The Evolution Of Sports Sponsorship Marketing Essay

Published Date: 23 Mar 2015

The objectives of sponsorship depend on the purpose of the commercial or institutional communications. Thus, an outline of the objectives generally associated with these two types of communication will be presented.

2.1 Sponsorship and commercial communication

A commercially orientated sponsorship communication will seek to increase sales. However, the purchase or repurchase of a product or service is influenced by a great number of variables relating to the customer, the environment and the marketing operation. Specifically, sponsorship is used to increase the credibility and awareness of a brand, to enhance image transfers and to stimulate a distribution network or a sales force to develop business-to-business relations. Each objective mentioned I will now examinate.

2.1.1 Credibility-oriented sponsorship

The primary objective assigned to sponsorship was to increase the credibility of a company. Credibility-orientated sponsorship aims at associating the technical performance of a product or service with an event, directly (sport shoes for example) or indirectly (information management). Sponsors opting for this type of sponsorship approach are typically amongst the 'official suppliers' sponsorship package category of an event. This type of sponsorship serves the product strategy of those companies that typically operate in the technical or technological surroundings.

2.1.2 Brand awareness sponsorship

Awareness relates to the fame and recognition of a brand, product or service within a population. In a strict sense, awareness is the act of being recognized or quotes independently from the components of the image. It is a measure of the percentage of target customers who are aware of the object's existence. There are two types of awareness which correlate. The so called, unprompted brand awareness corresponds to the percentage of people who are able to name a brand or event spontaneously in a given product category or event category. Prompt brand awareness indicates the percentage of people who are able to name a brand from a list relating to a category of product or service, while taking into account that the list also contains fictitious brands or certain brands that do not belong to the category. This indicator assesses the ability to recognize various brands, and it generates a higher number of responses than with spontaneous awareness surveys.

2.1.3 Image reinforcement and transfer through sponsorship

The term image relates to the set of associations relating to an entity (for example event, brand, athlete, etc.) With the image transfer sponsorship, the sponsor's intention is to appropriate the image of a sporting event to its own brand, service or product. The appropriation calls upon two procedures which I will analyze in detail in the following part.

The first procedure consists in reinforcing associations shared by the sponsor and the sponsored entity. The second procedure consists in transferring specific features of the image of the sponsored entity to the image of the sponsor.

The image of a brand influences purchasing decisions, where upon brand management is important from a strategic perspective. The sponsor may wish to reinforce certain associations of its choice (being festive or reactive) or to create new associations (being being ecological and close to nature). In this context, the strategists of a company can evaluate the appropriateness of an image transfer sponsorship operation by carrying out an analysis of fit relating to associations between the desired identity and the image of the event. They can share certain image features even though the sponsored entity may also posses specific features. It is thus possible from a strategic point of view to consider a reinforcement of common associations as well as a transfer of associations specific to the sponsored entity. In order to achieve this, the strategists will need to evaluate the acceptance and credibility of the association between the company image and that of the sponsored entity with the stakeholders. That evaluation can be done by collecting the opinions of a focus group concerning the association between the sponsor and the sponsored entity (Does sponsor x and the sponsored entity y fit together well?) and the image features to be transferred to the sponsor.

2.1.4 Mobilizing the distribution network

The sponsor can also mobilize its distributions network by associating it directly or indirectly with the sponsorship operation through, for instance, exhibitions, special operations and public relations. Volvo, sponsor of the Volvo Ocean Race, organizes Volvo ocean race days in corporations with its dealers. These days organized in the countries the race takes place are reserved for the customers of the dealers. Through this type of sponsorship operation Volvo also reinforces its partnership with dealers.

2.1.5 Stimulating the sales force

An event of interest to the sales force can be used as a support to stimulate the sales force through a sponsorship operation, thereby creating conditions for obtaining better commercial results. An emulation sponsorship operation may consist of organizing a competition amongst the sales force with a view to rewarding the best salespeople by inviting them as VIPs to the event of interest. Sponsorship operations whose aim is to stimulate sales forces can be coupled with operations to mobilize the distribution network which exploits the interest carried by the customers of the sponsored event. Combined operations provide salespeople with additional arguments contributing to increase sales.

2.1.6 Propagation of goodwill and positive attitudes

Goodwill attests to a favorable attitude towards a sponsor. Depending on the market, goodwill more or less influences purchasing decisions. It is rare for people to buy a brand to which they have an unfavorable attitude. Sponsorship aims at transferring the positive attitude in the targeted people, based on the fact that the involvement of the sponsor in the event contributes to the development of sport in general. During the Atlanta Olympic Games, a survey was conducted where 87 percent of the respondents agreed with the statement 'sponsorship largely contributes to the success of the Olympic games' and 55 per cent of them expressed a favorable attitude toward the official sponsors.

2.1.7 Developing business to business relationships

Public relations operations carried out in conjunction with the sponsored event constitute an effective way to develop business relationships between companies. Public relations operations are generally carried out in a prestigious and controlled environment where guests can entertain themselves, thus contributing to create privileged and individualized relationships. In the context of large events, most sponsorships packages include this type of service provision. However, it is necessary to keep in mind that the event must be attractive to theexecutive4s and managers. Additionally, the environment suggested must offer a fun and memorable experience to VIPs. Moreover, a public relations operation is one competitive advantage of sponsorship.

2.1.8 Increasing the sales

This objective constitutes the ultimate commercial goal of sponsorship. As previously mentioned, purchasing is influenced by a large number of factors, some of which relate to the marketing approach, whereupon it is difficult to isolate the impact of sponsorship on sales. Nevertheless, it is acknowledged that sponsorship contributes to sales development in the mid-term, with the possibility to evaluate the impact through particular operations. If, for instance, we combine a sponsorship operation with a sales promotion we can evaluate the tangible benefits offered to customers.

2.2. Sponsorship and corporate communication

Sponsorship can also be integrated with corporate communication strategies. Four categories of objectives enter into this situation.

2.2.1 Developing social marketing programs

Since the 1960s, corporations have realized that harmonious integration within a local community paves the way for establishing good relationships with citizens and institutional actors, thereby contributing to a positive climate inside the corporation by reducing conflicts. Social marketing is the application of marketing concepts and tools to programs designed to influence the voluntary behavior of target audiences where the primary objective is to improve the welfare of the target audiences and/or the society of which they are a part (Andreasen 1994). Major European soccer clubs such as FC Barcelona and AC Milan FCB have established foundations in order to finance these programs in partnership with their sponsors.

2.2.2 Promoting corporate policy, reinforcing internal cohesion and motivating company personnel

These objectives are very important for a company. Sports sponsorship constitutes such a remarkable platform to create social bonds that a local basketball club sought to find one company sponsor per game. The company sponsor could invite its personnel and their families. They could relax and meet with managers, executives, and their respective families while enjoying themselves at a buffet dinner. Children had the opportunity to meet with players after the match and were aloud on the court for mini clinics and 3-on-3 matches. This type of corporation allows for each individual to be acknowledged and have fun, which is good for business because it has a positive impact on the motivations of the personnel and on work relationships.

2.2.3 Enhancing personnel recruitment

Recruiting quality personnel is another key factor for a company as it directly influences the company's performance. As a result, companies must work on their corporate image. By the way of illustration, ECCO, a European consulting company for temporary job placement, used its sponsorship involvement in the Masters Series of climbing to recruit qualified personnel with a message focused on leadership. Additionally, ECCO set up workshops on internal cohesion within the company to which it invited all its partners.

2.2.4 Companies combine commercial and corporate objectives

Sponsors have learned how to combine marketing or commercial and corporate strategies. Sponsors are supporting grass roots of sports projects. The insurance and services company Norwich Union has been one of the major partners of British athletics since 1999, with more than 2 million Euros, or 2 per cent of the total deal, going towards development of the sport. In an interview (Gillis 2004: 39), the company's head of sponsorship, community and event management stressed the fact that the program is a brand positioning tool: 'services are often perceived as faceless and uninspiring. It is important for the brand to be seen as active in the community as part of our CSR. This is where our staff and policyholders live and work'.

The relational aspect of sponsorship has become increasingly important for companies needing attractive platforms to entice their customers, suppliers, prospective customers and partners, as well as for creating solid ties which go beyond mere commercial transactions. These strategies evolve with the objectives of the company through the life cycle of the product and according to the marketing plan. It may be necessary for a company to start by enhancing its brand awareness before working on its image, then stimulate its sales network, act on promotions in point of sale, improve its expertise, promote company values, develop customer loyalty, and so on.

3. Two emerging questions: exploitation and effectiveness of sponsorship operations

Although certain decision makers in the 1980s engaged in operations of sponsorship that were often fuelled by euphoric climate and their passion for the sport, the question of the effectiveness of this system of communication always arose. In an article published in the monthly magazine Medias, Field (1981) considered that sponsorship strategies were often implemented in an indistinct way, thereby making it risky for companies. In 1984, Advertizing Age carried a review article by Walsh, who was arguably in full agreement with that paradigm. Similarly, Gross (1987) investigated the measurement techniques American companies used to determine the effectiveness of sponsorship during 1985 and 1986. The investigation showed that approximately half of these companies did not assess the impact of sponsorship operations.

In 1987, the French monthly magazine L'Expansion published a sponsorship-related article by Rouge in its economics section expressing the malaise of the companies which had spent nearly two billion francs (that time) in an almost total fog. In 1988, Bowey wrote the editorial for the congress of the European Society for Opinion and Marketing Research (ESOMAR) entitled: "Sponsorship effective or extravagant?" the same year, an article in a French review magazine paved the way for introducing more rationality in sponsorship campaigns (Communication and Business 1988).

Development of broadcasting sponsorship

This period of rationality in sponsorship coincided with the advent of broadcasting sponsorship, which consists of selling sponsorship of the transmission of a sporting event to an advertiser. The sponsor receives service provisions such as promotional trailers before the broadcast of the event, break bumpers and injection of their logo during breaks in the performance of the event. This trend which is expanding rapidly is certainly irreversible given the commercial approach of television broadcasters. The growing share of private television channels, combined with the increasing competition between public and private television networks to secure the audience, has led television broadcasters to obtain the exclusive rights to the most popular sporting events.

On-site audience:

Ahtletes

Spectators

Guests Figure: Two types of sponsorship

On-site sponsorship

Event

Rightful owner

Distant audience:

Viewers

Listeners

Readers

Web surfers

Media Sponsorship

In this context, it became extremely difficult to make a profit from advertising revenues alone because the advertising competition was intense. Subsequently, broadcasting sponsorship became a necessity. Sponsorship is recognized as a mean of communication offered to companies that can be used to promote their image. Unlike product placement, sponsorship has a different function from advertising screens and news papers. Its official function is to represent the company sponsor. Consequently, on-site sponsorship came into existence. If a sponsor desired to promote its involvement in an event or to be associated with it, it would simply sponsor the televised transmission of the event. To prevent this so called 'ambush marketing' and to reinforce their impact, dominant sponsors invest in both on-site and broadcasting sponsorships. Ambush marketing focuses on non-sponsorship promotions coinciding with a given event, whereby it is possible to reach the very same audience interested in that sponsored event. Ambush marketing spurred the advent of events specially designed for the sponsors. Controlled events come with service provisions including the concept, organization and television broadcast.

This evolution was confirmed by the French Union of Advertisers (UDA) bi-annual investigation carried out in 1990. The conclusion of the investigation was that sponsorship appeared as a new but unique mode of communication. Advertisers had learned how to deal with the habits of sponsorship and when to make use of it. Today sponsorship has an uncontested legitimacy, which is supplemented by the professionalism of advertisers. However, the rapid evolution of sponsorship slowed at the beginning of the 1990s due to a major restructuring in the sector.

Sponsors choose sponsorship to communicate a message while keeping an eye on the economic impact of the sponsorship operation. Company sponsors are essentially the partners of sporting events and possibly sport in general. The event is the cornerstone of the sponsorship operation because it is the event that gets most of the visibility through media coverage. The media also contribute to the direct financing of the most important events by securing rights of transmission. Media financial involvement is increasingly consistent with the size of sporting events.

The increase in rights purchased by broadcasters to transmit the Olympic Games constitutes another indicator testifying to the tendency that the inflation of those fees is tied to the increased size of the Olympic audience. Indeed, the broadcasting rights increased exponentially from 1.2 million dollars in 1960 to 900 million dollars in 1996!

The inflation in TV rights can be summed up with one word: profitability. The combination of broadcast sponsorship and large audience ensures profits which was good news for the Olympic Games. For example 29.4 per cent of American households (82 million people) watched Tommy Moe winning the gold in the downhill at the Lillehammer Olympic Games on CBS in 1994. The Olympic Games' reach is comparable with that of the most important sporting event in the USA, the American Football Super Bowl, which reached 90 million viewers in 1993. The economic relationship between television and sport, mediated by the audience, has led broadcasters to program the most popular sports to the detriment of other sports. Thus, in 1992, French television channels programmed two sports extensively: tennis (21 per cent) and football (16 per cent). Cycling came third with only 5.5 per cent of the time allotted to the transmissions of sporting events.

Broadcast sponsorship offers some advantages compared to on-site sponsorship:

Guaranteed exposure;

Branding opportunity;

Possible low cost;

Better transfer in relation to the association with the event and unprompted brand awareness.

Heineken sponsored the broadcasting of the rugby world cup in England. The impact study by TSMS, a research agency specializing in the sponsorship and sports sectors, shows that the brand awareness of Heineken was greater than that of any other sponsor of the event. This leads me to believe that the reason Heineken was effective in its sponsorship operation was linked to the fact that it was the only company to sponsor the broadcasting of the event in England.

Sport sponsorship the improved integration with the marketing mix

According to a study carried out by Sponsorship Research International (SRI) in 1996, the world market of sponsorship was rebalancing. In the early 1980s, the United States' share of sponsorship-related expenditures represented more than 50 per cent of the global market. In 1994, their share had decreased more than 50 per cent of the global market. In 1994, their share had decreased to 34.8 per cent, while Europe accounted for 32.9 per cent of the world sponsorship market. According to Chris Jones, project manager with SRI, increasing sponsorship expenditures from Asia increased to balance the world sponsorship market of recent years, as Europe's and the United States' respective sponsorship-related expenditures declined. The sponsorship approach of the 1990s shows a better integration with the component of the marketing mix. The sponsorship communication approach became more fully integrated into the marketing approach, thereby creating the concept of integrated Communications Marketing'. Imparting more rationality to sponsorship operations requires focusing more on the results, especially on the return on investment. Ultimately, sponsors banded together to counter the ambush marketing strategies which had risen in the mid 1980s.

Interaction between sponsorship and marketing-mix components

Recent developments in sponsorship relate to the aim of sponsorship, but also to the relationship between sponsorship and components of the marketing mix. During the1980s, sponsorship was incorporated into the communication strategy. Thus it appeared that sponsorship had a specific instrument resulting from a decision-making process similar to the one applied in advertising, public relations and so on. The position of Otker (1988) reflects the model of the 1980s: commercial sponsorship consists of buying and exploiting the association with an event, a team, and a group with specific aim of marketing, thereby showing that sponsorship must contribute to the achievement of the marketing objectives. Hence, sponsorship began to evolve during the 1990s as sponsors learned how to develop synergies between sponsorship and components of the marketing mix.

The work of Dambron (1991) entitled 'Sponsorship and Marketing Policy' underscores the will to rationalize 'the existing relationship between sponsorship and marketing management' by focusing on the 'incorporating of sponsorship and components of the marketing mix, namely product, price, distribution, and communication.' Dambron's work is based on qualitative investigation with large French companies, some financed with subsidies from American or Japanese companies. His analysis reveals that the current challenge for sponsors and sporting organizations is to enhance the integration of sponsorship with the abovementioned components of the marketing mix.

N this context Derbaix et al. (1994: 72) define sponsorship as 'a technique used by a company to create or support an independent socio-cultural event via media sponsorship in order to achieve marketing objectives'.

Sponsorship and the management of products and services

Sponsorship is likely to further the management of the products and services of certain companies when these products and services are directly or indirectly related to the sporting event. This approach correlates to the sponsorship category, referred to as the official suppliers' category, abound in the technical and technological fields. It is also possible to demonstrate the credibility of new innovative technologies and, by extension, of product components.

Based on his analysis of sponsorship strategies in this field, Dambron proposes the following typology:

Direct product demonstration. A company employs a sponsorship operation to show and prove the quality and reliability of its products. By joining the F1 BMW-Williams team, Compaq built its image as a technology market leader. Compaq wants to demonstrate to the general public that it manufactures state-of-the-art products delivering high performance. Compaq's message is expressed in advertisements such as: in our world, wasting time is the only obstacle to success. By using Compaq's high performance Evo mobile workstation equipped with the Intel Pentium M processor, the BMW-Williams F1 team optimizes its tunings due to the Compaq technology and it gains invaluable tenths of seconds. To win a race, it is essential to save on time.'

Indirect product demonstration. A company's decision to engage in a sponsorship operation may be based on the need for further research and development or on the issue of developing innovative solutions. This is also one of the objectives of the sponsorship operation in which Compaq engaged with the BMW-Williams team. Compaq's ongoing research process is reinforced through its slogan 'inspiration technology'.

Product creation. A company employs a sponsorship operation to create a new product within an existing product category or to expand its customer base. In 1989, Peugeot created the Roland Garros series with its flagship the Peugot 205 model. The idea was to capitalize on the sophisticated image of the Roland Garros event with a view to transferring the credibility of the event to the Peugot 205 model, thereby segmenting the consumer market with a car expressing social status. The success of this composite brand name enables the car manufacturer to apply it gradually to its complete range of vehicles.

In the services category, the sponsorship operation is used to enhance the image of the company relative to the quality of its services by focusing on tangible aspects, reliability, responsiveness, customer care, and empathy and so on. A good example is the sponsorship operation carried by UPS (the transporting company) during the Olympic Games.

Sponsorship strategy and pricing policy

Sponsorship operations enable sponsors to channel the focal point of the direct and indirect public onto their products and services. Furthermore, price is a crucial factor influencing the purchasing decision. Sponsorship can be connected to the pricing policy in two ways. This first one relates to product placement, while the second is related to promotional strategies.

Sponsorship and product positioning

Sponsorship operations can allow sponsors to up market their products or services. The purpose of product positioning is to shape consumers beliefs with the hope consumers will ultimately differentiate the sponsor's brand from the brands of its competitors. Therefore, it is crucial to position the brand so it presents a clear and unique recognition in the mind of the consumer. According to Ries and Trout (1981: 23), product positioning has nothing to do with what you do to a product; it relates to what you do with 'the mind of your future customer, the prospective customer'. Thus, sponsors must seek to have their brands linked with wealthy social groups. Insofar as it is accepted in the public eye, it is possible to up market a sponsor's brand. Rolex used this strategy to up market its watches by associating with golf: this was the only way to rationalize the higher price of the Tudor branded watch, which is identical to the Submariner non-branded watch.

The Heineken group owns the Heineken, Amstel and Murphys brands. Heineken is expensive due to its pinnacle positioning, whereas Amstel is more popular and less expensive. Murphys, a dark ale, was never used to engage in a significant sponsorship operation. Sponsorship is an important part of the communication strategy of companies because it is an ideal platform to build a brand in various countries. In addition, a common passion for sports permits Heineken to bridge the gap with current and prospective customers, while facilitating trade agreements. The beer company manages its sponsorship strategy by adhering to the following three principles:

No sponsorship of motor sports because of the risk of accident;

No sponsorship of teams or athletes because the sponsorship operation impact often depended on their sporting results;

Event-driven sponsorship only.

Given the positioning sought for these two brands, Heineken limits its sponsorship to tennis, rugby and music events, while Amstel sponsors football, in particular the UEFA Champions League. Based on recent market studies demonstrating that the positioning of both event and brands has evolved, the company decided to substitute Heineken for Amstel for the 2005-6 season. This sponsorship-based example shows that the relationship between price management and brand positioning is substantial. Depending on the situation, a sponsor may choose to reinforce their brand positioning or to reposition it.

Sponsorship and sales promotion

Promotional strategies are directly related to the pricing policy. According to Dominitz and Tochon (1988: 26), promotions will have a 'direct influence on the purchaser by freeing him from his daily life while inviting him into an entertaining environment. Admittedly, promotions do not alter the customer's concern about the price, yet they specify, involve, and decorate its purchases'. Promotions generate consideration towards the brand. Sponsorship operations have the power to channel people's attention to the brand, thereby setting up solid base for promotional operations. There are several promotional techniques: price reductions, free gifts, special offers, samples, exhibitions, tasting contests and games.

The importance of the return on investment

Depending on their objectives, companies carry out an in-house study or outsource it to a specialized agency. They retain the task of carrying out in-house studies for the gathering of specific information and for the impact on sales. Most companies outsource the analysis of media effects, image surveys and their portfolio to a specialized firm.

Event organizers tend to follow the same trend. Indeed, impact studies are useful to the organizer because they allow him/her to provide quantitative and qualitative information to sponsors in an effort to get their loyalty. Additionally impact studies enable organizers to better target their search for sponsors and to provide commercial incentives to sponsors. Thus the International Olympic committee carried out its first study in 1985. Since then, the studies have expanded considerably.

Havas Advertising Sports developed the Sports Metrix, a toll that has the capacity to analyze 10.000 newspapers originating from five continents. It can process information based on linguistic model and evaluate the meaning of that information. The automatic press review makes it possible to select standard commodities and to detect trends. This tool can also be used to analyze the image of a sponsor, opinions about the positioning or reputation of a brand, past evaluation trends, and the moves of competitors.

In 1994, ISL Worldwide created Sponsorship Research International (SRI), which analysis the media effects of sponsorship. SRI calculates the audience of an event; it measures the associations between a sponsor and the sport or event it sponsors; and it evaluates the co hence between a sponsor and the sport or the event the sponsor is associated with.

Sport Surveys Marketing, which was set up the same year, is an independent English company that specializes in the analysis of media effects. It links television effects with the measurement of the impact of the sponsorship operation through two specific indicators. The first indicator calculates the television airtime allotted to the sponsor in order to estimate the corresponding advertising equivalent. The second indicator determines unprompted and prompted brand awareness with a view to identifying potential purchasing intentions.

Developing brand equity

From a marketing point of view, it is impossible to ignore brands. The brand is valuable both for the sporting organization and the consumer. Kapferer and Laurent (1983) showed that consumers were more aware of a brand when there was a perceived risk in matters of proper choice, financial expenditure, and safety and so on. Symbolic brands such as Nike and Adidas compete with Coca-Cola, Sony, Levis and other well-known brands. Major sporting events such as the Olympic Games, Football World Cup and Organizations such as FIFA, NBA, Manchester United and Ferrari follow the same trend. These brands have achieved a certain degree of 'clout' which Aaker (1991) refers to as brand equity for their added value perceived in the market. Brand equity corresponds to all the assets and liabilities linked to a brand, including its name or symbol, which add to or subtract from the value provided by a product or service to a firm or its customers. The assets and liabilities underlying brand equity must be linked to its name and symbols (logo, packaging, color etc.). If a company changed its name or logo, all or part of its assets would be modified or perhaps lost, although certain components with the original brand could be transferred to the new name or new symbols of the brand. The assets and liabilities of brand equity are varied and they differ from one case to the next. Aaker (1991: 16) categorizes brand equity into a set of five categories of brand assets and liabilities. These categories are:

'brand loyalty;

Name awareness;

Perceived quality;

Brand associations in addition to perceived quality;

Other proprietary brand assets - trademarks, patents, channel relationships, etc.'

Minimizing the risk of ambush marketing

According to Bayless (1988), ambush marketing is a strategy by which an organization indirectly associates with an event in order to obtain the same benefits as the official sponsor. The first occurrence of ambush marketing occurred during the 1984 Olympic Games with Eastman Kodak strategizing an association with the games, although Fuji had won the sponsorship bid to de the official sponsor. Kodak created this association when it sponsored the rebroadcast of the games on ABC, as well as the official movie of the American sports teams. During the 1988 Olympic Games, all the official sponsors saw at least one of their competitors use the ambush marketing strategy. Wendy's ambushed McDonalds's American Express ambushed Visa, Quality Inns ambushed Hilton, and Fuji took revenge against Kodak which was then the official sponsor of the 1988 games. Fuji carried out a massive communication campaign associating it with the American swimming team and several American athletes. This phenomenon increased in the course of the Olympic Games. Sandler and Shani (1989) characterize ambush marketing as a planned effort (campaign) by an organization to indirectly associate with an event with a view to capture partial recognition and benefits conferred to the status of being the official sponsor. Their definition reveals the fact that ambush marketing is a carefully designed strategy. Ambush marketing is rather expensive given the fact that it mostly relies on the media and, if possible, on the sponsorship of the television broadcast of the event. Furthermore, the main objective of ambush marketing is to create confusion in the minds of consumers in order to reduce the impact of the sponsorship operation of a competitor.

Consequently, the IOC has attempted to prevent ambush marketing since the latter could jeopardize the financing of the Olympic movement by undermining the confidence of company partners in the International Olympic Committee's marketing program (TOP). According to the IOC, ambush marketing includes:

The utilization of a means by a non-partner company for creating a false association with the Olympic games;

The violation of laws protecting the use of the Olympic symbols by a non-partner company;

The intentional or involuntary interference of a non-partner company with legitimate marketing activities of the Olympic company partners.

Taking into account the treat caused by ambush marketing, the IOC took the following seven initiatives prior to the 2000 Sydney games.

Lobbying of the New South Wales government for the implementation of a specific legislation proving full protection for the Olympic brand, thereby setting restrictions regarding the sale of merchandise occurring in the street, aerial publicity over the city of Sydney, and unauthorized marketing operations. Subsequently, three acts were proclaimed, namely the Olympic Insignia Protection Act 1987, the Sydney 2000 games Protection Act 1996 and the Olympic Arrangement Act.

Control of marketing operations in the airspace over the city of Sydney.

Agreement with the World Federation of the Sporting Goods Industry (WFSGI) specifying the rules with regard to marketing.

New directives regarding the sale of tickets, the operations of public relations, and the promotions involving National Olympic Committees (NOCs).

An umbrella marketing program specifying the right and duties of the event and of the Olympic family for preventing the risks of conflicts between TOP partners belonging to different product categories.

Monitoring of ambush-marketing attempts in the media and on the internet.

Ensuring that there is no publicity within the perimeter of the sporting venues.

The Olympic Games were the first victim of ambush marketing. During the 1990s, new methods of ambush marketing developed with large-scale events. Meenaghan (1994: 80-81) made a list of such methods:

'sponsorship of the broadcast of the event';

'choosing to be a minor sponsor of the event, yet launch massive advertisement campaign';

'buying as many advertising slots as possible in the broadcast of the event';

'engaging in operations of on-site promotion during the event';

'Using photographs of recognizable venues, equipment , and/ or symbols as background in advertising campaign during the event'.

This is not an exhaustive list since creativity has no limits. In short, sponsors and organizations leaned to defend against ambush marketing following the example of the IOC. Sandler and Shani (1989) and Meenaghan (1994) suggested the following actions:

Reducing the number of sponsor categories and maintaining consistency in these categories;

Devoting more effort and money to protecting the event and to promoting the official sponsors;

Bundling on-site sponsorship and broadcasting sponsorship;

Checking sponsorship rights carefully, exploiting the most secure one and taking legal action against ambush marketing.

The debate concerning ambush marketing has become intensive, given the number of sponsored events, teams, players, referees, ect. Nike's comment concerning its marketing campaign for the 1998 FIFA World Cup was highlighting the fact that the company was not trying to cash in on the event through ambush marketing. It was simply partnering with teams and players who took part in the World Cup, thereby legitimizing its presence in that event. Nike has set up a program of communication focused on football, not on the World Cup. Consequently, over 250.000 people visited Nike's 'People's Republic of Football' , opened by the Brazilian football team, and featuring interactive games, merchandise and soccer skill areas. Miniature cars emblazoned with Nike strip. According to the Sport+ Market study (1998) Nike generated a 32 per cent sponsor recognition rate. Further, over two thirds of British consumers failed to recognize or misidentified the official world cup sponsors. Given such global competition, ethics in marketing should be discussed.

Activating the sponsor's brand in order to create the right experience with it

Three prevailing trends are evident in the evolution of sponsorship into the twenty-first century. First, sponsorship operations are utilized to promote (activate) the sponsor's brand in a manner that generates the best possible operational result. Second, company sponsors increasingly engage in relationship marketing. The third trend reflects the information technology influence on the relationship between sporting organizations, right owns of the event, and the media.

From promotion to sponsor's brand activation

As previously mentioned, sponsors have been investing more and more in the development of their sponsorship operations. At the turn of the twenty-first century, the notion of brand promotion was gradually replaced by the notion of brand activation. According to Coca-Cola's sponsorship manager,

Activation consists in making the brand more active than passive. When a brand is posted on a panel around a stadium, it is passive. When consumers can touch it (soft-drink bottle or can, a hat, a T-shirt with a photo of sport team on it, etc.), than it is active. The same applies when consumers can play the sponsors games in a demonstration game prior to purchasing the game. Each brand is activated in different ways that are most beneficial to the sponsor.

A brand brings a real benefit to the consumer when it is activated in a manner that associates it with an experience with the consumer. Thus, activation is a marketing strategy that aims at bringing an experience with the sponsor's brand in the context of the event to a targeted audience.

To activate a brand, it is essential to use the appropriate means in a well-suited environment. Activation is part of experiential marketing, which dissociates from traditional marketing centered on concrete product characteristics and the benefits these bring to buyers. It goes beyond it by offering an additional experience where customers feel, think, act and relate to a brand. The brand provides an identity, but it primarily provides an experience. Coca-Cola was one of the first companies to rationalize what is referred to as 'experiential sponsorship'. Accordingly, for Coca-Cola sport offers a unique platform to allow consumers an experience with a brand associated with the concept of fun and entrainment (physical and mental refreshment). From an overall perspective, their objectives of sponsorship are:

To build a relationship with young people by associating the brand with their axis of interests and happiness;

To create an unforgettable moment, a unique experience in connection with the brand;

To ensure Coca-Cola is perceived as a brand enhancing everyday life;

To ensure Coca-Cola is perceived as a dynamic leader;

To ensure Coca-Cola is perceived as a national sponsor at the local level and as a global sponsor at the international level.

Marketing executives work on the sporting environment in an effort to ensure the optimal experience with the brand. Prior to the 1998 FIFA World Cup, Coca-Cola strategists determined the types of experience it hoped to achieve with the fans/ customers of the brand.

Once experiential features are defined, it is essential to use appropriate means to trigger the envisioned experience. In this context, the means are used to deliver the envisioned experience which enable the activation platform to be developed. Experiential marketing relates to the characteristics of the sponsored event, thus it is essential to make a judicious relational choise. Additionally, the sponsor must collaborate with the organizer to work on the experience. The activation platform used by Coca-Cola during the FIFA World Cup made use of various means.

Slogans

'Always Coca-Cola' was replaced by 'Enjoy' for the Anglo-Saxon market and 'Vivez l'instant' (live for the moment) for the French-speaking market thereby focusing on the main benefit the brand brings to the consumers. During the 1998 Atlanta Football World Cupp, Coca-Cola used more assertive slogans such as 'live football, feel football, drink Coca-Cola'.

Packaging campaigns

Packaging conveys a sensory stimulation: sight and touch. During those world cup games, Coca-Cola developed progressive slogans and images on its 'collector edition' cans. This promotion of phrases and images stimulated the associative connectivity of sight with the tangible effects of touching through their association with football. This was determined to be the most effective means to support the bond between Coca-Cola and football; thus it stimulated both product purchases and participation in the event.

Media advertising

Coca-Cola carried out a worldwide campaign in which fans were the focus of the brand promotion. The advertising showed rejoicing fans. The topic of the first ad campaign was 'share the passion and celebrate'. According to the Coca-Cola sponsorship manager, 'the mere act of perceiving the emotion of spectators can at times provide stronger emotions than by watching football match'. Other ads, such as posters, expressed sadness with fans crying. The purpose was to express the interconnectivity between and all the World cup fans. The ad campaign prompted supporters to act, express themselves and engage in the event with tailored messages linked to aforementioned slogans, such as 'if there was a world cup for fans, would you qualify?' and 'Shake the world'.

Promotion

Promotional operations were carries out on a case-by-case basis through mass marketing. The intent was not only to grab market shares, but also reinforce the association with the brand and the feeling of goodwill towards Coca-Cola.

Merchandizing

Coca-Cola has extensive experience in this field because merchandizing is traditionally aan integral part of the activation platform of sporting events.

Games and contests

These strategies enable 'one-on-one' relationships with consumers in a highly emotional environment. Games and contests are an opportunity for fans to win free passes to football matches, including the finals.

Broadcast sponsorship

This form of activation constitutes the base of this type of sponsorship operation, as it makes it possible to capitalize on the emotional participation of supporters and spectators. Thus, Coca-Cola sponsored the broadcasting of the matches on television channels.

Internet

's website was primarily informative. Fans could visit Coca-Cola's website with a view to obtaining updated information concerning the event and ventures of the brand. Today, the internet is widely used for the activation of sponsorships.

In overview, the sponsorship activation platform used during the 1998 FIFA world cup demonstrates the will to mobilize a whole set of means to ensure that supporters and consumers experience the envisioned experience with the brand. However, successful activation requires a synergy between the organizer of the event and the sponsor. For these stakeholders, it is essential to choose an adequate environment and the appropriate means to ensure that the envisioned experience occurs. Such a desire generates operations of collaboration whose initiatives enter into the framework of systemic marketing.

Conclusion:

In the past 30 years, sponsorship has evolved both at the operational and strategic levels. Focusing on the essential principles on which sponsorship is built. To conclude is the following definition suggested:

Sponsorship is a communication strategy integrated within the set of strategies used by an organization in pursuit of commercial or corporate objectives, exploiting the rights to associate an organization, a brand, a product, with another organization, an event or a celebrity, involving a commercial transaction between the parties.

This definition underlines the most important principles of sponsorship. Thus, the marketing strategy incorporates the components of the marketing mix, and is an integral part of the operational policies of an organization, on an equal par with human resources, finance, R&D and production. As such, sponsorship is anchored in the marketing strategy, whereby it must be consistent with:

The principle of vertical integration to ensure coherence between the various strategies;

The interaction with the various strategies and activation.

Indeed, sponsorship operations must work in conjunction with marketing strategies when it comes to stimulating the sales force and the distribution network, while conceiving a new service (sending sporting results to mobile telephones) or supporting a promotion. Sponsorship operations also create a synergy with the overall strategy by stimulating, for example, the partnership with the institutional network in a country, thereby contributing to the internationalization of the company.

As outlined before, there are two types of sponsorship objectives: commercial communication and corporate communication. The direct association between an organization, a brand or a product with another organization, event or celebrity is the basis of sponsorship. The dynamics of interaction occurs within the event-driven system I analyzed in the introduction. I insist on the fact that is is the event itself, through its high emotional effect on people, which fuels the system. Thereby, a sporting event is a powerful social act associated with a specific image or 'brand equity', generating collectivity shared emotions, and whose outcome is uncertain.

The sponsorship exchange process occurs through a legal commercial transaction that may consist of monetary issues, service provisions, products, exposure of a brand or logo within the event, promotions and so on.