Sponsorship
Sponsorship is a tax-deductible form of self-promotion. it consist of financial help to associations, events or people.
It allows companies to enhance their image, reinforce customer loyalty and capture new markets while supporting the arts and other causes.
Leading sports equipment companies have been involved in basketball since the early 1970's, when they first desgned shoes specifically for this sport. Over the years, these companies have become closely associated whit basketball through sponsorship of popular players.
Shoes and other equipment are even named after players.
A middle-range basketball players earn around $100,000 a year from sponsorship contracts, but bigger stars can get up to several millions
Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property.
While the sponsoree (property being sponsored) may be nonprofit, unlike philanthropy, sponsorship is done with the expectation of a commercial return.
While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different to advertising.
Unlike advertising, sponsorship can not communicate specific product attributes. Nor can it stand alone. Sponsorship requires support elements. And, while advertising messages are controlled by the advertiser, sponsors do not control the message that is communicated. Consumers decide what a sponsorship means.
A range of psychological and communications theories have been used to explain how commercial sponsorship works to impact consumer audiences. Most use the notion that a brand (sponsor) and event (sponsoree) become linked in memory through the sponsorship and as a result, thinking of the brand can trigger event-linked associations, while thinking of the event can come to trigger brand-linked associations. Cornwell, Weeks and Roy (2005)[2] have published an extensive review of the theories so far used to explain commercial sponsorship effects.
One of the most pervasive findings in sponsorship is that the best effects are achieved where there is a logical match between the sponsor and sponsoree, such as a sports brand sponsoring a sports event. Work by Cornwell and colleagues[3] however, has shown that brands that don't have a logical match can still benefit, at least in terms of memory effects, if the sponsors articulates some rationale for the sponsorship to the audience.