Presentation for a paper to discuss sponsorship and its development and a short case study on how sponsorship can work for a Malaysian company outside of its main industry as well as worldwide.

1. Presenter:
Jainurin Justine
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2.  What is Sponsorship?
• Definition, Motives & Objectives
 Sponsorship & Advertising
 Sponsorship & Communication
 Case Study
 Other Aspects of Sponsorship
 Conclusion & Future Research
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3. “ The provision of assistance either financial
or in-kind, to an activity by a commercial
organization for the purpose of achieving
commercial objectives ”
(Meenaghan, 1983)
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4. 4
Charity Donations
Philanthropy Patronage
Commercial Advertising
Commercial

5. Brand Awareness
• Through association with an event which has a
societal profile and thus delivers an audience
Brand Image
• By transferring the image values of the sponsored
event to the brand
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6. Brand Relationship
• By making an emotional connection to the consumer
by supporting the event
Brand Sales
• By creating brand awareness
• By enhancing brand image
• By encouraging consumer goodwill
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7. The exposure potential which the
activity has in terms of audience
The image associated with that activity
in terms of how it is perceived
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8. 8
(Source: IEG)

9. 9
(Source: IEG)

10.  Example 1 - Sports
• London 2012 Olympic Games
• Revenue: 4.8 USD billion
• Sources of Revenue:
 Broadcast Rights 2.6 USD billion (53.2%)
 Sponsorship 1.15 USD billion (23.8%) *
 Ticket Sales 988 USD million (20.5%)
 Licensing 119 USD million (2.5%)
* Excluding The Olympic Partners (TOP) sponsors
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(Source: Olympic 2012 Marketing Fact File)

11. Government Policy on Alcohol and
Tobacco Products
Escalating Costs of Advertising Media
Inefficiencies in Traditional Media
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12. The Proven Ability of Sponsorship
New Opportunities due to Increased
Leisure Activity
Greater Media Coverage of Sponsored
Events
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13. Broadly similar in terms of the objectives
that can be achieved
Yet important differences as
communications media
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14. Advertising: Media and message are
two separate components
Sponsorship: Both media and message
elements combined
The Key Difference: Sponsorship
engages the consumer differently by
bestowing benefit on an activity/event
with which the consumer has an
emotional relationship.
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15. Sponsorship as a Media
Provides access to audience
• E.g.: Olympics 2012: 3.6 billion viewers
• World Cup 2010: 3.2 billion viewers
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16. Sponsorship as a Message
Communications platform
Announce new brand
Associate with image
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17. Alternative communication medium compared:
(Meenaghan, 2001)
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Comparative Factors Sponsorship Advertising
Goodwill Beneficial Selfish
Focus Indirect/Subtle Direct/Forceful
Intent to Persuade Disguised Overt
Consumers’ Defence
Mechanism
Low State of
Alertness
High State of
Alertness

18.  Cognitive (“Learn”)
• Awareness, recall or recognition
 Affective (“Feel”)
• Attitude (gratitude & goodwill) and intention to buy
 Behavioral (“Do’)
• Triggers positive response
• E.g.: Trial, repeat purchase and loyalty
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19. PETRONAS began its internationalisation
drive in the early 1990’s.
Although a Fortune 500 company, the
company was not well known outside of
the oil and gas industry.
 In 1995, the company decided to sponsor
the Sauber team in Formula 1 (F1) Grand
Prix with a two-year USD2 million
sponsorship.
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20. Sponsorship of the Sauber team was
considered as “the first step in the process
in raising the company’s profile around the
world.” (Saward, 1996).
Relationship with Sauber grew with
creation of Sauber PETRONAS
Engineering AG, a joint venture automotive
engineering company.
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21. PETRONAS was also able to test and use
its petroleum products on the F1 cars.
 In 1999, PETRONAS became the title
sponsor of the Malaysia F1 Grand Prix
race in Sepang.
Until 2012, PETRONAS has been a team
sponsor for 17 years (now with
MERCEDES) and a race title sponsor for
13 years.
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22. PETRONAS sponsorship of the
MERCEDES team and title sponsorship of
the Malaysian F1 Grand Prix race will run
until 2015.
F1 races total global viewers in 2011 was
reported at 515 million.
Exposure to new markets in a third country
based on writer’s own personal experience
from 1998 to 2002.
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23. Measurement of Effectiveness is a Key Issue
• Possible Measurement Points
 Media Exposure (Television/Radio/Press)
 Awareness Exposure (Prompted/Unprompted)
 Event/Sponsor-Event/Brand
 Image (Favourability Index/Standard Battery of Image
Dimensions)
 Relationship (Affinity/Closeness/Empathy)
 Sales (Predisposition to Buy/Purchase Intention/Behaviur)
• Research required to gauge effectiveness of
sponsorship activities
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24.  Cause Related Marketing
• Direct relationship between the sales of a company’s
products and the company’s support of a social cause
 Ambush Marketing
• The practice whereby another company, often a
competitor, intrudes in the public attention surrounding
the event, thereby deflecting attention to themselves
and away from the sponsors
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25.  Advertising
• Increasing advertising costs
• Wider coverage by sponsorship
 Communications
• Media clutter/noise in advertising
• Combined message and media in sponsorship
 Consumer behaviour
• Changing lifestyles – more leisure events
• Consumer goodwill from sponsorship
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26.  Limited research on sponsorship in Malaysia
has been done to date
 Researchers can undertake research with
sponsors
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