adminthat can be used to build company brands whilst at the same time benefiting the sponsored team.
Presenting a paper titled “Sport Sponsorship for Sustainable Growth” at the recently held 3rd annual marketer’s convention hosted by the Marketers Association of Zimbabwe in Victoria Falls, Mr Karombo said sponsorship-publicity deals are used the world over by progressive organisations to promote their products, brands and services.
“Sponsorship has been a key factor in the redevelopment of many sports, providing capital for the sport and at the same time securing an appropriate image for the sponsor. It also helps the sponsor achieve specific marketing objectives,” he said.
“The European sponsorship industry is worth approximately €8 billion every year; UK sports sponsorship is valued at approximately £500 million, while North American companies are estimated to spend $925 million on sponsoring golf tournaments and related events alone in 2004.”
So, why are companies willing to pay so much into sport in general, and into football in particular?
Mr Karombo, who is an ardent Liverpool fan, pointed out that the benefits of sponsorship of sport include increased product awareness and corporate image. According to Wesson and Wiggins (2000), sponsorship is the provision of funds or other forms of support to an individual or event for a commercial return. It is of mutual benefit to both parties, and is now an intrinsic aspect of sports funding.
“Sport sponsorship-publicity deals are used the world over by progressive organisations to promote their products, brands and services. All of this turns to dust unless sponsorship delivers a return on investment (ROI). ROI shouldn’t be an afterthought or self-justification process. It has to be part of the sponsorship mind-set and it comes back to having measurable objectives. “Sponsorship is only as good as its results.”
Mr Karombo noted that two tests are used o quantify whether the sponsorship has been successful or not.
“We look at whether it will deliver either a return on objectives (ROO) or a return on investment (ROI).
“ROO requires us to undertake analysis in terms of whether the property type – sports, arts and culture, broadcast, education, environment – is a basic fit with our brand communication, marketing and sales objectives.
“The final outcome should be a 360-degree view of the sponsorship programme, from the start of the planning process to the end results achieved,” he said.
Online Reporter