Sport Sponsorship As Marketing Communication Tool in Lithuanian
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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 2 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. 3 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 4 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) 5 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,