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Questions and Answers
What is a potential negative impact of an athlete's association with a brand?
What is one of the main reasons a business invests in athlete sponsorship?
Which of the following is a disadvantage of sponsorship for National Governing Bodies (NGBs)?
What issue can arise from sport-related advertising practices?
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How might negative athlete behaviour impact a sponsoring business?
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What is the primary purpose of sponsorship in a business context?
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Which of the following statements about endorsements is correct?
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What is one advantage of sponsorship for sports organisations?
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What is a potential disadvantage of a sponsorship deal?
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Which of the following best describes merchandising?
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Study Notes
Sponsorship, Endorsements, and Merchandising
- Sponsorship involves a business paying to display or advertise products to boost sales.
- Endorsements feature a well-known figure promoting a product positively to enhance its sales.
- Merchandising includes raising awareness of products through advertising, events, and promotions.
- These strategies allow businesses to connect their offerings with sports and physical activities, targeting interested audiences.
Advantages of Sponsorship and Endorsements
- Provides additional revenue to improve facilities, equipment, and training opportunities.
- Covers training and competition costs, ensuring better support systems for athletes.
- Enables investment in youth academies, enhancing the development of young talent.
- Minority sports can expand their audience and attract new participants through sponsorship.
- Promotes sports via advertisements funded by sponsors, increasing visibility and reach.
Disadvantages of Sponsorship and Endorsements
- Sponsorship deals often have short durations, linked to sporting seasons.
- Injuries can terminate sponsorship agreements due to decreased brand exposure.
- Reliance on sponsorship income poses financial risks if deals end unexpectedly.
- Negative brand associations (e.g., fast food, alcohol) could tarnish an athlete or sport's image.
- Smaller sports may struggle to secure sponsorship due to lower media visibility.
- High-profile athletes face media intrusion, affecting their privacy and personal lives.
Business Motivations for Sponsorship
- Sponsoring athletes or teams helps promote a brand to a larger, often global audience.
- Business success can be tied to the achievements of sponsored performers, as seen with Michael Jordan and Nike.
- Sponsorship can support charitable causes, exemplified by Barcelona FC's partnership with UNICEF.
- Risks include potential reputational damage from athletes' behavior or poor public image.
Sport-Related Advertising
- Utilizes sports as a platform to promote products and influence public perception.
- Subliminal messaging in advertisements can miscommunicate, especially to young audiences.
- Companies strategically market during live sports broadcasts to target both adults and youth.
- Examples include fast food promotions during sports, energy drink partnerships, and alcohol sponsorships.
- Betting advertisements are prevalent, raising concerns about encouraging gambling among vulnerable audiences.
- Discussions are ongoing regarding banning certain types of sports-related advertisements.
Sponsorship of National Governing Bodies (NGBs)
- Advantages include increased exposure and positive message promotion through brand partnerships.
- Provides crucial funding for teams and athletes while enhancing visibility.
- Disadvantages arise from ethical concerns, compromising values or messages aimed at youth.
- Controversial sponsors can negatively impact the NGB’s reputation and public perception.
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Description
Test your knowledge on the concepts of sponsorship, endorsements, and merchandising in marketing. This quiz covers how businesses utilize these strategies to enhance product visibility and boost sales. Explore the different methods and impacts of advertising in the market.