Corporate sponsorship is a
surprisingly developing area of marketing, much more effective than
commercials, that instead of interrupting customer's favorite show,
creates a relationship with the customer,connecting company's logo with
Corporate sponsorship is defined as a form of advertising where a
company employs money or other financial means in supporting an
organization, person, event in exchange for promotional opportunities
like being associated to a certain event or having their logo displayed
in order to gain public recognition.
A specific form of corporate sponsorship is event marketing or cause marketing where companies
support nonprofit organizations or charitable events.
There are multiple benefits of
corporate sponsorship for all the parties involved.
The corporation has much more
that the benefit of having the funds involved deducted from the profits
as an advertising expense. Through sponsorship, it builds goodwill,
increases visibility in communities, enhances image. This could be used
a way to differentiate company's brand from competitors.
Sponsorship is also a great opportunity to develop relationships with
customers, promote products and services, and reach a wide range of
audiences. It can also bring new opportunities of development through
new contacts and draw financing.
Associating the company's brand to a certain event's values has the
function to position the product in customer's mind and eventually
attract interest in products and services.
The community benefits from the
funds being invested in events. Because companies are careful to choose
events that fit their specific and are most likely to be a success,
they improve the community. Events also build relationships between the
community and the corporate area.
Companies are usually involved in sponsoring entertainment events like
sport tournaments, concerts, fairs. On the other hand, cause marketing
improves more visible quality of life by supporting programs for
employment, recycling, restoration, beautification and clean-up. They
often invest in scholarship programs, social and educational
programs, community organizations and construction projects.
Corporate sponsorship has an important effect on employees also, making
them proud of their employer and raising their loyalty that results in
satisfaction at work and effectiveness.
Improving corporate sponsorship
In addition to the actual sponsorship funds, the company should invest
in promoting the event.
In order to gain benefits, the company should promote the event through
billboards, printed material and broadcast commercials, as well as
direct mail, Internet marketing or telephone . It should publish press
releases about the event, as well as articles to media that reaches the
Other useful instruments are prize money, giveaways,
entertainment, and hospitality.
Sports events attract an impressive share of sponsorships followed by
music concerts, festivals and fairs, event marketing(donations
supporting ecology, homeless people,poor children or cancer research)
and the arts.