In the past ten years the Australian sports sponsorship industry has seen significant changes. The Olympic Games in Sydney in 2000 have been the sport sponsorship entry for a lot of Australian companies.
Australians have a very high interest in sports. Sweeney Sports Research found that somewhere between 98% and 99 % of 16-65 years of age Australians are interested in sport. By interest they defined that people participated personally in sports, watched it on television as much as possible, listen to the radio as much as possible or read about sports in newspapers on a regular basis (Hirons, 2002).
This is the reason why sport in Australia can be seen in all traditional media such as print, television, magazines, radio, newspapers but also in new media such as the internet.
According to Hirons, in 2000 a lot of sponsorship agreements expired naturally and since then organisations have changed their strategies in many ways. As an example, Uncle Tobys decided to withdraw from Iron/Ocean Man. Kellogg now makes a lot of sponsoring of lifesaving and invests more and more in community based initiatives. Ford withdrew from the tennis sponsorship and was replaced by Kia. Holden and Ford invested heavily in motor sport. Fosters lost the Melbourne Cup which is now sponsored by Tooheys.
Additionally, the stadium sponsorship trend is increasing more and more as companies try to avoid the cluttered sponsorship market. Stadiums nowadays have names such as Telstra, Vodafone, AAMI, etc (Hirons, 2002).
The sponsorship market continues to grow. The current dollar value estimates in Australia put the market at around AUS $1.6 billion whereas the global sponsorship spend is worth AUS $36 billion (IEG, 2003, 2005) (S-Comm, 2006).
In the following chapters the author presents an overview of sport sponsorship, gives a detailed analysis of what a company needs to consider, the issues related to sponsorship and how to minimize them. Examples will be given in order to link theoretical background with practical examples to achieve a level of full understanding for the reader.
Table of Contents
1. Introduction
2. What is Sport sponsorship?
2.1 Definitions:
2.2 Objectives for companies to make use of sport sponsorship
2.3 Evaluation of sport sponsorship
3. Why is it so important for Australian companies?
4. Important factors to decide on when using sport sponsorship as a promotional vehicle
4.1 Decisions regarding the venue and the number of events sponsored
4.2 Decisions regarding to sponsor a team, a single athlete or a whole event taking into account different levels of team identification
4.3 Discover a nation’s favourite sports
4.4 Consider the image of the sports and find a sport that matches the brand’s image
4.5 Understanding the meaning of symbols, numbers, colours and language in different cultures
4.6 How many people can be reached and what media is available in the country the event takes place?
5. Why should Australian companies be careful with using sport sponsorship in overseas markets?
6. Conclusion
Research Objectives and Key Themes
This work explores the strategic importance of sport sponsorship for Australian companies, providing a detailed analysis of the necessary considerations, potential risks, and optimization strategies for global campaigns.
- Strategic planning and objective setting in sport sponsorship.
- Cultural considerations, including symbols, language, and sport preferences.
- Risk management regarding intellectual property and ambush marketing.
- Evaluating the success of sponsorship through measurement and ROI.
Excerpt from the Book
Why should Australian companies be careful with using sport sponsorship in overseas markets?
There are several issues with global sport sponsorship Australian companies need to be aware of such as ambush marketing and Intellectual Property rights. Additionally there is to add that sport sponsorship became more and more expensive the last years which is one reason why mainly large corporation can be seen as sponsors for events such as the Olympic Games.
With China becoming a strong economic power with an annual growth of about 10% and additionally being the host of the 2008 Olympic Games in Beijing, a lot of companies worldwide saw this event as an opportunity to make the huge Chinese market with 1.3 billion inhabitants, but also the rest of the world with an expected record audience of over 4.5 billion people aware of their brand, product or company (Official Homepage of the Beijing Olympic Games 2008).
However, according to the Chinese Business Review, there are huge intellectual property issues when making use of sponsorship in the Chinese market. This can be explained by the fact that China’s sports marketing environment is still an infant industry and many companies do not have any experience with sport sponsorship yet (Ordish, 2005).
Summary of Chapters
1. Introduction: Provides an overview of the shifting landscape of Australian sport sponsorship and the increasing role of global events.
2. What is Sport sponsorship?: Defines the core concepts of sponsorship, outlines corporate objectives, and discusses the importance of post-event evaluation.
3. Why is it so important for Australian companies?: Analyzes the necessity for Australian firms to engage with global markets despite geographical and cultural hurdles.
4. Important factors to decide on when using sport sponsorship as a promotional vehicle: Examines critical decision variables including venue selection, athlete identification, cultural sensitivity, and media reach.
5. Why should Australian companies be careful with using sport sponsorship in overseas markets?: Details the risks associated with intellectual property rights and ambush marketing, with a specific focus on the Chinese market.
6. Conclusion: Summarizes that while sponsorship carries risks, it remains a highly effective tool when paired with careful planning and an integrated promotional strategy.
Keywords
Sport Sponsorship, Australian Companies, Brand Awareness, Marketing Strategy, Global Events, Ambush Marketing, Intellectual Property, Cultural Differences, Sponsorship Evaluation, Olympic Games, Promotion, Corporate Objectives, Target Market, Brand Image, Risk Management.
Frequently Asked Questions
What is the primary focus of this work?
The work focuses on providing Australian companies with a strategic framework for navigating the complexities of international sport sponsorship.
Which central topics are discussed?
The text covers sponsorship definitions, strategic planning, cultural adaptation, legal risks like intellectual property, and the threat of ambush marketing.
What is the ultimate goal of the research?
The goal is to enable companies to minimize risks and maximize the effectiveness of their sponsorship investments to achieve objectives like brand awareness.
What scientific or professional approach is used?
The author employs a comprehensive literature review combined with practical industry examples to connect theoretical frameworks with real-world application.
What does the main body analyze?
It analyzes the critical factors for choosing sponsorships—such as event type, team identification, and cultural resonance—and provides risk-mitigation strategies.
How would you describe the main keywords?
Key terms include Sport Sponsorship, Brand Awareness, Ambush Marketing, and Global Market Expansion.
Why is team identification important in this context?
Team identification varies by culture, and understanding this is vital for sponsors to avoid negative associations if a team or athlete underperforms.
How can companies protect themselves from ambush marketing?
Companies are advised to ensure highly detailed, exclusive sponsorship contracts that explicitly address all potential media channels and protect rights against non-authorized competitors.
What special advice is given for the Chinese market?
The author emphasizes the 'first-to-file' trademark system in China, suggesting that companies must register trademarks early and consider localized versions of their branding.
- Quote paper
- Nina Rakowski (Author), 2008, Sport sponsorship as a promotional vehicle in overseas markets, Munich, GRIN Verlag, https://www.grin.com/document/117660
