2007:004

MASTER'S THESIS

Sport Sponsorship
A Marketing Communication Tool
in Swedish Companies

Malin Johansson
Therese Utterström

Luleå University of Technology

Master's thesis
Marketing
Department of Business Administration and Social Sciences
Division of Industrial marketing and e-commerce

2007:004 - ISSN: 1402-1552 - ISRN: LTU-DUPP--07/004--SE

ACKNOWLEDGEMENT
The process of writing this thesis has been enlightening, exciting and sometimes hard. Several
hours have been spent in school during the fall working with this thesis, and therefore it is of
great pleasure to long for the Christmas holiday. Without the support of others, first and
foremost the support from our supervisor Manucher Farhang, the produce of this thesis would
not have been possible. Special thanks are given to him due to his exceptional support,
knowledge and constructive feedback.

Extraordinary thanks are also given to the respondents, Stefan Erixon at Nåiden Bygg AB and
Mats Eklund at NCC, which provided us with useful information for this thesis. Moreover we
would like to thank other people that have been involved in this thesis that have either directly
or indirectly helped us during the process. At last we would like to announce that we are
grateful to our friends and families for their support and understanding during this fall.

We hope that this thesis will inspire the reader to learn more about advertising and especially
in the sport sponsorship aspect. This subject represents an area that should be of interest for
many companies, since it might be the only or major marketing effort for some companies.

Luleå December 2006

Malin Johansson & Therese Utterström

ABSTRACT
Sponsorship is of great importance since it is the part of the promotional mix that supports the
interest of the company by associating it with a specific event. Moreover, sponsorship may be
the major or only marketing effort for some companies whereby it is further important to
consider it as a powerful option when deciding upon marketing tools. The purpose of this
thesis is therefore to provide a better understanding of sport sponsorship as a marketing
communication tool in Swedish companies. In order to reach this purpose, research questions
focus on the objectives, selection process, and evaluation of effectiveness of sport
sponsorship. Based on the research questions, a literature review was conducted that resulted
in a conceptual framework presenting a foundation for the data to be collected for this study.
A qualitative, case study methodology was used, using documentations and interviews of two
Swedish companies within the same field of business. The general result of the study is that
several objectives of sport sponsorship are commonly used, and the objectives may be either
constant or inconstant depending on sponsored unit. The most frequently used objectives of
sport sponsorship are however the corporate related objectives, such as corporate image,
client entertainment, and employee relations. Further results of the study are that companies
base their selection of a specific sport sponsorship on several criteria, for instance, managerial
interest, the chosen sport’s ability to deliver the marketing message, and the interest of the
present and potential employees. In addition the decisions can be made from a client
perspective and the values of the company. Moreover, based on the results, companies do not
formally evaluate the effectiveness of sport sponsorship whatsoever. Instead, organizations try
to find more informal methods for measurement.
SAMMANFATTNING
Sponsring är av stor betydelse eftersom det är den del av marknadsföringsmixen som stöder
företagets intresse genom att associera det med en speciell händelse. Eftersom sportsponsring
kan vara den största eller enda marknadsföringssatsningsen för vissa företag, så är det vidare
viktigt att ha detta område i åtanke vid bestämmandet av marknadsförings verktyg. Syftet med
denna uppsats är därför att uppnå en bättre förståelse för sportsponsring som ett
marknadsförings verktyg inom svenska företag. För att uppnå detta syfte så fokuserar
forskningsfrågorna på motiven, valet, och utvärderingen av effektiviteten av sportsponsring.
Detta resulterade vidare i en teoretisk sammanfattning och ett begreppsmässigt system som
grund för insamlingen av data för studien. Metoden som tillämpades för studien var en
kvalitativ fallstudie som genomfördes genom dokumentation och intervjuer på två svenska
företag inom samma bransch. De generella resultaten av studien är att flera motiv för
sporsponsring ofta används, och att dessa motiv kan vara antingen konstanta eller variera
beroende på den sponsrade enheten. De mest använda motiven för sportsponsring är dock
företagsrelaterade motiv som företagets image, kund underhållning och relationer till
anställda. Ytterligare resultat av studien är att företag grundar deras val av en specifik
sportsponsring på flera kriterier, som till exempel ledningens intresse, den valda sportens
möjlighet att leverera marknadsföringsmeddelandet, och intresset hos den nuvarande och
potentiella personalen. Dessutom kan besluten tas utifrån ett kundperspektiv och från
företagets grundläggande värderingar. Där till kommer att företag inte formellt utvärderar
effektiviteten av sportsponsring över huvudtaget. Istället försöker de hitta mer informella,
alternativa metoder för utvärdering.
TABLE OF CONTENTS
1 INTRODUCTION.............................................................................................................................................. 1
1.1 BACKGROUND ......................................................................................................................................... 1
1.2 PROBLEM DISCUSSION ........................................................................................................................... 4
1.3 RESEARCH PURPOSE & RESEARCH QUESTIONS............................................................................... 6
1.4 DEMARCATIONS ...................................................................................................................................... 6
1.5 THESIS OUTLINE ...................................................................................................................................... 6
2 LITERATURE REVIEW.................................................................................................................................. 7
2.1 OBJECTIVES OF SPORT SPONSORSHIP ................................................................................................ 7
2.1.1 Corporate Objectives............................................................................................................................ 9
2.1.2 Marketing Objectives.......................................................................................................................... 11
2.1.3 Media Objectives ................................................................................................................................ 12
2.1.4 Personal Objectives............................................................................................................................ 12
2.2 SELECTION PROCESS OF SPORT SPONSORSHIP .............................................................................. 12
2.2.1 The Sport Event Pyramid.................................................................................................................... 14
2.2.2 The Athletic Platform.......................................................................................................................... 14
2.2.4 Criteria for Sponsorship..................................................................................................................... 15
2.3 EVALUATION OF SPORT SPONSORSHIP EFFECTIVENESS ............................................................ 18
2.3.1 Stages of the Evaluation Process........................................................................................................ 21
2.3.2 Media Exposure Measurement ........................................................................................................... 21
2.3.3 Assessing Communication Results...................................................................................................... 22
2.3.4 Measuring Sales Results..................................................................................................................... 22
2.3.5 Feedback from Participating Groups ................................................................................................. 23
2.4 CONCEPTUAL FRAMEWORK ............................................................................................................... 24
2.4.1 Conceptualization of RQ1: Objectives of Sport Sponsorship ............................................................. 24
2.4.2 Conceptualization of RQ2: Selection process in Sport Sponsorship .................................................. 25
2.4.3 Conceptualization of RQ3: Effectiveness Evaluation of Sport Sponsorship....................................... 26
3 METHODOLOGY........................................................................................................................................... 27
3.1 RESEARCH PURPOSE............................................................................................................................. 27
3.2 RESEARCH APPROACH ......................................................................................................................... 27
3.3 RESEARCH STRATEGY.......................................................................................................................... 28
3.4 DATA COLLECTION METHOD ............................................................................................................. 28
3.5 SAMPLE SELECTION.............................................................................................................................. 30
3.6 DATA ANALYSIS .................................................................................................................................... 30
3.7 QUALITY STANDARDS.......................................................................................................................... 31
3.7.1 Validity ............................................................................................................................................... 31
3.7.2 Reliability ........................................................................................................................................... 32
4 EMPIRICAL DATA ........................................................................................................................................ 33
4.1 CASE 1 NÅIDEN BYGG AB..................................................................................................................... 33
4.1.1 Objectives of Sport Sponsorship......................................................................................................... 33
4.1.2 Selection Process in Sport Sponsorship.............................................................................................. 35
4.1.3 Evaluation of Sport Sponsorship Effectiveness................................................................................... 36
4.2 CASE 2 NCC .............................................................................................................................................. 36
4.2.1 Objectives of Sport Sponsorship......................................................................................................... 37
4.2.2 Selection Process in Sport Sponsorship.............................................................................................. 38
4.2.3 Evaluation of Sport Sponsorship Effectiveness................................................................................... 39
5 DATA ANALYSIS ........................................................................................................................................... 40
5.1 WITHIN CASE ANALYSIS ...................................................................................................................... 40
5.1.1 Within Case Analysis of Nåiden Bygg AB .......................................................................................... 40
5.1.2 Within Case Analysis of NCC ............................................................................................................. 44
5.2 CROSS CASE ANALYSIS ........................................................................................................................ 47
6 FINDINGS, CONCLUSIONS AND IMPLICATIONS ................................................................................ 53
 6.1 FINDINGS AND CONCLUSIONS ........................................................................................................... 53
6.1.1 RQ1: How can the objectives of sport sponsorship be described?..................................................... 53
6.1.2 RQ2: How can the selection process in sport sponsorship be described?.......................................... 54
6.1.3 RQ3: How can the evaluation of sport sponsorship effectiveness be described?............................... 56
6.2 IMPLICATIONS........................................................................................................................................ 56
6.2.1 Implications for Management............................................................................................................. 57
6.2.2 Implications for Theory ...................................................................................................................... 57
6.2.3 Implications for Further Research ..................................................................................................... 58
LIST OF REFERENCE ..................................................................................................................................... 59
APPENDIX A - INTERVIEW GUIDE ............................................................................................................. 62
APPENDIX B - INTERVJUGUIDE.................................................................................................................. 64
APPENDIX C – 50 STÖRSTA BYGGFÖRETAGEN I SVERIGE ............................................................... 66
LIST OF FIGURES AND TABLES

List of Figures

1.1 The Elements of Sponsorship 2

2.1 The Sponsorship Process 7
2.2 Hierarchy of Objectives for the Marketing Communication Mix 7
2.3 Sponsorship Acquisition Model 13
2.4 The Sport Event Pyramid 14
2.5 Factors Influencing Sponsorship Choice 15
2.6 Criteria for Sponsorship 17
2.7 Control Phase of the Strategic Sports Marketing Process 19
2.8 ROI Return on Investment 23
2.9 Integration of Sport Sponsorship 24
3.1 Figure of Cases 30

List of Tables

2.1 Objectives for Corporations Involved in Sponsorships of Sports 9

3.1 Sources of Evidence: Examples, Strengths and Weaknesses 29
5.1 Summary Matrix of the Analysis of RQ1 48
5.2 Summary Matrix of the Analysis of RQ2 50
5.3 Summary Matrix of the Analysis of RQ3 52
 INTRODUCTION

1 INTRODUCTION
This chapter will provide an introduction of the chosen topic. The background is first
presented, continuing with the problem discussion where the research area is discussed. After
the problem discussion the research purpose and the research questions will be presented.
Finally, demarcations and an outline of the thesis are described.

1.1 BACKGROUND
According to Dolphin (2003), the concept of sponsorship originates in the Greek and Roman
era and the word is derived from the Greek word horigia, meaning guarantor. Lately, and for
over hundred years, it has made a noticeable impression, and due to its relatively brief history
the sponsorship industry has made considerable strides. Today, it is very rare to find any
public event that is not sponsored in one way or another. (ibid.)

Meenaghan (1991) states that sponsorship is an element of marketing communications within

the broader context of the marketing mix of product, price, distribution and marketing
communications. Czinkonta and Ronkainen (2004) further claim that in order to achieve
marketing communication objectives, tools of the promotional mix, such as advertising,
personal selling, publicity, sales promotion, and sponsorship are commonly used. Moreover,
Meenaghan (1991) argues that sponsorship is similar to the advertising tool in regards of the
money invested for commercial purposes. The author further states that sponsorship although,
must not be confused with corporate giving, such as charity, endorsement and patronage,
where the objectives are philanthropic with the expected returns to be to society and not to the
company itself (ibid.).

According to Grönkvist (2000), marketing via events, is commonly called event marketing.
Behrer and Larsson (1998) further define event marketing as an effort for coordinating
communication of an event, where the event is an activity which assembles the target group at
the same situates, or a meeting in which an experience is created and a message is exchanged.
In addition, Behrer and Larsson (1998) and Grönkvist (2002) argue that event marketing is an
effort by using the event for integrated communication, both within the actual event, and
beyond. Sponsorship is further a method for communication and marketing, where the
communication takes place trough traditional media, where the sponsor purchases the rights
for exposure in connection with an event (ibid.).

Furthermore, sponsorship marketing involves investments in events or causes with the

purpose of achieving various objectives, as increasing sales, enhancing a company’s brand
image and reputation, as well as increasing brand awareness (Shimp, 1997). Grönkvist (2000)
continues by explaining sponsorship as association marketing, a business agreement for
communication, marketing and purchase, where the sponsorship is built on a commercial
union between two parties where a company pays for commercial rights in order to achieve an
association in connection with an event, a person or a project. Polonsky and Speed (2001),
moreover claim that sponsorship programs are of increasing importance in the marketing
activities of companies worldwide, as they present opportunities for business, provide
community involvement, and counter adverse publicity. Moreover, sponsorship programs
build goodwill among staff, opinion formers and decision makers as well as increase
company, product or brand awareness, reinforce or alter perceptions of brand or product,
indirect increase sales and identify brand or product with a particular market segment. (ibid.)
In addition, Meenaghan (1991) explains sponsorship as an investment, in cash or in kind, in

1
 INTRODUCTION
an activity in return for access to the utilizable potential associated with an activity.
Essentially a sponsor is buying both the exposure potential which the activity has in terms of
audience, as well as the image associated with that activity in terms of how it is perceived.
According to Gillis (2006) sponsorship is moreover a good way of creating brand notice, as
sport, music and the arts areas make a connection with consumers in a way that is beyond
even the most emotional product categories.

Olkkonen (1999) further explains the concept of sponsorship as a business relationship

between two parties; the sponsor and its stakeholders, and the sponsored and its stakeholders,
as shown in figure 1.1.

Sponsorship opp.
Corporate
Sponsorship
Strategy - sports
- culture
- social
Marketing Sponsor Sponsored targets
Strategy

Type of sponsored
Communication-
Strategy - individual
Sponsorship - group
consultancy - organization
Sponsorship-
Strategy

Stakeholders of the sponsor Stakeholders of the sponsored

Mass Media

Television Radio Newspaper/

Magazines

Figure 1.1 The Elements of Sponsorships

Source: Adapted from Olkkonen (1999, p.102)

The sponsorship activities presented in the figure include consistency of sponsorship activities
with the sponsor’s strategy, different sponsorship opportunities, types of the sponsored party,
and stakeholders of the sponsored and the mass media. Furthermore, the author suggest that
sponsorship can be divided into different categories based of the targets of the sponsoring
organizations, in the same way as sponsorship can be categorized into sports, cultural, and
social sponsorship. However, these categories are not mutually exclusive, and companies
usually sponsor several targets from different categories at the same time, and thereby the
groups may overlap. (ibid.)

Since opinions differ regarding the definitions of sponsorship as a concept, the thesis will be
founded on the following definition by Busby and Digby (2002); “Sponsorship is a business
relationship between a provider of funds, resources or services and an individual, event or
organization. The provider is offered rights and association with the individual, event or
venue in return for the finance, goods or services, which have been provided” (p.13).

Consequently, sponsorship is nowadays an increasingly popular medium of corporate

communication especially for companies in the consumer market, and the use of sponsorship

2
 INTRODUCTION
is believed to continue to grow as long as sponsors are satisfied and they are receiving value
(Dolphin, 2003; Meenaghan, 1991). Dolphin (2003) and Meenaghan (1991) continue to
explain the growth in sponsorship programmes as a result of companies’ alternative ways to
promote products beyond government restrictions regarding tobacco and alcohol advertising.
The authors further mention the increasing cost of media advertising as another justification
of the escalation, since sponsorship programmes is a highly cost-effective marketing
communication tool, compared with traditional advertising. Moreover can the increased use
of sponsorship programmes as a marketing communication tool be explained by the matured
market, where sponsorships positively influence customer’s perceptions of its image.
Successful sponsorships further identify qualities and values in television programs,
community, event or venue being sponsored, and transferring the sponsor's values of the
brand and company. (ibid.) Moreover, Busby and Digby (2002), Meenaghan (1991) and
Olkkonen (1999) explains that sponsorship is both more obvious for the audience and
achieves distinctiveness in a higher level than the traditional advertising, due to the rapidly
increasing noise in the mass media that in turn decreases the effectiveness of these types of
advertising. Sponsorship may also achieve media coverage by sponsoring popular sports, or
cultural or persons toward which/whom an increasing amount of media attention is directed,
as the demand for sports and cultural television programs are constantly increasing. The
development in telecommunication and broad cast media further offer the ability to attract
audiences worldwide. Busby and Digby (2002) continue by saying that marketer's have
nowadays realized the potential of the new media such as Internet, CD-ROMs, computer
games and digital television, since they capture an entire generation and is today at the centre
of many consumer's lives. The new media is further an ideal vehicle for building interactive
relationships with prospects and customers (ibid.).

According to Dolphin (2003), over 75 percent of total sponsorship concerns sporting

activities, for example the provision of uniforms and the funding of stadiums. As explained by
Quester and Farrelly (1998) sport sponsorship means that firms generally attempt to connect
the brand with highly publicized sports individuals and/or events. A further definition is given
by Amis, Slack and Berrett (1999) saying that sport sponsorship involves the allocation of
scarce resources with the aim of attaining certain organizational objectives. Hence, sport
sponsorship has often been described in the marketing literature as a strategic activity. The
authors explain that to be able to develop a sport sponsorship agreement into a distinctive
competence, it is essential that it possess three component parts. The first requirement is that
the sponsorship is able to offer a significant increase to the perceived customer value of the
product or service that the company offers. To manage this requirement the company must
ensure that it yields a noteworthy quality or cost advantage. Second, in order for the company
to differentiate from its competitors, the distinctive competence must be unique. Thus,
sponsorship assets are required to either be uniquely held or contribute more to the company
than to any of its competitors. The third, and final requirement, is that the competence must
be able to use in several areas, it must be extendable. Considering this, companies must
escape from the often held view of regarding a particular sponsorship as being valuable only
in a single area. (ibid.)

Dolphin (2003) continues by saying that the prominence of sports sponsorship depends on its
flexibility as a communication tool as well as the opportunities that it give for association
with increasingly commercially driven phenomena like sports heroes. Moreover, sport
sponsorship is popular because it exposes the company’s investment to participants and the
watching spectators. It has been proved that the spectators value the role of sponsors, for
example 59 percent of US fans reported that they personally gain from corporate sponsorship

3
 INTRODUCTION
as it is the sponsorship that makes the race possible. Motor racing and football are known to
be the sports that attract most sponsorship. (ibid.) Furthermore, Quester and Farrelly (1998)
note that companies in Australia have embraced the tool of sport sponsorship enthusiastic,
which could be explained by the love of sport that grips the population in this country.
According to the authors the estimated efforts in sport sponsorship were expected to rise even
more to the 2000 Sydney Olympics since the sponsorship program started with the sponsors
IBM and Telstra paying $A100 million and Westpac Bank $A50 million. Whereas, Official
Olympic sponsors like Coca Cola and Eastmen Kodak each sponsored the Atlanta games with
US$40 million. (ibid)

Turley and Shannon (2000) claim that what makes sport facilities an interesting application of
this type of advertising is that since respondents are inside facilities for two hours or longer,
and since many spectators visit multiple games over a season, there is a possibility of high
number of exposure to individual ads. For example, a study on advertisements in college
basketball arenas and football stadiums confirmed that 72.6 percent of the respondents
indicated that they noticed in-arena advertisements and almost 70 percent were able to
correctly identify at least one of the advertisements. Furthermore, advertising messages in
sports arenas are rather unique since such ads appear in what can often be considered as an
emotionally charged environment. Some of the elements associated with the complex
environment of a sports arena are cheerleaders, dance teams, mascots, and other fans at the
games, vendors, the public address announcers, referees, coaches and the game itself. Studies
of this environment showed that the environment can influence a number of behaviours and
attitudes, such as satisfaction, repurchase intentions, desire to stay in a facility, pleasure, and
perceived value. The authors further state that one of the reasons for placing ads in sports
arenas is that advertisers wish that some of the excitement and affiliation associated with the
home team will shift to the product or organization. However whether this excitement inhibits
or encourages the processing of the information in the advertisement is not well understood at
this point. (ibid.)

1.2 PROBLEM DISCUSSION

As mentioned in the previous section sponsorship has become an increasingly popular
medium and its status increases, and as a result sponsorship has shifted from a tactical to a
more purposeful strategic focus (Fahy, Farrelly & Quester, 2004). Moreover, since the market
for sponsorship itself has become intensely competitive and challenging in order to attain a
competitive advantage, it is significant that sponsorship investments are carefully managed to
guarantee their effectiveness (ibid.). For companies such as McDonalds, Nike, and Coca Cola,
the effort in time and money devoted in sport sponsorship could make it a skill in which
world leadership is worth striving for. However, for most companies it is more realistic to
consider sponsorship as one of a number of skills that, together with other activities, can
contribute to an area of competence within the company, like marketing and communication.
(Amis, et al., 1999)

To apply for a donation and to propose for a sponsorship relationship differs considering the
goals and the language. Hence, companies may have a variety of objectives to engage in a
sponsorship activity. (Dolphin, 2003) According to Pope (1998), three broad categories of
sponsorship objectives have been identified and accepted in sport marketing literature,
namely: media objectives (cost effectiveness, reaching target markets), marketing objectives
(brand promotion, sales increase), and corporate objectives (mostly image related).
Additionally, Dolphin (2003) explains that sponsorship assists other marketing activities to

4
 INTRODUCTION
communicate messages to a variety of stakeholders. The consumer is the primary target for
corporate sponsorship activity, since a well selected sponsorship has the ability to drive
particular brand values, as well as it offers a chance for companies to reach consumers
through their hearts and minds. Sponsorship can further enhance corporate image, increase
awareness of the brand, stimulate the sales of products and services, as well as leverage
corporate reputation. (ibid.) This is also confirmed by Amis et al. (1999), saying that raising
public awareness of a brand or company, and altering or enhancing company or brand image
and reputation, are mentioned as the major reasons for a company to enter a sponsorship
agreement. The results from a study made by Liu, Srivastava and Woo (1998) further confirm
that organizations use sport sponsoring as a tool to promote their products as well as their
organizations. Since image and reputation are resources that could make it possible for a
company to secure a competitive advantage, sport sponsorship should be regarded as a
significant source that may help companies to guarantee a position of a competitive advantage
(Amis, et al., 1999).

Another issue of importance in the area of sponsorship is the selection of sponsors (Pope,
1998). Ivarsson and Johansson (2004) further state that once the role of sponsorship has been
established, the management process in the sponsorship selection is next. (ibid.). Selecting an
appropriate cause is occasionally a matter of fitting the brand to a cause that is naturally
related to the brand’s attributes, benefits, or image as well as it should relate closely to the
target market’s interest. Developing relationships with customers, and create better
relationships with trade should also be the main objective when choosing sponsors. Regarding
the budget constraints, companies that sponsor events should also be able to support the
sponsorship activities with proper advertising. (Shimp, 1997) The study made by Liu et al.
(1998) additionally show that there did not appear to be a set of conditions that could be used
as a standard, although the major selection criteria proved to be via the establishment of an
overall corporate policy.

Dolphin (2003) claims that despite the rapid growth of sponsorship, little is known about its
effectiveness since sponsorship messages are more difficult to control than those originated
from other parts of the communication mix. Sponsorship success is also dependent upon
whether or not the objectives are reached, and few organizations make any attempts to
evaluate the effectiveness, as the true costs is difficult to determine. In the same order
Polonsky and Speed (2001) state that awareness, interest and attitude are relatively difficult
for the sponsor to observe. Hence, sponsorship may be evaluated by measuring exposures of
the brand name generated, or customer knowledge of the sponsorship relationship. If it is
impossible to observe or attribute the relationships between sales activity and sales outcomes,
behaviour of sales personnel and reward for behaviours that are thought to influence sales
outcomes may be examined. (ibid.) In addition, evaluation is complicated if measurement
goals have not been set up before the actual sponsorship takes place. Moreover, no single
evaluation form can measure the whole aspect of the sponsorship, but several methods may
work as support to each other. (Busby & Digby, 2002; Grönkvist, 2000;) The measurement of
sponsorship effectiveness can take place either before, during or after the actual sponsorship
has taken place (Busby & Digby, 2002; Meenaghan, 1991).

At present, sport sponsorship is an increasingly popular tool of the marketing communication

mix among corporations world wide (Olkkonen, Tikkanen & Alajoutsijärvi, 2000), although
researchers agree that the topic of sport sponsorship is sparely examined (Dolphin, 2003;
Olkkonen, et al., 2000; Shannon, 1999). Research in the area of sponsorship is relatively new,
but the processes are continually being refined and developed according to Busby and Digby

5
 INTRODUCTION
(2002). Sport sponsorship is today a common marketing strategy within companies, and the
need to justify expenditures on sponsorship has increased, which has on the other hand led to
the type of sponsorship research where the need for planning/setting up objectives, selection,
and evaluation for sponsorship programs are emphasized (Olkkonen, 1999). Moreover, a
great part of the literature about sponsorship has its main focus on large corporations and
international events. Yet, the possible benefits for small businesses sponsoring small or
regional events are remarkable. (Dolphin, 2003) While the degree of the use of sport
sponsorship as a marketing communication tool may differ in different countries, according to
Olkkonen (1999) the value of sponsorships rights in 1996 in Sweden was equivalent with 154
million dollars, which was 0,9 percent of the total worlds figure. Since the topic has only been
subject to few comprehensive studies in Sweden, thus it would be of interest to further
investigate the topic.

1.3 RESEARCH PURPOSE & RESEARCH QUESTIONS

Based on the problem discussion above, the purpose of this study is to provide a better
understanding of sport sponsorship as a marketing communication tool in Swedish
companies. The three research questions outlined will serve in order to accomplish the
purpose.

RQ1. How can the objectives of sport sponsorship be described?

RQ2. How can the selection process in sport sponsorship be described?
RQ3. How can the effectiveness of sport sponsorship be evaluated?

1.4 DEMARCATIONS
Due to the time limit, we have decided to only focus on the subject of sport sponsorship from
the sponsoring company’s perspective. This study has been further narrowed by only
examining the use of sport sponsorship in two Swedish companies operating within the
building construction industry in the area of Norrbotten.

1.5 THESIS OUTLINE

This master’s thesis is divided into six interrelated chapters. Chapter one provides a
background of the area of marketing communication, specifically focused on sponsorship, and
sport sponsorship as a part of the marketing communication mix. Following the background is
the problem discussion, narrowing down to purpose, research questions, and demarcations.
Chapter two continues with presenting previous literature concerning the research area in
addition to a conceptual framework. In chapter three the methodology of the research is
presented, with its descriptions and justifications. The fourth chapter includes all the collected
empirical data gathered, and the data is further analyzed in chapter five. The conclusions are
drawn, the implications are stated and by that the research questions are answered and the
research purpose is fulfilled in chapter six.

6
 LITERATURE REVIEW

2 LITERATURE REVIEW
In this chapter an overview of previous studies related to the research area will be presented.
The theoretical overview will start by presenting theories on sport sponsorship, including its
objectives, selection process, and effectiveness evaluation. Finally a conceptual framework
based in theory is displayed.

In order to carefully develop sponsorship programs, companies worldwide commonly use a

systematic process for designing a sport sponsorship program (shown in figure 2.1). The
marketing exchange can be seen from two perspectives, that of the sponsor as well as that of
the sponsored entity. (Shank, 1999) As mentioned in 1.4 this study is based on the sponsoring
company’s perspective. Moreover, from this point and forward, the word sponsorship will be
equal with the concept of sport sponsorship, since sport sponsorship contributes to about 75
percent of the world’s total sponsorship according to Dolphin (2003).

Sponsorship Sponsorship (Implementing)

Objectives acquisition & Evaluating
(budgeting) sponsorship

Figure 2.1 The Sponsorship Process

Source: Adapted from Shank (1999. p.370).

According to Shank (1999), when developing sponsorship programs, decisions are based on
objectives and budgets, since the most meaningful objectives will never be reached without
the money. After the objectives and budget have been set up, the specific sport sponsorship
opportunity is chosen from the available, that is further implemented and evaluated. Based on
the discussion in the previous chapter sponsorship objectives, selection process in sponsorship
(sponsorship acquisition), and evaluation of sponsorship will further be examined. (ibid)

2.1 OBJECTIVES OF SPORT SPONSORSHIP

When designing a sponsorship program the first stage is to carefully outline the sponsorship
objectives (Meenaghan, 1991; Olkkonen, 1999; Shank, 1999). Due to the diverse range of
definitions and classifications of sponsorship, the concept of sponsorship also offers several
objectives, which can be utilized in different kinds of situations (Olkkonen, 1999). According
to Olkkonen (1999) and Shank (1999) sponsorship is one form of promotion where the
sponsorship objectives should be linked to the broader promotional planning process and its
objectives, as illustrated in figure 2.2. These objectives serve in order to achieve the higher
marketing goals which in turn originate from the objectives of the organization (ibid.).

Overall Company Objective

Marketing Objective

Advertising Publicity Personal Selling Sales PR

Objective Objective Objective Objective

Figure 2.2: Hierarchy of Objectives for the Marketing Communication Mix

Source: Meenaghan (1983, p. 15)

7
 LITERATURE REVIEW
According to Shank (1999) sponsorship objectives can in the same way as advertising
objectives be categorized as either direct or indirect, where direct sponsorship objectives have
a short-term focus on increasing sales as a result of impact on consumption behaviour.
Indirect sponsorship objectives on the other hand focuses on enhancing sales by creating
awareness and a desired image of the product before the consumers purchase the product.
However, the primary objectives of sport sponsorship stated by the author is awareness,
competition, reaching target markets, relationship marketing, image building, and sales
increase from the sponsor’s perspective. Although, in a single sponsorship campaign, several
objectives can be achieved, and objectives can moreover refer to strengthen the company
brand, building goodwill among decision makers and opinion formers, in addition to
displaying a socially concerned company to the public. (ibid.)

Meenaghan (1991) further states that a company has an extensive variety of audience with
whom it wish to communicate, such as the internal public, the key decision-makers and the
company’s target markets. The author also explains that sponsorship play a major role in
encouraging staff pride, rewarding effort, and in communicating the values of the
organization to its staff. In addition to Shank (1999) and Meenaghan (1991) state that when
considering the key decision-makers, sponsorship also has the ability to create goodwill
among opinion-formers and decision-makers, as sponsorship most commonly is built around a
particular event and has moreover the ability to offer corporate hospitality to the guests of the
occurrence.

Busby and Digby (2002) argue that sponsorship objectives need to be deliverable, measurable
and integrated to the overall corporate and marketing strategy. These objectives can also
deliver incentivising customers, enabling data capture and database building, developing
customer loyalty, enhancing community relation, revitalizing brand/corporate image and
niche targeting. Moreover, as measurable activities, the authors include increase in sales, new
sales leads, retention of customers, staff recruitment, positive impact on perceptions of
brand/company and increase in trade distribution (ibid.).

Moreover, the pioneering study of sport sponsorship made by Meenaghan (1983) divides
sponsorship objectives in relation to target markets into corporate objectives and brand
objectives, such as broad corporate objectives, product related objectives, sales objectives,
media coverage, guest hospitality and personal objectives. This classification of sponsorship
objectives includes the organizational features on the corporate and product level, as well as
visibility and interactive relationship aspects in the appearance of media coverage and guest
generosity, sales aspects in regards of the sales objectives and personal aspects in the form of
personal objectives. (ibid)

Meenaghan (1983) moreover claims that several of the objectives may frequently overlap as
well as an interaction of the objectives is commonly used in sponsorship campaigns, as for
instance, the corporate image affects the product image in the same way as the corporate
image is affected by guest hospitality.

Nevertheless, Pope (1998) and Dolphin (2003) state that media objectives, corporate
objectives, marketing objectives and personal objectives are four broad categories of
sponsorship objectives that generally are acknowledged and accepted in the literature of sport
marketing. This theory is presented in table 2.1.

8
 LITERATURE REVIEW

Corporate Marketing Media Objectives Personal

Objectives Objectives Objectives

Public awareness Business relations Generate visibility Management

interest
Corporate image Reach target Generate publicity
market
Public perception Brand positioning Enhance ad
campaign
Community Increase sales Avoid clutter
involvement

Financial relations Sampling Target specificity

Client entertainment

Government
relations

Employee relations

Compete with other

co.

Table 2.1 Objectives for Corporations Involved in Sponsorship of Sport.

Source: Adapted from Pope (1998, p.2)

2.1.1 Corporate Objectives

Dolphin (2003) notes that the major drivers behind sponsorship may be to alter public
perception, increase community involvement, build relationships, and create goodwill.
According to Abratt, Clayton and Pitt (1987), broad corporate objectives have their basis in
developing a favourable public perception of a firm, increasing public awareness of the
company and its products, as well as creating goodwill among a company’s stakeholders.

The most basic objective with sponsorship is to generate awareness, or raise levels of
knowledge of a company’s products and services, product lines, or corporate name (Dolphin,
2003; Meenaghan, 1991; Olkkonen, 1999; Shank, 1999). Olkkonen (1999) further states that
achieving, increasing or sustaining awareness of a company or its brands/products is one of
the most important tasks of a company’s marketing activities, especially within marketing
communication. The concept of awareness can moreover be linked to the hierarchy of effects
models, which assumes that there is a series of steps that potential customers must pass
through in a chronological order, from unawareness to purchase. However, creating
awareness aims to generate a positive atmosphere around a sponsoring company towards the
general audience, but does not automatically aim at directly locating prospective customers.
(ibid) Moreover, Shank (1999) claims that based on the broader marketing strategy the
sponsors must understand on which level to target; e.g. to promote an individual product or
the company name. The author further notes that sponsorship can generate widespread
awareness in a short period of time which is especially important for a new company or a
company with a new product. In order to make the consumers aware of the sponsor’s
relationship with the event, the sponsor normally designs a promotional program around the
event, as well as make sure that the company’s promotional mix elements are integrated.
(ibid.)

9
 LITERATURE REVIEW
According to Olkkonen (1999), people’s attitudes and actions are conditioned by the image of
an object, as image is a set of beliefs, ideas and impressions that an individual holds regarding
an object. Meenaghan and Shipley (1999) argue that various elements of brand identity
contribute to the development of brand image, where marketing communication is particular
important in achieving brand image effects. Within communications, two separate elements;
the message and the medium combine to deliver brand image values. Regarding sponsorship
the message and media elements are inextricably linked and imagery is delivered by
association with particular events and activities. (ibid.) Olkkonen (1999) continues by noting
that a successful image conveys a message that establish a product’s/company’s character and
value proposition in a distinctive way so that it is impossible to confuse it with similar
messages from competitors, as well as it delivers emotional power so that it hits both the
hearts and the minds of the customers.

According to Shank (1999) and Dolphin (2003) building or maintaining an image is the most
important reason for a company to engage in a sport sponsorship activity. This is due to the
fact that the sponsor associates itself and/or its brands with the images generated by the
sponsored personality, team or sporting event. Meenaghan and Shipley (1999) additionally
argue that sponsorship allows the sponsored company to live in the reflection of the sponsored
activity, which differ somewhat from the approach offered by traditional media, as well as it
enables the sponsor to suggest associations for the brand. Moreover, Shank (1999) claims that
the more matching image of the endorser with the image of the product being promoted, the
more effect will be brought to the marketing message. Olkkonen (1999) also explains the
basic idea of image building as a company that is sending a set of signals and cues (identity)
which further creates a basis for perception by its various audiences (image). Meenaghan
(1983) continues by stating that sponsorships with a particular set of personality attributes can
help a company to achieve a particular image which in turn can change or reinforce public
perception of a company, including its products and its services. Changes in image may
moreover, be achieved through visibility, visual expression, or via interactive relational
aspects. In addition, Olkkonen (1999) notes that a company further has the ability to build an
image through sponsored events, although it cannot be implanted in the public’s mind
overnight nor seeded by one marketing vehicle separately.

Olkkonen (1999) moreover explains that when comparing product level with the broad
corporate level, image could be built into products and adjusted for a company. Product image
is thereby manipulable, whilst the company image is less easy to control as it contributes as
an outcome of performance determined by a mix of non-manageable and controllable
variables (ibid.).

Meenaghan (1991) and Abratt et al. (1987) state that all business operations exist within an
environment, and to some extent the success of a company is a result of organizations
interaction with the environment in which it operates. Sponsorship may thereby be explained
as a way to display the product/service in front of the market, as it also provides a great
function for the company to give a return to the community by which it is supported (ibid.).
Meenaghan (1991) continues by arguing that the involvement in the community is
consequently an important corporate objective, since sponsors get involved in improving the
life of the community at either a local or national level, by showing manner of good
citizenship. Furthermore, sponsorship has more direct impact on the community than any
other promotion medium (Meenaghan, 1983).

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 LITERATURE REVIEW
According to Shank (1999) one of the most important issues for marketers in competitive
marketing environment of today is to build long-term relationships with customers and clients
in order to put the principles of marketing into work. The community is therefore of interest
for the sponsor, as many corporate sponsors believe that returning something to the
community is an important part of sponsoring a sporting event (ibid.). In addition, Dolphin
(2003) argues that companies are increasingly concerned if they are seen to be fulfilling their
societal obligation in respectful and responsible manner.

Olkkonen (1999) further claims that stakeholder relationships may be created interactively via
sponsorships by inviting important representatives of various stakeholders to a sponsored
event and enhancing the relationship on an individual level at informal occasions. Meenaghan
(1991) also states that sponsorships thereby provide companies with the opportunity to create
goodwill among opinion formers and decision makers, as well as companies can use
sponsorship in order to assure their shareholders and policyholders, who is of especially
importance in the areas of banking, insurance and finance (ibid). Another benefit of
sponsorship as a marketing vehicle is its ability to assist employee relations by simply
sponsoring activities and events with which the employee can identify. Although the idea of
assist staff relations is in many cases pursued solely with the interest of senior management in
mind. (Meenaghan, 1983)

Another corporate objective of importance is the guest hospitality that creates entertainment,
which according to Jobber (2001) creates opportunities both for the consumer and the trade,
whereby sponsoring of sport activities can be highly effective. Abratt et al. (1987) further
explain sponsorship as an opportunity to entertain potential and existing customers in an
informal, suitable environment. In addition Meenaghan (1983) states that a guest can often
include opinion formers and decision makers in business as well as government organizations,
trade acquaintances, dealers, wholesalers, and retailers. The author moreover claims that there
are various ways in providing hospitality, as special events often can be arranged in order to
put the customer under some kind of obligation of future purchase (ibid.).

Shank (1999) argues that to stamp out and meet any competitive threats is another primary
objective. Many companies claim that they are not that interested in sponsorship programs,
but that they have to be involved within these, since their competitors do so. However, when
engaged in a sport sponsorship activity there is a risk that the sponsoring company may be
harmed by competitors that use planned efforts or campaigns by an organization in order to
associate themselves indirectly with an event, with the aim to gain at least some recognition
and benefits associated with being an official sponsor (ambush marketing tactics). (ibid.)

2.1.2 Marketing Objectives

According to Shank (1999) reaching new target markets is also an objective of importance of
sponsorship programs since sponsorship has the ability to reach people who are attracted to
sports entities because they share a common interest. Sport sponsorship therefore represents a
natural vehicle for psychographic segmentation of consumers, and reaching consumers with
similar tastes in activities, interest and opinions (ibid.).

Sponsorship is moreover used in order to achieve product and brand related objectives, since
many objectives are the same as under corporate related objectives, such as increased
awareness of product/brand, strengthen or changed market perception of the product/brand,
and identifying the product/brand with a particular market segment (Meenaghan, 1983).

11
 LITERATURE REVIEW
Companies thereby try to link brand name with a particular sponsorship in order to achieve
product-related objectives. (Abratt, et al., 1987; Meenaghan, 1983).

Although, increased sales is in general the most used objective for sport sponsorship
programs, since organizations certainly would not spend money to lend their names to
stadiums or events if they did not know that they would get something in return for their
investment (Abratt, et al., 1987; Olkkonen, 1999; Shank, 1999). Meenaghan (1983) further
claims that sponsorship can be extended to most elements of the marketing communication
mix, with the ability to assist the movement of the buyer towards the point of actual sale.
Sponsorship is therefore an important stimulus when purchasing is seen as a multi-stage,
multi-influence activity, in the same way as it may influence sales in a more direct manner
(ibid.). However, regardless of the various sponsorship objectives, organizations must
evaluate how the sponsorship will help them achieve their unique marketing objectives,
whereby increased sales of the sponsorship activity is the most comprehensible method for
the measurement. (Abratt, et al., 1987; Olkkonen, 1999; Shank, 1999) Meenaghan (1983)
additionally state that the use of sponsorship in order to create public awareness of the
company, further may assist the prospecting and selling tasks of the sales force.

2.1.3 Media Objectives

Abratt, et al. (1987) and Meenaghan (1983) argue that the achievement of media coverage is
another objective of significance for companies involved in sponsorship activities. The
coverage of an event is particularly important for companies that consider brand-, and
company awareness as the main reasons for entering a sponsorship program. However, media
coverage is more an intermediate objective rather than an end or final objective as market
awareness. Moreover, the increasing use of new media offers new opportunities for
sponsorship, as worldwide events supply the platform for global media coverage. (ibid.)
Dolphin (2003) and Meenaghan (1983) further note that sponsorship can enhance the
promotional message by cutting through the noise usually affecting traditional mass media
advertising. Meenaghan (1983) further states that the achievement of media coverage is of
special importance for companies in the alcohol and tobacco industry, since most
governments have restrictions on advertisements of these products.

2.1.4 Personal Objectives

Meenaghan (1991) claims that sponsorship has the capacity of delivering personal
satisfaction, which also is of significant importance for the company. Abratt et al. (1987)
continue by saying that personal objectives reflect the hobbies, interests, and personal views
of the management of a company, whereby the decision to sponsor a sport and the selection of
a sport are constantly influenced by the personal views of the decision-maker. Meenaghan
(1983) additionally states that sponsorship unitarily provides a unique opportunity to achieve
rigorously defined communication targets simply by impulses in the executive’s own
personality, regardless of motivation.

2.2 SELECTION PROCESS OF SPORT SPONSORSHIP

After the sponsorship objectives have been studied and financial resources have been
allocated, the next step is for the company to make decisions concerning the appropriate
sponsorship opportunity (Meenaghan, 1991; Shank, 1999). Due to the growing complexity of
sponsorship relationships along with the potential conflicts that this harbours, marketers have

12
 LITERATURE REVIEW
become more aware of the need for clear strategic justification to support their choice of
partner (Fahy, et al., 2004). Of the several worthy causes, only a few are relevant to the
interests of any brand and its target market. Selecting an appropriate cause is about matching
the brand to a cause that is related to the brand’s attributes, benefits, or image in a natural
way. Moreover, the choice of sport sponsorship should be closely related to the interests of
the target market. (ibid.) Shank (1999) further states that in order to understand the evaluation
and selection of sponsorship opportunities, a conceptual model of the corporate decision
making-process of sport sponsorship acquisition is commonly used by sponsoring companies
(presented in figure 2.3).

Aquisition of sport
sponsorship proposals

Buying Buying centre Interaction

grid composition process

Purchase
decision

Figure 2.3 Sport Sponsorship Acquisition Model

Source: Adapted from Shank (1999, p. 388)

According to Shank (1999) the process starts with the acquisition of sponsorship proposals
which generally is an automatic process where organizations receive several sponsorship
possibilities from sports entities wishing to secure sponsors. Connected to the sponsorship
proposal, potential sponsors seek information regarding demographic profile of fans at the
event, cost per number of people reached, length of contract, media coverage, value-added
promotions, and sponsorship benefits. The next step is to form the buying centre, which is a
group consisting of four to five individuals who is responsible for evaluating and choosing the
sponsorship. Usually, these roles are named gatekeepers, influencers, decision makers, and
purchasers. (ibid.) McCook, Turco and Riley (1997) further define gatekeepers as those
individuals in the company who make the decision on what and how much information that is
being passed on to key decision makers. These individuals are the committee members who
receive the first sponsorship proposal, and can integrate receptionists, assistants, and even
consulting firms. Influencers are known as those individuals who have some type of
connection or information regarding the sponsorship requester and can include senior
managers as well as other company employees. The ultimate decision maker differ depending
on the level and cost of the sponsorship, where small sponsorship proposals often are referred
to local or regional managers, whereas large proposals are taken care of by the corporate staff.
The final role, which is the purchaser, has the responsibility to negotiate with the event
manager. (ibid.) Shank (1999) further argues that it is important that the sponsorship requester
is aware of who these individuals are before submitting the proposal in order to meet the
unique needs of each individual in the buying centre. To make the purchase decision is the
next step in the sponsorship acquisition model; generally it takes an organization three to six
weeks to make this final decision. The purchase decision contains three interrelated steps. At
first the company needs to consider the wanted scope of the sponsorship, for example
international versus local sponsorship. In order to do this, a simple scheme for categorizing
sponsorship opportunities has been developed, which is called the Sport Event Pyramid.
(ibid.)

13
 LITERATURE REVIEW
2.2.1 The Sport Event Pyramid
According to Shank (1999), the Sport Event Pyramid, displayed in figure 2.4 consists of five
levels which are global events, international events, national events, regional events, and local
events, and is commonly used in order to determine the scope of the sponsorship

Shank (1999) further explains that Global Events

are at the top of the pyramid, as it have the broadest Global Events
1
coverage, are exposed comprehensively worldwide,
and generate a great deal of interest among 2
International Events

consumers in events such as the Olympic Games.

National Events
The next level in the ladder is the International 3

Events, which have a high level of interest in a Regional Events

4
broad geographic region. International events
include for example the European Cup Soccer, 5
Local Events

America’s Cup, Pan- American Games and

Wimbledon. Interest among consumers in a single Figure 2.4 The Sport Event Pyramid
country or in two countries is on the other hand Source: Authors own model
categorized as a National Event, with extremely
high levels of interest for events such as the World Series and the Super Bowl in the United
States. An event with an even narrower graphic focus is categorized as a regional event. Local
events, at the lowest level of the Sports Event Pyramid, attract an even smaller segment of
consumers that have a high level of interest in the event, in a more narrowed geographic level.
The idea of the pyramid is to give marketers an understanding of what level of sponsorship
that is logical in regards of corporate sponsorship objectives and budgets. (ibid.)

2.2.2 The Athletic Platform

According to Shank (1999), after the first level of sponsorship is reached through the Sport
Event Pyramid, the next step is to choose the appropriate athletic platform based on the
sponsorship objectives, budget and geographic scope. A marketer can furthermore choose
from a broad spectrum of athletic platforms, such as athletes, teams, sports, leagues, and
events. (ibid.)

Athletes
Shank (1999) explains that individual athletes have the ability to create an immediate
association with a product in the consumer’s mind, as well as they have tremendous
credibility with the target audience. Meenaghan (1991) argues that sponsorships of an athlete
can involve motives, such as bring about name and brand awareness of the sponsor. Shank
(1999) continues by stating that athletes as promoters for a brand are one of the most
prevalent exceptional styles of sports sponsorship, due to the fact that athletes reflect
credibility, and in some cases, even attractiveness. Moreover the athletes stand for knowledge,
skill, special expertise and trustworthiness of the marketing massage (ibid.). However,
sponsorship of individual persons often include payment of an agreed amount of money,
payment of transportation costs, the exclusive use of a product or sport equipment, or
combinations of these. The risk with this type of sponsorship is still the loss of performance
by the participant, or injury with results in a loss of publicity and exposure. (Meenaghan,
1991) Shank (1999) additionally states that successful athletes who promote products most
commonly participate in the sport they demonstrate, which lead to athlete-athletic product
match-up, shown for example in the cases of Michael Jordan, Tiger Woods, Pete Sampras and
Brett Hull.

14
 LITERATURE REVIEW
Teams
According to Shank (1999) teams can serve as the athletic platform at any level of
competition. Meenaghan (1991) further argues that when sponsoring an individual team, the
team may receive money, equipment, managerial expertise, coaching assistance, transport or
combinations of these. The author continues by explaining that if the sponsored team does
badly in competition, one risk with the sponsorship is that the company will not receive very
much publicity, as it probably will be eliminated from the competition at an early stage or not
receive much media coverage. Another risk is that if the sponsored team is involved in
adverse publicity (such as crowd violence and disturbances) it can also rebound on the
sponsor. (ibid.). Meenaghan (1991) also explains that neighbourhood firms often sponsor the
local teams in a regional league, where the sponsoring in general involves team’s kit, or a
limited amount of money to the sports club. Sponsoring of local teams is a common
occurrence when a senior member of management of the firm, or a member of his/her family
is a member of the team. This type of sponsoring has moreover been proved to impact staff
relations and morale, especially when the firm’s workers are actively involved. (ibid.)

Sports/league
Companies can further choose to sponsor sports or leagues in addition to sponsoring teams.
General Motors has for example chosen to sponsor the WNBA, with the advantage that few
companies are sponsoring women’s sports or leagues, and that those that do so create a unique
position in order to differentiate themselves. Thus, leagues have lately been trying to organize
themselves in order to be attractive to sponsors. (Shank, 1999)

Events
Events are the athletic platform most commonly associated with sports marketing, since
events as an athletic platform provide advantages as increasing awareness and enhance the
image of the sponsor. Moreover, an event often allows the consumer a forum to purchase the
sponsor’s products. Disadvantages, like other athletic platforms, are although the sponsorship
clutter, e.g. sponsors competing with other sponsors of the attention of the target audience. A
way to go beyond this problem is thus to become the official sponsor (the title sponsor) of an
event. (Shank, 1999)

2.2.4 Criteria for Sponsorship

According to Meenaghan (1983) once the general decisions regarding the level of sponsorship
and the specific athletic platform is made, a marketer should carefully consider the choices of
sponsorship before moving on. However, Brassington and Pettitt (2000) have offered a
number of factors that needs to be considered before a sponsorship decision are made, as
displayed in figure 2.5.

Compatibility
with objectives

Lenght of Uniqueness/
impact exclusivity

Sponsorship
choice

Relevance Spin-off PR/mkt

opportunities

Figure 2.5 Factors Influencing Sponsorship Choice

Source: Brassington and Pettitt (2000, p.813)

15
 LITERATURE REVIEW
To begin with, companies must consider relevance of the sponsorship, since it is essential that
it exists a match between the chosen sponsorship and the company’s target market. Another
consideration may be the length of impact since one-off events, unless they are very high
profile, tends not to have the capacity to build the continuity or establish the name familiarity
that sponsoring a sport league or series of events would offer. (ibid.) This is further strengthen
by Turley and Shannon (2000), as the authors state that ads appearing inside an arena need
eight to twenty times more exposure than a television commercial does to reach the same
result. Hence, it may be of decisive importance that the company’s target audience are able to
notice and process the information given in the advertisements a number of times (ibid.).
According to Brassington and Pettitt (2000) a third consideration is uniqueness, however it is
not always possible to be a sole sponsor, in particular for a large international event or where
the costs are very high. For example, sponsoring a league may provide uniqueness, such as
Allied Dunbar’s decision to sponsor Rugby’s Premiership League. Allied Dunbar managed to
increase its awareness profile, not only by sponsoring the league but also through the
associated television coverage and live debate. The potential for spin-off promotion and other
marketing activities from the sponsorship is another important consideration. Spending more
money on advertising and promotion may maximize the impact of the actual sponsorship. For
example, sporting events provides a focus for corporate hospitality along with an opportunity
for sales promotion themes. A final consideration is the importance of ensuring that the
activity is compatible with the sponsor’s overall promotional objectives. If a company gets
involved with sponsorship only because the marketing director loves soccer it will cloud
judgement over the real fit with the commercial objectives, and raise the cost of effectiveness
of the sponsorship into question. Therefore, sponsorship decisions should be as calculated and
unemotional as any other advertising decision. (ibid.)

Meenaghan (1991) further states that the ability to fulfil objectives, coverage of the defined
target audience, the level of coverage of the target audience, and the costs associates with the
sponsorship program is a classification of sponsorship criteria that are generally used as a
ground to the selection decisions of individual companies.

The ability to fulfil objectives

The ability to fulfil the stated objectives is a key criterion of any sponsorship proposal. Due to
the fact that any sponsorship has it own personality and perception in the audience mind, it is
further important ant to create and develop image and awareness.

Coverage of the defined target audience

Moreover, it is of significance to match the sponsorship activity with the defined target
market. The matching process includes demographic, geographic, and lifestyle variables.

The level of coverage of the target audience

The likely amount of exposure as well as the size of the audience likely exposed to the
company’s message is further important determinants in the selection process. The potentially
exposed audience can be measured in terms of participants, on-site fans and media coverage,
depending on the sponsoring activity being proposed. Media coverage also represents a useful
bonus for companies seeking corporate hospitality, or a basis of involvement for branded
goods companies.

The costs associated with the sponsorship program

Finally, the cost of the actual sponsorship activity is by nature a key criterion when selecting
sponsorships. The cost of leveraging a sponsorship program includes the additional effort,

16
 LITERATURE REVIEW
largely promotional, which must be invested by the sponsor in order to make use of the
opportunity provided as a result of securing the rights of a particular sponsorship. (ibid.)

Furthermore, Shank (1999) presents the following suggestions for selecting a sponsorship:

• Does the sponsorship offer the correct positioning?

• Does the sponsorship provide a connection to the brand?
• Is the sponsorship difficult for competitors to imitate?
• Does the sponsorship reach the right audience?
• Does the sponsorship appeal to the target audiences’ lifestyle, personality, and values?
• In what ways does the sponsorship merge into current corporate goals and strategies?
• Can the sponsorship be used for hospitality to embrace important potential and current
customers?
• Can employees be involved in the sponsorship?
• How will the sponsorship effectiveness be evaluated?
• Is the sponsorship affordable?
• How easy will it be to plan the sponsorship annually?
• Is the sponsorship a complement to the current promotion mix?

According to McCook et al. (1997) another method for selecting a sponsorship, dealing with
both pre and post sponsorship selection, is the Sprint Sponsorship Vision Project. This
process rates specific criteria which have been weighted accordingly. Through the support of
the following criteria, the company can evaluate and rank the different proposals according to
their perceived effectiveness.

• The revenue prospect for the company.

• The capability to integrate the product into the sporting event.
• The cost of the sponsorship.
• The exposure to the company’s target market.
• The company image improvement gained from the sponsorship.
• The company’s competitive advantage achieved in the marketplace through the
sponsorship.
• The hospitality/entertainment possibilities for the company that are gained through the
sponsorship.
• The sponsorship opportunity to demonstrate the company’s commitment to the
community.
No Conflict-Co.’s
Products
In addition, the study conducted by Liu et 7%
High Profile & Media
al. (1998) show that no set of conditions Corporate Policy Coverage & Advertising
37 % 14%
concerning companies’ criteria for
providing sports sponsorship can be
applyed as a standard. The results from the Local & Brand Awareness
study by Liu et al. (1998) are possible to 14 %

classify into seven specific categories, as

shown in figure 2.6. All of the twenty-six Product Development &
Brand Awareness
participating organizations used one of the Not Sure 7%
14 %
seven sets of conditions as their selection Large TV Audience & Corporate
Hospitality & Product Sales
criteria for supporting a particular sport. 7%
Figure 2.6 Criteria for Sponsorship
Thirty-seven percent of the participating Source: Adapted from Liu, Srivastava and Woo (1998, p. 106)

17
 LITERATURE REVIEW
companies’ selection criteria were through the establishment of an overall corporate policy.
Fourteen percent of the responding companies applied brand awareness and the immediate
locality of a sponsoring sport as their selection criteria. Moreover, fourteen percent used
media coverage, product advertising, as well as the high profile of the sport that it was related
with, as their condition for providing sports sponsorship. The share of companies that were
unsure about their organizations’ selection criteria showed to be fourteen percent as well. The
balance twenty-one percent of participating companies was divided as follows: seven percent
of the companies sponsored a sport as long as there was no conflict with its organization’s
products and those of a competitor. Moreover, the activity or event that the company was
sponsoring must be of a high calibre within its particular sporting environment. Another seven
percent used the sports sponsoring to increase brand awareness among its consumers, and
assist its product development within the market place. Finally, seven percent stated that their
sponsorship activities were highly dependent on them earning corporate hospitality, the sale
of products, and attaining a large television audience from the sporting activity or event that it
was involved with. (ibid.)

Liu et al. (1998), further argue that it is worth noting that all the companies that participated
in the study use the sports sponsoring as a way of promoting their own products and their
organizations. Hence, the majority of the companies tend to select a sport that would attract
their target market. The results from the study are further strengthened by McCook et al.
(1997) stating that corporate exclusivity is the major criteria for sport sponsorship selection.
In addition, increased company/brand awareness, reinforced company/brand image, signage at
events, ability to target audience, and increased sales/trial of product/service are known as
significant criteria. In addition, Walliser (2003) offer additional selection criteria to use when
selecting sponsorship activities, such as perceived similarity between the sponsors product
and sponsored activity, similarity between targets of sponsor and sponsored, the status and
image of the potential sponsored party and its eagerness to collaborate, geographical reach,
contact frequency and quality, expected sponsorship costs and benefits, the type of rights
received, and the opportunity to add the sponsorship to the present marketing strategy.

2.3 EVALUATION OF SPORT SPONSORSHIP EFFECTIVENESS

According to Shank (1999) the return of sport sponsorship may be measured, where the
explanation is based on defining the objectives, establishing a pre-sponsorship benchmark
against which to measure, as well as maintaining consistent levels of promotion and
advertising so it is possible to differentiate the effect of sponsorship. Although the lack of a
universal method for measuring sponsorship is a problem often dropped, not because they do
not have measurement value, but because no one has actually measured the value. The
absence of a single standardize measurement is though an opportunity as it means sponsors
can tailor their measurement systems to determine their specific objectives. (ibid.)

Busby and Digby (2002) continue by saying that the demand for accountability has grown as
the use of sponsorship has increased, and since companies nowadays are more willing to pay
higher prices for events, and those bracing themselves for uncertain economic scenarios have
an increased need to justify costs. As the need for accountability in sponsorship has increased
and the discipline has gained credibility as a marketing communication tool, measurement
and evaluation have become even more important to all parties involved in sponsorship
activities. Measurement plays a crucial role in a successful sponsorship process, not simply to
estimate the success of a program and further develop it, but it is essential to safeguard and
justify sponsorship budgets internally against the competing demands of other elements of the

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 LITERATURE REVIEW
marketing mix. Evaluation further contributes to an important part of a sponsorship strategy,
both in the pre-stages of a project and in the post-event analysis of a sponsorship programme.
In order to be truly valuable, sponsorship measurement methodologies should reflect an
understanding on how sponsorship works, as there is no single universal measurement
method. (ibid.)

In order to measure the effectiveness of a sport sponsorship activity, Shank (1999) has
outlined three types of strategic control in the strategic sports marketing process; planning-
assumption control, process control and contingency control displayed in figure 2.7.

Control phase of the

strategic marketing
process

Process Planning
control assumptions
control

Contingency
control

Figure 2.7 Control Phase of the Strategic Sports Marketing Process

Source: Adapted from Shank (1999, p.504)

Shank (1999) further explains that planning-assumption control often is necessary during the
planning phase to make assumptions about future events or contingencies about which there
are no complete information, since individual planners may perceive and interpret data
differently. Thereby, the strategic sports marketing plan is based on a number situation-
specific premises and assumptions. The assumptions should further be considered in terms of
control, where the external environment factors and sports industry factors are the two
categories of most concerns for sports marketers. Regarding external environment the factors
may include technology, inflation, interest rated, regulation, and demographic and social
changes. The sports industry in which a sports organization operates influence the
organizations regarding competitors, suppliers, league regulations, and leadership. Although,
the control of planning-assumption does not evaluate how well the actual plan is progressing
nor take into account the aspects of the internal and external environment that could not be
detected during the planning phase when the premises were developed. Thus, effective control
must consider the additional process control and contingency control. (ibid.)

Shank (1999) continues by stating that the process control measures and evaluates the effects
of actions that already have been taken in an effort to execute the plan. Due to changes in
premises and contingencies, sports marketers use to review the plan and the implementation
process, which should either change the strategic plan or the implementation process, in the
light of events and actions that have occurred during the implementation of the plan. The
benefits of this control is that marketers may minimize the allocation of resources into a
strategic plan, or leading implementation process to achievements of objectives and goals
deemed important by the sports organization. Monitoring strategic thrusts, receiving
milestones and financial analysis are measures commonly used during the process control
phase. (ibid.)

The third form of control, contingency control, is according to Shank (1999) based on the
assumption that sports marketers operate in an uncertain and unpredictable surrounding and

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 LITERATURE REVIEW
that the constantly changing internal and external environments may lead to the need to re-
evaluate of strategic choices. The goal of contingency control is thus; to constantly scan the
relevant environments for internal and external contingencies that could affect the marketing
planning process. Daily dealings often leads up to an unpredicted event, lead to a focus in the
form of a crisis, where previously unimportant or unnoticed happenings become more
problematic until an actual crises requires some action. The aim with contingency control is
although to learn to notice these signals and to properly prepare a plan of action in place to
cope with if a crisis occurs. Sport scandals and crises are not infrequent, and therefore it is
useful to plan so that the chosen response can be both faster and more effective. A crisis plan
may include well-defined organizational response strategies, specific methods for a more
efficient and effective response, a plan for effectively dealing with potential media impact and
enhance image as well as efficient ways of handling other problems that might occur.
Organizations may moreover benefit from an informal and formal crisis response plan, as the
foundation of any crisis plan should offer priorities for proactive and reactive response under
a variety of circumstances. (ibid.)

Shank (1999) further notes that monitoring strategic thrust attempts to measure, evaluate, or
monitor the strategic direction of the overall strategic plan. Sponsorship is one strategic thrust
of special interest to sports organizations and organizations marketing their products through
sports activities. Determining the effectiveness of a sponsorship program is becoming more
and more important as the costs of sponsorship continue to rise. Some of the more popular
ways of measuring sponsorship effectiveness is: (ibid.)

• Mentions and number of stories in popular media such as newspaper, televised shows and
magazines serves as a measure of exposure. Awareness is furthermore assessed through
media equivalencies, determining the length of “free” time the sponsor has accumulated
through television coverage.
• Both before (pre) and after (post) the event sales figures for products and services can be
examined in order to estimate the potential impact of the sponsorship. Scrutinize sales for
the sponsorship period versus the same time period in prior years or measuring sales in the
immediate area versus national sales may be another way of tracking sales. Additionally
sales might be tied directly to the sponsored event, as discounts for products might be
offered with proof of attending the event (show ticket etc.). Competitive reaction and
supplementary sales promotions will further influence the sales statistics.
• Primary market research conducted in the form of in-depth interviews may also assess
consumer attitudes towards different products and services, as well as the sponsored
event. The interviews are used to estimate the event and its sponsors, and awareness of
events and sponsors’ products and services.

Furthermore, Busby and Digby (2002) explain that in order to make a successful evaluation
and measurement of a sponsorship activity, it is important to have set up clear goals, and
know what the sponsor wants from the sponsorship, as well as to have narrowly-defined
objectives and measurable goals. A company could also try to increase trade against a
competitor, whereby it is important to know where it stands before entering a sponsorship
program. Nevertheless, many companies do not overlook this aspect of pre-sponsorship
research and so weaken the chances of running a sponsorship of success, driven by business
objectives. The authors further claim that marketing variables should not be changed during
the actual sponsorship as well as when evaluating. It is important to note that negative data
may not indicate that the sponsorship is wrong, which only may result from that the sponsors
had failed to externally communicate their involvement more widely, but was aware of doing

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 LITERATURE REVIEW
so and could make improvements to the sponsorship program rather than piece it altogether.
Finally, evaluation can only be effective if it is done based on reliable and relevant
information, and sponsors also need to take the long-term impact of sponsorship under
consideration, since the effects of sponsorships programs may be delayed because that
sponsorship is generating good-feelings. (ibid.) In addition, Dolphin (2003) notes that the
effectiveness of a sponsorship campaign can be measured through the attitudinal effects,
direct market effects, impact on stock prices attitudes toward sponsorship, perceptions of the
quality of leverage advertising, and the visibility of the campaign.

As argued by Polonsky and Speed (2001), due to the lack of direct measure of outcomes,
firms evaluating a sponsorship program often rely on using observable factors thought to
influence outcomes. Hence, a company may evaluate its sponsorship by measure the exposure
rates of the brand name generated, or knowledge of the sponsorship relationship. These kinds
of methods of measurement do not reflect any direct beneficial outcomes and more commonly
sponsorship is generally thought of as creating outcomes that are focused on the early stages
of the hierarchy of effects, such as awareness, interest and attitude, which are difficult for the
sponsors to observe. Thereby, it is not surprisingly quite difficult to evaluate the return of the
investment in sponsorship as the measurement of sponsorship effectiveness is connected with
how sponsorship influences consumers. Then as a result, measurement is largely dependent
on advertising effect models and consumer surveys, as effects of sponsorship in general is
similar to evaluating advertising effects. Thus, when clear objectives are set up and the
campaign background, target group, campaign objectives and action standards are considered,
the measurement of the effects is easier since the sponsor thereby can measure the consumers’
attitudes towards other sponsorship marketing communication activities of the sponsors
surrounding the sponsored cause or event, and towards the consumers' willingness to
activities. (ibid.) Although, when measuring sponsorship effects it is difficult to distinguish
between the effects of sponsorship and the effects of other marketing tools, especially when
sponsorship is used simultaneously with other promotion and advertising activities
(Olkkonen, 1999).

2.3.1 Stages of the Evaluation Process

According to Busby and Digby (2002), it is crucial to set up realistic objectives in order to
evaluate the effects of a sport sponsorship program. Busby and Digby (2002) and Meenaghan
(1991) further state that the sponsor may thereby consider the evaluation of the sponsorship
activity at the outset, meaning the awareness levels amongst the target audience, attitudes to
brand and other factors, or think about it when tracking process in order to check how the
sponsorship activity is going, and if there are any strong positive or negative pointers to adjust
or change. Finally, the sponsors could at the end of the sponsorship program evaluate to what
extent the objectives have been met and how these have been evaluated and measured, as well
as if this experience will have any impact on future sponsorship strategy. (ibid.)

• At the outset
• Tracking Process
• Final Evaluation

2.3.2 Media Exposure Measurement

Meenaghan (1991) argues that the level of media coverage gained as an outcome of
sponsorship activities is frequently used by companies as an indicator of performance.
Brassington and Pettitt (2000) and Meenaghan (1991) further state that one possible method

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 LITERATURE REVIEW
for measurement is to establish how much air time on television or radio, or how many
column inches in the print media, that were given to the sponsored event. However, a problem
with this method of measurement is that it takes place after the event, and therefore only can
help to decide whether to continue with future involvement. (ibid.) However, it is important to
note that the level of media coverage merely indicated the extent of the publicity resulting
from the sponsorship activity, and thereby this method of measurement can not evaluate the
effectiveness of the exposure gained unitarily (Meenaghan, 1991).

2.3.3 Assessing Communication Results

According to Meenaghan (1991), there is also a tendency to evaluate sponsorship results in
communications rather than in sales increase, due to the basic communication objectives. Pre-
and post-tests on awareness and image can therefore be carried out to measure whether the
sponsorship was noticed and what improvement it has made on awareness levels, attitudes
and opinions about the sponsor (Brassington & Pettitt, 2000). Meenaghan (1991) further
suggest evaluation of unprompted/prompted name awareness, and unprompted/prompted
awareness of the company as a sports sponsors as well as attitudes towards sponsorship.
Sponsoring companies also attempt to evaluate sponsorship results by focusing on the degree
to which respondents associate the company or the product with the sponsored activity, which
can be correlated with classification variables such as sex, age, and social class (ibid.).

According to Busby and Digby (2002), reputation and image build strong brands and
increases sales and is therefore of significant importance when measuring a sponsorship
program, since brand equity takes all factors that constitute to a brand’s value under
consideration. Nowadays, many companies include the concept of brand equity on their
balance sheet. Sponsorship can moreover be one of the major contributors to the perceived
quality of a brand, which further can be seen as one of the most significant aspects of a brand.
Brand equity has furthermore direct impact on sales performance as well as a brands ability to
sustain a price premium and a firms overall financial performance. The impact analysis
measures the indirect marketing benefits of an activity compared with the costs. Impression
management can be used to predict consumer attitudes before commencing sponsorship
activities. The drawback is however that the correlation to sales and consumer attitude may
vary. (ibid) The authors further explain that the impact can be quantified with impression
measurement and a value can be assigned through: (ibid.)

• Venue signage
• Other trademark exposure
• Media spots
• Editorial mentions and exposures
• Sampling totals
• Other product related activity

2.3.4 Measuring Sales Results

Due to the indirect nature of sponsorship amongst the more powerful impact of other
marketing activities, it is unlikely that measuring sales results would yield important findings
proving a casual link between sponsorship and sales (Brassington & Pettit, 2000). In addition,
Meenaghan (1991) claims that many sponsors point to sales results as evidence of
sponsorship effects, even if providing conclusive proof of this effect is difficult since it has to
be separated from other ongoing marketing activities.

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 LITERATURE REVIEW
Furthermore, Shank (1999) states that in order to fully interpret and control the process of
strategic marketing plan implementation, it is further important to understand the financial
information of the company. In regards of process control, accounting system provide a ready
comparison of present financial performance with past performance. Budgeted goals and
industry standard, as well as reports and financial statements can be used to make appropriate
strategic decisions. The accounting system can also provide a way of collecting and
processing information that can be used in the strategic sports marketing process. The income
statement and the balance sheet summarize both money transactions of the organization or
marketing department/division. Income statement is a good method of measurement of
customer satisfaction and efficiency within the operation, whilst balance sheets provide a
review of the financial health of the organization as well as a summary of the worth of the
organization, what has been invested in assets, how they were financed and who has claims
against the assets. (ibid.)

Shank (1999) additionally states that more useful when measuring the effectiveness of a
sponsorship program is although the ratio analysis. Financial ratios are calculated from
income statements and balance sheets, and explain the progress and success of the strategic
sports marketing plan, and if the marketing strategy continues to provide an appropriate fit
with internal and external contingencies. There are several types of financial ratios, such as
gross profit margin, net profit margin, return on total assets, asset turnover, current ratio, debt-
to-assets load, inventory turnover and accounts receivables turnover, which also can be
divided into profitability ratios, liquidity ratios, leverage ratios, activity ratios, and other
ratios. Profitability ratios serve with an indication of how profitable the company is during a
period of time, where liquidity ratios on the other hand provide an indication of the ability for
the company to pay off short-term commitments without selling off assets. In order to
measure the extent to which creditors finance the organization leverage ratios is often used,
whereas activity ratios are more commonly used when measuring the sales productivity and
utilization of assets. Other ratios can for example determine return to owners in dividends, the
percentage of profits paid out in dividends, or discretionary funds. (ibid.) Busby and Digby
(2002) further suggest a measurement of the return of investment (ROI) (shown in figure 2.8)
as a ratio analysis of profit achieved by the basic operations of a company or brand. The
return of the investment can further being regarded as a useful indicator of efficiency and
effectiveness of a company or brand.

sales x profit = profit Figure 2.8 ROI Return on Investment

investment sales investment Source: Busby and Digby (2002, p.24)

2.3.5 Feedback from Participating Groups

According to Brassington and Pettitt (2000), using obtained feedback as a measurement
method is perhaps easiest to implement when the sponsorship is targeting a small well-
defined audience, for example those asked to attend a sponsored concert and its associated
hospitality. Meenaghan (1991) further states that monitoring guest opinions can provide a
measure of sponsorship impact even where company staff and local community are being
targeted. The participants, spectators, activity organizers and the company’s sales force may
moreover work as useful sources of measurement.

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 LITERATURE REVIEW

2.4 CONCEPTUAL FRAMEWORK

A conceptual framework explains, in graphically or narrative form, the major things to be
studied, such as the key factors, constructs or variables, as well as a conceptual framework
explains the presumed relationship between them. Frameworks can moreover be rudimentary
or elaborate, theory-driven or commonsensical, as well as descriptive or casual. (Miles &
Huberman, 1994)

In order to answer the stated research questions in chapter one, this conceptual framework
will cork as a ground for our data collection. Of the theories and concept presented, the most
relevant for our research are chosen. The theories in the conceptual framework are presented
in the same way as they were in the literature review, since the theories are supported by
others and summarize the area of research in a suitable way.
Sport sponsorship
The theories chosen for the study are based on the three
integrated parts of sponsorship. This can be explained as
Objectives
the effectiveness evaluation is linked to the objectives,
Selection
since an evaluation without clearly stated objectives is Process
difficult. In the same way the objectives are connected with
the selection process, given that when objectives are well
defined a company may find it easier to select a particular Effectiveness
sponsorship. Moreover, when evaluating the effectiveness
of a sponsorship, measurement can be done on the chosen Figure 2.9 Integration of Sport Sponsorship
sponsorship selection criteria. Source: Authors own model

2.4.1 Conceptualization of RQ1: Objectives of Sport Sponsorship

The literature most relevant to answer the first research question how the objectives of sport
sponsorship can be described. To be able to answer this question the decision has been made
to base the study on the theories by Abratt et al. (1987), Meenaghan (1983), Meenaghan
(1991), Olkkonen (1999), and Shank (1999). These theories are summarized by Pope (1998).

• Corporate objectives
- public awareness
- corporate image
- public perception
- community involvement
- financial relations
- client entertainment
- government relations
- employee relations
- compete with other companies

• Marketing objectives
- business relations
- reach target market
- brand positioning
- increase sales
- sampling

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 LITERATURE REVIEW
• Media objectives
- generate visibility
- generate publicity
- enhance ad campaign
- avoid clutter
- target specificity

• Personal objectives
- management interest

The reason for choosing the objectives involved in sport sponsorship presented by Pope
(1998), is that this theory includes the major objectives found in the literature review
concerning sport sponsorship objectives. Also, many of these objectives have been supported
by Abratt et al. (1987), Meenaghan (1983), Meenaghan (1991), Olkkonen (1999) and Shank
(1999). The use of several theories makes the study extensive.

2.4.2 Conceptualization of RQ2: Selection process in Sport Sponsorship

The literature most relevant to answer the second research question how the selection process
in sport sponsorship can be described. In order to answer this question the decision has been
made to base the study on the following criteria presented by McCook et al. (1997), which
generally are used when selecting a specific sponsorship activity.

• The revenue prospect for the company

• The capability to integrate the product into the sporting event
• The cost of the sponsorship
• The exposure to the company’s target market
• The ability to improve the company’s image
• The possibility to achieve a competitive advantage in the market place
• The hospitality/entertainment possibilities that are gained through the sponsorship
• The opportunity to demonstrate the company’s commitment to the community
• Corporate exclusivity
• Increased sales/trial of product/service

In order to make this study more extensive, some of the criteria presented by Liu et al. (1998)
will be included as well.

• Increased brand awareness

• Corporate policy

Moreover, Walliser (2003) has provided some criteria relevant for this study.

• The status and image of the potential sponsored party

• Perceived similarity between the sponsors product and sponsored activity
• Similarity between targets of sponsor and sponsored
• Geographical reach
• The types of rights received
• The opportunity to add the sponsorship to the present marketing strategy

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 LITERATURE REVIEW
The reason for choosing the selection criteria presented by McCook et al. (1997) and Liu et
al. (1998) is that these theories includes the most relevant factors. The decision to choose
Walliser (2003) is that the study is relatively recently made and therefore can be considered to
be relevant in the subject of sport sponsorship today. In addition, Meenaghan (1991) will
work as support. By using several authors this study can be considered to be extensive.

2.4.3 Conceptualization of RQ3: Effectiveness Evaluation of Sport Sponsorship

The literature most relevant to answer the third research question how the effectiveness of
sport sponsorship can be evaluated. In order to answer this question the study will be based
on the following sponsorship evaluation methods offered by Brassington and Pettitt (2000).

• Media exposure measurement

- air time on television or radio
- column inches in the print media
• Assessing communication results
- pre- and post-tests on awareness levels
- pre- and post-tests on attitudes and opinions
• Measuring sales results
• Feedback from participating groups

The reason for choosing the theory by Brassington and Pettitt (2000) is that it is recently made
and therefore can be considered relevant for this study. When reviewing the literature it was
noticed that there seem to be a lack of universal methods for measuring sponsorship, however,
this theory presented some specific guidelines that can be applied no matter what type of
sponsorship method used. Meenaghan (1991) further works as a supportive source of this
theory as he has outlined a nearly identical framework for measuring the effectiveness of a
sponsorship program.

Additionally, Busby and Digby (2002) and Meenaghan (1991) present three steps crucial for
the sponsor to consider in order evaluating the effects of a sport sponsorship programme.

• At the outset
- awareness levels and attitudes to brand among the target audience
• Tracking process
- how the sponsorship activity is going, and if there are anything to adjust or change
• Final evaluation
- if the objectives have been met, and how these have been evaluated and measured

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3 METHODOLOGY
In this chapter the methodology used in order to gather data for the research questions will
be presented. The chapter will include the following discussions: research purpose, research
approach, research strategy, data collection methods, expected models of analysis, and
quality standards. Finally, the means of how to increase validity and reliability are discussed.

3.1 RESEARCH PURPOSE

As stated by Saunders, Lewis and Thornhill (2000), as well as by Eriksson and Wiedersheim-
Paul (1997), there are three purposes to use when carrying out scholarly research. These
purposes are referred to as exploratory, descriptive, and explanatory.

Exploratory studies are discovering investigations that are suitable when researchers are
searching for new insights to problems and want to measure phenomena in a new light
(Eriksson & Wiedersheim-Paul, 1997). Researchers that are using exploratory studies must be
prepared to modify their research directions in case new data and insights arise, hence this
type of research is flexible and adjustable. Additionally, exploratory research has a tendency
to start with an extensive research area and narrow down as the research develops. (Saunders,
et al., 2000)

Descriptive research becomes appropriate in when the purpose is not to find causes to the
research problem, but rather to describe the situation (Saunders, et al., 2000). This purpose is
suitable when a structured research problem has been stated (Eriksson & Wiedersheim-Paul,
1997). As explained by Bernard in Miles and Huberman (1994), description means” making
complicated things understandable by reducing them to their component parts” (p.90).
Moreover, descriptive and exploratory researches could be directly linked to each other as
researchers might have begun with wanting to gain insights to a problem, and after having
stated it their research becomes descriptive (Saunders, et al., 2000).

Explanatory research aims to find cause/effect relationships between given variables. Besides
to having to come up with a well-defined research problem, hypotheses need to be stated to be
able to accomplish that. (Eriksson & Wiedersheim-Paul, 1997) According to Bernard in Miles
and Huberman (1994), explanation is defined as “making complicated things understandable
by showing how their component parts fit together according to some rules” (p.90), namely
theory.

This study is primarily descriptive as we review literature, develop a framework, and collect
data on companies’ objectives with sport sponsorship, in addition to the selection process, as
well as the effectiveness evaluation.

3.2 RESEARCH APPROACH

Qualitative research is based on transforming what have been observed, reported or
registered into written words (Denscombe, 1998). The words can be assembled, sub clustered,
and broken into semiotic segments (Miles & Huberman, 1994). The authors continue by
saying that the words can be organized to allow the researcher to contrast, compare, analyze,
and bestow patterns upon them (ibid.). Moreover, qualitative research has a tendency to be
associated with description, since it is based on detailed and thorough descriptions of
occurrences and people (Denscombe, 1998).

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 METHODOLOGY
Since the purpose of this study is to provide a better understanding of how small and medium
sized Swedish companies use sport sponsorship as a marketing communication tool, and as
the research questions are stated in a way where the answers would rather contribute to an
understanding of social phenomena, this study is to be regarded as a qualitative research.
Moreover, we want to gain in depth information through our specific research questions. Our
aim is not to generalize in any way; instead this thesis focuses on adding to theory by
achieving a better understanding of the chosen research area. With the focus on qualitative
research, the following step in the methodology is to find a suitable research strategy.

3.3 RESEARCH STRATEGY

The purpose with this study is to provide a better understanding of sport sponsorship as a
marketing communication tool in Swedish companies. According to Yin (1994) a case study
gives the researcher the opportunity to conduct direct observations and systematic
interviewing. Case study can also be defined as “the essence of a case study, the central
tendency among all types of case study, is that it tries to illuminate a decision or set of
decisions: why they were taken, how they were implemented, and with what result.” (p.12). As
further explained by the author case studies are most useful when “a ‘how’ or ‘why’ question
is being asked about a contemporary set of events over which the investigator has little or no
control.” (p.9). (ibid.)

Considering the reasons that are mentioned above, case study is the most appropriate to use in
order to answer the research questions, and by that reach the purpose of this study. In
addition, case studies mostly include qualitative research and provide the possibility to use
several sources of evidence, which is called triangulation. (ibid.)

3.4 DATA COLLECTION METHOD

After having determined the most appropriate research strategy it is necessary to decide on
how to collect the empirical data (Yin, 1994). As explained by Eriksson and Wiedersheim-
Paul (1997) there are two types of data, secondary and primary data. While secondary data is
data that already has been collected by other researchers with different purposes in mind,
primary data is data gathered by a person on his/her own with a specific purpose in mind
(ibid.). According to Yin (1994) there are six important sources of evidence for case studies,
these are documentation, archival records, interviews, direct observations, participant-
observations, and physical artefacts. Moreover, none of these six sources has a complete
advantage over the others. Because the various sources are highly complementary, a good
case study strives to use as many sources as possible. (ibid.)

The data gathered in order to answer the research questions of this study, and by that reach the
research purpose is collected from both primary and secondary sources. The sources of
evidence used in this study are interviews and documentation. These two sources are outlined
and explained, including each one’s strengths and weaknesses in table 3.1.

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 METHODOLOGY

Source of evidence Strengths Weaknesses

Documentation; for example
letters, agendas, administrative
documents, formal studies or
evaluations, and newspaper
clippings.
Stable: can be reviewed
repeatedly.
Unobtrusive: not created as a result
of the case study.
Exact: contains exact names,
references, and details of an event.
Broad coverage: long span of time,
many events, and many settings.
Retrievability: can be low biased
selectivity, if collection in
incomplete.
Reporting bias: reflects (unknown)
bias of author.
Access: may be deliberately
blocked.

Interviews; can be of an open-
ended, focused, or survey nature.
Targeted: focuses directly on case
study topic.
Insightful: provides perceived
casual inferences.
Bias due to poorly constructed
questions.
Response bias.
Inaccuracies due to poor recall.
Reflexivity: interviewee gives what
interviewer wants to hear.

Table 3.1 Sources of Evidence: Examples, Strengths and Weaknesses

Source: Adapted from Yin (2003, p.86)

According to Yin (2003) documentary information is the most common used source in every
case study topic, and is primary used in order to corroborate and augment evidence from other
sources. Documents are important when verifying the correct spelling and titles or names of
organizations that possibly could have been mentioned in an interview. In this research,
documentation was mainly used to achieve background information about sport sponsorship.
Documentation is to be regarded as secondary data, as it first was gathered to serve a different
purpose. (ibid.)

The interview is one of the most important sources of case study information. The interviews
will seem to be guided conversations rather than structured queries, meaning that although
there will be pursuing a consistent line of inquiry, the actual stream of questions in a case
study interview is likely to be fluid rather than rigid. Most commonly, case study interviews
are of an open-ended nature, in which the key respondents are asked about the facts of a
matter as well as their opinions about events. A second type of interview is a focused
interview, in which a respondent is interviewed for a short period of time, for example an
hour. In such a case, the interview may still remain open-ended and assume a conversational
manner, but it is more likely to be following a certain set of questions derived from the case
study protocol. The third type of interview entails more structured questions, along the lines
of a formal survey, which could be designed as part of a case study and produce quantitative
data as part of the case study evidence. (Yin, 2003)

In this study we decided to conduct focused interviews because we had a certain set of
questions that needed to be answered in order for us to gather relevant data to our research
questions. Still, we aimed to keep the interviews open-ended to some extent in order to
maintain the flexibility of the interviews in addition to the opportunity of investigating. The
interviews were conducted in Swedish and we used an interview guide as a base to guideline
our discussion. In order to give the respondents time to prepare for the interviews, the
interview guides were sent in advance. In addition to the interviews, data was collected from
the chosen companies’ homepages and annual reports with the aim of gathering information
to be able to describe the companies’ background.

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 METHODOLOGY
3.5 SAMPLE SELECTION
When suitable sources of evidence have been determined, the next crucial step is to find
relevant and manageable samples to collect the empirical data from. In the sample selection
for this study we have chosen to look at companies within Sweden that are involved in sport
sponsorship. Due to the limited frame of time, and since we wanted to conduct personal
interviews, we have chosen two companies located in Sweden, Luleå. This resulted in the
choice of two companies sponsoring the elite hockey team Luleå Hockey, NCC and Nåiden
Bygg AB. The two companies are in the building construction industry and the researchers
have good connections in both of the chosen companies. In order to reach appropriate
respondents from the companies we called the main offices and got in contact with Mats
Eklund at NCC and Stefan Erixon at Nåiden Bygg AB, since they seemed to be the most
suitable persons to answer the research questions. In order to compare the companies we have
chosen to do two separate case studies; the first case is the Chief Executive Officer at Nåiden
Bygg AB and the second case is the head of department at NCC (see figure 3.1).

Case Study of two Swedish companies

- Same field of business
- Different size

Case 1 Case 2
Nåiden Bygg AB NCC Region Norrbotten
Stefan Erixon, CEO Mats Eklund, Head of Department
Figure 3.1 Figure of Cases
Source: Authors own model

According to Yin (2004), the evidence gathered from several case studies is often considered
more compelling, and the overall study is therefore considered as being more robust. On the
other hand, the rationale for single-case designs usually cannot be satisfied by multiple cases.
In addition, the conduct of a multiple-case study can demand extensive resources and time
beyond the means of a single student or independent research investigator. Hence, the
decision to undertake multiple-case studies cannot be taken lightly. (ibid.)

3.6 DATA ANALYSIS

After the data have been selected and the empirical data have been gathered, the process of
analyzing the data takes place with the aim to find answers to the earlier stated research
questions. According to Yin (1994) data analysis means examining, categorizing, tabulating,
or in other ways recombining the evidence with the aim to address the initial proposition of
the study. To analyze evidence from case studies is especially difficult as the strategies and
techniques have not been well defined in the past. Still, all investigations should begin with a
general analytic strategy that will treat the evidence fairly, produce compelling analytic
conclusions, and rule out alternative interpretations. In order to describe in what specific ways
case study analysis should be conducted, two types of general analytic strategies are available.
The strategy that is most commonly used is when the theoretical propositions that initially led
to the case study should be followed; the other strategy is that a descriptive framework is
developed to organize the case study. (ibid.) According to Miles and Huberman (1994) there
are two forms of analysis to use on case study data: with-in case analysis and cross-case
analysis. With-in case analysis is explained as comparing the data collected against the theory
used in the study, whereas cross-case analysis compares data gathered from different cases
with each other (ibid).

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 METHODOLOGY
Qualitative data analysis is focusing on data in the form of words which need to be processed
in form of analysis done in three stages (Miles & Huberman, 1994). This analysis is defined
by the authors as consistent of “three concurrent flows of activities” (p.10). These three stages
are presented as (ibid.):

• Data reduction: the process of selecting, focusing, simplifying, abstracting, and

transforming the gathered data. The purpose in this stage is to organize the data in order to
draw and verify final conclusions. (ibid.)

• Data display: when the data is reduced, it should be displayed in an organized,

compressed way simplifying conclusion drawing (ibid.).

• Conclusion drawing and verification: in this third stage the researcher decides the
meaning of occurrences, noting regularities, patterns, explanations, possible
configurations, casual flows, and propositions (ibid.).

This study relies on the theoretical propositions that led to the case studies. The data will be
compared to existing theory by conducting a with-in case analysis. The three stages presented
above are followed when the empirical data of this study is analysed (Miles & Huberman,
1994). First, the data concerning each research question was reduced by choosing and
simplifying the essential parts needed in order to answer the stated research questions. In the
next step the empirical findings within the cases will be evaluated to existing theory in a with-
in case analysis. In this study the conclusions will be made by noting regularities,
irregularities, and how the empirical data matched with existing theory. In addition, a cross-
case analysis will be used, comparing the gathered data from the two cases with each other.

3.7 QUALITY STANDARDS

In order to ensure the quality of the research and reducing the possibility of receiving the
wrong answers, attention must be paid to specific emphases on research design, namely
reliability and validity (Saunders, et al., 2000).

3.7.1 Validity
Validity is defined as the measuring instrument’s capability to measure exactly what is
supposed to be measured (Eriksson & Wiedersheim-Paul, 1997). Moreover, validity is the
researcher’s ability to use his/hers methods to study what was planned to be studied, rather
than studying something else (Gummesson, 2000). According to Yin (1994) there are three
different types of validity for case studies: construct validity, internal validity, and external
validity. Construct validity means establishing correct operational measures for the concepts
that are studied and it can be increased by using three different tactics. The first tactic is to use
multiple sources of evidence, the second one is to establish a chain of evidence, and the third
one is to have key informants review draft case study reports. Internal validity is defined as
establishing a casual relationship where certain conditions are shown to lead to other
conditions and is not suitable in descriptive or exploratory studies, only in studies with
explanatory research approaches. External validity means establishing the area to which a
study’s findings can be generalized. According to Yin (1994), it is possible to reach high
external validity when using case studies, since case studies are based on analytical
generalizations that strive to generalize findings in theory. In order to increase construct
validity of this research both interviews and documentations will be used. Moreover, effort

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 METHODOLOGY
has been put into finding the most appropriate respondents from the companies. We were also
careful to ensure that the respondents really understood the questions. As the interviews were
conducted in Swedish and later translated to English, the risk for interpretation errors
increased. However, we decided to conduct the interviews in Swedish since the respondents
otherwise might have misunderstood our questions or felt constrained with the language
barrier and thereby not have talked as freely. In order to further avoid misunderstandings, the
interview guides were sent in advance. Additionally, we used a tape recorder during our
interviews to be able to double-check the answers in order to reduce the possibility for
interpreting or translating the answers wrong. The conclusions will be limited to the
generalization of the two cases. In addition, the conclusions will be drawn following the same
order as stated in the conceptual framework. Finally, implications for further research will be
provided, thereby increasing the external validity.

3.7.2 Reliability
The aim with reliability is to ensure that later investigators would arrive at the same findings
and conclusions if following the exactly same procedures described by an earlier investigator,
and conducting the same case study all over again. The purpose with reliability is to reduce
the errors and biases in a study. (Yin, 1994) In order to make this research as reliable as
possible, we have throughout this thesis explained the procedures of our research. Moreover,
we have designed an interview guide reflecting the conceptualization of our research
questions. Also, the thesis has been organized in a way so that any reader or researcher can
retrieve any required material. Personal biases might have been present during the interviews
to some extent; hence the results could be questioned because of the influence from the
respondent in addition to our own attitudes and values.

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 EMPIRICAL DATA

4 EMPIRICAL DATA
This chapter will present the empirical data gathered from the two case studies. To begin
with, background information as well as data collected from the first case study will be
presented, and thereafter, background information and the data collected from the second
case study will be offered. The data collected will be presented in the same order as the
research questions. Hence, this chapter will include objectives of sport sponsorship, the
selection process in sport sponsorship, and the evaluation of sport sponsorship effectiveness.

4.1 CASE 1 NÅIDEN BYGG AB

Nåiden Bygg AB is a wholly owned company of Norrland, founded in Luleå in 1974. Nåiden
Bygg AB is ranked as one of the 20.000 largest companies in Sweden, and one of the fifty
largest within the building construction industry today (see appendix C for total list). Nåiden
Bygg AB is mainly effective in the county of Norrbotten with offices and operations in the
areas of Luleå, Piteå and Skellefteå. The company is currently employing 100 people, with an
annual turnover of approximately 300 million SEK.

The company has sponsored sport activities and sport teams ever since the foundation of the
firm in 1974, although it experienced a notable change with the shift of company owners in
1998 when the use of sport sponsorship as a marketing communication tool increased
remarkably. The company management sponsor sports primarily due to the personal interest,
with local sports teams as the main focus, since the company operates at a regional level. At
present, the company spends roughly 80 percent of its total marketing budget on sport
sponsorship activities, and is currently engaged in sponsorships for teams such as Luleå
Hockey, Bergnäsets AIK, Luleå Basket, and sports clubs as Luleå Golfklubb, Piteå
Golfklubb, as well as activities around harness racing at Bodentravet. In addition, the
company put a lot of effort in sponsoring sports aimed for young people and children, since it
is important to get the youth involved in sport activities, as it provide benefits for a further
healthy and active lifestyle. The sponsorship can be carried out in different forms by the
company, such as a sign board or rolling sign within an arena, logotype prints on the sport
equipment or outfit, as well as sponsoring of a specific activity in connection to a sport event.
Usually the company provides the sports team or sports club with a certain amount of money
in exchange for the exposure rights in connection with the sport.

Stefan Erixon, the CEO at Nåiden Bygg AB, provided us with Nåiden Bygg AB’s objectives,
selection, and methods of evaluation of sport sponsorship.

4.1.1 Objectives of Sport Sponsorship

According to the respondent, the company has three major objectives with sport sponsorship;
objectives related to the personal interest of the management, objectives regarding business
relationships, and objectives of generating visibility of the company. The company therefore
supports sports teams or sports clubs in the Northern Sweden that the management or some of
the employees is either interested or involved in. The management further finds these teams
or clubs as important sources for creating visibility and publicity for the company, as many of
their customers and cooperation partners share the same specific sport interest. The objectives
may thereby change depending on the sponsored sport unit. However, the objectives are not
concerned with increasing sales, as the company is in a field of business where it does not sell
a customer product, and the company gets contracts simply by counting on offers.

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 EMPIRICAL DATA
Concerning the corporate objectives of sport sponsorship, the company generally focuses on
the corporate image, client entertainment, employee relations, and in some degree the public
awareness and public perception. The company finds it important to create and sustain their
image of a company that is fulfilling their societal obligation in a respectful manner by caring
for the local sports clubs in Luleå, Piteå and Skellefteå. It is further of significance for the
company to show the public that it support sports, as it may create goodwill among co-
workers, customers and cooperation partners. The corporate objectives can also in some
extent concern financial relations, as it in some cases may be pressures from the society
forcing the company to engage in sponsorship programs. The most important objective for the
company is although the ability of sport sponsorships to create client entertainment and
improving/sustaining employee relations, since the field of business requires strong
relationships in order to survive and grow as a company. The sponsorship also works as a
motivator for the employees as they can see by the sponsored unit that the company cares for
their interests. Government relations and the objective to compete with other companies are
although not considered as corporate related objectives by the company.

The respondent further explains that the marketing objectives of sport sponsorship are
somewhat the same as the corporate objectives, as one of the company’s key motives is to
build/sustain business relationships. The managerial interest is moreover used as a
determinant in the marketing objectives, as it may be easier to put some sponsorship efforts in
sport clubs and teams in which they find interest by themselves or by other stakeholders or
relations. Brand positioning might also work as an objective at some levels, such as in new
markets as Skellefteå. In general the management considers the company as already
established in the customers mind in the area of Luleå and Piteå, as the most local partners
already know Nåiden Bygg AB on a professional ground. The CEO of Nåiden Bygg AB
therefore considers brand positioning as an objective of sport sponsorship as less important in
this area. As mentioned earlier, the objectives of increase sales and sampling is difficult to
take under consideration in this field of business, as the company do not sell a customer
product, and since the management do not think that the company would achieve more
contracts and increase the turnover simply by sport sponsorship. The CEO further believes
that a sign board on the workplace is of more value to the company. However, the marketing
objective of reaching target market was neither considered by the company.

Furthermore, the respondent states that the company uses media objectives of sport
sponsorship in order to generate visibility, generating publicity, as well as to avoid clutter.
Due to the reason that the company has decided to use sport sponsorship as a marketing
communication tool, it is more effective to put lot of efforts in fewer sports
teams/clubs/activities that achieves much publicity and reach a wider audience than spread it
out to many smaller units in the surrounding areas of the cities. This is of significance,
especially in the cities where the company mainly operates. The CEO explains that when the
company decided to expand the activity to Skellefteå it was really important to reach the
potential customers, cooperation partners and other stakeholders as soon as possible, and
thereby the decision of sponsoring the major sport team in Skellefteå, Skellefteå AIK.
However, the publicity does not always offer benefits for the company, such in the case of the
youth teams in the surroundings of Luleå, where one team may demand sponsoring from the
company, simply by the reason that a neighbouring team had achieved an amount of money.
Although, this does not concern a large sum of money for the company, and it is rather a
question of avoiding clutter and sustain consistency in the sponsorship programs. To enhance
advertising campaign or to target specificity were although not considered as media related
objectives of sport sponsorship by the company.

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 EMPIRICAL DATA
Personal objectives, including management interests, of sport sponsorship is although the
main objective of sport sponsorship for the company. As mentioned, the managerial, in
addition to the interest of the employees, is the main objectives when engaging in a sport
sponsorship program by the company.

4.1.2 Selection Process in Sport Sponsorship

Concerning the sponsorship selection process, Nåiden Bygg AB has certain criteria that it
bases the decision on. However, all decisions are taken by the senior management after
internal discussions and motivations. The selection is also mainly dependent on the
managerial interest in the specific sport, and the ability they find in the sport to deliver their
marketing message. The interest of the employees also has a significant impact on the sport
sponsorship choice, as the management takes into account other interests beside their own.
According to the CEO, the criteria of most impact for the selection process is the revenue
prospect of the company, the cost of the sponsorship, the exposure to the company’s target
market, the hospitality/entertainment possibilities that are gained through the sponsorship, as
well as the status and image of the potential sponsored party.

The revenue prospect for the company is often unconsciously taken into consideration when
selecting sport sponsorships, although it is never measured. Thus, the cost of the sponsorship
is more carefully considered, as the company nowadays tries to allocate larger pots of money
to fewer sports, although the discussion between the managers always concerns what the
money could have done for a smaller sports team or club in terms of prosperity and future
development. The key determinant is though the exposure abilities for the company, and how
many potential customers, cooperation partners and other stakeholders that recognize the sign
board or other sponsorship marketing efforts. The choice is thereby always based on the
exposure abilities, as the company set a high value in the marketing possibilities within the
arena, as well as the size and location of the sports arena.

Moreover, the ability to improve the company’s image toward important stakeholders is at
some levels taken under consideration, as it may show the cooperation partners that the
company cares both for the sports, and for the community. However, in general the company
tries to deliver a good work to the contractor instead of prove their involvement in the
community. The most important criterion in the selection process of sport sponsorship is
though the hospitality and entertainment possibilities that are gained through the sponsorship,
due to the company’s important contact network. This is especially important for sponsorship
proposals that may interest the stakeholders of the company, which makes it easier to arrange
customer activities and meetings in connection with special events, sometimes even extra
sponsored, through a specific match or race. Furthermore, the status and image of the
potential sponsored party is also an important determinant of the selection of sponsorships
since the company wants the sponsorship efforts to be visible for the target audience.

According to the respondent, the similarity between the targets of sponsor and sponsored has
some impact on the decision making process regarding sponsorship proposals, since the
company does not want to sponsor an unethical sport/event or activity as well as it does not
support an unethical behaviour by the participants in the sports, and do not want to be
connected with these kind of behaviour. On the other hand, the company likes to sponsor
teams or clubs that gives a positive response of the sponsorship by showing appreciation.
However, the CEO believes that the achieved response of gratefulness somewhat depends on
the amount of money spent on the team or club.

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 EMPIRICAL DATA
Moreover, the choice of sponsorship is to some extent determined by the geographical reach
of the sponsorship. The company has decided to mainly sponsor sports at a regional level, as
its business operations also is on that level and thereby it does not need to be seen on a
national or international level.

The capability to integrate the product into the sporting event, the possibility to achieve a
competitive advantage in the market place, the corporate exclusivity, the possibility to
increase sales/trial of product/service, the possibility to increase brand awareness, the
corporate policy, the perceived similarity between the sponsor’s product and the sponsored
activity, the types of rights received, and the ability to add the sponsorship to the present
marketing strategy are although not considered as criteria by the company when selecting
sponsorships.

4.1.3 Evaluation of Sport Sponsorship Effectiveness

When considering the evaluation of sport sponsorship effectiveness, the company does not
formally evaluate the effectiveness of the sponsorships. However, since the company has
made the decision to sponsor local teams or clubs based on the interest by some employees, it
is notified by its employees whether they like the sponsorship of that club or not. If the
company for example decides to remove the financial support from one local club, the
company would get direct response from the employees of that action.

Concerning the larger sport teams or clubs the company checks if the sports team or clubs
business is conducted properly such as given the company the right rate of exposure and the
right number of tickets due to the sponsorship agreement. According to the CEO, the
company simply measures the effectiveness of a sponsorship indirectly through the response
from participating groups of the event, which may alter between the three owners. The
communication results, including awareness and attitudes, could also be notable before and
after a specific sport event.

The company does not have any other method for measuring the effectiveness of a sport
sponsorship other then the above described. Hence, Nåiden Bygg AB does not evaluate by
measuring the media exposure or the sales results. Neither do the company measure during
the tracking process of the sponsorship. Although, the three owners of the company have
meetings where they evaluate which sponsorship that is worth to maintaining for the next
season, and which one to retire from due to the responses from the participating groups and
employees.

The CEO of Nåiden Bygg AB additionally states that it is important for the image of the
county of Norrbotten to have successful athletic teams, as it reflects a positive image of
healthiness and team spirit of the county, which is also of importance for Nåiden Bygg AB.

4.2 CASE 2 NCC

NCC is one of the leading building- and real estate developing companies in Scandinavia.
NCC is active throughout the whole value chain in its efforts to create environments for work,
living, and communications. The company develops residential and commercial property
projects. Moreover, NCC builds offices, industrial facilities, housing, roads, civil engineering
structures and other types of infrastructure. NCC also offers input materials used in
construction, such as aggregates and asphalt. The company also conducts paving and

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 EMPIRICAL DATA
maintenance operations in the roads sector. The Group’s primary geographical focus is on
Scandinavia.

Since NCC is a national company the decision has been made to limit the study to focus on
NCC in the county of Norrbotten. NCC in Norrbotten has 400 employees and an annual
turnover of 800 millions SEK, with approximately 0,1-0,2 percent aimed for sport
sponsorship. The company has been involved in sport sponsorship since 1987, and at the
moment the sponsorship is mainly focused on Luleå Hockey and Plannja Basket. In addition,
NCC sponsors Luleå Basket, Kiruna Hockey, and other local sport associations working in
Piteå, Boden, Luleå, Gällivare and Kiruna.

The reason why NCC use sport sponsorship as a promotional strategy is that the company
consider it to be the type of media that is most attractive, both internally and among their
clients. Moreover, sport has a great impact in the media, especially on a local level.
Concerning Plannja Basket and Luleå Hockey, the sponsorship has an impact on a national
level as well. Another important reason is that many of the employees and clients have a past
within sport.

Mats Eklund, head of department at NCC in Norrbotten, was interviewed for this case.

4.2.1 Objectives of Sport Sponsorship

NCC has set several different objectives for its sport sponsorship. The objectives are constant,
which means that they do not change considering the sponsored activity.

The most important objectives for the company are the corporate objectives which include
strengthening NCC as a trademark. The company wants people to think of NCC as “a
building company that is also involved in sport”, it creates an identity for NCC as a local
organisation that is engaged in sponsorship. Moreover, the company want to be a part of the
discussion in the community. Another important objective of sport sponsorship is the
possibility to have profitable client activities, and to some extent a type of personnel cares.
For example, in November NCC invites 80-100 clients to a basketball match with Plannja
Basket which is an opportunity to make many connections during one evening, and in January
or February the company invites a smaller amount of clients to attend a Luleå Hockey match.
NCC has no interest in having financial relations with other sponsors. However, the company
want to appear together with its most important clients, LKAB and SSAB, since the company
believes that it is beneficial for NCC to be associated with them. Moreover, government
relations and competing with other companies are not considered as important objectives for
the company.

Considering the marketing objectives of sport sponsorship, NCC has stated business relations
as its most important objective. For example, Plannja Basket has a supplier that NCC has
much collaboration with which has given NCC a logotype that is clearly visible on the
basketball team’s outfit. On Luleå Hockey’s outfit NCC only has a small logotype since the
company feels that it is more important to appear together with LKAB and SSAB. Moreover,
one employee at NCC is a member of the hockey team’s board where also one employee at
LKAB is seated. The factors mentioned above are all important for NCC in order to create
personal relations. To increase sales, reach target market, brand positioning, and sampling are
not objectives that are of significance for the company. Since their businesses are based on

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 EMPIRICAL DATA
professional offers, and since NCC is only building for companies, the company do not
believe that sponsoring sport will give them more jobs.

Media objectives are very important for NCC since the company wish to generate visibility
and publicity through sport sponsorship. Sport has a great interest in the media, and since
many of NCC’s clients are interested in sport, the sponsoring activities give NCC and their
clients a common topic to discuss in order to strengthen their relations in a natural way.
Enhance ad campaign, avoid clutter, and target specificity are not regarded as objectives for
NCC.

According to NCC, personal objectives are not considered when sponsoring sport. Mats
Eklund explains that even though he is interested in hockey and basketball, the company is
not allowed to sponsor sports because of personal interests. It is important that the decision to
sponsor a specific team or event can be explained internally. NCC has a decision order
meaning that Mats Eklund cannot decide sponsoring for more that 5,000 SEK by himself, and
the head of region at NCC is allowed to decide sponsoring up to 50,000 SEK. This decision
order exists in order to prevent the company from giving away money without any purpose. It
is the head of NCC Sweden that makes the final decision considering sponsorship. NCC
believes that it is more beneficial to sponsor a few sport activities with more money than to
sponsor a large amount of activities with less money. However, if one employee at NCC has a
son or daughter involved in a sport association NCC sometimes sponsor that association with
a small amount of money in order to keep the employees motivated. Moreover, if some of its
clients are interested in golf, the company has a client activity during the summer to keep
them satisfied.

4.2.2 Selection Process in Sport Sponsorship

NCC has three aspects concerning the selection of a specific sport sponsorship, namely, client
perspective, the company’s personnel, and what NCC stands for. Regarding the company’s
staff, both the present and future personnel are considered when selecting a specific
sponsorship. NCC is striving to employ more women to the company so in order to create an
identity among women the decision was made to sponsor the female basketball team, Luleå
Basket.

NCC has a policy concerning its sponsorship, which includes that the sponsorship must be in
agreement with the company’s values. Also, the company must follow the rules that are set up
concerning sponsorship. However, NCC is not so restricted by this policy, and what is
decided to be sponsored varies a great deal across the country. Due to this policy, and since
NCC has a budget aimed for sponsorship, it is easier for them to say no to sponsorship offers.

The cost of the sponsorship is one important factor that NCC considers when selecting a
specific sponsorship, the company need to feel that what NCC earn from the sponsorship
agreement is worth the cost of it. Even though reaching the target market is not considered as
an important objective of sport sponsorship, the exposure to the company’s target market is
regarded as an important criterion when selecting a specific sponsorship. The status and
image of the potential sponsored party is also a significant criterion as the sponsorship has to
be in agreement with the values of NCC. The company does not want to be associated with
dirty money, and since NCC wants to distance the company from the macho image existing in
the building industry, NCC would never sponsor boxing. NCC also considers the types of
rights received from the sponsorship agreement, including a sort of sponsorship package. This

38
 EMPIRICAL DATA
sponsorship package can for example mean that leaders and players from Luleå Hockey and
Plannja Basket must take part in the client activities. It is very appreciated among the clients
if the leader for the team meet them before the game and explain how he has planned it, or if
the players of the team meet the clients after the game and answer questions. Therefore, the
hospitality/entertainment possibilities that are gained through the sponsorship can be
considered as a specific criterion. An additional selection criterion considered by NCC when
selecting a specific sport sponsorship is to check which companies that are currently
sponsoring the potential event.

Some criteria not considered by NCC when selecting a specific sponsorship are the revenue
prospect for the company, the capability to integrate the product into the sporting event, the
ability to improve the company’s image, the possibility to achieve a competitive advantage in
the market place, the opportunity to demonstrate the company’s commitment to the
community, the corporate exclusivity, the possibility to increase sales/trial of product/service,
the possibility to increase brand awareness, the perceived similarity between the sponsor’s
product and the sponsored activity, and the similarity between the targets of sponsor and
sponsored. Additionally, the geographical reach is not regarded as an important criterion
since NCC in Norrbotten act locally and every region is responsible for its own geographical
area. The opportunity to add the sponsorship to the present marketing strategy is neither
considered in the selection process.

4.2.3 Evaluation of Sport Sponsorship Effectiveness

According to Mats Eklund, NCC evaluates the sport sponsorship effectiveness by measuring
the feedback from participating groups. The company measure how many percent of the
people invited to an event that are actually attending. Moreover, the company listens to the
client’s opinions and there is a constant dialogue concerning the value of the sponsoring
activities for the company. However, NCC does not measure the media exposure,
communication results, or sales results.

During the sponsorship process, NCC evaluates the interest among its clients. If the interest
tend to decrease it is important to change direction of the sponsorship. NCC go through the
sponsorship costs once a year (the outset), and discuss if the company sponsor too much or
maybe too little. Recently the company has been trying to limit the number of sponsorships
because many of them do not provide any value to NCC. The company does not measure at
the end of the sponsorship.

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 DATA ANALYSIS

5 DATA ANALYSIS
This chapter will present an analysis of the empirical data presented in the previous chapter.
A within-case analysis will be conducted in order to compare the data from both cases with
our conceptual framework. Thereafter, a cross-case analysis will be presented where
similarities and differences between the two cases will be revealed.

5.1 WITHIN CASE ANALYSIS

In this section the empirical data gathered in the previous chapter will be analyzed. Within-
case analyses of the two cases will be compared with the theory by Pope (1998), regarding
objectives with sponsorship as presented in the conceptual framework. Moreover, the theories
by Shank (1999), Ollkonen (1999), Meenaghan (1983), and Abratt et al. (1987) will be used
in support to Pope. Secondly, the empirical data will be compared with the theories by
McCook et al. (1997), Liu et al. (1998), Walliser (2003) and Meenaghan (1991) in order to
analyse the selection process of a sport sponsorship. Finally, the evaluation of sport
sponsorship effectiveness will be analysed by comparing the empirical data of the cases with
the theories conducted by Brassington and Pettitt (2000), Busby and Digby (2002) and
Meenaghan (1991) as previously described in the conceptual framework.

5.1.1 Within Case Analysis of Nåiden Bygg AB

Objectives of Sport Sponsorship

The four main objectives for companies to engage in sport sponsorship are according to the
theory by Pope (1998), the corporate, marketing, media and personal objectives. Nåiden Bygg
AB’s main objectives to engage in sport sponsorship is to support local team or clubs,
sponsor sports of personal interest to the head management as well as sports of interest and
value for the employees and other stakeholders of the company, In addition, the company
strives to create company visibility in order to build, sustain or improve relationships. These
correspond to Pope’s (1998) definitions of all the main objectives, especially concerning
community involvement, management interest, employee relations, business relations and
generate visibility. Thereby, the data from Nåiden Bygg AB are in general consistent with the
theory by Pope (1998).

Concerning the relative importance of the corporate objectives, the gathered data indicates
that the company in general focuses on the corporate image, client entertainment and
employee relations, as these objectives may reflect the core values of the company to the
public audience. Pope (1998) states that corporate objectives, including these three, are a part
of a company’s strategy of sport sponsorship which indicates that the case findings and the
theory by Pope (1998) are consistent. Image building is also explained by Shank (1999) as the
most important reason for a company to engage in sport sponsorships, as a sport activity
provide a company with the benefit of association with the images generated by a sponsored
personality, team or sporting event. The objective of client entertainment is further in line
with the theory by Abratt et al. (1987), suggesting that sport sponsorship can be highly
effective as it may offer opportunities of guest hospitality in a relaxed, proper environment.
Moreover, employee relationships correspond to the theory by Meenaghan (1983) explaining
that sponsorship also has the ability to assist employee relations by sponsoring sport activities
of the interest of the staff.

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 DATA ANALYSIS
Nåiden Bygg AB may also consider the financial relations in some cases, as there may exist
pressure on the company to engage in sport sponsorship by that reason. This is also explained
by Meenaghan (1983), saying that companies may use sponsorship in order to assure their
policyholders and shareholders. However, the objectives of public awareness, public
perception and community involvement are also considered in some degree by the company,
as the company aim to sustain its image of a company that is doing something good for the
community by sponsoring sport activities, both on the senior and junior level which must be
done by creating awareness and perception of the cause. Government relations, and the
objective of competing with other companies, explained in the theories by Pope (1998),
Shank (1999) and Meenaghan (1991) were although not considered as corporate objectives by
the company.

The findings from the case signify that the main marketing objective considered by the
company is the business relations, which is a result of the similarity with the corporate related
objectives of building and sustaining relationships. According to Pope (1998) business
relations is a part of the marketing objectives, hence the case is in line with the theory. This
further corresponds to the theory by Meenaghan (1983) claiming that many marketing
objectives are the same as under corporate related objectives. For the company brand
positioning might work as an objective in new markets, as the company find itself already
established in its present markets. This is further in line with the theories by Shank (1999) and
Abratt et al. (1987) and Meenaghan (1983). Although, Abratt et al. (1987), Olkkonen (1999),
and Shank (1999) state that increase sales is the most common marketing objective to engage
in sport sponsorship programmes. However, this is not an objective of importance for the
company, since it does not sell a product of which it could estimate the increase in sales.
Neither the company believes that the sponsorship would increase the amount of contracts
achieved, as Nåiden Bygg AB principally count on offers to get its contracts. The same goes
with sampling, that is not of significance for the company. A sign board on the work place is
believed to be of more marketing value than all the marketing objectives mentioned by Pope
(1998) according to the CEO of Nåiden Bygg AB.

Concerning the relative importance of the media objectives, Nåiden Bygg AB is in line with
the theory by Pope (1998), as the company use marketing objectives in order to generate
visibility, generate publicity and to avoid marketing clutter. These objectives are further
discussed by Meenaghan (1983) and Abratt et al. (1987), stating that media coverage is of
especial importance for companies considering brand- and company awareness as their main
reason for investing in a sport sponsorship. Meenaghan (1983) additionally notes that
sponsorship has the ability to avoid media clutter, common in traditional advertisements. Pope
(1998) also includes the objectives of enhance advertising campaign and the ability to target
specificity as media objectives. These are, however, not considered as marketing objectives
by the company. In addition, the company is striving to put more sponsorship efforts in fewer
sports, in order to increase the amount of marketing at fewer places, instead of sponsoring a
lot of small sport teams in the surroundings of Luleå. By doing so the company aims to
achieve more publicity and reach a higher number of audiences.

Furthermore, empirical data show that the most important objective for engagement in sport
sponsorship is nevertheless, the personal objectives. The managerial interest in the sport units
is most often the objective for engagement in a sport sponsorship programme. Although, the
interest of the employees is the next most important determinant to engage in sport
sponsorship, of earlier mentioned reasons. Thereby, the case is consistent with the theory by
Pope (1998). Meenaghan (1991) also argues that sponsorship can deliver personal satisfaction

41
 DATA ANALYSIS
that is furthermore of importance for the company. Therefore, the decisions to engage in sport
sponsorship often are influenced by the personal views, hobbies and interest of the head
management of a company (Abratt et al., 1987).

Selection Process in Sport Sponsorship

Concerning the selection of a particular sport sponsorship, Nåiden Bygg AB mainly base its
selection on the managerial interest in the specific sport and the ability of the sponsorship to
deliver the company’s marketing message. Furthermore the decisions are based on the interest
and/or involvement of the employees within a specific sport.

According to the CEO of Nåiden Bygg AB, the revenue prospect for the company is often
unconsciously taken under consideration when selecting sport sponsorships. This case data is
in line with the theory by McCook et al. (1997).

Since the company try to spend more money on fewer sports, the cost of the sponsorship is
always seriously taken under consideration by the company. This makes the data coherent
with the theories by McCook et al. (1997) and Meenaghan (1991), as the authors state that the
cost of the sponsorship activity is by nature a key criterion when selecting sponsorships.

Another determinant used by the company is the ability of exposure to the company’s target
market, and how many potential customers, corporation partners and other stakeholders that
might recognize the sponsorships efforts. McCook et al. (1997) includes this criterion in the
theory, which makes the case of Nåiden Bygg AB consistent with the theory. In addition,
Meeneghan (1991) states that the likely amount of exposure as well as the size of the audience
likely exposed to the company’s message is an important determinant in the selection process.

The ability to improve the company’s image toward important stakeholders is another
criterion of importance for the company. This may prove that the company cares both for the
sports as well as for the community. Although, in general the company try to deliver a well
performed work to the contractor of the building, instead of put efforts to improve the
company’s image toward stakeholders. Since McCook et al. (1997) has presented this
criterion as generally used when selecting a specific sponsorship activity, the data and the
theory can be said to be consistent.

According to McCook et al. (1997), the possibilities of hospitality and entertainment are a
considered criterion in the selection process of sport sponsorship. This criterion is
nevertheless, the most important criterion for Nåiden Bygg AB when selecting a specific
sports sponsorship, as the company put a lot value in its network relationships. According to
the CEO of the company, this is of especial importance for sponsorship proposals that may
interest the stakeholders of the company. Hence, the case data is in line with the theory by
McCook et al. (1997).

By the same reasons as for the hospitality and entertainment abilities of a sponsorship, the
status and image of the potential sponsored party is of high importance for the company. The
company also uses this as a motive for simply sponsor large sport units. As this criterion is
presented in the theory by Walliser (2003), the data and the theory are coherent.

The similarity between the targets of sponsor and sponsored have some impact on the
selection process, since the company does not want to support any unethical
sport/event/activity. Nåiden Bygg AB neither wants to become connected with unethical

42
 DATA ANALYSIS
behaviour of sport participants. Moreover, the company likes to sponsor teams or clubs that
show appreciation and are positive to the sponsorship. This criterion is further a part of the
selection theory by Walliser (2003).

According to Walliser (2003), the geographical reach of the potential sponsorship is an

important criterion for companies. Nåiden Bygg AB bases the sponsorship decisions on
geographic reach and has decided to simply sponsor sports in the areas where the company is
operating.

However, Nåiden Bygg AB does not consider the capability to integrate the product into the
sporting event, the possibility to achieve a competitive advantage in the market place, the
corporate exclusivity, or the possibility to increase sales/trial of product/service, which is all
included in the theory by McCook et al. (2003).

Moreover, the company does not consider the possibility to increase brand awareness and the
corporate policy, which are important criteria according to Liu et al. (1998).

According to Walliser (2003) the perceived similarity between the sponsor’s product and the
sponsored activity, the types of rights received, and the ability to add the sponsorship to the
present marketing strategy are criteria considered in the selection process. However, these
criteria are not considered by Nåiden Bygg AB.

Evaluation of Sport Sponsorship Effectiveness

Nåiden Bygg AB does not formally evaluate the effectiveness of sponsorship, however some
indicators can be used to evaluate the value in terms of relationship building after the
sponsorship has taken place. Since Nåiden Bygg AB measures the sponsorship after it has
taken place, the data is coherent with the theories by Busby and Digby (2002) and Meenaghan
(1991), stating that the sponsor may consider the outset, the tracking process and/or making a
final evaluation of the sponsorship programme.

Considering the evaluation of sponsorship effectiveness Brassington and Pettitt (2000) outline
four methods that might be used when evaluating the effectiveness in regards of sport
sponsorship. Some of the methods are somewhat considered by Nåiden Bygg AB, but mostly
at an informal level. According to Brassington and Pettitt (2000) the first method, media
exposure measurement, measure the air time on television or radio, and the space in print
media, gained by the efforts in sponsorship. Meenaghan (1991) additionally argues that
companies often use the media exposure to measure the effectiveness of sport sponsorship.
However, this is not a method used by the company when evaluating the effectiveness of a
sport sponsorship. Instead, the company tries to check if the company is given the right rate of
exposure and the right number of tickets as a part of a sponsorship agreement.

The method of assessing communication results that Brassington and Pettitt (2000) mention is
neither used by Nåiden Bygg AB when measuring sport sponsorship effectiveness.

Since the company does not sell an actual consumer product, the approach of measuring
increased sales is not of use for the company. Brassington and Pettitt (2000) and Meenaghan
(1991) state that the method of measurement is a useful tool for companies to use in order to
get evidence of their sponsorship efforts. Although, the company does not believe that it
would achieve more contracts by simply sponsoring sports.

43
 DATA ANALYSIS
More important for Nåiden Bygg AB is, however, to measure the feedback from participating
groups. Brassington and Pettitt (2002) state that this method of measurement is the easiest to
implement for companies targeting a small, well-defined audience. In addition Meenaghan
(1991) states that monitoring guest opinions are in terms of measurement even when company
employees and local community are being targeted. Nåiden Bygg AB mainly measures the
effectiveness of a sponsorship activity by listening to employee opinions and response from
participants groups. The data is thereby coherent with the theories by Brassington and Pettitt
(2000) and Meenaghan (1991). Moreover, Nåiden Bygg AB evaluates the effectiveness of a
sport sponsorship activity by discussing the achieved responses by the three owners of the
company in order to get the feedback more objective.

5.1.2 Within Case Analysis of NCC

Objectives of Sport Sponsorship

The data from the case indicates that corporate objectives are the most important objectives
for the company. These objectives include strengthening NCC as a trademark, to create an
identity for the company, and to be a part of the discussion in the community. Moreover, the
company mentions the possibility to have profitable client activities by inviting clients to
sport events, and to some extent personnel care, as objectives of sport sponsorship. Pope
(1998) suggests that corporate related objectives are involved in sponsorship of sport.
Moreover, Abratt et al. (1987) state that corporate objectives have their basis in developing a
favourable public perception of the firm, increasing public awareness, and creating goodwill
among the company’s stakeholders. Olkkonen (1999) further claims that stakeholder
relationships may be created interactively through sponsorships by inviting important
representatives to a sponsored event. Hence, the data from the study are in line with the
theories by Pope (1998), Abratt et al. (1987), and Olkkonen (1999). According to Pope
(1998), financial relations, government relations, and competing with other companies, are
considered as corporate related objectives. However, NCC does not consider these objectives
when sponsoring sports.

Concerning marketing objectives, NCC explains that business relations are the only objective
considered when sponsoring sports. Pope (1998) states that marketing objectives, including
business relations, are a part of a company’s strategy when sponsoring sports. Thus, the case
data and the theory by Pope (1998) are consistent. According to Shank (1999) and Pope
(1998), reaching target markets is also considered as a marketing objective. Moreover, Pope
(1998) considers brand positioning, sampling, and increase sales as marketing objectives.
Abratt et al. (1987), Olkkonen (1999), and Shank (1999) further argue that organisations not
would spend money on sponsoring sport events or stadiums if they did not know that they
would get something in return. However, NCC does not consider these objectives as
important. Since their businesses are based on professional offers, and since the company is
only building to other companies, NCC does not believe that sponsoring sport will give more
jobs.

Media objectives are of great significance for NCC as the company wish to generate visibility
and publicity through sport sponsorship. Pope (1998) states that media objectives are involved
in sport sponsoring. In a similar manner, Meenaghan (1983) and Abratt et al. (1987) state that
achievement of media coverage is an important objective for sport sponsorship. Pope (1998)
considers enhance ad campaign, avoid clutter, and target specificity, as media objectives.
However, these objectives are not regarded as important for NCC.

44
 DATA ANALYSIS
According to Pope (1998), companies have personal objectives when sponsoring sports.
Abratt et al. (1987) state that personal objectives reflect the hobbies, interests, and personal
views of the management of a company, and that the decision to sponsor a sport is constantly
influenced by the personal views of the decision-maker. However, NCC does not have
personal objectives of sport sponsorship as the company is not allowed to sponsor sports
because of personal interests.

Selection Process in Sport Sponsorship

NCC has three aspects concerning the selection of a specific sport sponsorship, namely, client
perspective, the company’s personnel, and what NCC stands for. Moreover, the company has
a corporate policy concerning its sponsorship, which includes that the sponsorship must be in
agreement with the company’s value. This data is coherent with the study by Liu et al. (1998),
stating that most companies use its policy as a selection criterion.

McCook et al. (1997) present the cost of the sponsorship as a selection criterion. In addition,
Meenaghan (1991) states that the cost of the actual sponsorship activity is a key criterion
when selecting sponsorships. The cost of the sponsorship is one important criterion that NCC
considers when selecting a specific sponsorship, it is essential for the company to feel that
what NCC earns from the sponsorship agreement is worth the cost of it.

NCC considers the exposure to the company’s target market to be an important criterion when
selecting a specific sport sponsorship. This criterion is further included in the theory by
McCook et al. (1997). Moreover, Meenaghan (1991) states that the likely amount of
exposure, in addition to the size of the audience exposed to the company’s message, is a
significant determinant in the selection process.

The status and image of the potential sponsored party is considered by NCC in the selection
process as the company does not want to be associated with, for example, dirty money. This
data is in line with the theory by Walliser (2003).

Concerning the types of rights received from the sponsorship agreement, NCC explains that it
is a considered criterion when selecting a specific sponsorship and that it includes a sort of
sponsorship package. This package can for example mean that leaders and players from Luleå
Hockey take part in NCC’s client activities, which is very appreciated among the clients. This
data is consistent with the theory by Walliser (2003), and the theory by McCook et al. (1997)
which include the hospitality/entertainment possibilities gained from the sponsorship as a
selection criterion.

McCook et al. (1997) also mention the revenue prospect for the company, the capability to
integrate the product into the sporting event, the ability to improve the company’s image, the
possibility to achieve a competitive advantage in the market place, the opportunity to
demonstrate the company’s commitment to the community, corporate exclusivity, and
increased sales/trial of product/service, as selection criteria. However, none of these criteria
are included in the selection process by NCC.

Moreover, Liu et al. (1998) presents increased brand awareness as a selection criterion,
which is not the case for NCC.

Walliser (2003) states that companies considers the perceived similarity between the sponsors
product and sponsored activity, the similarity between targets of sponsor and sponsored, the

45
 DATA ANALYSIS
opportunity to add the sponsorship to the present marketing strategy, and the geographical
reach, when selecting a specific sponsorship. However, none of these criteria are considered
by NCC in the selection process.

In addition to the theories, NCC mentions that the company explores which other companies
that are currently sponsoring the potential event before selecting it.

Evaluation of Sport Sponsorship Effectiveness

The theory by Brassington and Pettitt (2000) presents four methods to use in order to evaluate
the effectiveness of sport sponsorship. The first is media exposure measurement, which
measure air time on television or radio, or column inches in the print media. Moreover,
Meenaghan (1991) states that this measuring method is frequently used by companies as an
indicator of performance. Still, NCC does not measure the media exposure when evaluating
sport sponsorship effectiveness.

Assessing communication results, both pre- and post-tests, is another measuring method
according to Brassington and Pettitt (2000). This method is neither used by NCC when
measuring the effectiveness of sport sponsorship.

According to Brassington and Pettitt (2000), companies can measure sales results when
evaluating the effectiveness of sport sponsorship. However, NCC does not believe that
sponsoring sport will give the company more jobs and therefore sales results are not used as a
measuring method.

NCC use the feedback from participating groups when evaluating sport sponsorship by
measuring how many percent of the people invited to an event that are actually attending,
listening to the client’s opinions, and by having a constant dialogue concerning the
sponsorship’s value for the company. Brassington and Pettitt (2000) present this method as a
way to evaluate the effectiveness of sport sponsorship. Moreover, Meenaghan (1991) states
that the participants, spectators, activity organizers, and the company’s sale force may work
as a useful source of measurement. Thus, the case data can be said to be in line with the
theories by Brassington and Pettitt (2000) and Meenaghan (1991).

Concerning when to evaluate sport sponsorship effectiveness, Busby and Digby (2002)
presents three steps crucial for the sponsor to consider. At first, the company should consider
the outset, which may be the awareness levels and attitudes to brand among the target
audience. However, NCC states that the company does not measure the outset of the
sponsorship. The second step, according to Busby and Digby (2002), is to measure the
tracking process of the sponsorship. Since NCC checks the interest among its clients during
the sponsorship process, this data is in line with the theory by Busby and Digby (2002).
Finally, Busby and Digby (2002) state that companies should evaluate at the end of the
sponsorship programme, which NCC does by going through the sponsorship costs once a year
and by discussing if the company should sponsor more or less in the future.

46
 DATA ANALYSIS
5.2 CROSS CASE ANALYSIS
In order to carefully distinguish similarities and differences between the two companies of
study, a cross-case analysis is conducted.

Objectives of Sport Sponsorship

In order to carefully distinguish similarities and differences between the two companies of
study, a cross-case analysis is conducted. Concerning the relative importance of the general
objectives, the main objectives of Nåiden Bygg AB are personal objectives, objectives
concerning relationships and objectives of creating visibility of the company. NCC on the
other hand put more value in the objectives of creating an identity, strengthening the
trademark and to prove its involvement in the community. The cross-case analysis thereby
reveals that the two companies have different main objectives. Moreover, the objectives of
sport sponsorship of NCC are constant whereas the ones of Nåiden Bygg AB are inconstant,
and may change depending on sport unit.

Concerning the corporate objectives, the corporate image, client entertainment, and employee
relations are of highest importance according to Nåiden Bygg AB. NCC’s objectives for
engagement in sport sponsorship are based on objectives in a wider spectrum, such as public
awareness, corporate image, public perception, community involvement, client entertainment,
and employee relations. The cross-case study thereby indicates that the two companies shares
the objectives of corporate image, client entertainment and employee relations. Although,
Nåiden Bygg AB considers objectives such as public awareness, public perception and
community at some levels, depending on the sponsored sport unit, which proves on further
similarities between the two companies. However, neither of the companies considers
financial relations, government relations and to compete with other companies as objectives
when deciding to engage in a sport sponsorship programme which moreover, leads to
similarities of the companies.

Another indication revealed of the cross-case analysis is that both of the companies consider
business relations as a part of their marketing objectives. The companies have been proved to
have the same marketing objectives, however Nåiden Bygg AB somewhat consider brand
positioning in some specific cases. Objectives of reach target market, increase sales and
sampling were not considered, hence further similarities between the two companies are
confirmed.

Concerning the media objectives, both Nåiden Bygg AB and NCC consider objectives of
generate visibility and generate publicity. Indications from the cross-case analysis thereby
reveal that the companies share the same media objectives and consider them as essential.
However, Nåiden Bygg AB also considers the media objective of avoiding clutter as
important, which in that way contributes to a difference between the companies.

Nevertheless, the major dissimilarity between the companies is that Nåiden Bygg AB
considers the personal objective and the management interest as its major determining
objective of sport sponsorship, whereas the personal objective was not considered by NCC.

In order to simplify and reduce the data discussed, a matrix will be displayed in table 5.1.

47
 DATA ANALYSIS

Case 1 Case 2
Nåiden Bygg AB NCC Region Norrbotten

Main objectives Management interest Create an identity

Employee and business relations Strengthen the trademark
Generate visibility Community involvement

Constant objectives NO YES

Considered Theory Fit Considered Theory Fit
Corporate objectives + +
(Pope 1998, Abratt et al. 1987,
Shank 1999, Meenaghan 1983,
Meenaghan 1991, Ollkonen 1999)
Public awareness SW YES
Corporate image YES YES
Public perception SW YES
Community involvement SW YES
Financial relations NO NO
Client entertainment YES YES
Government relations NO NO
Employee relations YES YES
Compete with other companies NO NO
Marketing objectives + +
(Pope 1998, Abratt et al. 1987,
Shank 1999, Meenaghan 1983 &
Ollkonen 1999)
Business relations YES YES
Reach target market NO NO
Brand positioning SW NO
Increase sales NO NO
Sampling NO NO
Media objectives + +
(Pope 1998, Abratt et al. 1987 &
Meenaghan 1983)
Generate visibility YES YES
Generate publicity YES YES
Enhance ad campaign NO NO
Avoid clutter YES NO
Target specificy NO NO
Personal objectives + -
(Pope 1998, Abratt et al. 1987,
Meenaghan 1983, Meenaghan
1991)
Management interest YES NO
Considered by the company: YES/NO/SOMEWHAT (SW)
+ Data fits the theory – Data does not fit the theory +/- Data fit only partial theory ? New data
Table 5.1 Summary Matrix of the Analysis of RQ1.

Selection Process in Sport Sponsorship

Concerning the selection process in sport sponsorship, the two companies main selection
criteria is found to differ somewhat. Nåiden Bygg AB mentions the managerial interests, the
chosen sport’s ability to deliver the marketing message, and the interests of the employees as
important criteria. Whereas NCC mentions client perspective, the company’s personnel, and
what NCC stands for as main aspects concerning the selection of a specific sport sponsorship.

48
 DATA ANALYSIS
Nåiden Bygg AB states the revenue prospect for the company as a criterion in the selection
process, while NCC does not consider this since the company does not believe that
sponsoring sports will provide more job offers. However, both of the companies studied
mention the cost of the sponsorship and the exposure to the company’s target market as
important selection criteria.

The status and image of the potential sponsored party is found to be significant for both cases
in the selection process, although the motives differ. NCC explains that this criterion is
considered since the sponsorship has to be in agreement with the values of NCC, whilst
Nåiden Bygg AB states that it is an important determinant as the company wants the
sponsorship to be visible for the target audience.

The ability to improve the company’s image is in some levels considered in the selection
process by Nåiden Bygg AB, as it may demonstrate that the company cares both for the sports
and for the community. However, NCC does not at all include this criterion in the selection
process.

Another difference worth noting is that NCC has a policy concerning its sponsorship selection
and the company also has rules that most be followed, which is not the case for Nåiden Bygg
AB. Moreover, NCC considers the types of rights received from the sponsorship agreement
when selecting a specific sport sponsorship, while Nåiden Bygg AB does not include this in
the selection process.

Since both NCC and Nåiden Bygg AB considers client entertainment as essential in order to
build business relations the hospitality/entertainment possibilities gained from the
sponsorship is a criterion in the selection process for both of the companies.

Nåiden Bygg AB states that the similarity between the targets of sponsor and sponsored has
some impact on the decision making process, which is not the case for NCC. In addition, the
company mentions the geographical reach as a determinant in the selection process since
Nåiden Bygg AB has decided to mainly sponsor sports at a regional level. Even though NCC
also mainly acts locally, the company does not consider the geographical reach of the
sponsorship as every region is responsible for its own geographical area.

NCC also explains that before selecting a specific sport sponsorship, the company explores
which companies that are already sponsoring the potential event.

Neither of the two companies regard the capability to integrate the product into the sporting
event, the possibility to achieve a competitive advantage in the market place, the corporate
exclusivity, the possibility to increase sales/trial of product/service, the possibility to increase
brand awareness, the perceived similarity between the sponsor’s product and the sponsored
activity, or the opportunity to add the sponsorship to the present marketing strategy as criteria
in the selection process.

In order to simplify and reduce the data discussed, a matrix will be displayed in table 5.2.

49
 DATA ANALYSIS

Case 1 Case 2
Nåiden Bygg AB NCC Region Norrbotten

Main selection criteria The managerial interests Client perspective

The chosen sport’s ability to The company’s personnel
deliver the marketing message What NCC stands for
The interests of the employees Which companies that is
currently sponsoring the event ?
Considered Theory Fit Considered Theory Fit
The revenue prospect for the YES + NO -
company
(McCook et al., 1997)
The capability to integrate the NO - NO -
product into the sporting event
(McCook et al., 1997)
The cost of the sponsorship YES + YES +
(McCook et al., 1997 & Meeaghan,
1991)
The exposure to the company’s YES + YES +
target market
(McCook et al., 1997 &
Meenaghan, 1991)
The ability to improve the SW + NO -
company’s image
(McCook et al., 1997)
The possibility to achieve a NO - NO -
competitive advantage in the market
place
(McCook et al., 1997)
The hospitality/entertainment YES + YES +
possibilities
(McCook et al., 1997)
The opportunity to demonstrate the YES + NO -
company’s commitment to the
community
(McCook et al., 1997)
Corporate exclusivity NO - NO -
(McCook et al., 1997)
Increased sales/trial from NO - NO -
product/service
(McCook et al., 1997)
Increased brand awareness NO - NO -
(Liu et al., 1998)
Corporate policy NO - YES +
(Liu et al., 1998)
The status and image of the YES + YES +
potential sponsored party
(Walliser, 2003)
Perceived similarity between the NO - NO -
sponsor’s product and sponsored
activity
(Walliser, 2003)
Similarity between targets of SW + NO -
sponsor and sponsored
(Walliser, 2003)
Geographical reach YES + NO -
(Walliser, 2003)

50
 DATA ANALYSIS
The types of rights received NO - YES +
(Walliser, 2003)
The opportunity to add the NO - NO -
sponsorship to the present marketing
strategy
(Walliser, 2003)
Considered by the company: YES/NO/SOMEWHAT (SW)
+ Data fits the theory – Data does not fit the theory +/- Data fit only partial theory ? New data
Table 5.2 Summary Matrix of the Analysis of RQ2.

Evaluation of Sport Sponsorship Effectiveness

When considering the evaluation of sport sponsorship effectiveness the cross-case analysis
reveals that neither of the companies of study formally evaluates the effectiveness of sport
sponsorship, instead, the companies try to find other more informal alternatives for their
measurement. In the case of Nåiden Bygg AB these methods are to check that the company
has received the right rate of exposure and the right number of tickets due to the sponsorship
agreement. Moreover, the company tries to carefully listen to the opinions regarding
sponsorship of its employees. NCC, on the other hand, check the percent of participants that
appear on its sponsorship activities in addition to a yearly cost check up of the sponsorship
programmes. These data confirm that the companies are alike since they do not evaluate
sponsorship as a formal matter; although they are different due to their alternative ways of
measuring the effectiveness of a sponsorship programme.

Furthermore, the cross-case analysis reveals that neither of the companies uses media
exposure measurement, which proves on further similarities between the companies.

In the opposite, the cross-case analysis indicates evidence that the companies are different in
regards of assessing communication results. Nåiden Bygg AB somewhat may notice small
changes in awareness, attitudes and opinions after the end of a sponsorship programme or a
sponsorship activity, by simply listening to the personnel and other stakeholders. In contrast,
NCC put less effort in measuring the effectiveness of the communication.

Due to the field of business, neither of the companies measures the sales results. The analysis
thereby signifies more similarities of the two companies.

Both of the companies put feedback from participating groups as their main method of
evaluation, which provide evidence on further correspondence between the companies.
Nåiden Bygg AB additionally evaluates the effectiveness of a sponsorship by discussing the
feedback from the participating groups among the three owners of the company, in order to
determine and assess the validity of the response. In a similar manner, NCC has a constant
dialogue concerning the company’s value of the sponsoring activities.

Since, neither Nåiden Bygg AB or NCC measure their efforts of sport sponsorship in a formal
way, they furthermore do not consider when to evaluate so highly. The methods of measuring
the efforts by the outset is therefore not of value for the companies, which indicates
similarities of the companies. Even though, NCC sometimes evaluates the effectiveness
during the tracking process as well as at the end of a sponsorship programme. Nåiden Bygg
AB on the other hand mainly keeps track of the responses and opinions of the sponsorship
programme after a sponsorship activity. These comparisons further provide proof that the
companies measure the effectiveness of a sponsorship activity or programme at the same time
of reference, except from the data from NCC, that also measure the results during the actual
sponsorship

51
 DATA ANALYSIS
Matrix 5.3 is developed in order to simplify and reduce the data of the evaluation of sport
sponsorship effectiveness.

Case 1 Case 2
Nåiden Bygg AB NCC Region Norrbotten
Main evaluation method Feedback participating groups Feedback participating groups
Employee opinions Percent of participants?
Given the right rate of exposure? Cost evaluation?
Given the right no. of tickets?
Considered Theory Fit Considered Theory Fit
Media exposure measurement - -
(Brassington and Pettitt, 2000)
Air time on television or radio NO NO
Column inches in the print media NO NO
Assessing communication results +/- -
(Brassington and Pettitt, 2000)
Pre/post-tests awareness levels SW NO
Pre/post-tests attitudes & opinions SW NO
Measuring sales results NO - NO -
(Brassington and Pettitt, 2000)
Feedback from participating SW +/- SW +/-
groups (Brassington and Pettitt,
2000)

The outset NO - NO -
(Busby & Digby 2002, Meenaghan
1991)
Tracking process NO - YES +
(Busby & Digby 2002, Meenaghan
1991)
At the end of sponsorship prog. YES + YES +
(Busby & Digby 2002, Meenaghan
1991)
Considered by the company: YES/NO/SOMEWHAT (SW)
+ Data fits the theory – Data does not fit the theory +/- Data fit only partial theory ? New data
Table 5.3 Summary Matrix of the Analysis of RQ3.

52
 FINDINGS, CONCLUSIONS AND IMPLICATIONS

6 FINDINGS, CONCLUSIONS AND IMPLICATIONS

By drawing conclusions based on the theory and analysed data, this final chapter will serve in
order to provide answers to the research questions stated in chapter one. Further, findings
will be presented and hopefully the stated purpose with the thesis will be reached. Moreover,
implications for management, theory and future research will be provided.

6.1 FINDINGS AND CONCLUSIONS

This section will serve in order to provide conclusions of the three research questions stated in
chapter one. The research questions will be answered in separate sections respectively, based
on the data analysis provided in the previous chapter, as well as the theories reviewed in
chapter two.

6.1.1 RQ1: How can the objectives of sport sponsorship be described?

The analysis of the two case studies has revealed that several objectives of sport sponsorship,
as discussed in the theories, may be identified in the companies. Moreover, the fact that
objectives of sport sponsorship are constant or inconstant may also vary depending on
company and the type of sponsored unit.

Corporate related objectives along with the marketing objective of business relations, as well
as the media objectives of generate visibility and publicity are the most commonly stated
objectives in the cases. However, companies seem to consider different objectives within the
main corporate objective. Though, similar objectives found in the cases are the corporate
image, client entertainment and employee relations, which can be related to the field of
business as well as that the studied companies mainly operates within a business to business
environment. Furthermore, companies may also consider the public awareness, public
perception and community in different degrees, which can be related to the size, geographical
reach and target market of the company. As a result, when setting a high value in considering
public awareness, corporate image and public perception a company can be perceived to be
promotion orientated, whilst a company considering the client entertainment and employee
relations can be said to be more relation orientated. However a relation orientated company,
may consider brand positioning as a marketing objective, even though it does not consider the
corporate related objectives of awareness and perception. Further findings of the analysis of
the two cases signify that financial relations, government relations and the objective of
compete with other companies are not considered as companies objectives to engage in sport
sponsorship.

The findings further indicates that companies within the building construction industry
commonly put a high value in relationship building, where the marketing objective of
business relations is of high importance. The objectives of reach target market, increase sales
and sampling are though of no importance to the companies of study.

This research further reveals that companies within the same field of business may consider
the media objectives of generate visibility and generate publicity, since the sport sponsorship
is by some companies the major effort they put in marketing. These media objectives are
thereby essential to these types of companies. Companies may also regard the sport
sponsorship as a way to avoid clutter in the marketing.

53
 FINDINGS, CONCLUSIONS AND IMPLICATIONS
The major findings of the study imply that companies consider the personal objectives
differently. In a minor regional company, the management interest may have huge impact on
the sport sponsorship objectives, as the company is not centrally organized, and is capable to
make decisions on a regional level. The case is though the opposite in a major national
company, were decisions tend to be centrally organized.

In order to briefly wrap up the conclusions of how the objectives of sport sponsorship can be
described, the main conclusions are as follow:

• Objectives may be constant or inconstant depending on company and sponsored unit.

• Corporate objectives such as corporate image, client entertainment and employee
relations.
• Marketing objectives such as business relations.
• Media objectives such as generate visibility and publicity.

6.1.2 RQ2: How can the selection process in sport sponsorship be described?
The findings indicate that companies base their selection of a specific sport sponsorship on
several criteria. This study indicates that managerial interests, the chosen sport’s ability to
deliver the marketing message, and the interests of the present and potential employees, are
main criteria in the selection process. Additionally, decisions can be made from a client
perspective and the values of the company.

The findings regarding the revenue prospect as a selection criteria were not consistent. The
study indicates that companies may use this criterion in the selection process, whereas other
companies may not. The decision to not consider this criterion is caused by the belief that
sponsoring sports will not provide more job offers for the company, which can depend on the
type of industry the company is operating in.

Since companies nowadays tries to spend a large amount of money on fewer sports, and as
companies need to feel that what they earn from the sponsorship agreement is worth the cost
of it, the cost of the sponsorship tends to be an important selection criterion.

It is found to be important for companies that many potential customers, cooperation partners
and other stakeholders recognizes the sign board or other marketing efforts. Hence, the choice
to sponsor a sport event is based on the exposure abilities, as the company set a high value in
the marketing possibilities within the sport arena, as well as on the size and location of the
sports arena.

Considering the corporate policy as a selection criterion, the findings imply that companies
may include this in the selection process, although it is not a necessity. In the case of sport
sponsorship, such a policy can contain rules that the company must follow when deciding on
a sport sponsorship proposal. Companies do not have to be so restricted by these rules; instead
they can be set up in order to make it easier for companies to motivate the decision to
sometimes say no to a sponsorship offer.

The findings of this study indicate that companies to some extent consider the sponsorship’s
ability to improve the company’s image. The reason for considering this criterion in the
selection process may be to show important stakeholders that the company cares for the
sports, as well as for the community where the sponsoring takes place.

54
 FINDINGS, CONCLUSIONS AND IMPLICATIONS
The findings regarding the importance of the status and image of the potential sponsored party
indicates that it is a significant criterion for companies in the selection process. This can be
said to depend on companies striving for the sponsorship to be in agreement with the values
of the company. Moreover, it is essential for companies that the sponsorship is visible for the
target audience, which is another motive for attempting to sponsor large sports units instead
of small local teams or clubs.

The types of rights received from the sponsorship agreement are found to be considered to
some extent. The findings imply that such rights may include a sponsorship package, which
means that leaders and players of the sponsored teams take part in the companies’ client
activities. Due to this finding, it can be said that the hospitality/entertainment possibilities
gained from the sponsorship is another criterion considered in the selection of a specific
sponsorship. This is especially important if a company considers sponsorship proposals that
may interest the stakeholders, which may simplify the arranging of client activities.

The similarity between the targets of sponsor and sponsored may have some impact on the
selection of a specific sport sponsorship. This may be explained by the reason that companies
do not want to sponsor an unethical sport activity or event, neither do companies want to
support an unethical behaviour by the participants of the sport.

The findings of the study imply that the geographical reach of the sponsorship may have some
influence on the decision to sponsor a sport. This may be the case if a company has decided to
mainly sponsor sports at a regional level and therefore does not need to be seen on a national
or international level. In a similar manner, the reason for not including the geographical reach
into the selection process seem to be that a company that operates locally is only responsible
for its own geographical area and therefore does not need to consider this criterion.

An additional finding regarding the selection of a specific sport sponsorship is that companies
may find it important to explore which companies that are already sponsoring a potential
event. This may be explained by the indication that companies find it beneficial to appear, and
to be associated, together with important clients when sponsoring sports.

The findings of this study indicate that companies do not regard the following selection
criteria as important: the capability to integrate the product into the sporting event, the
possibility to achieve a competitive advantage in the market place, the corporate exclusivity,
the possibility to increase sales/trial of product/service, the possibility to increase brand
awareness, the perceived similarity between the sponsor’s product and the sponsored activity,
or the opportunity to add the sponsorship to the present marketing strategy.

Following statements will summarize how the sport sponsorship selection process can be
described.

• Managerial interests, the chosen sport’s ability to deliver the marketing message, and the
interests of the present and potential employees are of great significance in the selection
process.
• The decision to not consider the revenue prospect is caused by the belief that sponsoring
sports not will provide more job offers for the company.
• The cost of the sponsorship is an important selection criterion.
• Companies set a high value in the marketing possibilities within the sport arena, as well as
on the size and location of the sports arena.

55
 FINDINGS, CONCLUSIONS AND IMPLICATIONS
• The corporate policy can be regarded as a selection criterion, although it is not a necessity.
• Companies can to some extent consider the sponsorship’s ability to improve the
company’s image.
• The status and image of the potential sponsored party is a significant criterion for
companies in the selection process.
• The types of rights received from the sponsorship agreement are considered to some
extent.
• The similarity between the targets of sponsor and sponsored may have some impact on the
selection of a specific sport sponsorship.
• The geographical reach of the sponsorship may have some influence on the decision to
sponsor a sport.
• Companies may find it important to explore which companies that are already sponsoring
a potential event.

6.1.3 RQ3: How can the evaluation of sport sponsorship effectiveness be described?
Based on the case findings it can be said that companies not formally evaluate the
effectiveness of sport sponsorship, instead they try to find more informal alternatives for their
measurement. Moreover, the findings imply that the methods used differ between companies.

In order to evaluate the effectiveness of the sponsorship agreement companies may

investigate if they have received the right rate of exposure and the right number of tickets
from the sponsored team or club. Moreover, the findings indicate that companies highly value
the opinions of their employees and clients regarding sport sponsorship. Another evaluation
method is to look over the percent of invited clients that appear on the sponsorship activities
to see if the interest tends to decrease, in such cases the company may have to change the
direction of the sponsorship. The communication results, including awareness and attitudes,
can also be noticed before and after a specific sport event in order to evaluate the
effectiveness. Also, the findings indicate that companies go through the sponsorship costs
annually and discuss if the company should sponsor more or less the following year.

In order to briefly sum up how the evaluation of sport sponsorship effectiveness can be
described, the main conclusions are as follow:

• Companies investigate if they have received the right rate of exposure and the right
number of tickets from the sponsored team or club.
• Companies highly value the opinions of their employees and clients regarding sport
sponsorship.
• Companies examine the percent of invited clients that appear on the sponsorship
activities.
• The communication results can be noticed before and after a specific sport event.
• Companies evaluate the effectiveness by looking over the sponsorship costs annually.

6.2 IMPLICATIONS
This final section will provide recommendations for managers at sponsoring companies, as
well as managers in sport associations using sport sponsorship as a marketing communication
tool. Moreover, recommendations for theory and further research will be provided in the
following subsections.

56
 FINDINGS, CONCLUSIONS AND IMPLICATIONS
6.2.1 Implications for Management
The foremost implication is directed toward managers at sport sponsoring companies.
Preferable for a company deciding to engage in a sport sponsorship activity is to initially state
clear objectives, since these works as a foundation for the sport sponsorship selection process,
as well as the final evaluation of the effectiveness of the actual sport sponsorship activity.
Hence, clear objectives serves to simplify the selection process, as well as it may form a
ground for the effectiveness evaluation. Consequently it might be vital that a sport sponsoring
company beforehand carefully consider its objectives of a sport sponsorship program, since it
may provide further advantages that may be essential for a successful sponsorship.

In concern of the sport sponsorship selection process, a manager may benefit from clearly
stated objectives. The criteria to select a specific sport sponsorship activity will simply fall in
the hands of a manager, if the before preparation is done properly. If using the already stated
objectives as a foundation, a company could also preserve itself from unwanted proposals, or
may have a reason to deny them in a respectful manner.

A further recommendation is to thoroughly control and evaluate the effectiveness of a sport

sponsorship activity. The findings of this thesis indicate that few companies tend to put any
effort in the measurement process, even though companies spend large sums of money on
sport sponsorship activities. This is somewhat surprisingly nowadays since almost every other
part of a business operation is strictly controlled and followed up. There may therefore be of
importance for a manager to follow up the sport sponsorship activity, as it might be the only,
or major marketing effort for some companies, especially within the building construction
industry.

Furthermore, sport sponsorship as a marketing communication tool should therefore be

treated as a powerful tool in order to seize these benefits. To sponsor sport is an excellent way
of reaching important relations within a company network, as well as it may improve
employee relations. For some companies, sponsorship is the only way of promoting the
company, and thereby the company should try to see beyond the actual investment and realize
that they actually gain more than the concrete rate of exposure.

Suggested is also for a company to use the possibilities of client entertainment, gained by a
sport sponsorship activity, since important clients, relations and contacts of a company might
be interested in a sport or an event sponsored by the company. An invitation of important
customers will both strengthen the relationship between the company and its customers and
increase loyalty. By arranging events or activities in connection to a sport sponsorship
program is furthermore an excellent way of integrating a sponsorship into the marketing
strategy.

6.2.2 Implications for Theory

Existing theories within the area of sport sponsorship have both provided a base for the
conceptual framework as well as supplied this study with the stated purpose and research
questions. The overall purpose with this study was to provide a better understanding of sport
sponsorship as a marketing communication tool in Swedish companies. In order to gain this
understanding the study has viewed the sport sponsorship objectives, selection process and
evaluation of effectiveness.

57
 FINDINGS, CONCLUSIONS AND IMPLICATIONS
Moreover, in order to fulfil the purpose, the study has described how companies use
sponsorship as a marketing communication tool by comparing the sport sponsorship strategies
of two companies. Conclusions have further been drawn by comparing the data collected from
the two cases with the existing theories. The main part of the findings of this study is coherent
with the existing theories, apart from some minor divergences.

Moreover, it has been found during the work of this study that there are a lot of theories
within the area of sponsorship, though there are only a few of them focusing completely on
sport sponsorship. This study is thereby made in order to contribute to the theories, as well as
to give an idea of how sponsorship theory can be applied to sponsorship related to sport.

6.2.3 Implications for Further Research

Even though sport sponsorship has been used as a marketing communication tool for a long
time, the area of research within sport sponsorship is still limited. Moreover, sport
sponsorship provides a company the possibility to avoid the present problem with media
clutter within traditional advertising where it should be of current concern to further
investigate this alternative method of advertising. Moreover, several issues related to the
research purpose have arisen, during the progress of this study, which should be of further
concern of research.

This study is furthermore conducted in order to provide a better understanding of sport

sponsorship as a marketing communication tool, with two cases of study. As the study is
constructed in a quite narrow manner with simply Swedish companies as preferences, the area
of sport sponsorship deserve a more extensive and quantitative research in order to achieve
results that can be generalized.

In addition, following areas are of interest of further research.

• Sport sponsorship as a marketing communication tool within an international, global or

multinational company.
• Sport sponsorship as a marketing communication tool across national borders.
• Sport sponsorship in a small vs. large corporation.
• Sport sponsorship in different fields of business.

58
 LIST OF REFERENCE

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Brassington, F., & Pettitt, S. (2000). Principles of Marketing (2nd ed.). London: Prentice Hall.

Busby, R., & Digby, W.W. (2002). Measuring Successful Sponsorship – Evaluation
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samhällsvetenskaparna. Lund: Studentlitteratur.

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Eriksson, L.T., & Wiedersheim-Paul, F. (1997). Att Utreda Forska och Rapportera. Malmö:
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Fahy, J., Farrelly, F., & Quester, P. (2004). Competitive Advantage Through Sponsorship: A
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Gillis, R. (2006). Wortwhile Associations. Marketing. (Business Source Elite).

Grönkvist, U. (2000). Sponsring & Event Marketing. Näsviken: Björn Lundén Information
AB. ISBN 91-7027-261-X.

Gummesson, E. (2000). Qualitative Methods in Management Research (2nd ed.). London:

Sage Publications.

Ivarsson, C., & Johansson, M. (2004). Sport Sponsorship: As a Promotional Tool (Bachelor’s
Thesis). Luleå University of Technology, IES, 97187 Luleå.

Jobber, D. (2001). Principles and Practice of Marketing (3rd ed.). Maidenhead: McGraw Hill.

Keller, K. L. (2001). Mastering the Marketing Communication Mix: Micro and Macro
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Kotler, P. (2003). Marketing Management (11th ed.). Upper Saddle River, NJ: Prentice Hall.

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McCook, K., Turco, D., & Riley, R. (1997). A Look at the Corporate Sponsorship Decision-
Making Process. Cyber-Journal of Sport Marketing. [On-line]. Available:
http://www.ausport.gov.au/fulltext/1997/v1n2/mcook.htm [2006, November 13.].

Meenaghan, J.A. (1983). Commercial Sponsorship. European Journal of Marketing, 17 (7),

5-73.

Meenaghan, T. (1991). The Role of Sponsorship in the Marketing Communication Mix.

International Journal of Advertising, 10 (1), 35-47.

Meenaghan, T., & Shipley, D. (1999). Media Effect in Commercial Sponsorship. European
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Miles, M.B., & Huberman, M.A. (1994). Qualitative data analysis (2nd ed.). Thousand Oaks:
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Olkkonen, R. (1999). Forging Links Between Marketing and Sponsorships – A Theoretical

Investigation. Åbo: Publications of the Turku School of Economics and Business
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Olkkonen, R., Tikkanen, H., & Alajoutisjärvi, K. (2000). Sponsorship as Relationships and
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Polonsky, M.J., & Speed, R. (2001). Linking Sponsorship and Cause Related Marketing –
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Turley, L.W., & Shannon, J.R. (2000). The Impact and Effectiveness of Advertisements in a
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Nåiden Bygg AB Website [On-line]. Available:

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24].

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Erixon, Stefan, Chief Executive Officer and head responsible for sponsorship at Nåiden Bygg
AB, Luleå 2006, November 24 at 10.00-11.00.

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 APPENDIX A

APPENDIX A - INTERVIEW GUIDE

General Information

Company:
Name/position respondent:
Field of business:
Annual turnover (SEK):
Number of employees:
Percent of marketing budget aimed for sport sponsorship:
Type/s of sport sponsorship activity/activities currently engage in:

Why do the company use sport sponsorship as a promotional strategy?

When did the company start sponsoring sport activities?
In which ways does the company sponsor sports? Which sports?

Objectives of Sport Sponsorship

1. What are your objectives of sport sponsorship? Are they constant or do they change
considering the sponsored sport unit?

2. Do you have corporate related objectives of sport sponsorship? If yes, what are they?
- public awareness
- corporate image
- public perception
- community involvement
- financial relations
- client entertainment
- government relations
- employee relations
- compete with other companies

3. Do you have marketing objectives of sport sponsorship? If yes, what are they?
- business relations
- reach target market
- brand positioning
- increase sales
- sampling

4. Do you have media objectives of sport sponsorship? If yes, what are they?
- generate visibility
- generate publicity
- enhance ad campaign
- avoid clutter
- target specificity

5. Do you have personal objectives of sport sponsorship? If yes, what are they?
- management interest

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 APPENDIX A
6. Have you anything to add regarding the objectives of sport sponsorship?

Selection Process in Sport Sponsorship

7. How do you select a specific sport sponsorship?

8. Do you have specific criteria that you consider in your choice of a sport sponsorship? If
yes, what are they?
- The revenue prospect for the company
- The capability to intergrate the product into the sporting event
- The cost of the sponsorship
- The exposure to the company’s target market
- The ability to improve the company’s image
- The possibility to achieve a competitive advantage in the market place
- The hospitality/entertainment possibilities that are gained through the sponsorship
- The opportunity to demonstrate the company’s commitment to the community
- The corporate exclusivity
- The possibility to increase sales/trial of product/service
- The possibility to increase brand awareness
- The corporate policy
- The status and image of the potential sponsored party
- The perceived similarity between the sponsor’s product and the sponsored activity
- The similarity between the targets of sponsor and sponsored
- The geographical reach of the sponsorship
- The types of rights received
- The opportunity to add the sponsorship to the present marketing strategy

9. Have you anything to add regarding the selection of sport sponsorship?

Evaluation of Sport Sponsorship Effectiveness

10. How do you evaluate the effectiveness of sport sponsorship?

- Measure the media exposure (the air time of television or radio, or space in print
media)? If yes, how?
- Measure communication results (pre- and post-tests on awareness level, attitudes, and
opinions)? If yes, how?
- Measure sales results? If yes, how?
- Measure the feedback from participating groups? If yes, how?

11. When do you evaluate effectiveness of sport sponsorship?

- Measure the outset (awareness levels and attitudes to brand among the target
audience)?
- Measure the tracking process (how the sponsorship activity is going)?
- Measure at the end of the sponsorship programme (if the objectives have been met,
and how these have been evaluated and measured)?

12. Have you anything to add regarding the evaluation of sport sponsorship effectiveness?

63
 APPENDIX B

APPENDIX B - INTERVJUGUIDE

Allmän information

Företag:
Namn/position svarande:
Bransch:
Årlig omsättning (SEK):
Antal anställda:
Procent av marknadsföringsbudget tillägnad åt sport sponsring:
Typer av sportsponsrings aktiviteter engagerade i för närvarande:

Varför använder sig företaget av sport sponsring som en marknadsföringsstrategi?

När började företaget sponsra sport aktiviteter?
På vilka sätt sponsrar företaget sport? Vilka sporter?

Mål med Sportsponsring

1. Vad är era mål med sportsponsring? Är de konstanta eller ändras de beroende på vad som
sponsras?

2. Har ni företagsrelaterade mål med sportsponsring? Om ja, vilka är de?

- uppmärksamhet hos allmänheten
- företagets image
- allmänhetens uppfattning
- engagemang i samhället
- finansiella förbindelser
- underhållning för kunder
- statliga förbindelser
- relationer med anställda
- konkurrera med andra företag

3. Har ni marknadsförings mål med sportsponsring? Om ja, vilka är de?

- affärsrelationer
- nå ut till målmarknaden
- positionera varumärket
- öka försäljningen
- varuprövning

4. Har ni mediarelaterade mål med sportsponsring? Om ja, vilka?

- generera synlighet
- generera publicitet
- intensifiera reklamkampanj
- undvika virrvarr
- mål noggrannhet

5. Har ni personliga mål med sportsponsring? Om ja, vilka?

- intresse hos ledningen

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 APPENDIX B
6. Har ni något att tillägga angående målen med sportsponsring?

Val av Sportsponsring

7. Hur väljer ni en specifik sportsponsring?

8. Har ni specifika kriterier som ni beaktar i erat val av sportsponsring? Om ja, vilka?
- inkomstmöjligheten för företaget
- förmågan att integrera produkten i sportevenemanget
- kostnaden för sponsringen
- exponeringen åt företagets målmarknad
- förmågan att förbättra företagets image
- möjligheten att få en konkurrenskraftig fördel på marknaden
- gästfrihets/underhållnings möjligheter vunna från sponsringen
- möjligheten att påvisa företagets engagemang i samhället
- företagets ensamrätt
- möjligheten att öka försäljning av produkter/tjänster
- möjligheten att öka medvetenheten om varumärket
- företags policy
- vilken status och image den potentiella sponsrade enheten har
- den förstådda likheten mellan den sponsrandes produkt och den sponsrade aktiviteten
- likhet i målen för sponsorn och den sponsrade
- sponsringens geografiska räckvidd
- vilka typer av rättigheter som företaget får
- möjligheten att tillägga sponsringen till den nuvarande marknadsföringsstrategin

9. Har ni något att tillägga angående valet av sport sponsring?

Utvärdering av Effektivitet av Sportsponsring

10. Hur utvärderar ni effektiviteten av sportsponsringen?

- mäter exponeringen i media (sändningstid i tv eller radio, eller utrymme i
tryckmedia)? Om ja, hur?
- mäter kommunikations resultat (före- och efter tester på medvetenhetsnivå, attityder
och åsikter)? Om ja, hur?
- mäter försäljningsresultat? Om ja, hur?
- mäter responsen från deltagande grupper? Om ja, hur?

11. När utvärderar ni effektiviteten av sportsponsringen?

- mäter i början av sponsringen (målgruppens medvetenhet och attityder om
varumärket)
- mäter under processen (hur sponsringsaktiviteten går)
- mäter i slutet av sponsringsprogrammet (har målen blivit nådda och hur har dessa
utvärderats och mätts)

12. Har ni något att tillägga angående utvärderingen av sportsponsringens effektivitet?

65
 APPENDIX C

APPENDIX C – 50 STÖRSTA BYGGFÖRETAGEN I SVERIGE

66
 APPENDIX C

67