CHAPTER ONE

INTRODUCTION

1.1         Background Of Study

Corporate Sponsorship Promotion is the fastest growing marketing communication strategy. The growing demand and practice of this strategy by organisation is as a result of the growing influence of marketing communication as a one stop strategy in creating sustainable demand and excitement for an organization’s product and services.

A large number of organisations in different industries these days view corporate sponsorship promotion as an undisputed marketing, public relations and advertising strategy for promoting and raising the image credibility and demand for an organization’s products and services in competitive market. Corporate sponsorship promotion allows organization to reach specifically targeted niche markets by providing for the customers and the society. In addition, it is a powerful complement to other marketing programmes, having a dramatic influence on customer relations and satisfaction.

Corporate sponsorship promotion offers the possibility of achieving several goals at once. These include, enhancing image, shaping customer attitudes, driving sales, creating positive publicity, heightening visibility, differentiating from competitors, projecting corporate citizen role, enhancing customer relations; and

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above  all,  improving  customers’  status  or  changing  the  face  of  the  society.

According to Okoro, (1998: 154);

In today’s business, whether profit making or non-profit making; sponsorship has become a forceful marketing tool. In programmes, products, events, and movements, innovations abound in structure, style, nature and momentum of sponsorships. Today, the promotional strategist has an inexhaustible opportunity to promote his goods, via programmes and special events that pull the target market

All  over   the  world,  there  have  been  pronounced  changes  in  view  of   many

corporations   about   Marketing,   Public   relations,   Advertising,   and   corporate

sponsorship  promotion,  which  have  paralleled  and  partly  reflected  the  rapid

movement  toward  the  process  of  integrated  marketing  communication  (IMC).

According  to  Belch  and  Belch  (2004:9),  “Integrated  marketing  communication

involves  the   coordination   of   the   various   promotional   elements   and    other

marketing activities that communicate with a firm’s customers”.

Don E. Schultz in his contribution to the ‘Marketing News’ (January 18, 1993:17):

recognized the America Association Advertising Agencies (the ‘4As) definition of

as one of the first developed definition of the concept. Quoting the 4A’s definition,

Schultz defined integrated marketing communication as,

A concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – for example, general advertising, direct response, sales promotion, and public relations – and combines these disciplines to provide clarity, consistency, and maximum communications impact.

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Schultz further noted that the process of integrated marketing communications calls for the ‘big picture’ approach to planning marketing and promotion programmes and coordinating the various communication functions. It requires that firms develop a total marketing communications strategy that recognizes how all of a firm’s marketing activities, not just promotion, communicate with its customers. As a result, there are today few subjects of more concern to corporate survival than corporate sponsorship promotion; a Marketing, Public relations, Advertising strategy.

Today, corporate marketing objective has shifted emphasis from production and product to consumer satisfaction and societal welfare. A development that is responsible for the increasing focus of major industries on corporate sponsorship promotion as a veritable tool in the attainment of their corporate development and marketing objectives. According to Smith et al (2006:68)

Emphasis is now on the needs, wants and preference of consumers, which must determine product characteristics, pricing, distribution, advertising, promotion, selling as well as service. Society is now also concern about the protection of the physical environment, product safety and job creation. (Smith et al 2000)

The changing priority on corporate sponsorship promotion emanate from the new emphasis on relationship marketing. Today, most corporate marketers are seeking more than just a one-time exchange or transaction with the customers. The focus of market-driven companies is on developing and sustaining relationships with their customers. This has led to a new emphasis on relationship marketing, which involves creating, maintaining, and enhancing long-

Adile’s M.Sc Public Relations Thesis