How does a business build its vision in the market? In a world where cut-throat competition exists, corporate reputation and image have been perceived with a keen eye. Have you heard about sponsorship activities like premier League shirt sponsors? You definitely would have, and if not, you are probably far away from the business world. Sports sponsorship has been at the forefront of such activities. Organisations aiming to promote their products obviously want to cover a large audience with an even greater appeal from their side. Sponsorship through sports draws a lot of interest due to the sole reason that media covers most of these events. 

The concept of sports sponsorships

The agreement between any two parties regarding business is simply considered as a sponsorship. When the word “sport” is included in its definition, it simply means a disbursement of business financial resources into a particular sports event/activity in order to business goals. It's not necessarily only a sports event, but it's definitely the most preferred type. The business sponsoring an event provides money, goods, and services or any other type of cost. 

On the other hand, a sponsored business/event offers some trade rights with a limited or unlimited partnership to the sponsor. This process has a lot of different perspectives. 

Objectives of Sports sponsorships

According to various elites, the objective of participation and sponsorship can be indirect or direct. The direct objectives include a rapid change in the behaviour of current and potential customers of the sponsoring company. The indirect objectives are more inclined towards the long term recognition of products with improvement in application and communication with the increased number of potential customers. 

Sports sponsorship and its role in the corporate world

According to recent studies, out of about 60 types of sponsorships, the sports sector stands at 84% of the total market share. There must be something this type attracts most big leaders to find it as the most effective tools of promotion. The buyers' behaviour is dependent on how any business promotes. The market leaders have now figured out a way to influence what people think. 

It has a direct impact on the marketing and image building department of the business. Most businesses are allocating a major part of finance into sports sponsorship due to the previous results it has shown. 

How to determine the areas of investment?

It looks very simple, yet the complexities are hidden behind the curtains. At least basic knowledge of sponsors and their patterns which determine the decisions from the past is essential. Either a business can follow an already tried and tested method like football shirt sponsors, for example, the established teams like Manchester United, Real Madrid and many other established football clubs which have a brand name right in front of the jersey. Or they can invent something new with a belief to create value in their customer base. It’s intended to be a win-win situation, where the sponsoring side needs to be more careful of the results.

Published by Zoe Sewell