Presenter:

Jainurin Justine

1

What is Sponsorship?

• Definition, Motives & Objectives

Sponsorship & Advertising

Sponsorship & Communication

Case Study

Other Aspects of Sponsorship

Conclusion & Future Research

2

“ The provision of assistance either financial

or in-kind, to an activity by a commercial

organization for the purpose of achieving

commercial objectives ”

(Meenaghan, 1983)

3

4

Charity Donations

Philanthropy Patronage

Commercial Advertising

Commercial

Brand Awareness• Through association with an event which has a

societal profile and thus delivers an audience

Brand Image • By transferring the image values of the sponsored

event to the brand

5

Brand Relationship• By making an emotional connection to the consumer

by supporting the event

Brand Sales• By creating brand awareness

• By enhancing brand image

• By encouraging consumer goodwill

6

The exposure potential which the

activity has in terms of audience

The image associated with that activity

in terms of how it is perceived

7

8

(Source: IEG)

9

(Source: IEG)

Example 1 - Sports

• London 2012 Olympic Games

• Revenue: 4.8 USD billion

• Sources of Revenue:

Broadcast Rights 2.6 USD billion (53.2%)

Sponsorship 1.15 USD billion (23.8%) *

Ticket Sales 988 USD million (20.5%)

Licensing 119 USD million (2.5%)

* Excluding The Olympic Partners (TOP) sponsors

10

(Source: Olympic 2012 Marketing Fact File)

Government Policy on Alcohol and

Tobacco Products

Escalating Costs of Advertising Media

Inefficiencies in Traditional Media

11

The Proven Ability of Sponsorship

New Opportunities due to Increased

Leisure Activity

Greater Media Coverage of Sponsored

Events

12

Broadly similar in terms of the objectives

that can be achieved

Yet important differences as

communications media

13

Advertising: Media and message are

two separate components

Sponsorship: Both media and message

elements combined

The Key Difference: Sponsorship

engages the consumer differently by

bestowing benefit on an activity/event

with which the consumer has an

emotional relationship.

14

Sponsorship as a Media

Provides access to audience• E.g.: Olympics 2012: 3.6 billion viewers

• World Cup 2010: 3.2 billion viewers

15

Sponsorship as a Message

Communications platform

Announce new brand

Associate with image

16

Alternative communication medium compared:

(Meenaghan, 2001)

17

Comparative Factors Sponsorship Advertising

Goodwill Beneficial Selfish

Focus Indirect/Subtle Direct/Forceful

Intent to Persuade Disguised Overt

Consumers’ Defence

Mechanism

Low State of

Alertness

High State of

Alertness

Cognitive (“Learn”)• Awareness, recall or recognition

Affective (“Feel”)• Attitude (gratitude & goodwill) and intention to buy

Behavioral (“Do’)• Triggers positive response

• E.g.: Trial, repeat purchase and loyalty

18

PETRONAS began its internationalisation

drive in the early 1990’s.

Although a Fortune 500 company, the

company was not well known outside of

the oil and gas industry.

In 1995, the company decided to sponsor

the Sauber team in Formula 1 (F1) Grand

Prix with a two-year USD2 million

sponsorship.

19

Sponsorship of the Sauber team was

considered as “the first step in the process

in raising the company’s profile around the

world.” (Saward, 1996).

Relationship with Sauber grew with

creation of Sauber PETRONAS

Engineering AG, a joint venture automotive

engineering company.

20

PETRONAS was also able to test and use

its petroleum products on the F1 cars.

In 1999, PETRONAS became the title

sponsor of the Malaysia F1 Grand Prix

race in Sepang.

Until 2012, PETRONAS has been a team

sponsor for 17 years (now with

MERCEDES) and a race title sponsor for

13 years.

21

PETRONAS sponsorship of the

MERCEDES team and title sponsorship of

the Malaysian F1 Grand Prix race will run

until 2015.

F1 races total global viewers in 2011 was

reported at 515 million.

Exposure to new markets in a third country

based on writer’s own personal experience

from 1998 to 2002.

22

Measurement of Effectiveness is a Key Issue• Possible Measurement Points

Media Exposure (Television/Radio/Press)

Awareness Exposure (Prompted/Unprompted)

Event/Sponsor-Event/Brand

Image (Favourability Index/Standard Battery of Image

Dimensions)

Relationship (Affinity/Closeness/Empathy)

Sales (Predisposition to Buy/Purchase Intention/Behaviur)

• Research required to gauge effectiveness of

sponsorship activities

23

Cause Related Marketing

• Direct relationship between the sales of a company’s

products and the company’s support of a social cause

Ambush Marketing

• The practice whereby another company, often a

competitor, intrudes in the public attention surrounding

the event, thereby deflecting attention to themselves

and away from the sponsors

24

Advertising • Increasing advertising costs

• Wider coverage by sponsorship

Communications• Media clutter/noise in advertising

• Combined message and media in sponsorship

Consumer behaviour• Changing lifestyles – more leisure events

• Consumer goodwill from sponsorship

25

Limited research on sponsorship in Malaysia has been done to date

Researchers can undertake research with sponsors

26