Economic efficiency, strategy, businesses
Before analyzing the measures of economic efficiency sponsorship, we must remember that the ultimate goal is to increase business revenue. Sponsorship is a real strategy for businesses. In times of sponsorship operation, and if the growth of the company exceeds the periods without sponsorship, companies tend to attribute some of this additional increase sponsorship.
However, it is difficult to control the economic efficiency of sports sponsorship, because many factors come into play. In addition to using sponsorship in its strategy, a company can carry out various communication actions, improve its distribution network, increasing its research and development budget or determine another price policy. The entire marketing mix can evolve to increase business revenue. In addition, we must also take into account the market and competitive developments. Indeed, the evolution of the application or the launch of a more seductive advertising campaign of a competitor can undermine the effectiveness of sponsorship. It is therefore difficult to isolate the role of sports sponsorship to measure the economic impact and return on investment of a company.
[...] So you have to set goals, measure results, analyze the costs and benefits and establish a return on investment. According to G. Tribou a sponsor company can follow the sponsorship benefits through a calendar presented as follows: We note from this table that monitoring sponsorship is spread in time. It is therefore difficult to measure the effect of a sponsorship campaign immediately. There is often a time lag between a sponsoring operation and its effects. The financial benefits may appear a few months after it starts. [...]
[...] Measurement indicators of economic efficiency Before analyzing the measures of economic efficiency sponsorship, we must remember that the ultimate goal is to increase business revenue. Sponsorship is a real strategy for businesses. In times of sponsorship operation, and if the growth of the company exceeds the periods without sponsorship, companies tend to attribute some of this additional increase sponsorship. However, it is difficult to control the economic efficiency of sports sponsorship, because many factors come into play. In addition to using sponsorship in its strategy, a company can carry out various communication actions, improve its distribution network, increasing its research and development budget or determine another price policy. [...]
[...] DESBORDES, business strategy in sport, Editions Economica M. and G. DESBORDES TRIBOU, Sports Marketing, Editions Economica Echegut Alain Roland Garros reorganizes his club sponsors, Les Echos, May 20, 2005; Companies invest in strength in sports sponsorship, Les Echos 2005 Bruno FRAIOLI, Winners and losers of sports sponsorship, Strategy, February Stéphane Guichard, BNP Paribas Clay, the folder's Distrib communicates G. TRIBOU, Sports sponsorship, Paris, Economica, 2nd edition, 2004; Strasbourg Road Runners: identification and motivation, communication in the seventh International Congress of ACAPS, Marseille B. [...]
[...] For example, during a failure of sponsoring a sports following a doping case, the course of action of the sponsoring company may fall and result in losses to the company sponsor. Finally, some company's internal management indicators can measure the effectiveness of sponsorship through staff engagement indicators (absenteeism, turnover) or productivity (product quality) Audience Measurement Indicators The hearing is an indispensable given in sponsorship strategy, as the sponsor chooses a natural event whose audience is high to ensure high visibility. Measurement indicators distinguish the indirect and direct audience of an event through three levels of exposure, which can be represented by the scheme: Bibliography ABRAT O. and R. [...]
[...] This time allows Adidas to measure the effects of long-term sponsorship, because during this period, other economic events and other factors may have influenced the results. To be effective, sponsorship must register in time to let the public, and thus consumers, time to combine sport with brand sponsor. It is therefore essential in a company to sign a long-term sponsorship deals to measure its impact. Despite the difficulty for companies to measure its impact on their turnover, we note that sponsorship admits a direct and positive influence on the sales of certain businesses. [...]
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