The Significance of Sponsorship as a Marketing Tool in Sport Events

Abstract

Sports sponsorship is a marketing tool that is frequently used by companies to reach a wide audience on a global basis so as to be placed higher than their competitors and to create awareness as well as make a higher profit margin. Through this platform, specific target audience alongside potential customers are reached as it able to penetrate through quite effectively in the promotional mix and as such, is a significant method being used by many organisations. The aim of this thesis was to gain a deeper understanding of how companies use sponsorship in sport events as a strategic tool in their marketing program. In order to achieve this purpose, the thesis describes and explains companies objectives with sport sponsorship, the threats being encountered by its usage and the reasons why companies decide to sponsor. The theory of the thesis was collected from various sponsorship literatures that included both books and article journals. Additional information was obtained from marketing and branding literature. The empirical study was conducted by interviews. A company’s personnel, the city of Helsinki event office. Interview questions were based on the theory used in the project and the interviews provided information on the reasons why companies decide to go into sponsorship agreement with a sport event. The findings showed that companies are not too keen on taking risks unnecessarily and are willing to sponsor various target segments because of the good image and a wider audience range. The conclusions were based on the answers given during the interviews and the companies prefer to go into sponsorship that can convey their brand image effectively.