Sponsorship: Case Study of a Malaysian Company
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Transcript of Sponsorship: Case Study of a Malaysian Company
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Presenter:
Jainurin Justine
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What is Sponsorship?
• Definition, Motives & Objectives
Sponsorship & Advertising
Sponsorship & Communication
Case Study
Other Aspects of Sponsorship
Conclusion & Future Research
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“ The provision of assistance either financial
or in-kind, to an activity by a commercial
organization for the purpose of achieving
commercial objectives ”
(Meenaghan, 1983)
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Charity Donations
Philanthropy Patronage
Commercial Advertising
Commercial
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Brand Awareness• Through association with an event which has a
societal profile and thus delivers an audience
Brand Image • By transferring the image values of the sponsored
event to the brand
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Brand Relationship• By making an emotional connection to the consumer
by supporting the event
Brand Sales• By creating brand awareness
• By enhancing brand image
• By encouraging consumer goodwill
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The exposure potential which the
activity has in terms of audience
The image associated with that activity
in terms of how it is perceived
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(Source: IEG)
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(Source: IEG)
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Example 1 - Sports
• London 2012 Olympic Games
• Revenue: 4.8 USD billion
• Sources of Revenue:
Broadcast Rights 2.6 USD billion (53.2%)
Sponsorship 1.15 USD billion (23.8%) *
Ticket Sales 988 USD million (20.5%)
Licensing 119 USD million (2.5%)
* Excluding The Olympic Partners (TOP) sponsors
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(Source: Olympic 2012 Marketing Fact File)
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Government Policy on Alcohol and
Tobacco Products
Escalating Costs of Advertising Media
Inefficiencies in Traditional Media
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The Proven Ability of Sponsorship
New Opportunities due to Increased
Leisure Activity
Greater Media Coverage of Sponsored
Events
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Broadly similar in terms of the objectives
that can be achieved
Yet important differences as
communications media
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Advertising: Media and message are
two separate components
Sponsorship: Both media and message
elements combined
The Key Difference: Sponsorship
engages the consumer differently by
bestowing benefit on an activity/event
with which the consumer has an
emotional relationship.
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Sponsorship as a Media
Provides access to audience• E.g.: Olympics 2012: 3.6 billion viewers
• World Cup 2010: 3.2 billion viewers
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Sponsorship as a Message
Communications platform
Announce new brand
Associate with image
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Alternative communication medium compared:
(Meenaghan, 2001)
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Comparative Factors Sponsorship Advertising
Goodwill Beneficial Selfish
Focus Indirect/Subtle Direct/Forceful
Intent to Persuade Disguised Overt
Consumers’ Defence
Mechanism
Low State of
Alertness
High State of
Alertness
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Cognitive (“Learn”)• Awareness, recall or recognition
Affective (“Feel”)• Attitude (gratitude & goodwill) and intention to buy
Behavioral (“Do’)• Triggers positive response
• E.g.: Trial, repeat purchase and loyalty
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PETRONAS began its internationalisation
drive in the early 1990’s.
Although a Fortune 500 company, the
company was not well known outside of
the oil and gas industry.
In 1995, the company decided to sponsor
the Sauber team in Formula 1 (F1) Grand
Prix with a two-year USD2 million
sponsorship.
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Sponsorship of the Sauber team was
considered as “the first step in the process
in raising the company’s profile around the
world.” (Saward, 1996).
Relationship with Sauber grew with
creation of Sauber PETRONAS
Engineering AG, a joint venture automotive
engineering company.
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PETRONAS was also able to test and use
its petroleum products on the F1 cars.
In 1999, PETRONAS became the title
sponsor of the Malaysia F1 Grand Prix
race in Sepang.
Until 2012, PETRONAS has been a team
sponsor for 17 years (now with
MERCEDES) and a race title sponsor for
13 years.
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PETRONAS sponsorship of the
MERCEDES team and title sponsorship of
the Malaysian F1 Grand Prix race will run
until 2015.
F1 races total global viewers in 2011 was
reported at 515 million.
Exposure to new markets in a third country
based on writer’s own personal experience
from 1998 to 2002.
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Measurement of Effectiveness is a Key Issue• Possible Measurement Points
Media Exposure (Television/Radio/Press)
Awareness Exposure (Prompted/Unprompted)
Event/Sponsor-Event/Brand
Image (Favourability Index/Standard Battery of Image
Dimensions)
Relationship (Affinity/Closeness/Empathy)
Sales (Predisposition to Buy/Purchase Intention/Behaviur)
• Research required to gauge effectiveness of
sponsorship activities
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Cause Related Marketing
• Direct relationship between the sales of a company’s
products and the company’s support of a social cause
Ambush Marketing
• The practice whereby another company, often a
competitor, intrudes in the public attention surrounding
the event, thereby deflecting attention to themselves
and away from the sponsors
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Advertising • Increasing advertising costs
• Wider coverage by sponsorship
Communications• Media clutter/noise in advertising
• Combined message and media in sponsorship
Consumer behaviour• Changing lifestyles – more leisure events
• Consumer goodwill from sponsorship
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Limited research on sponsorship in Malaysia has been done to date
Researchers can undertake research with sponsors
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