Introduction to Marketing

Communications

sponsorship and in-store

8

introduction to

sponsorship

examples…

TV programmeseducation

community events

…is a commercial activity whereby one party permits another an

opportunity to exploit an association with a target audience in

return for funds, services or resources

sportsgood causes

suggests to the target audience that there is an association between the two, which may create interest and/or value

allows the target audience to perceive the sponsor indirectly through a 3rd party

Provides the sponsor with the opportunity to blend a variety of promotional tools and use resources more efficiently

sponsorship opportunities…

exposure to particular audiences – to convey a simple brand awareness message

growth and development

increased media coverage of events

relaxation of certain government and

industry regulations - Ofcom

technology – ad skipping

recognition of the inefficiencies of traditional media

increasing rate of other media costs

need to developed softer brand associations to reach specialist audiences

primary…

build awareness

develop customer loyalty

improve image/perception

attract new users

objectives of sponsorship

secondary…

support intermediaries

motivate staff

a cognitive association between the brand (based on previous experience and communications) and the event

greater opportunity between event and sponsor will lead to increased impact

A behavioural association generates reward through identification of memories of previous, pleasurable brand experiences

how sponsorship ‘might’ work…

only reinforces existing perceptions (Javalgi, et al., 1994)

sports sponsorship…

has the propensity to attract large audiences, through the

event and the media that attach themselves to these activities

sport provides a simplistic measure of segmentation, to reach large numbers of people who share particular characteristics

visibility opportunities for the sponsor are high in a number of sporting events because of the duration of each event

Specsavers and Scottish referees…now in its fourteenth year

PR worth £700, 000 per year

TV coverage worth £250,000 per year

costs approximately £100,000 per three year deal

sports sponsorship…

increased awareness and recognition… 50% increase in sales

MEC, 2012, thedrum, 2014

sports sponsorship…

programme sponsorship…

it allows clients to avoid clutter associated with sports advertising

it creates a space, or mini-world, in which the sponsor can create

awareness and provide brand identity cues away from other brands

it represents a cost-effective medium

when compared to spot advertising

the use of idents around a programme offers opportunities for the target audience to make associations between the sponsor and the programme

programme sponsorship… X Factor and Talk Talk

Almost one-third of UK adults watched it in its prime

Cost of sponsorship was approx £20 million

ROI is hard to calculate

…but revenues in the first quarter of

2010 jumped by 21.7% to £1.69billion

…that’s about £350millionBrandrepublic, 2013

good for image building as a business is seen as giving something back…

enhances corporate status

Professional services companies – significant use

can be used for corporate hospitality

arts sponsorship

arts sponsorship…

Hyundai and the Tate Modern Turbine Hall

…a £5million plus investment

An 11 year long sponsorship deal starting in 2015

7million visitors per year, all have to go through the Turbine Hall and 20millino unique web visitors

Guardian, 2014, Tate, 2014

other forms of sponsorship…

ambush marketing…

ambush marketing…

in-store promotions…

primary objective is to direct attention and persuade

easy to control content of this medium

increasing number of brand choice decisions made in stores

can be developed by both retailers and manufacturers

the role of in-store promotions…

…there’s point of purchase displays

retailers control the point of purchase displays…

…and manufacturers the packaging

two main forms…

…and packaging

point of purchase…

many different variations of POP/POS displays

there is a shift towards more and more

digitally–enabled comms here

other senses can also be stimulated, not just

sight, but smell, taste, touch and hearing…

the supermarket bakery…

window and door signage

dump bin

overhead

cash register/counter

digital signage

counter/shelf unit

floor stand/standee

shelf talker/wobbler

FSDU

illuminated sign

Harvey Nichols

great for attracting attention… they differentiate

great for providing information

can be very persuasive if in the right place

absolute and relative costs are very low

strengths…

messages directed at customers who are already committed

those who are ‘passive’ in retail environments don’t read

they can clutter up a store and detract from the experience

the more stores you have the harder it is to be consistent

weaknesses

packaging

we’ve already covered…

remember the “silent sales person”?

differentiates

Pilditch, 1961

informs

persuades

retailer as media centre

each store can manage the media opportunities and

messages communicated

a sustained, co-ordinated set of comms activities

Tesco can reach 27% of all UK shoppers in a week via in store media

ASDA

apple

niketown

But if they won’t come in store, let’s take the store to them… Tesco in the subways, South Korea