Ideal Sponsorship for a Major Sporting Event! BELL THE OFFICIAL SPONSORS FOR THE VANCOUVER 2010 WINTER OLYMPIC GAMES.
by jonathanli ~ November 30th, 2010. Filed under: Uncategorized.
Ideal Sponsorship
An emerging industry that is globally respected is the sporting entertainment industry, with over thousands of sports that are recognized world wide. The demand for viewing these sports, in combination with the current technology available for us today, offers companies, such as Bell, to supply the demand for satellite television viewing and online viewing of these sports. In major sporting events, the competition between sponsorships are very high because of the common goals of major companies, brand awareness. Ideal results of sponsorship is the increase in the company’s market shares. However there are multiple variables that need to be considered in order to create an ideal sponsorship and a good marketing investment, this includes: financial growth in revenue with minimal cost, product awareness within the market, positive media exposure in local and possibly national levels, and future opportunities for the company through the sporting event sponsored. As a result, Bell must analyze these variables and possible risk, when deciding whether or not to become the official sponsor for the Vancouver’s 2010 Winter Olympic Games (VWOG).
Costs
In achieving an ideal sponsorship, companies like Bell, must calculate the cost and risk of how bidding for a sponsorship will affect their company. Bell’s initial decision to sponsor the Vancouver 2010 Winter Olympic Games included a leap of faith, as they submitted an unsolicited proposal of $200 million dollars. This cost may have been strategically taken to avoid additional marketing cost as they represent the VWOG, and as said by Bell’s CEO Michael Sabia used as a “brand-building exercise”. This $200 million dollar investment can be compared with marketing cost because a 30-second advertisement during the annual Super Bowl can range between $2.5 million to $2.8 million . For Bell to have made a worthy investment they must satisfy these marketing goals:
1. Their financial records must show that their profits outweigh the $200+ million spent as well as their additional either now or in the future.
2. Achieving long term visions such as expanding successfully to the west, improving corporate image, creating loyal customers.