A Brief Introduction to the UK Sponsorship Industry


Term Paper, 2005
8 Pages, Grade: B (credit)

Excerpt

Table of Content

1. Growth of sponsorship activities
1.1 History
1.2 Reasons for the growth
1.3 Trends

2. Developing sponsorship activities

3. Reasons for sponsorship activities
3.1 Advantages
3.1.1 Media
3.1.2 Image and ethics
3.1.3 Other benefits
3.2 Disadvantages

4. Ethical issues

5. Evaluation of sponsorship programmes

6. Summary

1. Growth of sponsorship activities

1.1 History

Since its beginning in the mid 60s the UK sponsorship industry has been growing rapidly as a form of marketing communications. It originated with sports sponsorship, and has since spread to many other concerns as arts, media, charities, and education.[1] Sports sponsorship alone was worth £460 million in the UK at the end of 2002.[2] Although only being a small part of the overall marketing spends, its growth in acceptance indicates it to be a useful tool to communicate with selected target audiences.

The UK sponsorship industry can be divided into four main sectors:[3]

Sports (53%)

Arts (15%)

Broadcast (TV, Web) (24%)

Social and environmental (8%)

1.2 Reasons for the growth

Growing acceptance and appreciation from customers and stakeholders, recognising that the number of events would drastically decline without the financial support from sponsoring companies motivates these to use this tool.[4]

Original consumer research on sponsorship conducted by NOP reveals a favourable attitude of adults towards companies sponsoring their favourite sports, radio and television programmes, implying that the sponsorship is having the desired effect on the audience.[5]

Arts sponsorship that is continuously overtaken by the more popular broadcast sponsorship (e.g. Coronation Street sponsored by Cadburys) is less favoured as this is often seen as governmental responsibility together with an ambiguous attitude towards arts.

Social sponsorship seems to be effective in generating goodwill amongst consumers, with more than four-fifths stating a favourable attitude towards companies sponsoring charities, environmental concerns and educational activities.[6]

Whilst sponsorship was originally solely used to create brand/company awareness, it now has become a method of shaping brand identity together with other marketing tools. Advertising agencies start overcoming their prejudices and accept sponsorship as a marketing tool; research agencies provide audience profiles and improved measurements supporting sponsorships’ growth.[7]

1.3 Trends

The high cost of sponsorship in ‘glamour’ events leads to a stronger focus on more basic events, encouraging the long-term development of sport. Although aware about the corporate motives, customers accept the achieved social benefit[8] and investment in ‘worthy’ causes creates a caring company image.[9]

The reason for growth of sponsorship is often seen in advertising restrictions on products as alcohol and tobacco; however, the ban for new sponsorships on tobacco introduced in 1998 will outlaw existing deals in Europe on 1 October 2006 with an expected loss of £100m to the UK marketing sector and fears of a similar ban on alcohol. Further legislation regarding sponsorship by alcohol brands and sponsorship of education and youth-related events remain a threat in the future. These legal actions will change the sponsorship scenery in particular in the motor racing sponsorship, accounting for a third of all sports sponsorship expenditure.[10]

The Internet provides a new platform for sponsorship; opportunities to be online sponsors of events add new dimensions to sponsorship activity with legislative measures impending.

[...]


[1] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

[2] Professional Diploma in Marketing, Paper 7: Marketing Communications, ISBN: 0-7517-1591-3, page 116

[3] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

[4] Professional Diploma in Marketing, Paper 7: Marketing Communications, ISBN: 0-7517-1591-3, page 117

[5] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

[6] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

[7] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

[8] Professional Diploma in Marketing, Paper 7: Marketing Communications, ISBN: 0-7517-1591-3, page 117

[9] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

[10] http://www.the-list.co.uk/www.the-list.co.uk/acatalog/mp91008.html, Worldwide Business Information and Market Reports: Sponsorship in the UK

Excerpt out of 8 pages

Details

Title
A Brief Introduction to the UK Sponsorship Industry
Grade
B (credit)
Author
Year
2005
Pages
8
Catalog Number
V51417
ISBN (eBook)
9783638473972
File size
444 KB
Language
English
Notes
The CIM Chartered Institute of Marketing is a UK based professional institute. This assignment was an exam work for the Professional Diploma in Marketing in the subject marketing communication. It covers the historical background and current trends in sponsorship, how and why sponsorship activities are developed together with a critical evaluation of sponsorship activities and appreciation of ethical issues.
Tags
Sponsorship
Quote paper
Nicole Lorat (Author), 2005, A Brief Introduction to the UK Sponsorship Industry, Munich, GRIN Verlag, https://www.grin.com/document/51417

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