© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Event and Cause Sponsorships CHAPTER 19 1. Understand event sponsorships and how to select appropriate events. 2. Appreciate the reasons underlying the growth of event sponsorships 3. Know what factors a company should consider when selecting an event to sponsor. 4. Understand how and why companies ambush events. 5. Appreciate the importance of measuring sponsorship performance. Chapter Objecves After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–2 6. Recognize the nature and role of cause-related marketing (CRM). 7. Appreciate the benefits of CRM programs. 8. Understand that accountability is a key consideration for cause-oriented as well as event-oriented sponsorships. Chapter Objecves (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–4 Sponsorship Marketing Sponsorship Marketing • Sponsorship Sponsorship Is an exchange between a sponsor [such as a brand] Is an exchange between a sponsor [such as a brand] and a sponsee [such as a sporting event] whereby and a sponsee [such as a sporting event] whereby the latter receives a fee and the former obtains the the latter receives a fee and the former obtains the right to associate itself with the activity sponsored right to associate itself with the activity sponsored Is the marketing of the association by the sponsor Is the marketing of the association by the sponsor Both activities are necessary if the sponsorship fee is Both activities are necessary if the sponsorship fee is to be a meaningful investment to be a meaningful investment © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–5 Why the Growth in Sponsorships Why the Growth in Sponsorships • Sponsorships Sponsorships Help firms to avoid the clutter in advertising media Help firms to avoid the clutter in advertising media Help firms respond to consumers’ changing media Help firms respond to consumers’ changing media habits habits Help firms gain the approval of various constituencies Help firms gain the approval of various constituencies Can enhance brand equity by increasing consumer Can enhance brand equity by increasing consumer awareness and by enhancing the brand’s image awareness and by enhancing the brand’s image Enable marketers to target their marcom efforts to Enable marketers to target their marcom efforts to specific geographic regions and lifestyle groups specific geographic regions and lifestyle groups © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–6 Event Sponsorship Event Sponsorship • Event Sponsorship Event Sponsorship Is a form of brand promotion that ties a brand to a Is a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social, or meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity other type of high-interest public activity • Factors in Selecting Sponsorship Events Factors in Selecting Sponsorship Events Image matchup Image matchup Target audience fit Target audience fit Sponsor misidentification Sponsor misidentification Clutter Clutter Complement other marcom efforts Complement other marcom efforts Economic viability Economic viability © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–7 Event Sponsorship (cont’d) Event Sponsorship (cont’d) • Creating Customized Events Creating Customized Events Choosing to develop events rather than sponsoring Choosing to develop events rather than sponsoring existing events existing events Provides a brand total control over the event Provides a brand total control over the event Can be more effective but less costly Can be more effective but less costly • Ambushing Events Ambushing Events Occurs when companies that are not official Occurs when companies that are not official sponsors undertake marketing efforts to convey the sponsors undertake marketing efforts to convey the impression that they are impression that they are © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–8 Event Sponsorship (cont’d) Event Sponsorship (cont’d) • Measuring Success Measuring Success The brand marketer must specify objective(s) that the The brand marketer must specify objective(s) that the sponsorship is intended to accomplish. sponsorship is intended to accomplish. In measuring the results, there has to be a baseline In measuring the results, there has to be a baseline against which to compare some outcome measure. against which to compare some outcome measure. This baseline is typically a premeasure of brand awareness, This baseline is typically a premeasure of brand awareness, brand associations, or attitudes prior to sponsoring an event. brand associations, or attitudes prior to sponsoring an event. Measure the same variable (awareness, associations, Measure the same variable (awareness, associations, etc.) after the event to determine whether there has etc.) after the event to determine whether there has been a positive change from the baseline level. been a positive change from the baseline level. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–9 Cause Sponsorships Cause Sponsorships • Cause-Related Marketing (CRM) Cause-Related Marketing (CRM) Entails alliances that companies form with nonprofit Entails alliances that companies form with nonprofit organizations to promote their mutual interests. organizations to promote their mutual interests. Based on the idea that a firm will contribute to a Based on the idea that a firm will contribute to a cause every time the customer undertakes some cause every time the customer undertakes some action that supports the firm and its brands action that supports the firm and its brands • Requirements for Successful CRM Requirements for Successful CRM Fit Fit —Does t —Does t he brand naturally related to the cause? he brand naturally related to the cause? Accountability Accountability —Will t —Will t he CRM yield sufficient returns he CRM yield sufficient returns on investment or achieve non-financial objectives on investment or achieve non-financial objectives © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–10 Cause Sponsorships (cont’d) Cause Sponsorships (cont’d) • Benefits of Cause-Related Marketing (CRM) Benefits of Cause-Related Marketing (CRM) Enhances corporate or brand image Enhances corporate or brand image Thwarts negative publicity Thwarts negative publicity Generates incremental sales Generates incremental sales Increases brand awareness Increases brand awareness Broadens customer base Broadens customer base Reachs new market segments Reachs new market segments Increases sales at retail level Increases sales at retail level [...]...Figure 19. 1 KitchenAid’s CRM Program © 2010 South-Western, a part of 19 11 Figure 19. 2 Tyson’s Share Our Strength CRM Program © 2010 South-Western, a part of 19 12 Figure 19. 3 Nabisco Brands CRM program required a Ritz-brand proof of purchase © 2010 South-Western, a part of 19 13 . baseline level. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19 9 Cause Sponsorships Cause Sponsorships • Cause-Related Marketing (CRM) Cause-Related Marketing (CRM) Entails. this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19 3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19 4 Sponsorship. performance. Chapter Objecves After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19 2 6. Recognize the nature and role of cause-related