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  1. Event and Cause CHAPTER 19 Sponsorships © 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama Eighth Edition
  2. Chapter Objectives After reading this chapter you should be able to: 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. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–2
  3. Chapter Objectives (cont’d) After reading this chapter you should be able to: 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. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–3
  4. Sponsorship Marketing • Sponsorship  Is an exchange between a sponsor [such as a brand] Is and a sponsee [such as a sporting event] whereby the latter receives a fee and the former obtains the right to associate itself with the activity sponsored right  Is the marketing of the association by the sponsor  Both activities are necessary if the sponsorship fee is Both to be a meaningful investment to © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–4
  5. Why the Growth in Sponsorships • Sponsorships  Help firms to avoid the clutter in advertising media  Help firms respond to consumers’ changing media Help habits habits  Help firms gain the approval of various constituencies  Can enhance brand equity by increasing consumer Can awareness and by enhancing the brand’s image awareness  Enable marketers to target their marcom efforts to Enable specific geographic regions and lifestyle groups specific © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–5
  6. Event Sponsorship • Event Sponsorship  Is a form of brand promotion that ties a brand to a Is meaningful athletic, entertainment, cultural, social, or other type of high-interest public activity other • Factors in Selecting Sponsorship Events  Image matchup  Target audience fit  Sponsor misidentification  Clutter  Complement other marcom efforts © 2 South-Western, a part of 010 Economic viability Cengage Learning. All rights reserved. 19–6
  7. Event Sponsorship (cont’d) • Creating Customized Events  Choosing to develop events rather than sponsoring Choosing existing events existing Provides a brand total control over the event  Can be more effective but less costly  • Ambushing Events  Occurs when companies that are not official Occurs sponsors undertake marketing efforts to convey the impression that they are impression © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–7
  8. Event Sponsorship (cont’d) • Measuring Success  The brand marketer must specify objective(s) that the The sponsorship is intended to accomplish. sponsorship  In measuring the results, there has to be a baseline In against which to compare some outcome measure. against This baseline is typically a premeasure of brand awareness, This  brand associations, or attitudes prior to sponsoring an event. brand  Measure the same variable (awareness, associations, Measure etc.) after the event to determine whether there has been a positive change from the baseline level. been © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–8
  9. Cause Sponsorships • Cause-Related Marketing (CRM)  Entails alliances that companies form with nonprofit Entails organizations to promote their mutual interests. organizations  Based on the idea that a firm will contribute to a Based cause every time the customer undertakes some action that supports the firm and its brands action • Requirements for Successful CRM  Fit—Does the brand naturally related to the cause?  Accountability—Will the CRM yield sufficient returns he © 2010n investment oraachieve non-financial objectives onSouth-Western, part of o Cengage Learning. All rights reserved. 19–9
  10. Cause Sponsorships (cont’d) • Benefits of Cause-Related Marketing (CRM)  Enhances corporate or brand image  Thwarts negative publicity  Generates incremental sales  Increases brand awareness  Broadens customer base  Reachs new market segments  Increases sales at retail level © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–10
  11. Figure 19.1 KitchenAid’s CRM Program © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–11
  12. Figure 19.2 Tyson’s Share Our Strength CRM Program © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–12
  13. Figure 19.3 Nabisco Brands CRM program required a Ritz-brand proof of purchase © 2010 South-Western, a part of Cengage Learning. All rights reserved. 19–13
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