Event sponsorship as a value creating strategy for brands
| Date | 18 July 2008 |
| DOI | https://doi.org/10.1108/10610420810887563 |
| Pages | 212-222 |
| Published date | 18 July 2008 |
| Author | Dimitra Papadimitriou,Artemisia Apostolopoulou,Theofanis Dounis |
| Subject Matter | Marketing |
Event sponsorship as a value creating
strategy for brands
Dimitra Papadimitriou
University of Patras, Patra, Greece
Artemisia Apostolopoulou
Robert Morris University, Moon Township, Pennsylvania, USA, and
Theofanis Dounis
University of Patras, Patras, Greece
Abstract
Purpose – The present research involves corporations that served as Grand National Sponsors of the Athens 2004 Olympic Games and aims to explore
whether a strategic approach was employed in the acquisition and management of their Olympic sponsorship.
Design/methodology/approach – A multiple case study analysis was employed, for which data were collected through semi-structured interviews.
The study sample included seven of the ten Grand National Sponsors that signed agreements with ATHOC, the Organizing Committee of the 2004
Athens Olympic Games. Data analysis was organized around five themes inspired by the existing literature.
Findings – With the exception of two firms, the majority of the Grand National Sponsors reported no clear or measurable objectives and limited
consideration to strategic or brand-related initiatives in their decisions to invest in the national Olympic sponsorship program. However, they did report
plans to invest resources to leverage their rights, even though in most cases no specific evaluation processes had been designed.
Research limitations/implications – Given that the Olympic Games are organized every four years in a new location, the findings of this research
may not find direct application to other markets and organizing committees that implement their own sponsorship programs. Nevertheless, this
research did show relatively poor recognition of the role of sponsorship in creating value and building the corporate brand. Corporations considering
becoming involved in sport sponsorship and also event organizers are encouraged to adopt a more strategic approach in the sponsorship solicitation
and management process.
Originality/value – Existing literature has discussed the role of sport sponsorship in brand management and the communication mix, and has
highlighted the benefits for firms that establish long-term ties with the Olympic Games. The present research adds to that line of work by highlighting if
and how a strategic and brand building approach was adopted in the context of national-level Olympic partnerships.
Keywords Sponsorship, Olympic Games, Brand management, Corporate strategy
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
The meaning of sponsorship as an integral element of the
marketing mix has been conceptualised by Sandler and Shani
(1993) with the following definition: “[Sponsorship is] the
provision of resources (money, people, or equipment) by an
organization directly to an event or activity in exchange for a
direct association to the event or activity” (p. 39).
Corporate spending on sport sponsorship in many
European countries and in North America has increased
dramatically (Lachowetz et al., 2003). Global spending on
sponsorship was estimated to reach $US28 billion in 2004
(from $US25.9 billion in 2003) of which, according to the
International Events Group, 69 per cent relates to sporting
events (International Events Group, n.d.).
There is plenty of evidence that sport sponsorship,
including Olympic sponsorship, can be very effective in
achieving a number of objectives, not the least of which is
competitive advantage related to brand image and reputation
(Amis et al., 1997; Copeland et al., 1996; Meenaghan, 1998).
The sport marketing literature provides some discussion on
the value of sport sponsorship in also delivering other
benefits, such as increased awareness levels, sales and greater
market share, and opportunities to develop employee and
client (i.e. hospitality) relations (e.g. Abratt et al., 1987;
Apostolopoulou and Papadimitriou, 2004; Irwin and
Asimakopoulos, 1992; Lough et al., 2000; Ludwig and
Karabetsos, 1999; Scott and Suchard, 1992).
The technological developments related to sporting, events
along with the growing interest of the media for such
activities, account to some extent for the steady increase of
sport-related sponsorship investments (Meenaghan, 1998;
Shilbury et al., 2003). Meanwhile, the decreasing corporate
trust in the efficiency of traditional media advertising channels
may also explain why corporate investments in sport follow a
growing trend (Meenaghan, 1998). Despite the pervasive
appeal of the sport sector, however, companies have plenty of
other event options at a local, national and international level
from which to choose; thus greater emphasis on return of
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
17/4 (2008) 212–222
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610420810887563]
212
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