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Event Sponsorship: An Exploratory Study of Small Business Objectives, Practices, and Perceptions *
Event sponsorship is a crucial component of many organizations communications mix. Companies realize that in sponsorship, the interests of business and of society overlap. Historically, the objectives of sponsorship revolved around community assistance and giving back to the communities supporting the organizations. Increasingly, hou.uei; trade publications and academic journals are stressing the marketing benefits of sponsorship and the possibility of using it to replace other communications methods for some firms. The study reported here examines the objectives, practices, and perceptions of small businesses related to sponsorship decision making.
Event, or community, sponsorship allows organizations to reach their target market with less clutter than other communications methods, exposes the product/service directly to the market, and provides an excellent mechanism for the organization to give back to the community by which it is supported. Event sponsorship, or sponsorship marketing, refers to supporting various types of event ranging from local Little League teams, educational partnerships, and health fairs, to college basketball teams, around-the-world sail boat races, professional auto racing, and even to the Olympic Games. Sponsorship varies widely in a number of aspects including event type, dollar expenditure, extent of professional planning and objectives, number and type of participants, media exposure, and geographic context.
Whether the type of sponsorship is financial, media, or in-kind support (Cicora 1991), the list of company benefits derived from it can range from publicity, to product sales, image enhancement, or even improved employee morale (Decker 1991). Many organizations are now investing in sponsorships of the arts and education to enhance their corporate image. Sporting events, however, continue to be the biggest draw.
Although a great deal of the literature regarding sponsorship focuses on large corporations and international events, potential benefits for small businesses sponsoring small local and regional events are also impressive. Many small events are less likely to receive corporate funding and are more dependent upon local and regional organizations for support. Similarly, small businesses often cannot afford to sponsor large events.
The community identity available from partnerships between local events and local and regional small businesses can offer small businesses major opportunities in terms of community relations, marketing objectives, and employee relations (employees are often involved in...