SPEX209 - Sponsorship and SCA 1

Flashcards about Sponsorship and Sustainable competitive advantage

Learning outcomes

Commercial funding of sport through sponsorship; components of sustainable competitive advantage; challenges of measuring and achieving SCA.

Funding environment for non-profit sport in NZ

Donations & Grants, Govt. Investment, Commercial Sponsorship & Name Association, Public provision, Volunteer provision, Commercial provision

Sponsorship

Part of a mix of marketing options, implies a focused, long-term relationship, and has measurable outcomes for the sponsor.

Name association

Common in non-profit and volunteer sports organisations in NZ, a much looser relationship: short term & limited metrics.

Sport Sponsorship

Measurable organizational strategy to identify sponsees and achieve corporate objectives like increased awareness, enhanced image, increased sales/market share, customer retention, media coverage, and branding.

Sponsees

Recipients of sponsorship.

Sustainable Competitive Advantage components

Perceived customer value (PCV), Extendability, Differentiation (Diff)

Achieving SCA: perceived customer value

Strengthens brand awareness, strengthens brand equity (perceived value of a brand or ‘halo effect’), and brand association.

NASCAR fans and perceived customer value

Loyal to drivers and sponsors; 57% of NASCAR fans are loyal to brand and products affiliated with the sport; 3x more likely to purchase race sponsors’ products.

Achieving SCA: Differentiation

No other company can copy the sponsorship; must be extendable.

Measuring PCV and differentiation

Many companies spend $0 on evaluating sponsorship; use of social media (clicks) makes engagement easier to measure; sponsorship only one part of the marketing mix; brand recognition can be short-term and flawed; ongoing problem of measurement; relationship quality with individual stars can be more powerful than team association.