VYTAUTAS MAGNUS UNIVERSITY

FACULTY OF ECONOMICS AND MANAGEMENT

MARKETING DEPARTMENT

VOLKAN UMUT

SPORT SPONSORSHIP AS MARKETING COMMUNICATION TOOL IN LITHUANIAN COMPANIES Master Diploma Paper Programme: Marketing and International Commercial, State code 621N50005 Study Field: Marketing

Advisor: Doc. Dr. Aušra Pažėraitė (degree, academic position, name, surname) (signature) (date)

Defended: Doc. Dr. Rita Bendaravičienė Dean of the Faculty of Economics and Management (signature) (date)

Kaunas, 2016

CONTENT SANTRAUKA…………………………………………………………………………………… 3 ABSTRACT……………………………………………………………………………………… 4 GLOSSARY OF TERMS……………………………………………………………………...... 5 INTRODUCTION………………………………………………………………………………... 7 1. SPORT SPONSORSHIP AS MARKETING COMMUNICATION TOOL. THEORETICAL ASPECTS……………………………………………………………………………………...…. 9 1.1. Definition and forms of communication in the context of sports sponsorship…………. 9 1.2. Characteristics of sport sponsorship……………………………………………………. 14 1.3. Sponsorship in the marketing-mix…………………………………………………….... 17 1.4. Theoretical models of effective marketing communication……………………………. 20 2. FIELD ANALYSIS……………………………………………………………………………. 29 2.1. Sponsorship in Lithuania. Kauno Zalgiris case……………………………………….... 29 2.2. Overview of Zalgiris Kaunas sponsors…………………………………………………. 32 2.3. Methodology of researches……………………………………………………………... 36 2.4 Study of Zalgiris‟s sponsorship effectiveness………………………………………….... 38 3. DECISIONS IN ORDER TO IMPROVE THE COMMUNICATIVE USING SPONSORSHIP AS A TOOL…………………………………………………………………… 45 3.1 Problem clearing and problem solving logic……………………………………………. 45 3.2 Model implementation…………………………………………………………………... 51 3.3 Risks and special issues of model implementation…………………………………….... 53 RESULTS AND CONCLUSIONS………………………………………………………………. 60 REFERENCES………………………………………………………………………………….... 63 ANNEXES...……………………………………………………………………………………... 67

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SANTRAUKA

Baigiamojo darbo autorius: Volkan Umut Pilnas baigiamojo darbo Sporto rėmimas kaip Lietuvos įmonių marketingo pavadinimas: komunikacijos priemonė Baigiamojo darbo vadovas: Doc. Dr. Aušra Pažėraitė Baigiamojo darbo atlikimo vieta ir Vytauto Didžiojo universitetas, Ekonomikos ir metai: vadybos fakultetas, Kaunas, 2016 Puslapių skaičius: 73 Lentelių skaičius: 1 Paveikslų skaičius: 30 Priedų skaičius: 2

Darbo tikslas - panaudojant analitinius teorinius metodus, suformuoti modelį, kuris užtikrintų efektyvią komunikacija kompanijoms, naudojančioms sporto rėmimą. Darbas susideda iš trijų dalių: pirmoji dalis skirta teorinei marketingo komunikacijos analizei, sporto rėmimui ir efektyviai komunikacijai. Antroji dalis susideda iš Kauno Žalgirio organizacijos pristatymo, tyrimo apie komandos rėmimą bei rėmėjus, rėmimo efektyvumą paremtu duomenų analizavimu naudojant apklausų metų surinktais duomenimis, pristatoma tyrimų metodologija, kuri buvo suformuota apklausos autoriaus. Trečioji dalis atskleidžia efektyvios komunikacijos modelį, naudojant sporto rėmimą kaip vieną iš marketingo įrankių, jo įdiegimo bei galimų kliūčių numatymą. Darbo pabaigoje pristatomos išvados.

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ABSTRACT

Author of diploma paper: Volkan Umut Full title of diploma paper: Sport sponsorship as marketing communication tool in Lithuanian companies Diploma paper advisor: Doc. Dr. Aušra Pažėraitė Presented at: Vytautas Magnus University, Faculty of Economics and Management, Kaunas, 2016 Number of pages: 73 Number of tables: 1 Number of figures: 30 Number of annexes: 2

Main aim of the work – using analyzed theoretical models and concepts to develop model ensuring the effective communication for the companies using sports sponsorship. The work consists of three main parts. The first chapter is dedicated to theoretical analysis of marketing communications, sport sponsorship and models of effective communication. The second part concerns the characteristics of Kaunas Zalgiris, researches about its sponsors and sponsorship effectiveness based on the analyzing data collected during the survey and represent the methodology of researches made by the author. The third part include the presentation of the model of effective communication using sport sponsorship as marketing tool, the proposals about its implementation and possible risks. At the end of the work results and conclusions are being presented.

Key words: communication, sponsorship, Kaunas Zalgiris, effectiveness, komunikacija, rėmimas, Kauno Žalgiris, efektyvumas

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GLOSSARY OF TERMS

Communication - process aimed to cause the change of consciousness of the recipient of the information intended by the sender. Communication consists of the following actions made by the sender to encode thoughts, giving media (physical transfer to the consignee through the formal or informal channel), receive support by the recipient message, the reproduction of the information content (decoding) and feedback (Mortensen, 2007). Effective communication is not merely about exchanging information between you and your audience. It is about making what you want to say, what you actually say and what your audience interprets, consistent. (Andersen, 2007). Message - is a discrete unit of communication intended by the source for consumption by some recipients or group of recipients. (Baddeley, 2009). Marketing communication – the term that is used to describe all he promotional elements of marketing mix which involve the communications between an organization and its target audiences on all matters that effect marketing performance. (Pickton & Broderick, 2010). Integrated marketing communications - the concept under which a company carefully integrates and coordinates its many communication channels to deliver a clear, consistent and compelling message about the organization and its products. (Kotler et al., 2007). Marketing-mix - a broad category of interrelated elements (activities, processes, methods and techniques) used in the enterprise and forming together an integrated system of impact on the market environment the company (customers, competitors). (Mortensen, 2007). Target audience - is a particular group of consumers within the pre-determined target market, identified as the targets or „recipients‟ for a particular advertisement or message. (Kotler et al., 2007). Sponsorship - any commercial agreement by which a sponsor, for the mutual benefit of the sponsor and sponsored party, contractually provides financing or other support in order to establish an association between the sponsor‟s image, brands or products and a sponsorship property in return for rights to promote this association and/or for the granting of certain agreed direct or indirect benefits. (European Sport Association) Sponsor - a person or organization that pays for or contributes to the costs involved in staging a sporting or artistic event in return for advertising. (Sandler, 2011). Sponsee - one who is sponsored. (Sandler, 2011). Sport - form of human activity, aimed to improve physical fitness within the competition, individually or collectively, according to the rules. (Quester, 2011)

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Sponsorship-linked marketing - comprises giving products, services and brands to the judgment of the public by supporting events, teams, people, programs and other activities in order to achieve the objectives of marketing communication. (Peacock, 2016). Effectiveness - operation, the aim of which is to achieve the desired effect with the minimum amount of available resources, or to achieve the best results using a certain amount of resources. Economic efficiency is reflected in achieving a specific goal by using this in the most efficient and least wasteful of resources (Amandeep, 2010). Promotion - the impact on the consumers of products of the company, involving the transfer of the information to adequately raise awareness about company‟s products or services and the company itself in order to create preferences for them in the market. (Lee, 2009) Public relations - conscious, planned and continuous efforts aimed at building and maintaining mutual and beneficial relationship between the organization and its environment. Public relations is, in other words, shaping the image of the organization in the environment by conducting activities that affect the perception. (Joep, 2011). Long-term memory - has unlimited capacity and characterized by permanent storage – we can easily recall the needed information. (Andersen, 2007). Awareness - is the ability to directly know and perceive, to feel, or to be conscious of events, objects, thoughts, emotions, or sensory patterns. In this level of consciousness, sense data can be confirmed by an observer without necessarily implying understanding. (Schramm, 2008). Brand - is a name, term, design, symbol or other feature that distinguishes one seller's product from those of others. (Mortensen, 2007). Brand loyalty - is defined as positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand, regardless of a competitor‟s actions or changes in the environment. (Bransford, 2008). Survey - a method of gathering information from a sample of individuals. (Arora, 2012). Questionnaire - is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. (Shiu, 2009). Model - system of assumptions, concepts and relationships between them that allows to describe (model) in the approximate way some aspect of reality. (Frain, 2011). Consumer behavior - the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. (Mortensen, 2007).

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INTRODUCTION

Nowadays, at the time of the fast growing economy information and communication gain more and more attention. Dynamic development of the market forces companies to act in the environment with many strong competitors where standing out on the market is getting more complicated as well as getting and saving customers. It‟s not enough to make research and learn the needs of the customers, produce satisfying products for those needs and to set a competitive price. One of the most importing thing is to find out the way how to “deliver” certain information about the product to the customer and persuade him to buy it. So the way how the company communicates with stakeholders and ability to choose appropriate communication tools determines its success and profitability. Relevance of the topic. Under the conditions of competition when price and quality of the products are comparable the clue of distinguishing different producers is their way of communication with the market. Among different communication tools sponsorship is characterised as one of the rapidly developing form of promotion. Developing of the sponsorship intensifies because of market‟s saturation by traditional forms of advertising and decreasing of its efficiency and effectiveness. Advertising is often considered by customers as obtrusive and burdensome, but sponsorship is considered as more subtle and therefore more effective communication tool. Sponsorship is a good method for companies to exchange the information with the environment, to improve the degree of brand awareness, to create the desired image of the company and brand and of course to reach the target group. Sponsorship is strongly connected with different spheres of life, especially social life, e.g. sport, culture, science, education, medicine, social care and so on. Supporting various socially acceptable spheres of life gives the company a chance to be considered by the customer as the one whose products and actions are reliable and worth to buy. That fact gives certain economical effect. Sport as one of social spheres deserve considerable attention as in XX century it has became a mandatory component of education, an important element of recreation, and above all, as a sport professionally-high-performance, took the form of mass spectacle combined with business. Million people attend matches of their favorite teams or sportsmen, million people gathering together in front of the TV or in special fan-zones to cheer for their team, country or city – and in such way they become a wide target audience that may accept or ignore certain information depends on the choice of communication tool by the sponsor. Scientific problem. Lithuanian companies aim to get more customers, create a positive image of its products and the company itself supports national teams, but they are interested not

7 only in supporting teams and investing in their development but also in getting profit from such investments. To make sponsorship works for their benefits they should find effective communication model. So the problem is: what kind of a model should be developed in order to ensure the effective communication for the companies using sports sponsorship? Object of the work –effective communication using sport sponsorship. Aim of the work – to develop the model ensuring the effective communication for companies using sports sponsorship. Main objectives: 1. To analyze the communication aspects of sport sponsorship as an important element of marketing from the theoretical point of view also providing the analysis of sport sponsorship evaluating their meaning for companies‟ marketing strategies; 2. To perform field analysis assessing current state of sport sponsorship in Lithuania using example of Zalgiris Kaunas and its sponsors and investigating the communication‟s effectiveness in sport sponsorship by inquiring potential recipients of communication process; 3. To offer an effective model for communication using sports sponsorship and ways of its implementation. Logical structure of the work. The work includes three main parts. In the first part author describes communication in the context of sports sponsorship providing its definition and describing its forms. Second chapter aimed to analyze Zalgiris Kaunas as perspective team for sponsoring, to make a overview of its sponsors and to analyze gathered primary data about the effectiveness of communication between sponsors and potential customers. The last part presents decisions made by author in order to improve the model of effective communication using sports sponsorship. Methods and techniques – analysis of the literature and other sources on the researched problem, method of surveys, deductive and inductive logic.

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1. SPORT SPONSORSHIP AS MARKETING COMMUNICATION TOOL. THEORETICAL ASPECTS

1.1. Definition and forms of communication in the context of sports sponsorship Nowadays the central element of economic activities is consumers. Consumers influence on the success of the companies and especially on its market place. According to marketing philosophy, the company should aim to maximize profits by maximizing customer‟s satisfaction. The producer should offer something that the consumer wants to buy. So one of the main purpose is to learn the needs of the buyers and create the product that they will purchase. To do this the company should constantly communicate with consumers and it can do it with the help of different communication tools. Generally, term “communication” comes from Latin “communicatio” which has many meanings: to share, divide out, communicate, impart, inform, join, unite, participate in, “literally” to make common (Shah, 2009). Therefore, the same way as the original Latin word had many meanings - today word “communication” is very abstract and interpreted by scientists in different ways. That is why it‟s impossible to find a single working definition. Some scholars define communication simply as sharing of information or the giving and the receiving the messages or the transfer of information (Roszak cited in Turner, West, 2013). Such definitions assume that people are like computers that exchange the information. People are anything but not machines. Their communicative behavior is very complicated and varied. People accept every message in very different ways. It is wrong to think that once somebody send a message, it will be for sure perceived correctly. Communication is about exerting influence on person‟s behavior by what another person say, it is guided by psycho-logic, but it is never about just giving the information (Mortensen, 2007). The author of Communication Theory offered postulate that is accepted by many scientists: “Communication occurs whenever persons attribute significance to message-related behavior” (Mortensen, 2007). Communication also may be defined as the unity of information, message, and understanding (Luhmann, 2012). Understanding of the information is very important and connects with selection. People link the communication with selection and make certain decisions or make other people decide. Upon the whole communication take place when one individual directs a set of symbols to another individual with the aim of changing something, either something the receiver is doing (or

9 not doing) or changing his or her world view (Newstrom, 2014). Here it is important to understand the diversity of meanings that people give to different messages they get and importance of their behavior after getting this messages as a feedback and indicator of communication‟s effectiveness. With the aim to create brand awareness, advertise products or in common to deliver to the potential customers some information that can persuade them to make a purchase companies may use different forms (types) of communication. Two basic forms of communication that may be used in both marketing communications and sponsorship – verbal and visual. Verbal communication is based on speaking to send a message (Schramm, 2008). In sports sponsorship verbal form of communication is used in mentioning the name of the sponsor, name and characteristics of sponsor‟s products. The underlining of sponsor‟s importance in organizing the event, supplying it by needed inventory and players by needed equipment or outfit help to inform the consumers about the company‟s name, build the awareness of its activity, participation in social and sports life. More frequently mentioning of the sponsor by organizers helps to create more positive and accurate image that will remain in the minds of the participants. Visual communication is based on communication through a visual aid and is described as the conveyance of ideas and information in forms that can be read or looked upon (Sless cited in Lester, 2011). Visual communication is the most effective form especially in sport sponsorship, because at sport events people focus their attention mostly on action and actors that take part in that action. For example attending basketball match fans may ignore information get in verbal way that is not related to the game, but all time looking on the banners, posters on the playfield, logo of different companies on the sportsmen‟s outfit they will remember it and recognize in the future. Communication consists of some basic elements: communicator, communicatee, message, communication channel and feedback (Mortensen, 2007). The communicator is someone who want to send a message with certain content, information, idea, order, suggestions etc. Communicatee is the receiver of the message for whom the communication is meant. Communication channel (the media) connects the sender (communicator) and the receiver (communicatee). Feedback shows the effect or the reply to the information that was got by receiver. All those elements create a communication model (Fig. 1).

Figure 1. Communication model Source: The Pfeiffer Library Volume 25, 2nd Edition: http://home.snu.edu/~jsmith/library/body/v25.pdf (accessed February 5, 2016) 10

According to above communication model firstly sender encodes the information by transforming it to the form needed for understanding and making effect on receiver. Then choose the appropriate channel and send the message. In its turn the receive decodes the message and get some information that can correspond to the one encoded by sender or differ if the encoding process or channel was chosen wrongly. Such model takes place in all types of communication, also in corporate communication that concerns marginally the diploma‟s topic. In the past term “marketing communication” was used under other names such as “advertising” or “promotions”, but now it used as individual term with its own meaning. It is used to describe all the promotional elements of marketing mix which involve the communications between an organization and its target audiences on all matters that effect marketing performance (Pickton & Broderick, 2010). It is worth to note that marketing communication shouldn‟t be used as relevant or alternative to advertising, because advertising is a part of marketing communications. Concerning promotions, marketing communications is a broader concept. Also marketing communications sometimes confuse with public relations. This terms has differences, but also can be complementary. Firstly until 1980s to communicate with the stakeholders companies used marketing and public relations as separate instruments (Cornelissen, 2007). According to traditional point of view marketing was dealing with markets and public relations with all the public (except customers and consumers). Later companies found out that promoting customer‟s loyalty and brand awareness can also be helpful to increase sales and marketing public relations appeared (Caywood, 2011). They began to use techniques of public relations in marketing. Nowadays marketing and public relations are strongly overlapped. Marketing involves product development, pricing, distribution, promotion and also marketing communication. The last consists of mass media advertising, direct marketing, sales promotion, corporate advertising, product publicity and sponsorship (Cornelissen, 2007). Corporate advertising, product publicity and sponsorship are common elements with public relations and have significant influence on creating company‟s positive image, awareness and sales. Another popular word in modern business literature is “corporate communications”. Marketing communications is one of three forms of corporate communications (fig. 2). The difference is that marketing communications refers strictly to marketing activities, management communication includes communications by managers with internal and external target groups and organizational communication comprises internal communication activities at the corporate level (Pickton & Broderick, 2010).

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Corporate communications

Marketing Organisational Management communication communication communication

Figure 2. Forms of corporate communication Source: the figure has been created by the author, based on Pickton and Broderick, 2010 By J. Cornelissen corporate communication is a “management function that offers a framework for the effective coordination of all internal and external communication with the overall purpose of establishing and maintaining favorable reputations with stakeholder groups upon which the organization is dependent” (Cornelissen, 2007). It is a message that company wants to send to the stakeholders to inform them about their mission, vision, main activities, profitability, investment attractiveness, quality and uniqueness of produced products, ethics and all other information it needs or have to share. For company‟s sustainability and success the main thing is what image and view sit among key stakeholders. To build, maintain and protect that image and reputation company should competently use the communication. Some scholars define (Goodman, 2011) corporate communication more widely and underline that it consists of “such traditional disciplines as public relations, investor relations, employee relations, community relations, advertising, media relations, event communication, sponsorship, labor relations, government relations, technological communications, training, employee development” Marketing communications create the biggest part of the corporate communication budget (Van Riel, 2011) and include all those forms of communication that support sales of particular goods and services and also corporate promotions. The last one is more than important as images and impressions of the organization influence on success of its goods and services. In recent years term „integrated marketing communications” (IMC) is becoming popular as a lot of scientists underline that the greatest marketing communications impact is possible when all elements are integrated and comprise the whole. Since many authors discuss the concept of integrated marketing communications there are many definitions. For example, it is defined as a process for managing the customer relationships that drive brand value and as a cross-functional process for creating and nourishing profitable relationships with customers and stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data- driven, purposeful dialogue with them (Duncan, 2009). Kotler offers to understand IMC as the 12 concept under which a company carefully integrates and coordinates its many communication channels to deliver a clear, consistent and compelling message about the organization and its products (Kotler et al., 2007). Pickton and Broderick (2010), that made a great research of IMC and combine all its theoretical and practical aspects, offer a complex definition based on their experience and analyze of other author‟s definitions: IMC is a process which involves the management and organizational of all agents (individuals and organizations) in the analysis, planning, implementation and control of all marketing communications contacts, media, messages and promotional tools focused at selected target audiences in such a way as to derive the greatest enhancement and coherence of marketing communications effort in achieving predetermined product and corporate marketing communications objectives. According to IMC communication model differs from the one that is introduce on the Figure 1. Some authors underline the importance of adding more key elements to that model: marketing communications context, communication loop, receiver response, brand equity and “time period +1” (Figure 3).

Figure 3. The IMC communication model

Source: Pickton and Broderick, 2010 The marketing communication context is internal and external environment in which communication takes place and that influences on the nature and meaning of communication process. The communication loop is connected with feedback and performs the connection of the receiver with sender (Pickton & Broderick, 2010). Communication loop recognizes the two-way nature of communication. One-way communication is from sender to a target audience with no feedback or dialogue. If some feedback has place by using, for example, research, then we can talk about two-way asymmetric communication. The most effective form is two-way symmetric

13 communication when direct dialogue (with the help of interactivity and near-immediate response) between the sender and the audience take place. Next element is the receiver responses to the marketing communication process that create the brand equity – attitudes, associations and behaviors (e.g. perceived quality and loyalty). The “time +1” element aimed to show that brand equity is changes over time and response to communication process can influences on the subsequent process and output of a communication in future. Thereby modern concept of communication in marketing is based on integration of different marketing activities engaging all components and all external and internal processes of the company. In this work author will mainly pay attention on sponsorship as marketing communication tool of the companies which purpose is to deliver a range of promotional messages to its target markets or better target audiences. But also as described before theory of marketing communication should be taken under attention. Sponsorship as a tool will be effective only in integration with other marketing activities and only if common marketing communications models will be used. 1.2. Characteristics of sport sponsorship Sponsorship is considered as one of marketing communication tools with the biggest potential, which allow s the company to create good relationship with its customers. World becomes more and impersonal place and people looking for a sense of community – of belonging. Often such sense of belonging can come from different interests - sport, arts, charitable beliefs, educational institutions etc. Those interests become an important part of the life as they make people think that they are the part of the community (e.g. fans of sport team or fans of basketball). By using sponsorship companies introduce a brand to the market that has some special cultural meaning. Sponsorship offers the opportunity to connect with people when they are experiencing or undertaking an activity that they enjoy and have chosen to be involved in. Companies buy the rights to associate themselves with special events, kinds of sport, teams or sportsman. For example, watching match of the favorite football team and noticing that all players are in T-shirts with the logo of Adidas its fans on the subconscious and conscious level can be more loyal to that brand which will have for them more personal meaning. Origins of the sponsorship can be traced to Ancient Greece. Popular then and still ongoing Olympic Games was sponsored by rich citizens and government – winners accepted symbolic prices also got money, nourishing provided by town, exemption of paying taxes and so on. All those presents allowed sportsmen to hire a coach and better preparation for the next games. In such way the participant of Olympic Games in exchange for those benefits worked on good image of his town

14 and country, because victory meant not only glory but also favor of the gods for him and the town he represented (Sandler & Shani, 2011). Origins of modern sponsorship (support in exchange for benefits) we can find in modern traditions of patronage that appeared in ancient times. The idea of patronage was firstly provided by Gaius Clinius Maecenas at the beginning of our era and then the idea of culture and art supporting spread all over the Europe. Usually sponsors were the popes, kings, princess, and nobel people. America and other continents and islands could be never discovered if there were no people who were ready to sponsor risky and costly trips. Nevertheless, patrons of art, culture and sport were never disinterested, because they were trying to develop their good image, positive public opinion, show their richness, power – all this to achieve own goals and or facilitate governance. In the end of the XIX and beginning of XX century big companies, banks, financiers, politics continued the idea of patronage in the form of sponsoring events, certain persons, institutions etc. Supporting activities that are socially important formed a positive image of the sponsor in the public and impact on economical success. Nowadays sponsorship is defined by European Sport Association as “any commercial agreement by which a sponsor, for the mutual benefit of the sponsor and sponsored party, contractually provides financing or other support in order to establish an association between the sponsor‟s image, brands or products and a sponsorship property in return for rights to promote this association and/or for the granting of certain agreed direct or indirect benefits”. Pickton and Broderick (2011) defines sponsorship as a contribution to an activity by a commercial organization in cash or in kind, with the expectation of achieving corporate and marketing objectives. According to Quester (2011) sponsorship refers to a marketing activity that involves investing in a property (e.g. an event, sport or art),with the view of deriving commercial benefits from the associations more particularly in terms of marketing communication, with this property. Quester (2011) also underline the importance of event marketing that aimed to secure corporate sponsorship and to maximize PR opportunities with the help of marketing activities that are planned and implemented around the event. Brooks (cited in Caywood, 2011) notes that sponsorship has different characteristics than other elements of communication mix. It allows the sponsor more intimate relations with consumers, it has strong influence on their emotions. Potential of sponsorship can be used to change the attitude, increase the awareness of brand and company, build and keep positive relations. From the point of marketing communications, sponsorship is a marketing strategy aims at promoting the brand, trademark or image of the company. Most of authors underline that sponsorship is not only about supporting of events or persons. The main goal of sponsorship is to send a message to the target audiences that will deliver them the information that such company and 15 product exist, about its activities and importance with providing possibility to watch favorite sport game, visit exhibition of famous artist, attend concert etc. Awareness of company‟s brand and loyalty of the customers is used later by the companies to get into the new markets, to strengthen the current position of the product and of course to achieve certain financial goals. Analyzing the definitions of sponsorship the author can submit the next: - Sponsorship is every form of sponsor‟s participation in the costs of certain intention (money payments, providing free stuff, services etc.) with the aim of promotion, - Promotion is based on disseminating the name of the brand, company, its logo or trademark, - Participation in the costs of certain event or individuals means that financing is made for achieving certain goals. Sponsorship shouldn‟t be confused with investments into sport and other spheres of social life if those investments are made to get profits as in business, with altruistic support (e.g. charity). That‟s why it is important to define basic characteristics of classical sponsorship: 1. Mutual benefit of the sponsor and the sponsee: - sponsor makes available a certain amount of money or other resources - sponsee performs the action for the sponsor, which directly or indirectly contribute to the objectives of the sponsor, 2. Combination of advertising, public relations and sales promotion instruments in the promotion of the company, which serves communication, image building and gaining popularity, reaching economical effects, 3. Indirect way to promote a business or product (media discuss about the sponsee and mention sponsors), 4. Conscious and systematic approach to decision-making, planning, organization, control of own activity and sponsee‟s activity according to the results of financing and equipping of certain items (services), In addition to global and international rich sponsorship offers a wide and diverse range of possible activities, from the small community-based grassroots sports programs to the largest and most dominant event in the sporting arena, the Olympic Games. The most popular area of investments for sponsors is sport that represents 70% of all sponsorship budget (comparing to 3% allocates to arts and 9% to a third party or cause (Quester,2011). Sponsorship as a form of marketing communications rapidly became very popular and continue to grow. This situation has certain reasons. First of all, traditional forms of marketing in some way became less successful. For example, with the increasing of commercial television and radio stations too much advertising appeared. So sponsorship was seen as an alternative and often cheaper form of gaining exposure that avoids clutter and allows a sufficiently distinctive message to be seen 16 and/or heard. Secondly, sponsorship together with forming audience awareness create also an association between the values the sponsored entity exemplifies and the sponsoring company (Pickton & Broderick, 2011). The third reason is that sponsorship can break the cultural and linguistic barriers as sport and cultural activities are the ones with global appeal. The forth reason refers to the getting wider and multiply target audience. Sponsorship influence strategic partners, company staff, civic officials, government regulators and of course customers all over the world (Quester, 2011). And in conclusion as Sleight (cited in Pickton & Broderick, 2011) pointed out – “sponsorship works because it fulfils the most important criteria of a communications medium – it allows a particular audience to be targeted with a particular message”. Sponsorship has different forms: sponsoring individuals, organizations, teams, events and causes (Cornwell and Weeks, 2010). The sponsorship of individuals refers to sponsoring mostly sportsmen and women. An individual performer is paid a fee to endorse a certain product or service. But such form of sponsorship can be very risky because of unpredictability of the human behavior. Celebrities are always insight and any scandals or fail can make a bad influence on the brand. From the other side celebrities determine fashion and give the example of consumer‟s behavior to their fans and others. Sponsoring organizations is connected with company‟s social responsibility, for example sponsoring environmental organizations shows that company take care of the environment or its product also help in it. Sponsoring teams is one of the most popular form and strictly connects with sport. Sportsmen get equipment and other stuff (e.g. clothes) in a good quality and in needed amount but with logo of sponsor‟s company or product. Sponsoring causes occurs when a company forms a strategic relationship with a specific social cause or causes that are mutually beneficial to all parties (Sandler and Shani, 2011). To be successful and profitable sponsorship should be integrated to other components of the marketing communication mix and additionally the sponsorship as the form of marketing communication and promotion should be integrated with other marketing activities: formation of the product, its price and distribution. So more attention should be paid to sponsorship in marketing mix and sponsorship marketing. 1.3. Sponsorship in the marketing-mix As it was mentioned before sponsorship is a tool of marketing communications but it is important to underline that at the same time it is the tool of sponsorship-linked marketing and considered as a form of promotion. Sponsorship-linked marketing comprises giving products, services and brands to the judgement of the public by supporting events, teams, people, programs and other activities in order to achieve the objectives of marketing communication. This process involves exposing the company or brand

17 in the media and using marketing tools in order to obtain a promotional and business reaction favorable for external and internal relationships of the sponsor (Peacock, 2016). Sponsorship-linked marketing enables companies to reach their target market more easily than with the help of other methods of communication, discloses a product/service directly on the market and become an excellent mechanism for translating marketing objectives of the company to the benefit of the community (Cornwell and Weeks, 2010). Marketing should include the total brand experience, and not just its use. Customers has to lust after the brand, not only to be aware of it and prefer it. Sponsorship must connect the brand to the life, to have contact with all the senses, find a common interest with the audience. Implementation of all described functions of sponsorship-linked marketing is connected with integration of sponsorship to elements of marketing-mix. Type of product has a significant influence on the choice of forms of promotion that the company should use in the market. Sponsorship can be used by the companies producing consumer products and industrial products. Sponsorship is easier in terms of realizing by the manufacturer of consumer goods, because then the relations between the sponsor and the sponsee may be closer (Allori & Garzone, 2011). The right choice of sponsee is also important. If sponsor produces goods of mass consumption then sport sponsorship will be suitable as it can get the appropriate target audience. For example, the sport sponsorship will be appropriate for producers of sport clothes or sport equipment. Promotional activities depend on the characteristics of the product: functionality, packaging, trade mark, a guarantee provided by the producer, the technical services provided by the supplier. For example, sponsors actively use packages for promotion to inform that producer of the product are the sponsors of the certain event, team or sportsman (in case of individual sponsorship) (Figure 4,5).

Figure 4. Coca Cola packaging for the Olympic Games Source: Pacaging design http://www.thedieline.com/blog/2012/6/12/coca-cola-packaging-for-the-olympic- games.html accessed on 25th of February

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Figure 5. Lay’s packaging with the photo of sponsored by them football player Messi Source: Packaging Strategies http://www.packagingstrategies.com/articles/87190-potato-chip-brand-launches- football-themed-packaging accessed on 25th of February Next important and often the main element of the product used by sponsors is trademark (brand). Using of sponsorship has sense in the case of the brand products, because only they can be identified by the consumer. If the company is well-known on the market it uses only its logo at the time of sponsored events. Company with the brand that is less known cannot use only logo because their image will not stay in the consciousness of potential consumers (Quester, 2011). In such case important thing is organizer‟s comments about the sponsor during the event. Entering new market or introducing the new product can be supported by sponsorship to increase the awareness of the brand. As positive image and perception of the product is important sponsorship can be used at all stages of product‟s life cycle. Sponsorship is also should be integrated with price. Usually companies use penetration price strategy and high price strategy. Penetration price strategy means that company provide moderate price to make as more consumers as possible make a purchase. In this case product is standard and mostly only price is competitive (Joep, 2011). It is important to underline the characteristics of the product and its price to show that it is accessible for everyone (for example beer and other drinks, sport clothes, food products). But sometimes low price can be associated with bad quality. Entering the market with using low prices can be successful if consumers know about the product‟s advantages. High price strategy refers to luxury products and take place when company wants to underline the product is unique (Cornwell and Weeks, 2010). In this case, promotion should accentuate prestige associated with consuming or using the product (e.g. rolex watch or jewelry). Sponsor should choose for sponsorship such events or individuals that are connected with its products. Company that has exclusive products (e.g. expensive alcohol) with high price doesn‟t have to sponsor events of pop culture or such sports as football or boxing. Companies with standard

19 products will not be successful sponsorship at elite events (e.g. golf tourneys). Still sometimes there cannot be one rule. For example football is loved by different people (rich and poor), so sponsors may have various types of audiences coming from different social class. Making decisions about sponsorship companies should think about the image of the network of distribution in which companies will sell the products. Type of distribution channels must be connected with the product and amplify its image. Luxury products are sold in exclusive places that inform the customer about the status and advantages of those products. For example Rolex is the sponsor of all famous golf tourneys - Masters, US Open, The Open Championship and PGA Championship, Louis Vuitton is the sponsor of Louis Vuitton Trophy – introduction to the start in the the America's Cup (prestigious regatta). Sponsorship can be perceived as the tool of promotion, but connections between them are twofold. Form one side sponsorship can be used as a tool of promotion adopted for achieving certain objective (e.g. social responsibility) (Cornwell and Weeks, 2010). From another side sponsorship can be the axis of the promotion (e.g. changing the attitude of the consumers to the company). Also sponsorship can support another elements of promotion in the company or be supported by them. Summarizing, sponsorship is very complex activity considered as important and effective tool of marketing , It helps to represent the product and the producer itself to appropriate audience. What is important that presentation should be provided in integration with other marketing and organizational activities of the company. It should be linked with such marketing-mix elements as product, price and distribution, that helps to create an appropriate message about the product and/or the company and deliver this message in effective way using marketing communication model. As this model takes into the account such additional elements as communication loop, marketing communication context, receiver response, brand equity an time period +1, it provide the process during which the right messages are received by the right people in the right way. Effective communication model in sponsorship ensures positive economical effects and brand awareness. 1.4. Theoretical models of effective marketing communications Sponsorship first of all aims to improve the perception of brand performance by linking people‟s beliefs about the brand to an event or organization that the target audience values highly (Cliffe and Motion, 2001). In that way sponsorship can positively affect consumer attitudes towards a brand‟s attributes (Browns et al., 2010). To do this sponsor should communicate with potential customers using effective communication models. There are no models particularly for sponsorship, as it‟s a part of integrated marketing communication mix, common for advertising and public relations communication models will be analyzed in order to make a theoretical background for further research of the author. 20

In marketing communication literature majority of models are cognitive information processing models based on Cognitive Information Processing Theory. This theory describe the 3 stages process of how information is stored in memory (Atkinson and Shiffirn,1968), that are represented on Fig. 6.

Figure 6. The information-processing model Source: Baddeley, 2009 People receive a lot of different information through different senses, which is hold in their own register for micro seconds and after only some of them transferred to the short term memory (Halpern, 2008). Sensory memory processes information for very short time (less than 1/2 second for vision, about 3 seconds for hearing) (Baddeley, 2009). After information enter sensory memory it is forwarded to working memory (or short-term memory) or disappear. Working memory is creating by our paying attention to an external stimulus, an internal thought, or both (Branford, 2008). The duration of this type of memory is 15-20 seconds if it will not be repeated (maintenance rehearsal). After repeating it can last around 20 minutes. The number of units that can be processed is from 5 to 9 (Miller, 2016). It is important on this stage to point out important information and to organize the effective process of rehearsal to transfer needed information to the long-term memory. Long-term memory has unlimited capacity and characterized by permanent storage – we can easily recall the needed information (Andersen,2007). This type of memory is the base of people knowledge. Long-term and short-term memory are linked by encoding and retrieval processes that should transfer information from temporary store to long-term memory. Encoding take place trough organization, elaboration, meaningfulness, link with schema. Retrieval refers to processes that enable individuals to search memory and access information for active processing in working memory (Shah & Miyake, 2009).

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Marketing communication models are based on the Information Processing Model are The Hierarchy of Effects and AIDA (attention, interest, desire and action) models. The Hierarchy of Effects was offered by Lavidge and Steiner (1961) describe stages form the one when the product first coming into company‟s target customers‟ awareness to the one when the decision about purchase is made. Stages of the model are the next (in order): awareness, knowledge, liking, preference, conviction, purchase (Fig. 7) (Lagae,2012). Stages grouped to 3 categories – Cognitive (awareness and knowledge), affective (liking and preference) and conative or behavioral (conviction and purchase).

Figure 7. The Hierarchy of Effects model Source: Pauley Creative, 2016 Cognitive stage aims to give the information to the potential customer, to create content that will make people to pay attention on it and motivate the target customer to remember the message, to be aware of company and its product (Halpern, 2008). Affective stage intended to create customers attitude to the brand, the feeling customers associate the brand with. Behavioral stage refers to making a purchase or just only the purchase decision (Andersen,2007). Another marketing communication model is AIDA (attention, interest, desire and action) (fig. 8). These stages are also divided into 3 categories: cognitive (attention), affective (interest, desire) and behavioral (action). Therefore, first off all message should grab the viewer‟s attention and create brand awareness. Then interest in the benefits of the product or service should be generated together with sufficient interest to encourage the buyer to start to research further (Rawal, 2012). Next objective is to create emotional connection by showing brand personality, make people not just liking the product, but desire it. The last stage is form downloading the brochure about the product to becoming a regular customer (Lagae, 2012).

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Figure 8. AIDA model Source: Rawal, 2012 More recent model than AIDA is DAGMAR (defining advertising goals for measuring advertising results) model. It was developed by Russell Colley as a tool to set objectives and measure the result of advertising (Solomon, 2009). There are 4 phases:  Awareness – customers should be made aware of existing of certain product or service,  Comprehension – consumers have to understand the offer and how it will benefit them,  Conviction – the decision about purchasing should be made,  Action – the result followed by buying the product. In order to communicate effectively with target audience It is important to create a message with precised statement. According to the model after advertising was undertaken the further measure should be provided to explore whether the process was effective or not and whether the objectives have been met (Frain, 2011). Another marketing communication model is ATR (Awareness, Trial, Repeat purchase or Repurchase) that focuses on encouraging repeat purchases (fig. 9).

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Figure 9. ATR Model Source: Frain, 2011 According to ATR model in the purchase process there are also as in previous model some systematic steps as cognitive, affective and behavior. First of all, potential customers must become aware of product or brand and the awareness can be strong (unaided) or fairly superficial (aided) (Egan, 2014). After the customer will find the product matched to his requirements and deliver a competitively superior value – he would like to try the product. If the customer‟s perceptions are inaccurate, he can refuse to make a purchase (Chaffey, 2013). As a result of matching customer‟s expectations and expected delivered value the person make a purchase and may be inclined to buy the product again (repurchase) (Egan, 2014). If the product missed, the expectations the customer will not buy it again unless the product will be still needed or competitive brand are even worse. This model is alternative to AIDA and it proposes that the repeating of purchase is the main goal of advertising and sponsorship that work on reassuring of the existing customers that they have made the right choice of the product or service. Cho Syngho (2009) performed the Composite Model of Sponsorship Matching in Light of Brand Choice Behaviour that is based on psychologist and corporative theories. The model consists of 7 levels: unconsciousness, perception and self-congruity, schematic evaluation, attitude formation, attitude, intention and behaviour (fig. 10).

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Figure 10. The Composite Model of Sponsorship Matching in Light of Brand Choice Behaviour Source: Cho Syngho, 2009 First of all the concept of the product may influence a positive attitude toward the product and make the person have a willing to buy it in case if product‟s concept is close to that person‟s life concept. So finding something similar between the characteristics of the product and its own lifestyle and self-perception person in an unconscious or conscious way will prefer it as one that is closed to its self-image. For measuring brand properties of sponsors and sports Aaker (1997) developed a model of Brand Personality Scale (fig. 11).

Figure 11. Brand Personality Scale

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Source: Aaker, 2010 Next level is schematic evaluation – sponsor should match the sponsee, in other words be suitable for efficient promotion. Matching help in creating positive attitude towards sponsorship programme. Attitude formation is important as it was described in many model (e.g. dual-mediation model), that it influence on customer behaviour (fig. 12).

Figure 12. Dual Mediation model Source: Source: Cho Syngho, 2009 When the attitude is formed the customer began to feel buying intention to make a purchase and finally make a brand choice by making that purchase. Consumer cognitively understands and evaluates a set of brand attributes significantly influences the likelihood of brand choice. The important continuation of all models is their implementation. Implementation represents moving an idea from concept to reality (Shah, 2009). Bhattacharyya (2006) offered such stages of model implementation as exploration, installation. Initial implementation, full implementation and expansion and scale-up (fig. 13) that can be adopted to the model created by author.

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Exploration

Installation

Initial implementation

Full implemetation

Expansion and scale-up

Figure 13. Stages of model implementation Source: created by the author on the base of Bhattacharyya at al. (2006) Many managers assume all described models of marketing communications as the basis for setting sponsorship objectives and measuring sponsorship effects (Woodside et al., 2009). Still those models very often include variables that are difficult to measure and relationship between some of them should receive empirical support. Also sometimes, the repetitive nature of purchase behavior is ignored (Chaffey, 2013). Sponsors usually may communicate only by its brand and logo, so the most important for them is cognitive stage of marketing communication. Sponsor should attract, make potential customer to remember it and to be aware of it to make a purchase later and even more important as it was mentioned in ATR model to repeat the purchase. Most of the models refer to advertising and its particular properties, but still acceptable to other elements of integrated marketing communication mix as sponsorship. Author adopted higher proposed models in order to make initial model of effective communication in sport sponsorship (fig. 14) that will be developed, deepened and expanded after field analysis and researches.

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Figure 14. Initial model of communication in sport sponsorship Model on the figure 10 consists also from 3 stages (cognitive, affective and behavior) that are appropriate to all communication processes in marketing. First stage include stimuli (visual, sound, perception of image) which goals is to pay attention on sponsor and its product. After paying attention what should be connected with transferring stimuli to working and later long-term memory sponsor should make people like him, prefer to another ones and desire to know more about it and its product. On this stage emotions, feelings and gratitude to sponsor are very important elements especially in sport sponsorship. If the sponsee provide appropriate emotions and sponsor do everything to pay attention on its brand then potential customer will have the feeling of gratitude to it and in most cases prefer it rather then another competitive company. Emotions also form the desire to make a purchase, especially in sport. For example fans will desire to have similar T-shirt of the same brand as their favorite players. Then if the desired product matches the customer‟s needs and purchasing possibilities the purchase will take place. However, what is very important sponsor should act effectively and all time support the liking and preference by the customers of its brand in total and certain products in order to ensure repurchase. In the next chapter author will conduct field research to gather primary data and offer later adopted model of communication in the sponsorship.

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2. FIELD ANALYSIS

2.1. Sponsorship in Lithuania. Kauno Zalgiris case During the period between World War I and World War II the state didn‟t have funds to support social activities so they were based on private sponsorship. In 1932 law regulations for sports were passed and the House of Physical Culture was established to support the development of social activities (Jakubavičienė, 2010). However, sport clubs still were looking for sponsors to establish competition prizes, pay various bills, promote talented sportsmen, etc. In addition, national minorities such as Poles, Jews, Germans were using private sponsorship to maintain their sport clubs. Sponsors were mostly represented by the founders of sport clubs, which can be considered as the initiators of professional sports in Lithuania. Football, track and field athletics, boxing, car racing, horse riding and shooting were most attractive for sponsors (Jakubavičienė, 2010). Aiming to promote physical culture and following the trends from Europe politics, celebrities, businessmen were taking part in supporting sport clubs, championships and sportsmen. When in 1940s Lithuania was occupied by Soviet Union, it was forced to adopt soviet Union political, economic and social system. Until the independence from USSR the main organizations and departments that were regulating sport activities were Voluntary Sports Societies (VSS) of the USSR, Dinamo, society in cooperation with Army, Aviation, and Fleet (DOSAAF), and CSKA sports societies (Riordan, 1977). VSS united working people and students to participate in sports. The societies provided a sponsorship for various sport events and often existed on the volunteer donations from the workers of the certain industry with which they were associated (Riordan, 1977). Their aim was first of all to promote and develop physical culture and sports and to provide facilities and conditions for sports training and improvement in athletes' skills. From the time Lithuania became independent in 1990 new government continued to support sport and other social activities, but in the market economy private sector again became main sponsor of clubs, sportsmen and sport events. In 2010 the market research company “Synopticom” made a research among Lithuanian companies with the aim to explore sport sponsoring trends. During this research 300 representatives were surveyed (owners, CEOs, marketing and PR executives). Results showed that (Sport Management Association, accessed 10-03-2016): - Six out of ten companies that do not sponsor sports now, would consider doing it; - 80 % of sport sponsors assert that their sponsorships had provided bigger profit and brand awareness and most of them are planning to continue sponsoring; - 55 %of the companies underlined that businessmen were encouraged to sponsor sports in order to establish connections with target groups and clients;

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- Usually the most sponsored sport activity is basketball, auto sport takes the second place among sponsors' priorities, as it would be considered by one third of the respondents, while 25 percent would possibly sponsor football. Sponsorship in Lithuania is regulated by “Law on Charity and Sponsorship of the Republic of Lithuania” from July 11th 2001, that establishes the framework for providing and receiving charity and sponsorship, the purposes of providing and receiving charity and sponsorship as well as the providers and recipients of charity and sponsorship. It also regulates charity and sponsorship accounting and control where the providers and/or recipients of charity and/or sponsorship are entitled to reliefs from taxes and customs duties prescribed by the laws. The most popular sport in Lithuania is basketball. It is also the sport in which Lithuanian teams are very successful. Basketball is called the “second religion” for Lithuanians (The official gateway of Lithuania, accessed 10-03-2016). The most popular matches among Lithuanians are matches of Lithuanian national team in the Championships. Except of national team the most popular and followed are “Vilniaus Lietuvos rytas” and “Kauno Žalgiris” that represent the largest cities in the country – Vilnius and Kaunas. In this way basketball matches attract the largest crowds to arenas and TV screens and became the most attractive events for sponsors. Additionally basketball national team and other teams that represent certain cities have the biggest amount of sponsors from Lithuania and abroad. Author will describe Kauno Žalgiris team as perspective for sponsorship and its sponsors. Basketball club Zalgiris was established in 1944 and soon became a power, winning multiple Lithuanian basketball championships (Official website of BC Zalgiris, accessed 11-03-2016). It is considered as the oldest and titled Lithuanian basketball team, a multiple winner and medalist of the USSR and the Lithuanian championship, the winner of the Euroleague in 1999. Žalgiris is one of 11 European clubs that has Euroleague A Licenses that gives the possibility to take part in the regular-season phase of the Euroleague (Euroleague. Club Profile, accessed 11-03-2016). The name “Zalgiris” means green grove and was given in honor of the victory of Lithuanians, Belarusians and Poles over the Teutonic Order in the Battle of Grunwald (lit. Žalgirio mūšis) Official website of BC Zalgiris, accessed 11-03-2016). The logo of the club represents a green and white shield with the sign "BC Žalgiris", a basketball, and the letter "Ž" (Figure 15).

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Figure 15. The Logo of Zalgiris Kaunas Source: Official website of BC Zalgiris: http://zalgiris.lt/en (accessed 11-03-2016) Dominant colors that underline identity of the club, team, fans and other items are both green and white. The uniforms (“home” and “away” variant) of players are introduced on Figure 16.

Figure 16. “Home” and “away” uniform of Kaunas Zalgiris Source: FIBA database (accessed 11-03-2016): http://boards.sportslogos.net/topic/95106-fiba-uniform-database-fiba- word-championship-2014-all-quarter-finalists-uniforms-added/?page=3 Kaunas Zalgiris from the beginning of its establishment was playing very good what proves the fact that in three years in 1947 the team won the USSR Premier Basketball League (Official website of BC Zalgiris, accessed 11-03-2016). But the real fame came in 1980s when Zalgiris became a champion three times in a row in Soviet Union National League championships from 1985 till 1987. At this time a big role in the development of the team played new talents such as Valdemaras Chomičius, Rimas Kurtinaitis, Arvydas Sabonis and coach Vladas Garastas (Euroleague. Club Profile, accessed 11-03-2016) . Another succesful season was in 1998-99 when Zalgiris once again won the LKL title, the 5th one in a row against BC Atletas. In the same season they surprised the fans of basketball by their win. They were crowned European champions. The team was coached again by Jonas 31

Kazlauskas and led by former NBA players Tyus Edney, Anthony Bowie, George Zidek and great Lithuanian talents (Official website of BC Zalgiris, accessed 11-03-2016). Next years Zalgiris had a lot of changes in the structure, sponsors, coaches. A lot of good players left the team to play in the richest European clubs. The 2012-13 and 2013-14 seasons were successful for Zalgiris: it started the Euroleague season with 5 wins in 5 games, the best start in the club's history in Euroleague, finished first in the group for the first time in 13 years, with an 8-2 record, dominated the LKL and the VTB League and so on (Official website of BC Zalgiris, accessed 11-03-2016). To sum up Kaunas Zalgiris was 28 times a champion of Lithuanian League (last wins 2001, 2003, 2004, 2005, 2007, 2008, 2011, 2012, 2013, 2014, 2015), Soviet Union League - 3 times (1985, 1986, 1987), Lithuanian Cup – 6 times (1990, 2007, 2008, 2011, 2012, 2015), Euroleague – once in 1999, FIBA Saporta Cup – once in 1998, FIBA Intercontinental Cup – once in 1986 (Eurobasket. Sport I.T., accessed 11-03-2016). In this way the company can be considered as attractive for sponsorship. Alternation of wins and losses are a natural phenomenon and depends on many factors. One of the main factor is availability of finance for the development of the team, the relevant fees for the players and the coach, providing necessary equipment. Very often players left the team looking for higher payments. So sponsorship for Zalgiris the same as for many others sport teams is important element to continue playing and winning. The popularity of basketball among Lithuanian and reputation of Kaunas Zalgiris attracted many sponsors that are aiming to reach target audiences (fans of Zalgiris and basketball in common). 2.2. Overview of Kaunas Zalgiris sponsors BC Zalgiris has 4 types of sponsors that has next statues: general sponsors, main sponsors, top sponsors, sponsors, media sponsors (Official website of BC Zalgiris, accessed 11-03-2016). The main characteristics of general sponsors, main sponsors and sponsors are represented in the Table 1. Table 1 The main Characteristics of Kaunas Zalgiris sponsors Name of the Country Size Products sponsor General sponsors Kaunas City Lithuania - Government organization municipality OlyBet Estonia Revenue 4 pre-match and live sports betting and virtual million gaming possibilities. EUR, 530 employees

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Main sponsors Lietuvos Lithuania 5100 power and heat distribution and supply, natural gas energija employees trade and distribution as well as construction and maintenance of power plants and grid Kauno Tiltai Spain 1000 motorway and road construction projects; e employees construction of tunnels, railways, airports, water ports, erection of engineering and energy networks, production of building materials, and installation of waste facility sites. Utenos Lithuania Revenue : Beer and other alcoholic beverages 469,98 mln. lt Bosca Lithuania n/d alcoholic beverages Top Sponsors Akropolis Lithuania 109 Shopping and entertainment center Kaunas employees Vici Lithuania 7500 crab taste sticks, surimi products and fish employees Kauno Lithuania 502 Water Supply and Irrigation Systems Vandenys employees Kauno Svara Lithuania 488 research & investing information employees Perlas Lithuania n/d Jewelry, bijouterie Sponsors Vytautas Lithuania 205 Mineral water employees Vilkyskiu Lithuania n/d Cheese Renault France Revenue: Automobile manufacturer 45,33 billion EUR Gjensidige Norway 41.54 Insurance services billion EUR Lytarga Lithuania 582 ferrous metals, pipes, building materials, fasteners, employees agricultural machinery, tractors, agricultural machinery and others TonyResort Lithuania n/d 4 stars hotel; conference halls Adidas Germany Revenue Sport clothes, shows, equipment 14.49 billion EUR Husquarna Sweden 170 mln outdoor power products including robotic mowers, garden tractors, chainsaws and trimmers Sanistal Denmark 30mln EUR Plumbing, Heating, Air-Conditioning 119 employees

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Aksa Lithuania 251 ferroconcrete manufacturer employees Kautra Lithuania 766 Logistics services employees Fiskars Finland Revenue Traditional craft and garden product 767.5 million EUR Freda AB Lithuania n/d furniture Grozio Lithuania n/d aesthetic and day surgery, dentistry and well being chirurgija services McDonalds United 28,1 billion fast food restaurants States EUR Aon Lithuania 95 Insurance employees Wellman Lithuania 2 Real estate employees AutoBroliali Lithuania 24 Used cars trading employees Admen Lithuania 104 Advertising services employees Baltic Travel Lithuania n/d Tourism services Service Taupkase Lithuania 24 Banking operations, financial intermediation employees services. Source: the table has been created by the author, based on official web-sites of companies and database of rekvizitai.vz.lt (accessed 13-03-2016) According to Table 1 the sponsors of Kaunas Zalgiris are mostly Lithuanian companies – 72%, and only 28% are the subsidiaries of foreign companies (Germany, Sweden, Estonia, United States, Denmark, Norway, France, Spain. The predominance of Lithuanian companies is explained by big popularity and success in the present first of all in the home country and region. Foreign countries sponsor Zalgiris with the aim to promote their product and connect it emotionally with beloved by Lithuanians sport activity influencing on people‟s predisposition to purchase it. Sponsors of Zalgiris are the representatives of different sectors of economy. According to the Figure 17 most of sponsors (25%) provides financial, insurance and trade services (e.g. Gjensidige, Aon, Wellman), 22% of the companies produce food products and beverage (e.g. Bosca, Utenos, Vilkyskiu), 19% are transport manufacturing companies (e.g. Renault, Husquarna), 16% of companies relate to the sector of entertainment, tourism and leisure (e.g. Akropolis, TonyResort, Baltic Travel Service). Among sponsors, there are also companies that produce furniture, logistic services, medical services, energy and others. Prevailing sponsors are medium-

34 sized and large companies that has more funds for different types of promotions including sponsorship.

3% 3% 3% 3%

22% 19%

16%

3% 25% 3%

Government organizations Energy production Transoprt manufacturing Entertainment, tourism and leisure Finances, insuranse and trading Logistics Furniture production Food industry and beverage

Figure 17. Sponsors of Zalgiris according to economic sectors

Source: the figure has been created by the author, based on Table 1 The general sponsors are Kaunas City Municipality and OlyBet. OlyBet is the new betting, virtual games and slot machines brand name in Lithuania “OlyBet” under “Olympic Casino”. It became a general sponsor in 2014. Zalgiris representatives underlined that “with such a powerful general sponsor on board, they are able to strengthen the team with a couple of experienced players and will also be able to build a bright future for the team” (Official website of BC Zalgiris, accessed 13-03-2016). OlyBet is already a leader in betting and virtual games market in Estonia and Latvia that is now being introduced in Lithuania. So supporting Zalgiris OlyBet will make it entering Lithuanian market more effective and arouse interest to its products among wide target audience. Kaunas City Municipality became a general sponsor of Zalgiris in 2013 and combine around 30% of Zalgiris budget (budget of the club include: 3 million EUR – from sponsors, 2 million EUR from government, 870 thousands - from Lietuvos energija and 1,5 million from ticket sales) (Official website of BC Zalgiris, accessed 13-03-2016). But the biggest support Kaunas City Municipality realized by investing into building the new multi-purpose indoor arena - the largest indoor arena in the Baltics. This arena became a home arena for Kaunas Zalgiris. The arena's maximum possible seating capacity for basketball games is 15,552, and 20,000 spectators for concerts. Žalgiris Arena has had the highest attendance rate in Euroleague for 2 consecutive seasons (2011-2012 and 2012-2013). 35

Sponsors aim to earn benefits by using Zalgiris as a sponsee – get new customers, hold constant customers, build the awareness of their brand, deliver message to potential customer, but the important thing is to make research whether they use sponsorship effectively as communication tool or there are barriers and problem in communication models between sponsors and their target audience that has to be fixed. To make that research author will use the method of survey. 2.3. Methodology of researches In this work author try to create the model of effective communication in sport sponsorship on the base of theoretical and practical data. All work represents the multistage process of creating the model that will solve the existing problem. The problem is efficiency of companies‟ sponsorship activity. Naert (2013) offered next step of building model: 1) Plan the study, 2) Define the system, 3) Build the model, 4) Run experiments, 5) Analyze the output, 6) Report results. Some of these steps were missed by the author (run experiments and analyze the output) due to lack of time and first of all lack of resources for such experiments. During the process of model creating it is important to make an analysis in a proper way. Researcher should correctly identify the cause-and-effect relationships between different facts. More attention should be paid on key impact factors and less on factors with little impact(Fritz, 2012). Theoretical background of the work was made by analyzing the literature and internet sources refers to the scientific problem. By adopting the existing models author offered the initial model more appropriate to sport sponsorship that will be later developed and extended on the base of empirical data and Kauno Zalgiris case. Empirical data was accumulated by using techniques of survey. Scientists offers different methods to monitor and measure sponsorship, its results and effectiveness. Usually they are (De Pelsmacker et al.,2011): 1) exposure-based methods, 2) methods to measure the communication effects of sponsorship, 3) sales and market share measures 4) feedback from participating groups

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The multipurpose tool for second and fourth methods is survey. Author made a questionnaire (Annex A) that will help to analyze the role of sponsorship in the opinion of people who attend sport events and the effectiveness of communication processes occurring at the time of sponsorship. So to see if the sponsors of Kauno Zalgiris act effectively and to reveal the problem in communication between sponsors and their target audience (purpose and goal of survey) the survey technique was chosen. Today the word “survey” is used most often to describe a method of gathering information from a sample of individuals (Arora, 2012). This “sample” is usually just a fraction of the population being studied (Shiu 2009). The tool used during the survey to collect and record information about a particular issue of interest is questionnaire. There are certain steps of making survey. First of all the researcher have to clarify the purpose of a survey and formulate its goals. Then verify the resources and choose a survey method. Another step is writing the questionnaire and making its pilot test to consider if any changes are needed. After the survey took place gathered data should be processes and stored and later analyzed and interpreted (Arora, 2012). Questionnaire has advantages and disadvantages. Advantages are foremost its practicality, possibility of collecting large amount of people‟s answer in a short period of time. Also, the result of questionnaires can usually be quickly and easily quantified, compared with another studies (Lee, 2009). The disadvantages are uncertainty that respondents answered the questions truthfully, the fact that people may read differently into each question and therefore reply based on their own interpretation of the questions, a level of researcher imposition (Amandeep, 2010). Questionnaire designed by the author include close-ended and open-ended questions. Close- ended questions have answer that should be chosen by the respondents and this type of questions is preferred as it allows to count the frequency of each response easily (Arora, 2012). Open-ended questions characterized by asking the respondents to answer in their own words and those answers later categorized into a smaller list of responses that can be counted and analyzed (Shiu, 2009). Sampling method that was used in the survey is nonrandom as questionnaire was sent firstly to random persons but only answers of the respondents who attended matches of Kauno Zalgiris or at least watch them on TV were analyzed. The research took place in February -March 2016 and lasted for 3 weeks (from 22 of February till 14 of March). The questionnaire was changed into online version and sent with the help of e-mail and social networks. The questionnaire consists of 24 questions that were made by the author to gather data for building the effective communication model in sponsorship with the case of Kaunas Zalgiris. Questions 1-2 (Annex A) are aimed to see the frequency of watching or attending the matches of the team, that shows in what scale respondents can be aware of the team life, achievements and 37 also sponsors (as the frequency is more than the person faces the information about sponsor and sponsor‟s product and can give better evaluation of its effectiveness and perception). Questions 3,4,5 (Annex A) should help to reveal the preferences of the respondents concerning the brands sponsors are offering and connecting with Zalgiris and additionally the trust to those sponsors. Questions 6-8 (Annex A) are aimed to analyze the perception of the sponsorship in common by the respondents. Answers on these questions will help to see if sponsorship negative or positive for them, weather they understand the meaning of sponsorship and their attitude to sponsorship. Question 9 (Annex A) what types/firms of sponsorship are more effective for respondents. Questions 10-13 should help the author to evaluate the attitude of the audience to the sponsor in total and the sponsor‟s message. Question 14 (Annex A) created to see the character of the respondent‟s awareness of sponsors of Zalgiris. And questions 15-24 are aimed to see whether the actual sponsorship is effective – to see if respondents are aware of the products of sponsor or not. The interviewed persons (total amount 231 persons) were first of all fans of Zalgiris and their accompanying persons. Respondents were mostly male (77%) in the age of 25-35 years (36%) and 35-45 years (44%) that were students (29%) or employed (63%). 42% of interviewed persons attend Kaunas Zalgiris matches once per 3 months, 18% - once per 6 months and 40% - once per year. Respondents more often watch matches on TV or on-line: 63% - once per month, 12% - once per 3 months, 12% - more than once per month, 10% - once per 6 months, 3% - once per year. 2.4. Study of Zalgiris’s sponsorship effectiveness This subsector introduce the results of provided survey together with their analysis. 87% of respondents purchased products and services from brands associated with Kaunas Zalgiris what can be explained by wide range of products and services of the team‟s sponsors. At the same time 73% of interviewed noticed that they would prefer products and services that are being associated with Zalgiris. Furthermore 63% of respondents have more trust to the companies that may allow themselves to be sponsors. Most respondents generally think that sponsorship is positive for sports (62%) and only 15% consider it as negative (Fig. 18). Sponsorship besides its economic purposes support the development of sport within the promotion of healthy lifestyle and its positive influence is very often unquestionable. All sport events and sportsmen need financial resources, so sponsors are looking for the best of them to introduce their brand contribute to “natural selection”. Only if sponsors see the perspective of certain event or personality - they cooperate and invest to get short term or long-term benefits. Organization of professional and interesting spectacle is not possible without sponsors, as it requires significant resources. From the other side, people who evaluate the influence of sponsorship as negative, underline that sometimes sport events lose on its professionalism and become much commercialized - just a platform for advertising the sponsors, so 38 concept of the game is changing. Sometimes sponsors require performance, but not professional competition.

23%

positive negative 15% 62% don't know

Figure 18. Attitude of the respondents to the sponsorship

Respondents were asked to identify the goals of sponsors in sponsorship, in other words with what purposes sponsors spend money on sponsee. Interviewed persons could choose more than one answer. 29% of responses concerned the raising awareness of the brand (219 responses), 25% of responses were related to forming the connection with fans (187 responses). It is very hard to evaluate the changes of quantitative indicators influenced by sponsorship, therefore qualitative changes are more important. Awareness of the brand and emotional connection with fans lead to the creating of certain preferences in consumer‟s consciousness, which directly or indirectly cause purchase or repurchase. Sponsorship helps to strengthen the purchase intention and in such way helps the company to get its revenue. But according to complicated processes of purchase behavior tracing the connection and evaluation of the results of sponsoring become a time consuming and not accurate enough process. Less respondents think that sponsors aim to increase sales (159 responses, 21%) and to compete against competitors (134 responses, 17%). The lowest number of responses concerned the raising of awareness of products (64 responses, 8%) (Fig. 19). Sponsor promote usually its brand. As big sponsors usually have different products with different names produced in some daughter companies it has more sense to work on brand awareness. Nevertheless, this fact depends on the size of the company and on the specifics of its products. For sure increasing of the sales is one of the most important goals, because in market economy enterprises should strive to be rational and don‟t waste their resources if they want to expand their activity and have revenues. Additionally important element of successful company is the proper use of competitive advantages and taking advantage over their competitors.

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To Form a Connection with Sports Fans 187

To Compete against Competitors 134

Raise Awareness of the Brand 219

Raise Awareness of Products 65

Increase Sales 159

0 50 100 150 200 250 Figure 19. Goals of sponsors according to the respondents

According to 56% respondents the main reason that a connection between a consumer and a sponsor is successful is emotional attachment (Fig. 20). For 26% of interviewed persons the main reason is in meeting their needs, for 8% - influences attitudes and behaviors, for 7% - goodwill feeling and only for 3% - valuing them by sponsor as consumers (Fig. 20). Last researches in USA showed that 78% of consumers prefer products of the companies that support close to their heart initiatives (Schwarzenberger, 2013). Sport it is always very strong positive emotions, and with them it is much easier to build the desired marketing message. If advertising take place in the indifferent environment and try to create any emotions – sponsorship already take place in the emotional environment and thereby is more effective. Consumers appreciate the satisfaction of their needs of certain event or person. For example, fans will be very thankful to sponsor that helped to engage to the game their favorite player, facilitate their favorite team enter in particular league, provide equipment for better conditions of the game and so on. Respondents declare also that successful sponsorship has to impact on their attitude and behavior, so sponsor message should be clear enough, emotional and valued to cause any actions from their side. Consumers have to understand that company value them and support sport or sportsmen to satisfy them and in such way take into consideration their interests.

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Goodwill Feeling 3% 7% 26% Emotional Attachment

Influences Attitudes and 8% Behaviours 56% Meeting the Consumer Needs

That they Value them as Consumers

Figure 20. Reasons of successful connection between a consumer and a

sponsor according to the respondents Respondents were offered to choose the most effective type of sponsorship and 82% of them chose visual tools as banners, screens, team clothes, prizes and so on. From another side, 41% of interviewed persons think that information about sponsors appearing too often during the match, 25% of respondents think that that information appears often and for 34% - it does not bother (Fig.21). Of course, sponsors want to have as much benefits as possible, consequently fans are inundated by corporate logos as companies scramble to stick their brand on every aspect of the game. However, sponsors should not forget that for many fans sport is very important sphere of life, sometimes it affects their honor and pride. Therefore, they require the respect to the sport events and certain traditions. The example of exaggeration when players do not wear the name of their team on their T-shirts, but the name of the highest paying sponsor. Or when the team change the name including the name of sponsor.

0%

34% 41%

Too often Often Doesn’t bother me 25% Not enough

Figure 21. Respondent’s attitude to the frequency of

sponsor’s information These facts are confirmed by the responses that concern general attitude to sponsor‟s information – for 41% of respondents it is essential and for 34% - neutral (Fig. 22). So most of

41 people are used to visual appearance or verbal mentioning about the sponsors. Nevertheless 20% of interviewed persons consider it like annoying and only 5% find it interesting (Fig. 22).

20% 41% 5% Annoying Interesting

34% Neutral Essential

Figure 22. General respondent’s attitude to sponsor’s information during the match

Most of fans of Zalgiris (56%) believes that sponsors should be appropriate to the content of sport event (in this case directly or indirectly connected with basketball, sport in common or healthy lifestyle) (Fig. 18). And 23% of respondents think that it is not important sponsors to be in any way connected with the type of sponsored sport or event (Fig. 23). Sport is first of all entertainment. For many people it is a way to organize their leisure, to relax and to support their interests, so there is a small chance that they want to think about insurance, logistics, industry, consulting and other things. Consumers will more effectively perceive the message connected with other aspects of entertainment, because they will be closer to them at that moment. Still mentioning certain brands in different spheres of life may stay in their long-term memory and have a positive influence on purchase behavior. Every company can be a sponsor, but everything will depend on how good message they will create to communicate with target audience and how effectively they will affect on conscious and subconscious of potential consumers.

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9%

23% Yes, of course Maybe 56% Not really 12% No

Figure 23. Accordance of sponsors to the content of sport event

78% of respondents mentioned that they remember the sponsors of Kaunas Zalgiris. Interviewed persons were asked to list those sponsors. The most frequently answered sponsors were Adidas (189 responses), OlyBet (168 reponses), McDonalds (122 responses), Utenos (113 reponses), Lietuvos energija (85 reponses), Kaunas City Municipality (83 reponses) and Vytautas (59 reponses). Consequently fans pay more attention not on general or top sponsors, but on usual sponsors from Lithuania or companies with global well-known brand. In order to see if respondents fields of activity of Zalgiris‟s sponsors they were asked to define the produced products or services of them. The biggest awareness of sponsors‟products and services are related to the companies that produce food products and beverage (Utenos – 92%, Vici – 82%, Bosca – 78%), big national energy company (Lietuvos energja), shoping and entertainment center Akropolis – 93% (Fig. 24). Lesser known are industrial companies.

Perlas 23 Kauno Svara 12 Kauno Vandenys 15 Vici 82 Akropolis Kaunas 93 Bosca 78 Utenos 92 Kauno Tiltai 24 Lietuvos energija 91 OlyBet 64 Figure 24. The awareness of sponsors’ products and services by respondents (% of correct reponses)

The survey showed that general attitude to sponsorship among fans and their accompanying persons that represent the target audience for sponsors is positive. Respondents understand the need 43 of teams and events to be sponsored and messages with the information about the sponsor during the matches is quit essential or neutral for them. Still most of people consider too often mentioning of sponsors as annoying. Respondents were often aware of the sponsors‟ brands and product but basically those ones that are already well-known and connected in direct or indirect way with sport activities or healthy life style. Respondents also underlined the importance of emotional attachments in successful connection between potential customers and sponsors. That facts confirm that most of people attending or watching matches feel that emotional connection, they are thankful on a conscious and subconscious level to sponsors that provide them the possibility to enjoy the match of favorite team or sport and they prefer or would like to prefer sponsor‟s products or services. Gathered secondary and primary data will be used by the author in the next chapter to offer improvements for communication model in sponsorship analyzing the problems and barriers of communication between the sponsors and target audience using the example of Kaunas Zalgiris.

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3. DECISIONS IN ORDER TO IMPROVE THE COMMUNICATION USING SPONSORSHIP AS A TOOL

3.1 Problem clearing and problem solving logic

The main object of the work is to create a model that will provide the simulation of effective communication between company and target audience by using such marketing tool as sponsorship. Firstly the study was planned by identifying the scientific problem, objectives of the master thesis, relevance of the problem and logic structure. Then to set in order theoretical and practical parts of the study plan was created. After the system of creating the model was defined in detail. Theoretical part helped to see the essence of sponsorship and communication in total in the context of sponsorship. Important step was to analyze already exciting models to offer own preliminary model more appropriate to sponsorship then other marketing communication tools. Later to develop and improve the preliminary model author had to gather and analyze primary and secondary data using the case of Kaunas Zalgiris. The practical part was helpful to detail already offered model providing it by actual information from market research (survey). Author was looking for key impact factors that influence on customer‟s attitude and behavior leading to purchase process. In this chapter the improved model will be introduced and described as a report of study‟s result. Communication in sponsorship is very complicated and multifaceted process, as there are many factors that influence on represented by the sponsor brand perception and brand choice. Still three main stages can be extracted: cognitive, affective and behavior (fig. 25).

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Figure 25. Model of effective communication using sport sponsorship as marketing

tool

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Cognitive stage is the stage when the potential customer pay attention on the sponsor and its brand. To do this sponsor should use different stimuli – predominantly visual and sound – to affect on people‟s memory. Repeatable presentation of the message that sponsor wants to deliver to the target audience will help to reach the working memory and later long term memory. It should take place during sport events by using logo and products on banners, screens, equipment, elements of stadium‟s infrastructure, clothes of the players and also on awards. The visual representation of the sponsor‟s brand was recognized by the respondents during the research as the most effective. It means, that when fans are observing the game they all time meet graphic messages on the field, screen, players and those images stay in their memory. Auditory messages during broadcasting are less effective, because on a subconscious level miss the significant part of the information that is not connected with the game. Sponsors of Zalgiris should continue to use logo display as the most common way of showing the legitimate relationship with the event. Logo that possesses high visual fluency influence in such way: people process and recognize its meaning with greater automaticity, that is, faster and with more elaborate and deeper comprehension, than when exposed to a visual stimulus with low fluency. It is easier to perceive stimuli that are presented for a long rather than a short duration or with high rather than low clarity. Moreover, it is also easier to perceive stimuli one has seen before rather than novel stimuli. Effective graphic presentation of the sponsor at the sport event using its logo should be:  Simple and understandable,  Exactly in accordance to the logo that company has (appropriate color, parameters, position and so on),  Unique (shouldn‟t be similar to others in order to avoid its associating with other sponsors),  Without any abusive signs or images,  As much connected with game or team as possible to underline the connection between sponsor and sponsee. It also can be effective to combine logo with some words or sentences that shows the mission of the sponsor, appeals to support team or certain players. Effective message should fits in the time period from 4 to 10 seconds, and the individual parts of the message should fit in the intervals from 0.1 to 0.5 seconds. Sound stimuli help to deliver more information about the sponsor by paying attention on what it produces, its characteristics, history, product diversity, and what is important for the next stage – the role that company played in organizing the event and letting it to be realized. Sound stimuli has bigger potential during broadcasting of the games. First of all, when people watch the match on TV or Internet commenting of the event is important integral part of the program. Having 47 more attention of the fans commentators may deliver more information about the sponsors and facilitate the positive image of the sponsors, underline their contribution to the development of the team, time of cooperating with the team or any other characteristics that will be useful for sponsor. Especially beloved by the sponsors are any breaks during the match that allow commentators to remind the auditory all mentioned before information about the sponsor and increase its effectiveness by this. It is important to make sound message short, laconic and informative, because the research showed that trying to pay attention on the sponsor organizers may overdo and make it bothering and insistent that can have negative impact on brand perception. 41% of respondents during the survey found that information about the sponsor appears too often. Nevertheless, sponsor‟ messages is essential for the same amount of respondents. The message about the sponsor should be unobtrusive. For example, company‟s logo on the clothes will certainly stay in people‟s memory as players are in the center of audience‟s attention during the whole game. This fact is verified during research as Adidas and Olybet whose logo is on the clothes of Kaunas Zalgiris players (fig. 26) were among the companies that respondents listed as ones they remember and are aware of their products. Figure 26. Example of using OlyBet‟s logo in frame of its sponsorship of Kaunas Zalgiris

Figure 26. Example of using OlyBet’s logo in frame of its sponsorship of Kaunas Zalgiris Source: http://www.krepsinis.net/naujiena/zalgiris-pristate-nauja-namu-rungtyniu-apranga/254472

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Creating the message that should reach the target audience more appropriate way to combine visual and auditory forms of delivering certain message focusing on the visual one that is recognized as the most efficient. Image of the brand at this stage means that audience is already know the brand and it put its attention and strengthen the emotional connection between that audience and the company. The research showed that visitors of Zalgiris‟ matches put more attention on national brands (Utenos, Lietuvos energija) and well-known global brands (McDonalds, Adidas) – ones that they already heard or saw somewhere. That‟s why cognitive stage become more important for the companies that just entered the market and want to introduce themselves and their products by sponsoring popular sport events and teams. Sponsors already made a good choice by choosing Kaunas Zalgiris. As the basketball in national sport - it attracts a lot of people that are potential customers. Additionally Kaunas Zalgiris in one of the favorite teams among Lithuanians and one of the oldest with many wins. Summarizing, on the cognitive stage in order to create effective communication with potential customers basing on the case of Zalgiris, sponsors should: 1. Choose the appropriate type of message that should be delivered to the target audience combining visual and auditory forms with the dominance of the first one, 2. Provide high frequency of appearance of message without making it obtrusive, 3. Use the logo as the most known image of brands, 4. Choose appropriate form or spot for placing the message – to pay more attention the best places are team‟s uniform, awards, equipment. Next stage is affective stage that aims to make an emotional connection between audience and sponsor, wake up certain feelings and gratitude to sponsor. 56% of respondents that took part in a survey underlined the importance of emotional connection with a sponsor. Sponsorship allow the event to be planned and organized, support teams and players in its developing and improving. On this stage of the important clues is matching sponsor and sport (congruence). This logical relation enables people to transfer the image of the event to the products, vice versa. That‟s why brands connected with Zalgiris will induce in target audience positive (if the team is wins) or negative feelings (when it loses). Therefore, people store the products in mind more easily for those elaborative information and linkages created due to the highly fit between the event and sponsor. Here such companies as Utenos, Vici, Bosca and Lietuvos energija made a right choice of sponsee – sport event is always strongly connected with food industry as complimentary to entertainment and energy is the source any broadcasting or real game cannot have place. So potential customers using directly or indirectly those products will transfer on them the image of Zalgiris. Since low congruence creates a high conflict and disturbance of the perception, people would need more 49 processing time to rationalize the relationship between the sponsor and the event as in case of such industry companies sponsoring Zalgiris as Aksa, Sanistal, Fiskars. Every company despite the kind of activity can be the sponsor, but the research shows that more than half of the respondents perceive the message and remember it when it concerns food and beverage or close to sport theme. Sponsors of Kaunas Zalgiris that engaged in industrial production were not remembered by the audience despite the frequency of the sponsor‟s message. Having the certain knowledge about the sponsor and its product together with connected with them emotions and feelings 73% of respondents underline that will prefer the sponsor‟s product to another one produced by another company. For example, fans of Zalgiris will prefer buying sport outfit produced by Adidas then Nike as their favorite team wear the clothes produced by this company. Fans will on unconscious or conscious level prefer to drink beer produced by Utenos that is also kind of symbol of the game and team. Also participants of the research agreed that they have more trust to the companies that have enough funds to be sponsors. Very strong emotional connection can have place during the presentation of prizes to the winners of the game. In this case sponsor that established the prize is firmly associated with such notions as a victory, leadership, championship. All the spectators present at the stadium, see the ceremony, and thus the probability that the overall emotional lift of te fans will help to secure sustained positive association with the brand of the sponsor. Summarizing, on the affective stage in order to create effective communication with potential customers basing on the case of Zalgiris, sponsors should: 1. Adopt and connect the characteristics of their products to the characteristics of the basketball game and features of the Kaunas Zalgiris, 2. Help the sponsee to develop and reach new heights, because its wins and other success will enhance the emotional connection between audience and sponsors, 3. Underline the best functional properties of the product in the message that sponsor want to deliver to audience on the stadium or those ones that are watching matches in the TV or Internet. In this way people become aware of the company, its brands and products, began to have positive attitude to it and consequently can have a desire and intention to buy it. So we move to the last stage - behavior stage. Customer according to previous experience and influence made by delivering sponsor message make a brand choice and thereafter a purchase. 87% of respondents already purchased Kaunas Zalgiris sponsor‟s products. Company is not interested by single purchase, because sponsorship sometimes is very costly process. Sponsor is interested in creating the loyalty to its product and repurchase. To provide repurchase sponsors should create the product that will meet the 50 needs of the customers and expectations of product‟s value. Customer loyalty is considered an important strategic issue, which can help a company to outperform competitors and to be successful on the market by achieving the high market share. Loyalty very often can be temporary and to maintain it sponsor should try to make its sponsorship constant or change it without any harm to the team or sport event. When the company stops to sponsor team and causes financial problems and difficulties in team‟s games as it happened with Zalgiris in 2009, then gained loyalty may be turned to disloyalty and cross out all previous successes. Loyalty is so important for sponsors, because loyal customer will be:  More trustful to the company and its brands,  Less sensitive to the gentle changes of the prices, products characteristics, presence of additional services connected with the product, negative opinions of other customers,  Less opened to the messages of the competitors,  More interested in new products of the sponsor,  A good informer for other potential customers. In addition, customer retention reveals how much real value a company is creating and predicts future cash flow. Loyal customers tend to make the repurchase. Understanding this company should use sponsorship for creating loyalty, but this process can be long-termed. Usually it is not enough to sponsor one event, sponsorship should be constant or long-termed. 3.2 Model implementation The most important thing in model is that it should be useful and easy for implementation as it represent the simplified version of certain concept. Stages of model‟s implementation were discussed in the first chapter and introduced on the picture 13. On exploration stage sponsor has to identify if there is a need in the company to change something and consequently decide if there is a need to use the model. Company that is already a sponsor should evaluate the efficiency of its sponsorship and decide if its activities has to be improved or can stay without changes. The easiest way to evaluate that efficiency is to use survey techniques. As benefits and results of sponsorship are hardly measured the decision should be made on the base of marketer‟s experience and opinion based on the analysis of current situation. The company that just begin to plan using sponsorship as marketing communication tool should decide:  if it has enough resources to be a sponsor;  if its brand is matching sport activity;  if the target audience that will attend the sponsored sport event is appropriate to the one identified in its marketing strategy.

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Sponsor should analyze the possible sectors of sponsorship and whether it will be able to give appropriate financial or material resources for next spheres: 1. Organization of the sport event (room rental, the necessary equipment and tools, participants accommodation, food and other.); 2. Payment of its technical personnel (technicians, porters, guards, cleaners, etc.), 3. Paying the work of the sports personnel (judges, the secretariat, the doctor and others.), 4. Preparation and conduction of the entertainment program, 5. Advertising of the sporting event (this can also include the development of attributes, anthem, emblem, theme of the site and the work of operators, etc.); 6. Financial support of the prizes; 7. Providing the safety of the event, 8. Insurance of the participants, 9. Paying the work of the management and marketing services an others. During the stage of initial implementation sponsor should choose the content of message it want to deliver to potential customers together with the channels of delivering of this message. Certain person or persons is appointed to choose and cooperate with the sponsee. Persons that will work with the model oversee the implementation process, build communication and feedback loops, develop a site plan for putting the new practice in place. On the stage of the initial implementation sponsor should make a trial implementation, review the whole process, provide a feedback and make decisions about needed modifications, continuing using that communication tool or looking for another one. Moving to full implementation consider complete engagement in the sponsorship process, confirmation of the process as the one that is efficient and the one whose benefits are recognized by the company. Many sponsors works with Kaunas Zalgiris for a long term that shows that for them it is a profitable cooperation. As Zalgiris has as sponsors very big and known companies as OlyBet, Lietuvos Energija, Adidas and others it became attractive for smaller and less known companies as Admen or Taupkase and provide significance financial support. Expansion or scale-up is about to increase the number of sponsored events and make the practice of sponsorship on the base of the represented model and its implementation by cooperating with Kaunas Zalgiris a verified and efficient process. On-going monitoring and evaluation should be provided. It can be made by:  Following the news of new trends in basketball,  Monitoring successes of Kaunas Zalgiris,  Monitoring successes of separate players of Kaunas Zalgiris,  Monitoring the regional and world championships in basketball, 52

 Monitoring the satisfaction of the auditory by the game of Kaunas Zalgiris,

Besides the lack of opportunities to implement the model of effective communication by using sponsorship that was offered by the author the described process can be taken into consideration by the companies. It is important to provide the target audience with the clear, informative and appropriate message that will stay in their memory and also obtain the emotional connection with sport event or team. The process of active work will not finish on the affective stage – it should be even more diligent at the behavior stage during the purchase. Even awareness of the product by target audience and its preference will not ensure the crucial repurchase. 3.3 Risks and special issues of model implementation There are certain risks that can take place during and after the implementation of the model that are represented on the Figure 27. Those risks were determined by the author on the base of discussed before theoretical problems and conclusions from the researches.

Figure 27. Main risks of model implementation

Negative associations. In some situations the image of the sponsored entity may have a negative impact on the company providing support. While this is most likely to be the case where an endorsement of an individual athlete (e.g. doping scandal with Dainius Salenga) is made, it can also involve a team or event. For example, in case when the sponsored team is losing the match and even

53 has bad results during the season is unlikely to provide its sponsor with the type of image they are expecting from the association. Kaunas Zalgiris nowadays doesn‟t have such glory as before, but the team is working hard on improving their games and stay in the attention of the public staying one of the strongest team in Lithiania and competing on the regional and continent level with the best basketball teams of the Europe. Whatever the form of sponsorship, it is important to ensure that the event is welcomed by the targeted audience and the partnership organization is completely ethical in its activities. The sponsor cannot risk becoming involved with an event which is unprofessionally managed or one with a slightly dubious reputation. Sponsorship clutter. There is also the possibility that events may become “overly sponsored”. Too much sponsors of event or team may confuse the target audience and there will be barriers in attracting their attention. Especially it can be risky for the companies that are not well-known and that just became the sponsors, because the participants of the event will most probably notice brands that are already known or those one that has the better placement of their sponsor message. Of course audience will most probably notice and remember the message from such known companies as Kaunas City municipality, McDonald or Vici than ones of the new sponsors of Zalgiris – Gjensidige, TonyResort or Freda. Less amount of sponsors will help to attract more attention for the target audience, make the message, which the company want to deliver more noticeable and significant. Still, mangers of the teams trying to get as more benefits from sponsorship as possible enhance sponsorship clutter when they do not limit their amount together with frequency and placements of their presence during the game. Over-commercialization. Excessive commercialization can turn off sponsors. When sponsorship is very importunate and insistent the message the sponsor want to deliver can irritate the potential receiver and again bring to its negative perception. As it is noticeable in the study of Kaunas Zalgiris – 41% of respondents think the information about the sponsor appears too often and for 20% - it is anooying. Of course, most of sport event‟s participants understand that that event take place thanks to sponsors, but sponsor shouldn‟t spoil the humor and attitude of the target audience connected with the event that is emotionally very important for them. Plastering advertisements over every inch of a stadium or arena has become more than common in sport, but not always have positive influence on the people who watch the game. In case of watching game on TV too long breaks increase the common time of the broadcasted sport event what can also irritate. For example if the basketball match lasts 2 or 2,5 hours, with advertisements and mentioning sponsors that time may increase up to 3 or 3,5 hours. Example of over-commercialization using uniform of Zalgiris‟ players introduced on the figure 28 and emphasize its unaesthetic view.

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Figure 28. Example of over-commercialization using Zalgiris’ players uniform Source: NKL, < http://www.nklyga.lt/lt/news/top-10-vasara-nkl-palike-ir-i-aukstesni-lygi-persikele-krepsinkai/>, accessed 5 May, 2016 Evaluation problem. Sponsorship is also risky because, like other marketing communication tools, while it can have significant benefits these are extremely hard to make an assessment empirically. There are a multitude of techniques used by marketing companies which range from surveying customers (as it was made in the research provided by the author) to see if they are influenced by sponsorships to evaluating the amount of media exposure a sponsored event receives. Still none of the many evaluation methods provide a particularly valid form of evaluation and each can be confounded by factors such as use of other marketing tools, carry-over effects from previous campaigns, and uncontrollable environment factors. Also, it is important to underline that even if sponsorship is well integrated into a company‟s marketing mix, there are sometimes signs that sponsorship investments are not producing the returns that they once did. What is paradoxically, the reduction of effectiveness is sometimes the overall success of this form of marketing communications. Risks are evaluated by the author on the base of the “risks metrics” method (fig. 29).

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Figure 29. Evaluation of the risks for sponsors of Kaunas Zalgiris Risks that sponsors may have cooperating with Kaunas Zalgiris are medium or low. The lowest risk is negative associations. The probability of this risk is small because of positive achievements of the team during last 10 years and its positive image among fans. Even small defeats will not be critical for the sponsors, because fans understand the fundamentals of the game and inevitable alternation of victories and defeats. Due to attitude to basketball in Lithuania and big experience of Zalgiris negative associations will have marginal impact on sponsor. To avoid or reduce this risks sponsors should: 1. Monitor successes and failures of the team and players, 2. In critical situation invest in some changes that were practiced before – change of the couch, team players, team captain, 3. Support the image of the team and players, help in their motivation and personal development, 4. Maintain increase the standard of the home stadium in Kaunas. Sponsorship clutter and over-commercialization have medium risk. They are more probable than negative associations. The owners of the team always try to maximize their benefits from sponsorship and can try to attract more sponsors for supporting team, but such behavior will have critical impact, because it will make marketing communication ineffective and main message will not be delivered to consumers. To avoid these risks sponsors has to: 56

1. Cooperate with the management of the Zalgiris discussing common goals and benefits, ways of further partnership, mutual positive influence, 2. Determine clearly the level of sponsorship (general, main or usual sponsors) – sponsors that make the biggest contribute to the team or game should get more benefits and bigger awareness than other secondary sponsors, 3. Add the value to the experience of the fans by offering them expected “show” with good quality of its management and equipment, 4. Choose the priority message that sponsors want to send to the potential customer, focus on the most important information and the most important products or services company wants to promote. Evaluation problem is also medium risk, but has high probability connected with mentioned before problems of measurement of effectiveness based on more qualitative effects of sponsorship (brand awareness, intention to purchase) then quantitative. To reduce the evaluation risks next steps can be done: 1. Make the marketing department of the company provide appropriate marketing researches, that will be constant and helpful for later decisions about sponsorship and its types, 2. Evaluate the brand loyalty and repurchase process looking for connection with sponsorship activities, 3. Compare benefits from sponsoring different objects including Zalgiris in order to find the best solutions and methods of actions. Integration of sponsorship to company‟s marketing mix if it is made in a bad way is critical for sponsor and its probability is quite high. Big experienced companies use the benefits of sponsorship by implementing it to product, place, promotion, price strategies. Companies often use the information about the fact of them being the sponsor of some important sport events on the package of the product (McDonalds, Adidas), in advertising, in different promotional materials what helps to get more customers. To avoid the risk of not effective integration of the sponsorship sponsors should: 1. Use the fact of sponsorship in the product strategy by enhancing the emotional connections between products and customers, building customer loyalty, 2. In case of general and main sponsors whose expenses for sponsorship are high, company should include those expenses to the price strategy, 3. Match sponsorship with other forms of promotion, especially advertising and public relations (for example as Utenos does by using the logo of Żalgiris in its ads on the web- page, fig. 30), 57

4. Use the benefits of the sponsorship for encouraging and motivating personnel. Company can provide its workers with free tickets to the matches of Zalgiris as a reward for good work or any successes. This form of rewarding can be accepted with appreciation especially taking into consideration big popularity of the basketball among Lithuanians.

Figure 30. Example of integrating sponsorship to marketing-mix of Utenos Source: Utenos, < http://www.utenosalus.lt/>, accessed 13 March, 2016. Risks should be all time monitored and reduced to make the marketing communication using sport sponsorship effective and investments in sponsorship rational. One of the important special issues that sponsors should take into consideration is growing popularity of the sponsorship among the companies from the different sectors of economy. One of the main reasons of such popularity is that sponsors understand and appreciate its benefits. Companies that are already acting like sponsors of Zalgiris or those ones that plan to become its sponsors should understand the complexity of that process and make all needed steps to use sport sponsorship as effective communication tool. It is not only about giving money and presenting the logo – it is the multi-stages process that require professional approach together with constant attention and improvements of the sponsorship process. The condition for the effective and efficient implementation of sponsorship projects is not only the right choice of the subject of sponsorship, but also the use of reliable methods of evaluation taking into account all areas of sponsorship‟s return on investment. They allow to compare the economic value of the investments with the marketing profit obtained as a result of actions that were carried out.

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Sponsors may use the offered model in planning the sponsorship process stage by stage, that will help them to increase possible benefits, to reduce the expenses and to create and deliver appropriate message to the target audience. Summarizing, sponsorship is without a doubt unique marketing communication tool that in case of appropriate use may bring many benefits by creating brand awareness, achieving target audience, enhancing the sales, building the customer loyalty and so on. Sponsorship as other marketing tools is closely connected with psychology of customer‟s behavior, cognitive processes. The main goal of the sponsor is to choose the appropriate to its products sport or team and organize the unobtrusive process of delivering the message about the sponsored brand or product, make the target audience pay attention on it, remember, connect with positive feelings and emotion, and later prefer it among the competitive brands or products. There are always risks in sponsorship on which many factors impact and the clue of successful and effective communication is to foresee the potential customer‟s expectations and preferences simultaneously create an affective message and place it in a right place and right time.

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RESULTS AND CONCLUSIONS

The following conclusions can be made: 1. Modern concept of communication in marketing is based on integration of different marketing activities engaging all components and all external and internal processes of the company. This concept has been developed into integrated marketing communications theory that underline the importance of diverse and at the same time unified messages and conjunction and controlling of all channels of delivering this messages, 2. One of important and efficient tools in marketing communications is sport sponsorship that is significant especially in increasing the awareness of the company, its products and customers loyalty thanks to strong emotional connection between audience of the sponsee and the sponsor‟s brand, 3. Sport sponsorship should be integrated with such marketing-mix elements as product, price and distribution, that helps to create an appropriate message about the product and/or the company and deliver this message in effective way using marketing communication model, 4. Models of effective marketing communications are mainly based on psychological theories of short-term and long-term memory and consumer buying behavior. Three main stages can be distinguished: cognitive (attract attention), affective (to interest a potential customer and make him desire some product), behavior (the process of purchase), 5. Marketing communication models helps to set the objectives for sponsorship, measure its effects and helps to organize the effective process of delivering sponsor‟s message to the target audience, 6. Kaunas Zalgiris is a team with long history, many achievements and popular in Lithuania and Europe, what make it very attractive for sponsors, 7. Sponsors of Kaunas Zalgiris are mostly Lithuanian companies from financial, insurance and trade sector, food industry and transport sector. The general sponsors of the team are representatives of administrative and entertainment sectors - Kaunas City Municipality ad OlyBet, 8. The survey showed that general attitude to sponsorship among fans and their accompanying persons that represent the target audience for sponsors is positive. Respondents understand the need of teams and events to be sponsored and messages with the information about the sponsor during the matches is quit essential or neutral for them. Still most of people consider too often mentioning of sponsors as annoying, 9. That facts confirm that most of people attending or watching matches feel that emotional connection, they are thankful on a conscious and subconscious level to sponsors that provide them

60 the possibility to enjoy the match of favorite team or sport and they prefer or would like to prefer sponsor‟s products or services, 10. The model of marketing communication using sport sponsorship as marketing communication tool consists of cognitive, affective and behavior stages. 11. On cognitive stage sponsor using visual and sound stimuli together with image of the brand work on attracting the attention of the audience. As Kaunas Zalgiris case showed the audience remember more visual images of national or well-known on the international market brands and also short, laconic and informative messages form the sponsor, 12. Affective stage of the model includes different elements that all together aims to form the awareness of the company and/or its products. In sport sponsorship important elements are emotions and feelings that strongly connect the potential customers with the team, its sponsors and that are leading to certain product became liked and preferred by those customers, 13. Behavior stage leads to purchase, but despite the act of purchase that says about good sponsorship and good communication (e.g. 87% of respondents already purchased Kaunas Zalgiris sponsor‟s products), really effective sponsorship can be if it will provide stable process of repurchase, 14. The main risks and special issues of model implementation are negative associations, sponsorship clutter, over-commercialization, evaluation problems. Sponsorship is becoming non- effective as a marketing communication tool when emotion connections are negative – providing positive emotions during successful games sponsor gain more thankful audience and additionally better awareness and bigger sales. The events and teams should not be “overly sponsored”, because it reduce the perception of sponsors in total and every of them separately. The process of evaluating the sponsorship effectiveness is quit complicated according to the nature of sponsorship, but can be made using the frame of offered model and experience of marketers that organize and manage the sponsorship, 15. Created by the author model of marketing communication using sponsorship as marketing communication tool integrate the common elements of theoretical models analyzed in the first chapter and conclusions from the researches made during field analysis. It allows to sponsors to explore their current process of sponsorship in cooperation with Kaunas Zalgiris and see risks and effectiveness of the sport sponsorship and possible benefits. Model is based on physiological theories and particular facilities of sport sponsorship determined using case of Kaunas Zalgiris, 16. Despite the marketing communications are significance elements in successful company, models of effective communication in the analyzed sources are not enough appropriate for sport sponsorship. The novelty of the DP is first of all author‟s attempt to create a model that will allow 61 to organize the effective communication process between sponsors and audience during sport events. 17. Based on the case of Kaunas Zalgiris basketball team the developed model can be used for current sponsors of the team to change or improve the message that they try to deliver to the potential customer and delivering channels they use. Additionally model can be used by the new sponsors of Zalgiris or other teams to make a decision whether their sponsorship has chances to be effective and successful. 18. The problem study can be developed in the future and supplemented by new element and structures that can be revealed if model will be brought to real life and again analyzed using similar techniques and methods.

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ANNEXES

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Questionnaire 1. How often do you attend Zalgiris Kaunas matches? a) Once per year b) Once per 6 month c) Once per 3 month d) Once per month 2. How often do you watch Zalgiris Kaunas matches on TV or Internet? a) Once per year b) Once per 6 month c) Once per 3 month d) Once per month e) more than once per month 3. Have you purchased products or services from brands associated with Kaunas Zalgiris? a)yes b)no 4. If given the choice between two similar products or services, however one being associated with Kaunas Zalgiris, would you be more inclined to purchase the one associated with Zalgiris? a)yes b)no 5. Do you have more trust to companies that can allow themselves to be sponsors? a) Yes b) Maybe c) No 6. Do you believe sponsorship is positive or negative for sports? a) Positive b) Negative c) I don‟t know 7. How do you think Sponsorships are used by the sponsor to… (you can choose more than one response) a) Increase Sales b) Raise Awareness of Products c) Raise Awareness of the Brand d) To Compete against Competitors e) To Form a Connection with Sports Fans

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8. What in your opinion is the main reason that a connection between a consumer and a sponsor is successful? a) A Goodwill Feeling b) Emotional Attachment c) Influences Attitudes and Behaviours d) Meeting the Consumer Needs e) That they Value them as Consumers 9. How do you think what type of sponsorship is more effective? a) Visual (banners, screens, team clothes) b) Auditory (broadcasting) 10. Do you think sponsor‟s information during sport events is: a) Annoying b) Interesting c) Neutral d) Essential 11. Do you think information about sponsors during sport event take place a) Too often b) Often c) Doesn‟t bother me d) Not enough 12. Do you think sponsors should be appropriate to the content of sport event? a) Yes, of course b) Maybe c) Not really d) No 13. Do you remember the sponsors of Kaunas Zaligis? a) Yes b) No 14. If yes please list Kaunas Zalgiris sponsors 15. What products/services OlyBet produces? 16. What products/services Lietuvos energija produces? 17. What products/services Kauno Tiltai produces? 18. What products/services Utenos produces? 19. What products/services Bosca produces? 20. What products/services Akropolis Kaunas produces? 69

21. What products/services Vici produces? 22. What products/services Kauno Vandenys produces? 23. What products/services Kauno Svara produces? 24. What products/services Perlas produces?

Age 15-25 25-35 35-45 45-55 55+ Gender Male Female Student Employed Unemployed Retries

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Questionnaire. Responses Question Possible Answers Number of % responses 1. How often do you attend Zalgiris Once per year 92 40 Kaunas matches Once per 6 month 42 18 Once per 3 month 97 42 Once per month 0 0 2. How often do you watch Zalgiris Once per year 6 3 Kaunas matches on TV or Once per 6 month 23 10 Internet? Once per 3 month 28 12 Once per month 146 63 More than once per 28 12 month 3. Have you purchased products or yes 201 87 services from brands associated no 30 13 with Kaunas Zalgiris? 4. If given the choice between two yes 169 73 similar products or services, no 62 27 however one being associated with Kaunas Zalgiris, would you be more inclined to purchase the one associated with Zalgiris? 5. Do you have more trust to yes 145 63 companies that can allow maybe 67 29 themselves to be sponsors? no 19 8

6. Do you believe sponsorship is Positive 143 62 positive or negative for sports? Negative 35 15 I don‟t know 53 23 7. How do you think Sponsorships Increase Sales 159 21 are used by the sponsor to… (you Raise Awareness of 64 8 can choose more than one Products response) Raise Awareness of the 219 29 Brand To Compete against 134 17 Competitors To Form a Connection 187 25 with Sports Fans 8. What in your opinion is the main A Goodwill Feeling 16 7 reason that a connection between a Emotional Attachment 129 56 consumer and a sponsor is Influences Attitudes and 18 8 successful? Behaviours Meeting the Consumer 60 26 Needs

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That they Value them as 8 3 Consumers 9. How do you think what type of Visual (banners, screens, 190 82 sponsorship is more effective? team clothes) Auditory (broadcasting) 41 18 10. Do you think sponsor‟s Annoying 46 20 information during sport events is: Interesting 12 5 Neutral 79 34 Essential 94 41 11. Do you think information about Too often 95 42 sponsors during sport event take Often 58 25 place Doesn‟t bother me 78 34 Not enough 0 0 12. Do you think sponsors should be Yes, of course 129 56 appropriate to the content of sport event? Maybe 37 16 Not really 53 23 No 12 5

13. Do you remember the sponsors of Yes 180 78 Kaunas Zaligis? No 51 22 14. If yes please list Kaunas Zalgiris Adidas 189 81 sponsors Olybet 168 73 Mc Donalds 122 53 Utenos 113 49 Lietovus energija 85 37 Kaunas City 83 36 Vytautas 59 26 % of correct responds 15. What products/services OlyBet 64 produces? 16. What products/services Lietuvos 91 energija produces? 17. What products/services Kauno 24 Tiltai produces? 18. What products/services Utenos 92 produces? 19. What products/services Bosca 78 produces? 20. What products/services Akropolis 93 Kaunas produces? 21. What products/services Vici 82 produces? 22. What products/services Kauno 15 72

Vandenys produces? 23. What products/services Kauno 12 Svara produces? 24. What products/services Perlas 23 produces?

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