion laughingstock be drawn as corporate sponsorship plays a significant percentage in the event industry and potential risks such as ambush food market place should non be ignored.In addition, other sources of funding argon essential to successes of events. The event industry has a large scope here, just some key components will be presented. Event organisations, staging or hosting events, argon core element of the event industry. Besides, professional groups or individuals who organize events on behalf of their clients ar called event management companies ar emerging with the event industry. There are withal unhomogeneous suppliers covering staging, lighting , transport, fitting and security of the event industry.External regulatory bodies and publications have tight relations with the event industry as well (Bowdin et al. , 2011). As for types of sponsorship, cash is the most harsh source prov ided by sponsors to plump for the event (Wagen & Carlos, 2006). Sponsors can in addition aver value in kind by providing free goods and services to events (Wagen, 2007). condition(a) sponsorship whitethorn cover the media coverage, IT support, entertainment speaker sessions and etc.From the sponsors perspective, sponsors have objectives that fit into one or more of these areas to increase convergence or stake awareness, to develop corporate externalize, to drive sales, or to develop market strategy (Yeoman et al. , 2004). To begin with, sponsors can gain benefits from marketing area through sponsoring the event industry. Sponsorship is acting as a more effective port of market promoting, sales driving and reaching the tar outwit market (Bowdin et al. , 2011).Among various traditional marketing promotion methods such as advertising or personal selling, sponsorship is argued to be one of the most effective means of march on and form relationships with consumers and business partners (Grey and Skildum-Reid, 2003). Siegel (2001) investigated the sponsorship of baccy industry and found that despite a federal ban on tobacco advertising on television, tobacco companies achieve the equivalent of more than $150million in television advertising per year through their sponsorship of televised motor sports events.From 1997 through 1999, tobacco companies achieved 169 hours of television advertising movie 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 get around accept marketing message therefore, sponsorship is key driver of product sales (Bowdin et al. , 2011). There are two main ways for companies with products achieve high sales goals including an max in-game presence at sporting events or exclusive rights in their product ategory at a festival. For instance, Tiger Beer sponsors the Tartan Asian Extreme fiesta and distrib utes samples of their beer to attendants as part of an integrated marketing campaign which also include the launch of The Tigers awards to celebrate Asian films in the UK (Anon, 2005c). The Stongbow Rooms, an online game company, launched the Scottish fortitude Strongbow Rooms concept resulted in an estimated increase in 12% periodic sales gain (Scottish Courage, 2005). The sponsorship of the event industry is an emerging new enchant of sales driving for sponsors.Moreover, events also help sponsors get access to special niche/target markets. For example, O2 sponsored music concerts to appeal to a youth market and establish itself as the biggest mobile network in the youth market (Carter, 2004). Saudia Private Aviation (SPA), an affiliate of Saudi Arabian Airlines, has renewed its sponsorship of the sixth edition of EXCS International Luxury Motor Show. The company believed that the event stand a platform for them to reach prominent people and the high-class constituent of the community, who SPA targets through its marketing programs. (AMEinfo, 2012).Next, brand awareness and brand figure of speech of sponsors can also be composed 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 brand are increasingly tie in to consumers cognise with the brand. Thus, in brand strategy, delivering a comprehensive brand beat is becoming paramount, whereby marketing and external communications help build the brand, but nothing is more powerful than the customers actual experience (Berry, 2000, p. 36). The case of Vodafone submission in the altogether Zealand mobile telecommunications market is a fit example to illustrate the effectiveness of brand awareness and image 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 dominated 45% of the market until 2003. Sponsorship was an intrinsic component of Vodafones brand strategy. Vodafone sponsored Rugby, New Zealands national mass-audience 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 unaccompanied create broad awareness alone but also build brand personality among consumers and create concerns to popular youth market-gardening, facilitating much adpressed bonds between customer and the brand (Cliffe & Motion, 2005). Besides obvious monetary benefits, sponsorship get 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 support charity events to create grace of God in the community. For example, NPower became headline sponsor for Macmillan Cancer Relief Worlds Biggest Coffee sunrise mend to its brand perception (Anon, 2004). Wu (2002) added that companies such as petroleum, tobacco and artillery unit industries whose image need some polishing were likely to volunteer sponsorships to arts, culture and charity events to leave good impressions to the public.Furthermore, sponsorships are also used 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 or corporate rewards to motivate them. For example, august Bank of Scotlands and Edinburgh International fiesta secured New Partnership funding from Arts wrinkle which enabled the banks staff to take part in Royal Bank Turn Up and Try It workshops.By involving s taff in the arts sponsorship, the bank wanted to form more creative 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 loyalty to companies as well as staff moral and the like (Godfrey, 2006). From the events perspective, the monetary investment, in-kind support and media impression are three main benefits that event organizers seek from sponsors (Watt, 1998).Watt (1998) argued that events could not be successful happen without adequate monetary support. Financial investment is the most obvious and direct income for events. The 2004 Edinburgh International Festival received around ? 1. 73 million from sponsors and donator, accounting for 27% of the gibe income (Bowdin, 2006). Except for cash, in-kind support is vital to event organizers as well. Crompton (1994) summarize quadruplet main types of in-kind services including product support, personnel support, communication resources and expertise and impalpable benefit of validational clout conferred on the event.According to the research done by Cultural 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 legal 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, positivistic public image, then sponsorship may help legitimize the event and improve its public profile (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 addition, media exposure is also beneficial for events by not only promoting events to the public but also securing fina ncial sponsorships easier (Crompton, 1994). In 2000 Sydney prodigiouss, 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 enough help to (Wagen, 2007). For the sponsors, first and the foremost is the ambush marketing issue. McKelvey (1994) describes it as a companys knowledgeable effort to weaken or ambush its competitors official sponsorship and seek to befog the buying public as to which company really holds official sponsorship rights. mill about 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 great 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 wrongly 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 cash or may even negatively influence their brand images. For example, Southland Corporation, the former owner of 4,000 7-Eleven convenience 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 r emembering sponsors are fugacious 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 immediately (Bowdin et al. , 2011). In addition, sponsors are a stakeholder that event organizers have to make additional efforts to satisfy their requirements (Crompton, 1994). Sometimes, sponsors can be more trouble than they are worth.Significant time can be spent in servicing 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 impression on audience due to unannounced 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 organ izer 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 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 important 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 supplant 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 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 sponsorship is important in the event industry, but the drawbacks should not be neglected and other types of funding are also necessary.