Fundamentally sponsorship is a support which can run a event. It is a good way of increasing brand awareness, which helps to generate consumer preference and to foster brand loyalty. A company can reinforce awareness among its target market by sponsoring an event
or organization that attracts a similar target market. It’s not only for the charity it should be investment. Before sponsoring an activity, the sponsor must feel sure that the event organization will be successful.With out the sponsor it’s impossible to run a game or tournament. In cricket the 80% sponsor comes from India. As usually Football, Basket ball, Hockey, Tennis. Its all depends on sponsor. And those people usually wants to invest money in sports they also crazy to invest money this type of famous game.
References : http://www.thetimes100.co.uk/case-study--super brand-sponsorship--41-43-3.php
If the company sponsor too much for a tournament how they will get back their investment?
or organization that attracts a similar target market. It’s not only for the charity it should be investment. Before sponsoring an activity, the sponsor must feel sure that the event organization will be successful.With out the sponsor it’s impossible to run a game or tournament. In cricket the 80% sponsor comes from India. As usually Football, Basket ball, Hockey, Tennis. Its all depends on sponsor. And those people usually wants to invest money in sports they also crazy to invest money this type of famous game.References : http://www.thetimes100.co.uk/case-study--super brand-sponsorship--41-43-3.php
If the company sponsor too much for a tournament how they will get back their investment?
Sponsorship can be defined as the support of an event , activity or organization by providing money or other resources that are of value to the event. This is usually in return for advertising space at the event and or as part of the publicity for the event . The idea should be that both parties benefit from the arrangement. The tournament or league is provided with valuable resources in kind , in cash and in many other forms, while sponsors benefit by promoting or advertising their goods and services, building brand association with the event participants and audience or by simply generating good will.In my opinion how do a company get back their investment is by the revenue of tickets sale at the tournament , or the brand image that has implement on the minds of potential consumers , networking , great exposure , and increased likeability factor
ReplyDeleteLets see. Organisations for example like the F1 race that is one of the sports that needs high investments have sponsorships from ciggerate companies where they do not get back their returns on investments in the form of money. When they invest, they get back their returns in the form of advertisments and at the same time they are donating to the particular team to compete in the race.
ReplyDeleteI would say it is a WIN-WIN situation to both parties where the race team gets the sponsorship and the organisation gets publicity.
in my opinion, before every company give sponsorship for tournament or any event they already measure their capability therefore even they give too much sponsorship they know how to get back their investment but sometimes when company give sponsorship it help company to decrease their tax, such as: one telecoms company in Indonesia give sponsorship for golf tournament, that company become single sponsor and when they give sponsorship to that event, that include to their cost so can reduce their money received and reduce their tax. sometimes company have another purpose also when they give sponsorship such as to gets publicity.
ReplyDeleteWell,every tournament and events need sponsorship to support their expenses.The companies or organizations that sponsored will get the returns in different form which it can be publicity,brand advertisement and also a contract of using their products.In fact, the publicity and brand advertisement have make us as a customers feel more confident in buying their products especially Nike,Adidas and Reebok because our favourite player also using the same brand products. Thats how they get back their investment which it will be in sales and cash.However, companies cannot implements sponsorship widely and should be equal with other friendly environment welfares.
ReplyDeleteAs Ee lynn mentioned, it can be considered as the win-win strategy for the both parties. It’s nice to know we people as the match fans are contributing to the company which is sponsoring the match. As we all know for any company there are several costs which must be overtaken by the investors. Many companies like the Zara textile have decided to not spend money for the sponsor ship and publishing the pictures or spending on the modeling stuff. These companies’s objective is to gain the profit by investing on their operations instead of paying for the advertisement. This strategy can be implemented through the all businesses since the business world is intensive. Allocating the certain amount for the sponsor ship is the appropriate strategy which has been practiced since the consumers are contributing to the company’s market shares by purchasing the tickets. Providing satisfactory elements to make the consumer addicted to the product is the other factor which must be considered at the time of sponsor ship to get the better out come out of it. Let’s say for instance giving some free incentives, products or discount vouchers are the factors which may improve the consumer’s contribution on the product.
ReplyDeleteAs being defined by anuar, sponsorship can be defined as the support of an event , activity or organization by providing money or other resources that are of value to the event. Every event need sponsorship to make it keep going on. Companies do sponsorship for investment purpose; to build up their brand. In fact, they also do that to build up a good image in public so that consumers trust them and as a way to decrease the taxes from government.
ReplyDeleteIn professional sport, sponsorship means that big prize money can be paid and events can be organized on a very large scale without the spectators having to pay huge admission prices. In amateur sport, sponsorship often means the difference between an event or team surviving or having to fold. Being sponsored gives a team status. If a company is prepared to give money to a team, then people will tend to think that the team must be a very good. Well known sponsor the higher status of the team. It is good for a sponsor's image to be linked with a popular, healthy pastime like sport.
ReplyDeleteIt is quite risky for a company to sponsor in a particular tournament because not all of them could be able to get back their investment. Nevertheless, if the company has chosen the right event to sponsor, it could help them in marketing their company's product. Besides, some people may also have impression of it. Therefore, people will consume on the particular product. This will affect the sales and let the company make profits. And that's one of the way for the sponsor to get their investment back.
ReplyDeleteProfessional sports seem, on first blush, to be such a waste of time and money- grown men, for example, chasing pieces of leather around a field, or trying to get a round object into a small hole from great distances.
ReplyDeleteBut sports are a great inspiration to humankind. It is humans pitting their skills against each other and nature to achieve! That provides us all with such inspiration to go out and achieve ourselves in ALL aspects of life!
Sports absolutely needs sponsorship. Its becoming more competitive and also commercial in nature that funds are needed to bring out the best of it. Its a profession, and so also need some financial backing. Just what is needed is controlled sponsorship, so that commercial aspirations shouldn't overtake the sporting nature of the game.
ReplyDeleteSponsorship in sports very interest topic,for the question, how they will get back their investment?for this question as we know the sponsorship give the sport star for the free product and actually all the star very famous,so the brand become very famous.after that the company can sale more products.
ReplyDeleteHmm, well it’s true that companies love lending their names to winning teams. Corporate sports sponsorship seems like a win-win proposition. By attaching their names to sports teams, companies reap international publicity at relatively low cost, while their executives and customers get to hang around athletic events and call it "work." But what if a team loses, or worse, finds itself embroiled in scandal? As several companies have discovered recently, there's also a big element of risk. Considering the BMW Oracle (ORCL) team sailboat, eliminated in May from the America's Cup qualifying competition in Valencia, Spain, before the main event even started. German press reports put the cost of the failed Cup bid at nearly $200 million. Though team representatives won't confirm that figure, the result was obviously a disappointment that could prompt BMW to withdraw from future competitions. Even worse, at least from a public relations point of view, is the predicament facing Deutsche Telecom (DT), the German telecommunications giant whose professional cycling team is in the middle of a doping scandal. Several former riders for the team, now named after the company's T-Mobile unit, have admitted to using performance-enhancing drugs in the 1990s. In addition, the team doctors have resigned after admitting they helped supply the blood-booster EPO to those riders.
ReplyDeleteArticle source:- http://www.businessweek.com/globalbiz/content/jun2007/gb20070607_140258_page_2.htm
But as two sides to every coin, it should be kept in mind that Sponsorship is one of the most prolific forms of sport marketing. As given the inherent unpredictability of competitive sports, it's little wonder that some sponsors are looking for lower-risk ways to get their names onto the scoreboard. Dutch brewer Heineken (HINKY), for example, has a policy of sponsoring events, rather than teams or individual athletes. Part of the reason is ethical: Heineken can't be seen trying to link its alcoholic beverages to athletic prowess.
Article source:- http://books.google.com.my/books?id=6J5QBwuVg5EC&pg=PA314&lpg=PA314&dq=sponsorship+in+sport&source=web&ots=G653vYoSXR&sig=mec-RvEngIzATZEaSMPWXeAewsY&hl=en&sa=X&oi=book_result&resnum=4&ct=result#PPA314,M1
Sponsorship nowadays is becoming more and more famous or used in sports than the past. Now we find companies and sponsors competing to become the official sponsor of the particular sport.
ReplyDeleteCompanies wont be competing for this just to show your brands or products to the world but also because they get a lot of rewards behind it as it builds the companies image, loyalty, consumer trust etc.
So when all these benefits are build no matter what or how much they spended on the sponsorship they will get all their money back and more not in short-term but also long-term.
When companies do investment in tournament for any team they can get their investment back and also get the profits from the tournament. No companies of the world do investment on tournament without their profit. Companies also do the advertisement by proving their companies logo on the players dress and television advertisement and advertisement in the ground. In sports not only the tennis only depends on the sponsors but also the other outdoor sports such as Cricket, Football, formula one these all outdoor games are also depends on the sponsorship.
ReplyDeleteBro, I know two ways of how a sponsor can gain income or get the investment back from the sportsman he or she invested…
ReplyDeleteFirst, sponsors look for and find a very talented sportsman, then start to support him or her, later when that sportsman achieves outstanding results and wins competitions or whatsoever, sponsor shares the money or price won with the sportsman, according to the contract made.
Secondly, sponsors find UNKNOWN but TALANTED sportsman and literally “buy” and start supporting him or her, later when sportsman achieves good results; sponsors come in the picture and deal with the public or media which interested in the sportsman, and if there will be potential buyers or new sponsors, they will buy over the sportsman from the current sponsor for a good price…