lmacquiressortfolio

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Entry 6: Reflection

Sponsorship has become one of the most important means of marketing and sport is the most appropriate industry to approach customers (Tugce 2018).

As an avid sports fan, I’ve noticed how many sponsors are featured across a team’s/league’s gear, stadia, equipment, fan gear, social media posts, etc. This subject has helped me understand what the sponsors and sponsee get out of partnership deals whether they’re lucrative or grassroots orientated.

- F1 x Rolex 2020, photo, viewed 1 November 2020, https://www.prestigeonline.com/th/pursuits/motors/rolex-sponsor-formula-one/

Through the Sports Sponsorship course, I have grasped numerous new concepts such as congruence, the four-step sponsorship process, asset inventories, brand equity, and more. However, after 12 classes I now recognise the importance of all those things in the aforementioned list. Naming rights and its benefits was something that I found interesting because they are so prevalent in so many of the sports, I enjoy such as the NFL, MLB, Premier League, and NHL.

The final assessment was one that looked more and more difficult to complete as we worked through each lecture, and I was correct. The proposal was one of the most extensive and substantial assignments I’d ever worked on and I am happy with what I managed to accomplish. Due to St Bedes/Mentone Tigers AFC being such a friendly and co-operative club, they helped my group out with anything we needed.

I decided to get a start on A4 as early as I could drawing inspiration from the naming rights lecture as well as some words the SBMT Club President gave us explaining that wanted a naming rights partner for 2021.

I never felt rushed or stressed with this assignment, despite the workload, but gathering information and forming it in the best way possible was quite time-consuming. I’m looking forward to sharing what I’ve completed with the club in a week.

All in all, I found this subject to be very informative and I’ve taken a lot of it.

Tugce, O 2018, Sport sponsorship contracts, Juridical Tribune Journal, Tribuna Juridica, 8(3), pp.823–834, viewed 1 November 2020, https://doaj.org/article/28bfa34898d241e7af5da2382e172423

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Entry 5: Leveraging & Co-activation

Co-activation is the last and arguably the most important stage of the sponsorship process.

In this stage, the two parties (sporting organisations and sponsor), evaluate the sponsorship deal leading to either the renewal of the deal or the end of the partnership. The sporting organisation must then look to replace the sponsor.

Sponsorship has matured rapidly over recent decades (Donlan & Crowther 2014). This has created a situation in which organisations must adopt wider and more integrated strategies to fully exploit their sponsorship investment. These include tactical strategies and activities which are devised by sponsors to leverage the sponsorship (Optimy 2018).

These strategies and activities can be functions, events, promotional activities, etc. These activations are a way to ‘switch on’ the sponsorship and fulfil the goals of the sponsor and audience (Baylis 2019).

To maximise the marketing of a sponsorship partnership, sponsors must leverage the deal. When it comes to talking about sponsorship events and partnerships, most often think about just putting a brand’s logo on a LED panel and leave it there, however, companies have developed ideas that have proven to make an impact.

The official soft drink of the NFL, Pepsi, sponsors one of the most watched events each year, the Super Bowl half-time show (Optimy 2017). Pepsi looks to leverage sponsorship with activation programs that support its own marketing objectives as well as those of its partners. This can be seen with the sponsorship of the NFL’s Super Bowl.

Pepsi/Super Bowl Halftime Show 2019, image, viewed 3 October 2019, https://www.prnewswire.com/news-releases/superstars-jennifer-lopez-and-shakira-to-perform-during-the-pepsi-super-bowl-liv-halftime-show-sunday-february-2-2020-on-fox-300926577.html

The sponsorship of the Super Bowl half-time show not only helped Pepsi promote its brand but also helped the NFL extend the reach of its show by extending the show itself (Optimy 2017).

Pepsi have also leveraged the deal in other ways such as:

360-degree consumer touchpoints (in-stadium messaging and in-store promotions)

Local market activation (retail promotions and other programs tailored to the local market)

Sustainable activation platforms (Pepsi partners with events that can be activated throughout the year or on a yearly basis to create links with the brand and the public)

Through using an annual event and creating a stronger link with its consumers and the event organisers, Pepsi is not only creating successful sponsorship of an event, it is also making sure that it will be able to leverage this event on a yearly basis (Optimy 2017). 

Baylis, C 2019, The Secret to Successful Sponsorship Activation, viewed 3 October 2020, https://www.eventbrite.com.au/blog/sponsorship-activation-ds00/

Donlan, L, Crowther, P 2014, Leveraging sponsorship to achieve consumer relationship objectives through the creation of 'marketing spaces': An exploratory study, Journal of Marketing Communications, 20(4), pp.291–306, viewed 3 October 2020, http://web.b.ebscohost.com.ezproxy.holmesglen.edu.au/ehost/detail/detail?vid=0&sid=92ff3e6c-1bf7-4864-926a-1e0af4c6a917%40pdc-v-sessmgr01&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=96920259&db=buh

Optimy 2017, 7 Organisations with Incredibly Successful Event Sponsorship Programs, viewed 3 October 2020, https://www.optimy.com/blog/7-organisations-incredibly-successful-event-sponsorship-programs/

Wiki Optimy 2018, Sponsorship activation, viewed 3 October 2020, https://wiki.optimy.com/sponsorship-activation/#:~:text=Definition%20Of%20Sponsorship%20Activation&text=Such%20process%20is%20formed%20by,%E2%80%9Dswitch%20on%E2%80%9D%20your%20sponsorship

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Entry 4: Congruence

Existing research on sponsorship effects shows that the congruence (i.e. fit) between sponsor and sponsored cause is critical for a change in brand image (Woisetschlager & Michaelis 2012).

Companies and sporting organisations are looking to develop partnerships with each other where both parties share the same values and beliefs.

A brand’s equity is the basis for many sponsorship alliances; however, it is becoming more and more important that the partnership is a congruent one (Groza 2015).

In terms of congruency classification, there are two types of associations between entities:

Function (cognitive)

Image (affection)

Function can be defined in two forms – direct and indirect.

Direct functional congruence When a sponsoring company’s product or service can be used directly in a sporting event i.e. sports footwear with a sports team, stadium and construction company.

A real-world example of direct functional congruence is Pirelli sponsoring Formula One. Pirelli’s product – tyres – are directly used by the cars in practice, qualifying and racing.

- Pirelli’s tyres used in F1 races 2019, image, viewed 26 September 2020, http://f1live.festivalhoy.es/pirelli-reveals-gap-between-the-five-different-compounds-of-tyres/

Indirect functional congruence: There is an indirect link between the use of the product when spectating or participating, but the sport does not need the product to take place.

A real-world example of indirect functional congruence is between Victorian Bitter and the National Rugby League. The NRL does not need their sponsor, VB, to conduct the games.

- VB/NRL Hard Earned Effort 2020, graphic, viewed 26 September 2020, https://www.weststigers.com.au/news/2020/07/19/vb-hard-earned-effort-of-the-week-round-10/

Image-based congruence: Occurs when a sporting organisation’s stakeholders (fans, members, etc.) can see a logical and natural fit between a sponsor and sporting organisation.

A real-world example of image-based congruency is the partnership between Ford and Geelong Cats FC. Both logos contain the navy blue and white colour scheme while Ford Motors have been in the city of Geelong as well as a sponsor of the football club since 1925.

Incongruent sponsorship, however, is the unfavourable side of sponsorship and occurs when there is no underlying or apparent link between the sponsor and sponsee besides financial gain or assimilation. Although incongruency isn’t a target of a sponsorship deal, making a judgement on a partnership can be a subjective process.

If the partnership is something one has to think about to connect the dots between sponsor and sponsee, it normally isn’t the best link. The sponsorship arrangement between Cadbury and the Premier League is one that I found to be questionable. Sport is something that encourages activity and exercise while Cadbury products can lead to health complications.

Groza, M 2012, Managing a sponsored brand: The importance of sponsorship portfolio congruence, International Journal of Advertising, 31(1), pp.63–84, viewed 26 September 2020, http://web.a.ebscohost.com.ezproxy.holmesglen.edu.au/ehost/detail/detail?vid=0&sid=50ee061a-36b5-4eaa-a73c-6fe3a17d5fcf%40sdc-v-sessmgr03&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=71705184&db=buh

Woisetschläger, D, Michaelis, M 2012, Sponsorship congruence and brand image, European Journal of Marketing, 46(3/4), pp.509–523, viewed 26 September 2020, https://search-proquest-com.ezproxy.holmesglen.edu.au/docview/939008820?rfr_id=info%3Axri%2Fsid%3Aprimo

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Entry 3: Asset Inventories

An inventory of an organisation's assets is necessary in order to facilitate and control anything they can offer potential sponsors (Downing 2017). 

St. Bedes Mentone Tigers AFC have been a terrific partner club for my group so far so we we’re looking forward to providing something extremely useful that they can use within their club. 

With an asset being anything available for sponsorship, SBMT had many assets known, but also many uncovered (Baylis 2017). Whether it’s a logo placement or a speaking opportunity, each sponsorship asset has a price tag, which our group needed to work out (Baylis 2017). 

The club didn’t have any specific aspect they wanted us to focus on, but they were able to give us plenty of helpful information both verbally and digitalised that assisted us in creating the most extensive and detailed inventory possible. 

This assessment was like one I’d never done before as it meant we had to figure out certain things in Excel but also use math equations and formulas I haven’t used since year 12. 

This inventory will benefit SBMT as it has collated all of their assets, both regular and new, and will provide as something they can use simply and throughout the years. They can now grow to understand the true value of their sponsorship offers, allowing them to woo more sponsors while boosting their revenue (Baylis 2017). 

Our group worked well together through this assignment, using our time effectively with several group calls. We also asked plenty of questions towards the club and each other to make sure we were on the right track with our information. 

Dylan was terrific at getting certain prices in order for us to then work out values while Connor took control of the valuation overall which he did extremely profoundly. 

Overall, I believe our group did a great job in getting everything in order and we hope the club can use the spreadsheet easily. 

Baylis, C 2017, 5 Steps for Unlocking the Market Value of Your Sponsorship Offering, viewed 23 September 2020, https://www.eventbrite.com/blog/5-steps-market-value-sponsorship-ds00/ 

Downing, K et al. 2017, Information Asset Inventory for Information Governance, Journal of AHIMA, 88(2), pp.40–43, viewed 23 September 2020, https://search-proquest-com.ezproxy.holmesglen.edu.au/docview/1999192167?rfr_id=info%3Axri%2Fsid%3Aprimo

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Entry 2: Tangible/Intangible Benefits

Although sporting organisations usually already have a leg-up on regular properties when it comes to gaining sponsors, they are normally the ones who look to strike up a partnership. 

In order to entice a possible sponsor, the sport organisation must show what they can offer, and this is done best through having an asset inventory. Selling sponsorship is almost impossible without an asset inventory and to build an inventory, the sporting organisation must identify their sponsorship properties (Baylis n.d.). 

In terms of asset types, there are two types in an inventory; tangible and intangible. 

- Tangible vs. Intangible n.d., graphic, viewed 3 September 2020, https://www.educba.com/tangible-vs-intangible/

Tangible assets are the ‘quantity assets’ that can be offered to a potential sponsor (Baylis n.d.). They are things people can see and feel like signage, polos, banners, etc. These assets can be measured in terms of the number of impressions or interactions as well as the number of products handed out or shown around club stadiums, clubrooms, etc (Baylis n.d.). 

Intangible assets, however, are things you cannot see and touch but are more valuable than tangible assets (Baylis n.d.). Sports intangible assets can be controlled by the sponsor, organiser and participants of the sports activities and include things such as naming rights and brand equity (Shou & Liu 2015). 

The inventory must also explain what the assets provide and how they are beneficial for a sponsor. Each asset has a function, feature and benefit and this should be highlighted by the sport organisation because they are the components that describe how valuable a certain asset is. 

St. Bedes Mentone Tigers AFC have quite extensive sponsorship packages, offering lots prospective sponsors. Their ‘Naming Rights’, ‘Major Coterie’, ‘Platinum’, ‘Gold’ and ‘Silver’ packages as well as their club apparel sponsorship deals, include many benefits. 

They are flexible and with the help of my team and I, I believe we can clean them up a little and get them up to date in a bid to gain more sponsors. 

Baylis, C n.d., Sponsorship Inventory and Asset Development Essentials, viewed 2 September 2020, https://sponsorshipcollective.com/sponsorship-inventory-asset-development-essentials/ 

Baylis, C n.d., Tangible vs. Intangible Sponsorship Benefits Defined, viewed 2 September 2020, https://sponsorshipcollective.com/tangible-vs-intangible-sponsorship-benefits-defined/#:~:text=Although%20tangible%20benefits%20provide%20hard,you%20to%20build%20lifelong%20relationships 

Shou, Z, Liu, P 2015, Development and Utilization of Sports Intangible Assets in China under Sustainable Development Perspective, The Open Cybernetics & Systemics Journal, vol. 9, no.1, pp. 3018-3023, viewed 2 September 2020, https://pdfs.semanticscholar.org/5a21/89406fa9bc8445ab40048d9912eaba1f1003.pdf

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Entry 1: Importance of Sponsorship

Sponsorship is considered to be one of the most effective tools within the integrated marketing communication mix, with sport sponsorship playing a crucial role in the sponsorship framework (Schmidt et al. 2013). 

- Betting companies on English soccer team jerseys n.d., image, viewed 30 August 2020, https://www.theguardian.com/sport/2020/jan/08/how-the-betting-industry-has-become-inextricably-linked-to-football

Sport sponsorship is a powerful marketing technique and occurs when a cash or in-kind fee is supplied to a team or league by a business, and in return, the team/league aids the business in gaining commercial exposure (Optimy 2017).

Sports organisations constitute the biggest events of the world and are usually widely followed, such as the FIFA World Cup and the NFL Super Bowl (Tugce 2018). The World Cup in 2018 reached over 3.5 billion combined viewers which is more than half of the world’s population (FIFA.com 2018). Although already popular amongst the world’s population, companies like Adidas, Coca-Cola and Visa had their name, logos and slogans across the World Cup, gaining brand exposure like none-other. They also gained $1.6 million from sponsorship deals reflecting just how important sponsorship is (Sheetz 2018). 

- 2018 FIFA World Cup logo with featured sponsors 2018, graphic, viewed 30 August 2020, https://www.netbase.com/blog/sentiment-analysis-and-sponsors-a-look-at-the-fifa-world-cup/

For sponsorship deals to be made, there are certain steps that need to be undertaken and that form a framework: 

1. Foundation: Sporting organisations compile their assets that provide value for possible sponsors. 

- Inventory of assets 

- Marketing plan 

- Platforms 

2. Customisation: The stage where the sports organisation will create sponsorship packages that are appealing and provide them to potential sponsors they have identified. 

- Targeting sponsors 

- Develop sponsorship plan 

3. Realisation: The sporting organisation and the possible sponsor discuss a sponsorship deal that would be beneficial for both parties, before the partnership is finalised. 

- Negotiation/sales 

- Implement sponsorship plan 

4. Co-activation: Serves as a stage to assess the partnership’s worth, whether its successful or if the parties would prefer to look elsewhere. 

- Service 

- Review 

- Renew/replace 

Sport sponsorship is as important as ever right now and has grown to become an extremely valuable element in the business of sports. I for one have noticed it a lot more and it has even had influences on me in terms of the websites I search and products I buy.

FIFA.com 2018, More than half the world watched record-breaking 2018 World Cup, viewed 29 August 2020, https://www.fifa.com/worldcup/news/more-than-half-the-world-watched-record-breaking-2018-world-cup 

Optimy Wiki 2017, Sport Sponsorship, viewed 30 August 2020, https://wiki.optimy.com/sport-sponsorship/#:~:text=Sport%20Sponsorship%20is%20a%20powerful,brand%20awareness%20and%20customer%20loyalty. 

Sheetz, M 2018, Here’s who is getting rich off the World Cup, viewed 31 August 2020, https://www.cnbc.com/2018/06/14/the-business-of-the-world-cup--who-makes-money-and-how-much.html 

Schmidt, S et al. 2013, The Explicit and Implicit Impact of Sport Sponsorship, Marketing Review St. Gallen, 30(1), pp.58–70, viewed 30 August 2020, https://search-proquest-com.ezproxy.holmesglen.edu.au/docview/1322548589?rfr_id=info%3Axri%2Fsid%3Aprimo 

Tugce, O 2018, Sport sponsorship contracts, Juridical Tribune Journal, Tribuna Juridica, 8(3), pp.823–834, viewed 31 August 2020, https://doaj.org/article/28bfa34898d241e7af5da2382e172423