Recent trends in the charity sector predict a challenging future in terms of procuring funding, as the Scottish Government is likely to decrease funds allocated to the third sector. In this context, this study aims to critically evaluate the potential of sponsorship as a marketing communications method for Scottish charities with focus on charities as the sponsoring entity.
The author considers this assessment important, as it possibly holds the potential to generate sustainable government-independent funding through increased brand and cause awareness. The study is supported by a qualitative mono-method inductive research approach consisting of seven individual face-to-face interviews with a panel of experts from the corporate and charity marketing industries. Comparing marketing communications theory, sponsorship theory in particular as well as third sector theory with the research findings, this research project arrives at outlining possibilities for the development of starting points to develop fund-procuring methods with the means of sponsorship or adapted forms of it. One can record the following assumptions in regard to the feasibility of an implementation of sponsorship into charity marketing communications: Sponsorship provides significant benefits in terms of brand enhancement and identification, which would allow for a more targeted communication of the cause. Sponsorship can be deemed effective; yet, there is no predictability in measurement, which decreases its full applicability. Despite its favourable benefits, sponsorship is not viewed as viable for a use in the charity context due to a moral dilemma in justifying its cost. However, alterations or particular sections of sponsorship might be imaginable.
Nonetheless, the study is underpinned by limitations like the small sample size and restricted locational aspects surrounding the sampling, which, however, offer great potential for future research in this field.
Table of Contents
1. Introduction
1.1 Purpose and Background of the Study
1.2 Aim and Objectives
1.3 Overview of the Research Approach and Methodology
2. Industry Context of the Third Sector
2.1 Introduction
2.2 Third Sector in Scotland
2.3 Challenges of the Sector
2.4 Conclusion
3. Literature Review
3.1 Introduction
3.2 Common Practice in Marketing Communications
3.3 Sponsorship as a Form of Marketing Communications
3.4 Common Practice in Charity Communications
3.4.1 Message Framing
3.4.2 Strategic Branding
3.4.3 Giving Mechanisms
3.5 Conclusion
4. Research Design and Methods
4.1 Introduction
4.2 Research Philosophy
4.3 Research Approach
4.4 Research Strategy
4.5 Data Collection Methods
4.6 Conclusion
5. Research Results
5.1 Introduction
5.2 Development of Key Themes
5.2.1 Sponsorship and Brand Enhancement
5.2.2 Sponsorship and Marketing Communications
5.3 Conclusion
6. Discussion
6.1 Introduction
6.2 Final Assumptions
6.3 Practical Implications for Scottish Charities
6.4 Limitations and Future Research
6.5 Conclusion
Objectives and Research Themes
This study aims to critically evaluate the potential of sponsorship as a marketing communications method for Scottish charities. Faced with decreasing government funding and increasing competition, charities must adopt more creative, independent, and donor-centered strategies to secure sustainable resources and maintain their organizational identity.
- Evaluating the role of sponsorship in enhancing brand awareness and charity image.
- Identifying strategies to counteract the "moral dilemma" and accountability challenges of charity spending.
- Developing a framework for the practical integration of sponsorship in the third sector.
- Comparing corporate sponsorship practices with the specific needs of charitable organizations.
- Exploring social enterprises as an alternative or supplementary funding model.
Excerpt from the Book
3.4.1 Message Framing
To gain a better understanding of what constitutes common practice in charity marketing, it is essential to assess popular charity marketing measures in their effectiveness. One of the main measures used in charity marketing is message framing (Chang and Lee, 2010). One can distinguish between different types of framing, which show variations in effectiveness. Framing methods, which prove to be very effective, encompass asking frames. Schibrowsky and Peltier (1995) introduce low and high asking frames in their research. They conclude that low asking frames with regard to donor appeals are more successful than high asking frames. This means that asking for a low amount of donations from low contributors instead of a high amount of donations from low contributors will likely lead to a higher compliance rate and enhance donations. Also, asking for a small donation before asking for a larger sum can significantly increase the likelihood of making a donation because people tend to feel obliged to continue giving after an initial charitable contribution (Freedman and Fraser, 1996).
Given that the method of framing is a rather traditional and extensively researched form of generating funds, one can assume that charities have already developed strategies incorporating asking frames. However, this method of framing only aims to generate monetary resources and does not necessarily enhance organisational awareness. Hence, message framing with regard to asking frames can only be one component of such a strategy, as it does not wholly cover the difficulties charities are facing.
Another effective form of framing used in charity marketing is goal framing (Das et al., 2008). Goal framing builds on the notion of emphasizing participation and a sense of togetherness amongst organisations and donors to increase prosocial donor behaviour. This is achieved through an accentuation of the positive impact a donation has to show the donor how their support contributes to the organisation’s work and success.
Chapter Summaries
1. Introduction: Outlines the funding challenges for Scottish charities and defines the study's aim to evaluate sponsorship as a potential solution.
2. Industry Context of the Third Sector: Explores the structure of the Scottish third sector, highlighting the dependence on grants and the growing need for financial independence.
3. Literature Review: Provides a theoretical analysis of marketing communications and sponsorship, focusing on how these concepts can be adapted to the charity environment.
4. Research Design and Methods: Describes the qualitative, phenomenological research approach, involving semi-structured interviews with industry experts.
5. Research Results: Presents the primary data findings, emphasizing key themes such as sponsorship's impact on brand awareness and its effectiveness as a marketing tool.
6. Discussion: Synthesizes research findings to provide practical implications for Scottish charities, addressing the feasibility and ethical challenges of implementing sponsorship.
Keywords
Sponsorship, Scottish Charities, Marketing Communications, Third Sector, Brand Awareness, Fundraising, Donor Behavior, Social Enterprises, Strategic Branding, Return on Investment, Qualitative Research, Professionalism, Moral Dilemma, Accountability, Organizational Mission
Frequently Asked Questions
What is the core focus of this research?
This thesis investigates the potential for Scottish charities to utilize sponsorship marketing as a strategy to enhance their internal and external marketing communications and secure sustainable funding.
Which sectors does the study compare?
The study conducts a comparative analysis between the highly effective sponsorship models used in the corporate sector and the specific operational requirements and ethical constraints of the third sector.
What is the primary goal of the research?
The primary goal is to evaluate whether corporate sponsorship frameworks can be adapted for charities to overcome challenges such as limited resources, decreasing government grants, and the need for stronger brand identity.
Which methodology was chosen for this study?
The author employed a qualitative, mono-method, inductive research approach, which included conducting semi-structured face-to-face interviews with six experts from both the corporate and charity marketing industries.
What main challenge do charities face regarding sponsorship?
The study identifies a significant "moral dilemma" where charities face public scrutiny over spending funds on marketing activities rather than directly on their charitable causes, making it difficult to justify the upfront cost of sponsorship.
What are the main outcomes and findings?
Findings suggest that while pure corporate-style sponsorship might be unviable for some charities due to ethical and measurement difficulties, variations of sponsorship and the adoption of social enterprise models are promising for generating independent revenue.
How do social enterprises fit into the author's argument?
Social enterprises are identified as a recent, successful trend that allows charities to offer tangible products or services, thereby providing a "business-like" revenue stream that avoids the public backlash often associated with traditional fundraising.
What role does brand awareness play in the research?
Brand awareness is highlighted as a critical factor for charity success; the research indicates that sponsorship can help charities differentiate themselves and stand out in an increasingly crowded and competitive sector.
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- Lea Horn (Autor:in), 2017, Assessing the Potential of Sponsorship for Marketing Communications of Scottish Charities, München, GRIN Verlag, https://www.grin.com/document/385814
