Leveraging Sports Brands through Sponsorship-Linked Marketing

MKT 3865Dr. Don Roy

Dimensions of Sports Marketing

1. Marketing of Sports- Marketing activities of leagues, teams, events, athletes, or products.

2. Marketing through Sports- Using sports as a vehicle to communicate with customers

Sponsorship is the vehicle for marketing through sports

What is Sponsorship?

• “The relationship between a sponsor and a property, in which the sponsor pays a cash or in-kind fee in return for access to the exploitable commercial potential associated with the property.”- International Events Group

In-Kind Sponsorships

• In-kind sponsorships are non-cash “payments” made by a sponsor to a sponsee. Examples:

• An airline providing transportation services• A computer company providing hardware and

personnel support at an event (e.g., Olympics)• An athletic footwear company providing shoes

to a team

Exploitable Commercial Potential?

Sponsorship Is…

1. A sponsorship is a product.

• Parties should enter into a sponsorship agreement only if the principles of exchange are met.

2. A sponsorship is also a relationship.

• Relationship must be nurtured and strengthened or it will end in “divorce.”

Sponsorship Categories

Arts; 5%

Associations/Membership Organizations, 3% Causes; 9%

Entertainment Tours/Attractions;

10%

Fairs/Festivals/Annual Events, 5%

Sports; 68%

Source: Adapted from “Sponsorship Spending,” (n.d.), accessed October 16, 2010 at http://www.sponsorship.com/Resources/Sponsorship-Spending.aspx. “IEG Lexicon and Glossary,’ (n.d.), accessed October 16, 2010 at http://www.sponsorship.com/Resources/IEG-Lexicon-and-Glossary.aspx

What is Sponsored?

SportsSponsorship

Leagues

Teams

Events

Venues

Individuals

… And Behinds

• Pro volleyballers Shauna Mullin and Zara Dampney rented space on their bikinis to Betfair.

…And Jerseys?

• A practice that is common throughout the world has not been adopted by U.S. pro sport leagues.

• Why would NFL, NBA, MLB, and NHL resist?

How Sponsorship Adds Value

1. Targeted reach2. Image transfer3. Exclusivity4. Marketing opportunities5. Protection of investment

What is Targeted Reach?

REACH TARGETED REACH

Delivering Targeted Reach

• How do the following sports properties deliver targeted reach?

Exclusivity

• Exclusivity = Clutter Buster

• Broad Exclusivity – Adds value for sponsors, adds to $ potential of rights fees

• Narrow Exclusivity – More opportunities for association; may diminish value

Ambush Marketing

• “A planned effort by a company that is not an official sponsor to create the impression that it is associated with the property in some way.”

• Ambush marketing examples

Ambush Marketing: Another Take

“Imagine you throw a party and invite heaps of brilliant, interesting people. Imagine your

roommate fails to help with the planning or the cost. Imagine the night of the party, your

deadbeat roomie shows up and claims co-sponsorship. Imagine watching in awe as the freeloader takes credit for your expense and effort. Now imagine that party just cost you

$20M.”- Abram Sauer

Ambush Marketing: “Just Do It”

• 1996 Atlanta Olympic GamesNike handed out paper flags bearing Nike’s logo. TV cameras captured crowds waving the Nike flags to the despair of the official sponsors, especially Reebok.

Ambush Marketing: “Just Do It”

• 1998 FIFA World Cup- Nike sponsored a fan experience area off-site, put on soccer clinics, and advertised extensively.

- Nike achieved nearly the same sponsor recognition rate as the official sponsor (Adidas) with several million dollars less investment.