Global Marketing and Olympics

Global Marketing and Olympics

Introduction

The path followed to date by marketing programmes in the Olympic Movement has not been a short one. The origins of funding policies go back to 1895 when the Greek, Georges Averoff, paid for the rebuilding of the Athens Olympic Stadium, which was to be the setting for the first Modern Games one year later. These first Modern Games received funding from a number of business sources. For example, Kodak (presently a TOP sponsor) contributed to the Athens 1896 Organising Committee in return for an advertisement in the official programme (IOC, 1994a). The Stockholm 1912 Games also received funding from the Granberg Industrial Art Company, which signed an agreement permitting the commercial use of competition photographs in return for the payment of USD 3,600, while another company paid for the right to install weighing scales for the use of spectators (OCOG 1912, 1913:33). These were undoubtedly among the first steps in modern sports sponsorship with companies that were keen to have their products associated with large-scale prestigious sporting events, the resulting publicity being a great form of exposure for all kinds of products. The Antwerp 1920 and Paris 1924 guides are a rich source of examples of commercial companies' enthusiasm to be associated with the Games through advertisements.

Objectives

The International Olympic Committee (IOC), as owner of all Olympic rights and symbols, is responsible for all aspects of management of Olympic marketing programmes. The objectives pursued are as follows:

? To ensure the stability and financial independence of the Olympic Movement, and to contribute to international promotion of Olympism.

? To create and maintain marketing programmes in the long term, so as to ensure continuity of the Olympic Movement and the Olympic Games.

? To develop activities jointly with the Local Organising Committee, and to eliminate the need for creation of new marketing structures for each Olympic Games. Josep Maria Puig - Olympic marketing: historical overview

? To certify fair distribution of income among all levels of the Olympic Movement (Organising Committee, National Olympic Committees, continental associations and international sports federations) and to provide economic support for emerging nations.

? To ensure that the Olympic Games will be broadcast by non-pay television channels around the world.

? To restrict uncontrolled commercialisation of the Games.

? To protect the equity which lies at the heart of the Olympic ideals.

? To achieve support from Olympic sponsors in promotion of Olympic ideals.

(IOC, 2002)

Revenue generation

Olympic marketing programmes have four main sources of income (television rights, sponsorship programmes, ticket sales and Olympic licences) which are controlled by three strata of the Olympic Movement: the International Olympic Committee (IOC), the Organising Committees of the Olympic Games (OCOGs) and National Olympic Committees (NOCs).

IOC manages broadcast and new media rights, the TOP worldwide sponsorship programme and the official supplier and licensing programme. Under the direction of the IOC, OCOGs manage domestic sponsorship, ticketing and licensing programmes within the host country. In addition, marketing programmes are managed by the ...