As the world of business continues to evolve, the way people advertise their products and services also changes accordingly to fit the newer generation of consumers. Recently, one of the most popular ways of advertising is the act of sponsoring certain sports to expose the brand of the company. As seemingly beneficial as it sounds, there are hidden costs and cons of this way of marketing. Hence, in this essay, both pros and cons of sport endorsing will be discussed.
Firstly, it is certainly true that sponsoring popular sport activities such as baseball, football and basketball, through putting up billboards within the arenas or stadiums and playing commercials on the huge TV screens during break times, can bring a lot of attention to the brand of the sponsors. As a matter of fact, the whole purpose of sponsoring any kind of public gathering, that attract a large amount of people to participate in such as the Olympic, is done with the intention to unconsciously insert their brand awareness into the consumers' head, making them think or be reminded of their brands first when asked about a certain field of products or services. For example, according to a recent survey conducted by the researchers of the University of Oxford, it has been found that companies, consist of a high number of sponsorships in sport events, have approximately up to a whooping 90% chance of getting mentioned first by people when asked to list down the names of goods or services available in a certain market.
On the other hand, there have also been some opposition to spending money to support sports players and activities due to the low level of "Investment Return Rate". In other words, by investing a large sum of fund into certain famous sport players and events, company risk the fact that their investment will not come back in the form of increasing sales, brand awareness, or strongly liked public reputation, as much as they expect it to. The reason behind this is because most of these advertisements are usually hidden in the background or costly to the company which can lead to financial ruins. For instance, there was a case in 2018 which was about a hair care product company becoming bankrupt due to overuse of the financial resources of the company just to support their sport marketing campaign. The company eventually got some of their sales going up, however, it was not enough to sustain the business, and as a result, filed for bankruptcy by the end of 2018.
In conclusion, people face trade off, and in the business and marketing field is also no different. No matter what form of marketing a company might consider, proper measures between advantages and disadvantages must be considered before jumping into any operation. From a personal perspective, sports sponsoring should only be done by financially stable companies that have a lot of fund to spare. Conversely, medium and small companies must find other ways of advertising that does not eat up a large amount of money.
As the world of business continues to evolve, the
way
people
advertise their products and services
also
changes
accordingly
to fit the newer generation of consumers. Recently, one of the most popular
ways
of advertising is the act of
sponsoring
certain
sports
to expose the
brand
of the
company
. As
seemingly
beneficial as it sounds, there
are hidden
costs and cons of this
way
of
marketing
.
Hence
, in this essay, both pros and cons of
sport
endorsing will
be discussed
.
Firstly
, it is
certainly
true that
sponsoring
popular
sport
activities such as baseball, football and basketball, through putting up billboards within the arenas or stadiums and playing commercials on the huge TV screens during break times, can bring
a lot of
attention to the
brand
of the sponsors. As a matter of fact, the whole purpose of
sponsoring
any kind of public gathering, that attract a large amount of
people
to participate in such as the Olympic,
is done
with the intention to
unconsciously
insert their
brand
awareness into the consumers' head, making them
think
or
be reminded
of their
brands
first
when asked about a
certain
field of products or services.
For example
, according to a recent survey conducted by the researchers of the University of Oxford, it has
been found
that
companies
, consist of a high number of sponsorships in
sport
events
, have approximately up to a whooping 90% chance of getting mentioned
first
by
people
when asked to list down the names of
goods
or services available in a
certain
market.
On the other hand
, there have
also
been
some
opposition to spending money to support
sports
players and activities due to the low level of
"
Investment Return Rate
"
.
In other words
, by investing a large sum of fund into
certain
famous
sport
players and
events
,
company
risk
the fact that their investment will not
come
back in the form of increasing sales,
brand
awareness, or
strongly
liked public reputation, as much as they
expect
it to. The reason behind this is
because
most of these advertisements are
usually
hidden in the background or costly to the
company
which can lead to financial ruins.
For instance
, there was a case in 2018 which was about a hair care product
company
becoming bankrupt due to overuse of the financial resources of the
company
just
to support their
sport
marketing
campaign. The
company
eventually
got
some
of their sales going up,
however
, it was not
enough
to sustain the business, and
as a result
, filed for bankruptcy by the
end
of 2018.
In conclusion
,
people
face trade off, and in the business and
marketing
field is
also
no
different
. No matter what form of
marketing
a
company
might consider, proper measures between advantages and disadvantages
must
be considered
before
jumping into any operation. From a personal perspective,
sports
sponsoring
should
only
be done
by
financially
stable
companies
that have
a lot of
fund to spare.
Conversely
, medium and
small
companies
must
find other
ways
of advertising that does not eat up a large amount of money.