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Sponsorship and Congruity Theory: A Theoretical Framework For Explaining Consumer Attitude and Recall of Event Sponsorship

ABSTRACT

Sponsorship as a marketing communication tool has increased remarkably over the past two decades. Drawing from research in social psychology, a conceptual framework which affords a clearer understanding of the appropriate sponsoring of events when objectives are to improve consumer attitudes and increase recall is developed. The framework suggests that companies sponsoring events that provide a moderately inconsistent "fit" Bto their company will be viewed more favorably by consumers.

INTRODUCTION

Corporate sponsorship as a promotional acivity has increased remarkably over the past two decades and has been acknowledged as an increasingly important element of the communication strategy used by marketing-driven corporations in order to reach their customers. In 1996 sponsorship expenditure reached $13.5 billion worldwide (Sandler and Shani 1998) and is expected to reach $19 billion in 1999, making sponsorship the fastest growing area of promotion (Taylor 1999; Ukman 1995). Notably, more companies are involved in sponsoring leisure activities such as sports and music, while fewer are involved in the science...

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Understanding Exclusive Sponsorship Contracts

Printed in the Business Monday newspaper on July 26th, 2010

With the Crop Over season in high gear and much demand for event sponsorship, one issue that commands attention is exclusive sponsorship, where sponsors insist that businesses promote their products exclusively at events and venues.

The Fair Competition Act as enforced by the Fair Trading Commission prohibits the establishment of exclusive sponsorship arrangements if these arrangements lead to a substantial restriction of competition.

Sponsors often attempt to limit or deny businesses from granting similar promotional opportunities to rivals for the same event. The sponsor normally seeks to accomplish this by insisting upon a degree of exclusivity within the contract whereby the business hosting the event is restrained from dealing with the sponsor’s rivals. The extent of the exclusivity demanded is often dependent on the measure of financial input the sponsor is willing to provide.

There are a number of advantages and disadvantages of exclusive contracts.

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