Sponsorship of the Olympics Opening Ceremony

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CHAPTER 2: LITERATURE REVIEW3

Introduction of the Research Study3

Importance of Sponsorships4

Sponsoring an Olympics Opening Ceremony4

Objectives of Olympics Sponsorship5

Corporate Objectives5

Marketing Objectives6

Media Objectives7

Personal Objectives8

Impact of Sponsorship on Consumer Experience8

Increased Exposure9

Congruence9

Sponsorship Evaluation and Effectiveness- Sports & Olympics Ceremonies10

Return of Investment (ROI)11

Accomplishment of Corporate and Marketing Objectives11

Internet and Media Exposure Analysis12

Sponsorship Awareness12

Attitude towards Sponsorship13

Purchase Intention13

Olympics Games and Generation Y14

Risks of Sponsorship in an Olympics Ceremony14

Negative Associations15

Absence of Standardization15

Evaluation Problems15

Chapter Summary16

REFERENCES17

CHAPTER 2: LITERATURE REVIEW

Introduction of the Research Study

In the Greek and Roman era the concept of sponsorship in reality was originated (Dolphin, 2003, p.175). Over hundred years the concept of sponsorship has been a great source of communication with the consumer to relate the consumer with products and services offered widely. Lately the concept of sponsorship has made a noticeable impression and relatively the industry of sponsorship has made considerable strides. Meenaghan (1991) suggested 'the element of marketing communication within the broader context is done effectively through sponsorship. He further illustrated that these sponsorship are made of the marketing mix of distribution, price, product and marketing communication. Czinkonta and Ronkainen (2004) also reflected that to achieve the marketing communication objectives different tools of promotional mix are widely used such as sponsorship, sales promotion, advertising, publicity and personal selling (n.d). Often the perplexity arises when sponsorship is considered similar to charity, patronage and endorsement. The concept is not similar to the activities involved in charity, patronage and endorsement. However, the concept of sponsorship is similar to advertising where money is invested for commercial purpose to acquire more attention, sales promotion and publicity (Meenaghan, 1991, p.41). Lately this effective and efficient marketing tool 'sponsorship' is employed as a communication and marketing tool to sponsor events, ceremonies and federal programs, business events and individual sponsorships. Hence, in the marketing activities sponsorship programs are of increasing importance worldwide.

Importance of Sponsorships

One of the most prominent forms of marketing communication widely used is sponsorship (Roy & Cornwell, 2004). It is basically a two way mutually beneficial partnership where the two parties are involved, sponsored and sponsor. In other words sponsorship is an investment where the business exploits their potential association with a highly publicized entity, ceremony or an event to access return over the investment (Fahy, Farelly, Quester, 2004, p.8). Hence, as investment tool businesses are found sponsoring events, ceremonies and publicized entities to promote their offering, communicate with their target market and build a good image in the consumer mindset that compel them to drive towards their business offerings. Picton and Broderick (2005) suggested 'sponsorship in today's competitive business environment constitutes great importance and is significantly used by the business as an effective marketing and communication tool' (p.576).

Sponsoring an Olympics Opening Ceremony

Olympics games are organized every four years on a large where people from many countries come and participate in the competition. Different set of games are designed and organized where different countries compete against each other. To organize this grant gaming event many sponsor and financers are required to make the ...