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 customer’s liking.
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 target audience.
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.