Sponsoring a major sporting event is considered a good marketing investment under certain circumstances. Firstly, the company should have enough funds in order to pay the bid for the sponsorship. If the company does not have the money, it would have to take a loan and if the sponsorship does not boost its sales, it would be making a loss. Secondly, the company must evaluate the costs and the benefits. Sponsoring the event may mean that it does not have enough funds to invest in other fields. However, sponsoring the event leads to an increase in reputation of the brand. If the costs outweigh the benefits, then it is not a good marketing investment. Lastly, as a major sporting event, millions of viewers are guaranteed. If the company gets sponsorship rights, it would mean that everyone would see the brand, which may lead to an increase in sales. This would be a factor on why sponsoring a major sporting event would be a good marketing investment.
(Example of marketing: Standard Chartered Bank sponsoring Liverpool football club)
Source: http://www.gbposters.com/images/gbposters-com/lightbox/b7f7/SP0724-LIVERPOOL-the-reds.jpg
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