Sponsorship: a facilitator of commercial communication

Abstract

Sponsorship is no longer perceived by companies as an activity for philanthropic use only. Now, companies are using sponsorship to break through cluttered communications media, reach fragmented audiences and adhere to differing consumer lifestyles and behaviour. Commercial sponsorship has been used by companies for many years therefore it is not a new communications tool, however the recognition of the flexible nature of sponsorship, capable of achieving a combination of communications objectives, is a relatively new idea. Consequently sponsorship has become an integral part of a company's communications programme. The literature in the sponsorship field has been mostly exploratory. This limited focus has prompted the need for more theoretical based studies in the area. Therefore, the purpose of this study is to develop a comprehensive conceptual model for planning and implementing sponsorship programmes. In conducting the study, it was revealed that companies that operate in highly competitive markets are more likely to use sponsorship for commercial communication purposes. Specifically, Fast Moving Consumer Goods, Financial Services and Services companies are more likely to be involved in sponsorship programmes than Industrial or Durable Products companies. Also, the aforementioned three company categories allocate more of their communications budget to sponsorship than the latter categories. In comparison to other studies, Services companies were recognised as showing considerably improved interest in sponsorship as they allocated it more than any other industry category. The study also revealed that due to the large variety of sponsorship areas, types and levels that exist in the market place, most companies are likely to be involved in more than one sponsored activity. This in turn has meant that companies have become aware of the flexible nature of sponsorship as a communications tool. Sport was by a large margin the most popular area of sponsorship involvement with some companies allocating it almost the whole of their budget. Some companies however have acknowledged the benefits of being involved in other sponsorship areas such as 'Arts/Cultural' or 'Community' based events. The area of sponsorship can be influenced by the level of sponsorship commitment. The level of involvement can range from high level commitments such as Titleship, Co-sponsorship or Ownership to lower levels such as partnerships or limited involvement. The difference is notable in terms of financial and personnel resources. Results showed that all companies will sponsor events at the lower involvement levels. Companies that have a structured approach to planning sponsorship programmes will also use higher sponsorship involvement level. Generally, these companies will be involved in a combination of events which make up their overall sponsorship programme. These events will differ in terms of the commitment area (sport/art/community), level (Titleship/Ownership/Co-sponsor/Partnership/Limited), reach (local/regional/global) and length of commitment (Long-term/short-term/One-off). Evidently companies involved in coordinating such sponsorship programmes are aware of the ability for this tool to achieve a combination of communication objectives. Choosing sponsorship events to make up an overall sponsorship programme can be a challenging process. Companies will continuously be faced with numerous sponsorship opportunities, either by being approach by event organisers or by actively seeking their own opportunities. The steps that companies take when developing their sponsorship programmes are crucial to its success. The need exists for a planning model that comprehensively addresses and combines contemporary sponsorship planning procedures. The complex view of the capability of sponsorship is further supported by the development of a planning model devised from the findings of this research. This model will aid companies to effectively manage their sponsorship programmes based on a combination of procedural steps. These steps, initiated by firstly considering overall communications objectives, involves setting and prioritising objectives and selection criteria, undertaking marketing environment and sponsorship opportunity scanning, programme integration and monitoring, and evaluating, improving and revamping these sponsorship commitments. In overview, the traditional view of sponsorship within the marketing communications mix is that it is a subset of Public Relations. However the study indicated that there are two other possible views. The first is that sponsorship is an additional element in the communications mix. The second, which is considered a more progressive view, is that sponsorship is seen as an integrator of a communication programme. In other words, the sponsorship is seen as a theme and the components of the communication mix are used to communicate the theme. It is postulated that companies which use this approach to sponsorship are using the programmes more strategically.