30-01-2013, 03:46 PM
Sports related Sponsorship & Advertising
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Abstract
The Research paper will take a close look at major MNC’s strategies regarding sports marketing and advertising related to sports. The research paper will cover sports broadcasting and advertising, sponsorship, ambush marketing, identification, endorsements, and licensing in European countries along with India.
The effectiveness of sponsorship varies across geographic regions and should be taken into consideration when planning programs in individual countries. The paper will study sports broadcasting and advertising, sponsorship, ambush marketing, identification, endorsements, and licensing in European countries along with India.
Introduction:
The $400 billion sports marketplace includes 15 categories of spectator sports, 32 marquee sports events, 116 major league sports franchises, advertising, sports participation, sporting goods, sports-related travel, golf, tennis, collegiate sports, women's professional sports, and the minor leagues. Sponsorship can be used to increase awareness and esteem, to build the brand identification, to enhance the brand’s positioning and sales, and to circumvent advertising restrictions in some countries. Examples of global sponsorship are the Olympics, the World Cup in Soccer, the Grand Prix, and the Tour de France. An example of regional sponsorship event is the Indian Hockey League (IHL).
There are three objectives to sport marketing: selling sport as entertainment, “motivate people to engage in sport activities,” and use sports to advertise the sale of products related or not related to sports. Sport marketing is a subdivision of marketing which focuses both on the promotion of sports events and teams as well as the promotion of other products and services through sporting events and sports teams.
Objectives
To identify if sports marketing and sponsorship contribute positively to marketing communications performance. To identify if sports marketing impulses memberships, sales, and recognition.
Key Findings
The market is usually segmented in one of two ways, namely according to the type of sport sponsored, or according to the industry sector that the sponsoring company falls into. Football and Formula 1 racing — together — account for more than half of all sports sponsorship spending in a market otherwise fragmented across dozens of sports, each offering sponsorship opportunities for leagues, cups, teams, individuals or even stadium sponsorships.
Conclusion:
What we have tried to demonstrate in this paper is that sponsorship can be an extremely valuable resource with great utility in a firm's quest for a sustainable competitive advantage. For this to be achieved, however, the firm must approach any sponsorship agreement as a potentially valuable resource worth spending time and effort on developing. We have analysed the important role of soccer in European sports industry. In Europe, particularly, soccer has been identified as the most attractive sport on TV; it generates by far the highest earnings through the distribution of TV rights. The ability of clubs to leverage such revenue streams therefore also depends on the visibility of games. Thus, to maximise revenues from all major sources of income, soccer clubs must adequately satisfy the demand of fans to access games. We analysed the effects of advertising type and antecedents on attitude towards advertising in sport. Research indicates that individual responses to advertising vary according to the type of advertising. Thus a sponsorship which is used in a variety of different ways across the organisation will prove much more valuable than one that is used simply to forward an advertising message.