Sponsorship and the economic crisis
The crisis will have many victims, although experience tells me that in times of crisis certain sectors are able to absorb shocks better than others, or even emerge from them strengthened. Just look for example at the betting and lottery boom we are witnessing in this period. Sport, thanks to its ability to awaken dreams by entertaining and thrilling broad sections of the public, can function as an effective – and in times such as this perhaps essential – outlet valve for the innumerable pressures to which we are subjected … In addition to this reason, which is already enough in and of itself, here are some others for using it even more in a period such as this.
Sports sponsorship does not speak of a product, but rather shows a brand to spectators who have decided to follow an event. No one has forced them; on the contrary, the perception they have of the companies present is almost one of complicity … They are taking part together in something that excites and makes it possible to leave everyday problems behind for a while … There are examples of research which show that spectators’ attitudes to sponsors is always extremely positive … Furthermore, the positive values of the sporting discipline build up on the brand over time, and the brand and product become etched in the memory (does the John Player Special brand mean anything to you?).
Thus sport can help to cement the relationship between customers and the company, which is no longer seen as a mere supplier of the products but as an active participant in our moments of relaxation. At the same time, products enhanced by the positive values of the discipline being sponsored stand apart from competitors’ products, which remain what they are, bare products, unconnected to the dream, the experience and the passion generated by sport. Products which are therefore easily replaced by similar yet cheaper ones …
Identifying our product brand with elements of passion (and sport can be used for this) will make navigation of a storm-tossed market less risky … Ask yourselves why so many are willing to pay a premium for products which are strongly identified but which basically have the same level of functionality as other less prestigious but equally efficient ones. Think of the market for four-wheel super sports performance vehicles and the differences between European, American and Japanese brands.
Another factor is the credibility of traditional advertising. The public is increasingly sophisticated and few advertising campaigns leave their mark. Viewers bombarded by a myriad of commercials take cover by changing channel. On the other hand, they know that Company X has bought television advertising space which it uses to let us know that its products are the best in the world … With what credibility?
Another fundamental difference lies in the fact that a sports marketing programme is the ideal platform not only for advertising a brand but also for repositioning it, for building promotions, for energising the internal public and communicating with the external public, for providing hospitality … all activities that cannot be envisaged with traditional advertising.
So one makes use of a platform that provides a multitude of opportunities and which can be used beyond national boundaries, which offers many possibilities in terms of action to take, perhaps Tactically, in the markets concerned.
Filed under: Sports Marketing, Formula 1, Sponsorship, Sports Business on November 21st, 2008 | No Comments »