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Examining Integrated Advertising and Sponsorship in Corporate Marketing Through Televised Sport

Peter Smolianov and David Shilbury

Abstract

To determine how integrated TV advertising and event sponsorship should be best managed and evalu- ated, a theoretical framework derived from global exploratory research of academic literature and con- sulting reports was validated by 16 experts. To bench- mark the current practices against the best practice integration methods, 12 campaigns, which had spon- sored a televised event and placed advertisements dur- ing the broadcast of the event, were analyzed via case studies. The investigated competitions included the Wimbledon Tennis Tournament in London and the Olympic Games in Sydney. The examined brands com- prised automotive, financial services, retail chain, office equipment, and consumer goods. A total of 24 semi- structured in-depth interviews were conducted—two for each case—one interview with an internal market- ing executive from the promoted corporation, and a second with an external respondent from the advertis- ing agency, event management organization, market research firm, or television channel. The study identi- fied the key techniques that led to increased corporate sales—four steps and four objectives with necessary performance measures.

Introduction At a time of increasingly competitive and sophisti-

cated corporate marketing through televised sporting events and a growing concern about the return on

Peter Smolianov, PhD, is an assistant professor in the sport management program at Salem State College in Massachusetts. His research interests include sport mar- keting, corporate sponsorship, and high performance management.

David Shilbury, PhD, is the Foundation Professor of sport management and head of the Bowater School of Management and Marketing at Deakin University in Melbourne, Australia. His research interests include sport governance, sport development, and sport marketing and strategy.

"The strength of a conventional advertisement is in its propensity to send a direct and specific message. Sponsorship of an event, on the other hand, facili- tates an opportunity to indirectly deliver a message (e.g., increase brand awareness and enhance brand

image which could lead to raised sales)."

investment it provides (Lawson, 2002), the manage- ment and evaluation of corporate event sponsorship and advertising through sport still require better understanding (Farrelly, 2002; Olkkonen, 2001). A number of authors suggested that the best practice was to 'integrate' event sponsorship with advertising, and indicated that further research was needed to investi- gate how such an integration should be managed and evaluated (Farrelly, 2002; Quester & Thompson, 2001; Shrimp, 2003).

Some companies currently pay tens of millions of dollars for the sponsorship of one major televised event (e.g., the Olympic Games or the Australian Tennis Open) (Mellish, 2000; Stensholt, 2003) and they also spend tens of millions on television advertis- ing during these events (e.g., the Olympic Games 2000 or the Super Bowl 2003) (GoUins, 2003; Mellish, 2000). Despite the increasing importance of integrated spon- sorship and advertising as a tool for corporate market- ing, conventional TV advertising methods and their evaluation are more developed than the corresponding event sponsorship practices (Farrelly, 2002; Russell & Lane, 1999; Shrimp, 2000). An estimated 70% of tradi- tional broadcast media campaigns are evaluated, whereas only 28% of sponsorships are measured (S:GOMM Research, 2003).

Many best practice marketing campaigns now link advertising and sponsorship messages (Stamler, 2002). The literature indicated that the different strengths of advertising and sponsorship should be used to achieve common objectives of the two media (Meenaghan, 2002). The persuasive strength of sponsorship lies in its ability to convey the commercial message and influ- ence the consumer in a more voluntary fashion than

Volume 14 • Number 4- 2005 • Sport Marheting Quarterly 239

the standard advertising sell. However, successful translation of this 'positive light', or 'rub-ofF from images of sporting events, stars, and properties into an enhanced sponsor's brand image and the achievement of other corporate goals necessitates effective integra- tion of sponsorship with advertising (Farrelly, 2002). The strength of a conventional advertisement is in its propensity to send a direct and specific message. Sponsorship of an event, on the other hand, facilitates an opportunity to indirectly deliver a message (e.g., increase brand awareness and enhance brand image which could lead to increased sales). Also, in non-sales environments (e.g., the 'Quit smoking' campaign) both media can contribute to changing the attitudes and behavior of sports viewers. The unique properties of the two media offer synergistic opportunities that are not available when employed separately.

It was clear from the literature that maior event sponsorship should be developed and evaluated together with television advertising. This study attempted to discover the mechanism of integration.

"... sponsorship engages the consumer by the fact that the event sponsored in sports can be one with

which the consumer has an intense emotional rela- tionship, a quality which is apparent in sports fans

and sport enthusiasts generally."

Theoretical Framework

Objectives and Measures A number of authors agreed that general advertising

objectives and measures should be employed for major event sponsorship (Arthur, Scott, Woods, 8c Booker, 1998; Farrelly, 1995, 2002; Hansen & Scotwin, 1995; Meenaghan, 2002; Rossiter, 1999). In essence, these authors recommended that sport sponsorship objectives and measures (like advertising objectives and measures) be based on consumer behavior steps. These steps rec- ognize the consumers' progress from being exposed to the promotional message to changing attitudes and behavior (Belch & Belch, 2001; Percy, Rossiter, & Elliott, 2001; Rossiter & Percy 1997), as detailed below.

Exposing the target market to the promotional mes- sage through media coverage is an important advertis- ing and event sponsorship objective and measure (Belch & Belch, 2001; Meenaghan, 2002). Among exposure-related objectives are increasing target mar- kets via television coverage (Arthur, Woods, & Scott, 2000; Irwin & Sutton, 1994); targeting audience of determined profile and size (Arthur, Woods, & Scott, 2000); media exposure (Cheng, 2000; Farrelly, 1995); audience demographic fit (Grdovic, 1992); cost per target market (Grdovic, 1992); gain in media coverage

(Grdovic, 1992); exposure in seconds on television (Hansen & Scotwin, 1995); TV as a cost-efficient alter- native exposure (Hirons, 1990); an opportunity to reposition a brand to alter target market (Hirons, 1990); demographic profile of immediate or extended audience (Irwin, Assimakopoulas & Sutton, 1994); overcoming communication barriers by targeting mar- kets in non-commercial situations (Kuzin & Kutepov, 1994); increased frequency and quality of contacts with target markets (Kuzin & Kutepov, 1994); TV or media coverage (McDonald, 1991); level of media coverage and exposures gained (Meenaghan, 1983, 1991, 2002); coverage of the target audience (Meenaghan, 1983, 1991, 2002); increased television, press, and radio cov- erage/exposure (Quester, 1995; Shilbury, Quick, & Westerbeek, 2003); and targeting new market segments (Shilbury, Quick, & Westerbeek, 2003).

Making target markets aware of the promotional message, sponsoring company, brand, and product are important advertising and event sponsorship objectives (Belch & Belch, 2001; Dean, 2002; Hoek, 1999; Meenaghan, 2002; Rossiter, 1999). Awareness-related goals comprise a linking of the sponsor's name to the property (Arthur, Woods, & Scott, 2000); creation of brand awareness or an increase in brand or product awareness (Cheng, 2000; Farrelly, 1995; Hirons, 1990; Irwin & Sutton, 1994; Kuzin & Kutepov, 1994; Kuzma, 1990; Quester, 1995; Shilbury, Quick, & Westerbeek, 2003); awareness of the event, awareness that the event is sponsored, awareness of the event sponsor (Grdovic, 1992); pre- & post-event product awareness (Grdovic, 1992), increased company awareness (Kuzma, 1990); awareness as a possible sponsorship measurement point (Meenaghan, 2002); and increased public and target market awareness (Thwaites & Carruthers, 1998). The study's theoretical framework took into account the fact that event sponsorship makes a wider audience aware of the promoted brand, targeting live event audiences as well as TV viewers (S:COMM Research, 2003). Effective integration may allow TV advertising to increase brand awareness among live audiences who also watch TV broadcasts, reinforcing the messages displayed at the venue.

Changing or enhancing the brand image in target markets' minds and developing a predisposition to change behavior towards buying the promoted brand are the basic reasons for event sponsorship (Rossiter, 1999). The image-related objectives and measures include 'clean image' (Arthur, Woods, & Scott, 2000; McDonald, 1991); an 'improved' or 'enhanced' compa- ny or product image (Farrelly, 1995; Grdovic, 1992; Dean, 2002; Hirons, 1990; Irwin & Sutton, 1994; Kuzma, 1990; Meenaghan, 2002; Quester, 1995; Smolianov, 1994; Thwaites & Carruthers, 1998); image

240 Volume 14 • Number 4 • 2005 • Sport MarHeting Quarterly

to provide a company/market fit (Irwin, Assimakopoulas, & Sutton, 1994); a 'changed' image (Kuzin & Kutepov, 1994); image as a possible sponsor- ship measurement point (Meenaghan, 2002); image cre- ation and improvement (Shilbury, Quick, & Westerbeek, 2003); and enhancement of the company's image with employees (White & Mazur, 1995). Both event sponsorship and advertising contribute to an enhanced brand image (Rossiter, 1999) but sponsorship functions in a different manner to advertising and other forms of promotion (Meenaghan, 2001). As Meenaghan argued, sponsorship engages the consumer by the fact that the event sponsored in sports can be one with which the consumer has an intense emotional relation- ship, a quality which is apparent in sports fans and sport enthusiasts generally. This intensity of relationship of the consumer with the sport can help explain the con- cepts of goodwill, perceptions of benefit, and image transfer, which can result in a positive consumer response to the brand or product. Image transfer alone represents an important sponsorship objective (Meenaghan, 2001). Apart from influencing target sports audiences who are TV viewers, the sponsorship of the event can also affect the broader audience of the sponsored activity (Meenaghan, 2002) and may include the sponsor's employees and business clients targeted through event hospitality guests programs and staff par- ticipation programs as part of event sponsorship (Arthur, Woods, & Scott, 2000; Farrelly, 1995; Meenaghan 1983, 1991; Thwaites & Carruthers, 1998; White & Mazur, 1995).

Changing target markets' behavior or increasing use or sales of the promoted brand is the ultimate aim of advertising and sponsorship (Hoek, 1999; Meenaghan, 2002). The sales-related objectives and measures include increased sales, short-term and long-term sales (Arthur, Woods, & Scott, 2000; Farrelly, 1995; Grdovic, 1992; Quester, 1995; Shilbury, Quick, & Westerbeek, 2003; Smolianov, 1994); sales in general (Cheng, 2000; Thwaites & Carruthers, 1998; Meenaghan, 1983, 1991, 2002); improvement in market share (Hansen & Scotwin, 1995; Irwin & Sutton, 1994); generation of sales (Crdovic, 1992); support product sales, increased sales among mass consumer groups by promoting products through athletes who influence public opinion (Kuzin & Kutepov, 1994); increased sales among recre- ational users (Kuzin 8c Kutepov, 1994); increase in short-term and long-term sales (Kuzma, 1990); and quantifiably increased sales (Stotlar, 1998). Without the incorporation of behavioral measures such as sales or brand usage into the study's sponsorship and advertis- ing management framework, evaluation would remain limited to an investigation of awareness, attitudes (image), and possibly preferences, with no understand-

ing of the relationship between these variables and con- sumer behavior. According to Quester and Thompson (2001), adoption of an evaluation framework based on behavioral measures could help to minimize the possi- bility that investment in sponsorship is simply a mag- nanimous but empty gesture.

"To fulfill corporate aims (the ultimate goal being changed target market behavior), advertising and sponsorship should be integrated at the campaign

strategy development step."

Integration Steps The study's model was framed around the key pre-

requisites of successful advertising (Schulze, 2002; Simpson, 1999) and successful sponsorship manage- ment (Farrelly, 2002; Hoek, 1999; Meenaghan, 1998). It was concerned with investigating particular man- agers' ability to set campaign objectives and evaluate their achievement. A number of sponsorship and advertising models contributed to the theoretical framework of the study.

Rossiter and Percy (1997) specifically addressed the integration of event sponsorship with advertising, and they recommended promotional campaign practices which could be used in such integration. Planning and evaluating a promotional campaign based on con- sumer buying behavior objectives play a key role in Rossiter and Percy's approach. The following four practices were taken from Rossiter and Percy (1997) to form a basis for the study's theoretical framework:

• Campaign strategy and concept development, • Management judgment test, • Consumer pre-test, and • Campaign tracking. The practice of effective sponsorship management

considered by Speed and Thompson (2000) also forms part of the theoretical framework. While Rossiter and Percy (1997) suggested steps for an overall integrated marketing communications campaign which could include sponsorship. Speed and Thompson specifically investigated the initial stage of corporate sponsorship development and planning. One pre-assessment prac- tice was to make the sponsorship selection decision when corporate managers must choose between alter- native events as vehicles for sponsorship. Another was to develop a sponsorship-leveraging strategy working through market research to identify opportunities for additional promotions that demonstrated a fit between sponsor and event. Such pre-assessment practice was incorporated into the first step of the study's frame- work—campaign strategy development.

The steps proposed by McDowaU (1996) for effective sponsorship evaluation and management were also used

Volume 14 • Number 4 • 2005 • Sport MarHeting Quarterly 241

in the study's model. While Rossiter and Percy (1997) recommended practices for development, planning, and evaluation of any promotion or advertising, McDowall's steps were specific to sponsorship and focused on cam- paign pre- and post-evaluation. McDowall recommend- ed the setting of corporate sponsorship objectives, recording the current position of the promoted brand, selecting appropriate evaluation techniques, and com- paring the results achieved with the objectives set. These practices are part of the first and the last steps of the study's model—pre-assessment as part of campaign strategy development and campaign tracking.

The study's theoretical framework agreed with the model for managing integrated sport marketing com- munication suggested by Irwin, Sutton, and McCarthy (2002), particularly regarding the emphasis on the analysis and evaluation necessary for campaign devel- opment and alignment. The authors recommended the assessment of the key factors influencing the project; match the sources involved in disseminating the mes- sage (e.g., sport and sponsor) and align organizational communication units; design campaign direction, objectives, and content, blend promotional elements around a central theme; execute the campaign; and measure performance of each component as well as the entire campaign. Kotler, Brown, Adam, and Armstrong (2001) confirmed the design of the model. They point- ed out that a key component of marketing management is analysis. This feeds the other components—planning, implementation, and control. This concept is part of the study's theoretical framework, which assumes that analysis and evaluation of sponsorship and advertising should be part of each sport marketing campaign step.

Rossiter and Percy's (1997) model is consistent with a number of researchers' recommendations (Farrelly, 2002; Hoek, 1999; Kotler, Brown, Adam, & Armstrong, 2001; McDowall, 1996; Meenaghan, 1998; Schulze, 2002; Speed & Thompson, 2000), and is also used by leading industry practitioners, such as Millward Brown, a brand strategy and advertising research firm {Millward Brown, 1997 & 2003). The company operates in 50 countries and evaluates over 10,000 advertising campaigns annually. Evidence from Millward Brown's databases indicated that campaigns vary greatly in their ability to meet the objectives set for them. The databas- es showed that pre-testing, which was included in the theoretical framework of this study, is important, as it helps to identify campaigns' strengths and weaknesses and provides developmental pointers to maximize the effect of the campaign elements, such as advertising and sponsorship. Campaign tracking, or monitoring, can help marketers understand which elements are working best, which can then be fed back into the development process {Millward Brown, 2003). The model has also

been used by OmniCom (1997, 2003), an Australian advertising consulting firm. According to OmniCom (1997, 2003), Rossiter and Percy's (1997) model was consistent with a widely accepted general approach to advertising management and evaluation, a process which feeds back at each stage to increase knowledge and effectiveness of advertising.

The present study used models and recommenda- tions by Rossiter and Percy (1997), Speed and Thompson (2000), and McDowall (1996) to design the following steps in which TV advertisements and event sponsorship could potentially be integrated:

1. Campaign strategy development including pre-assessment and concept development

2. Management judgment test 3. Consumer pre-test 4. Campaign tracking.

"To choose events and advertising media that would affect target markets' actions, both sponsor- ship and advertising should be pre-assessed during

strategy development."

Method

The methods of this study were determined taking into account the suggestions made by Farrelly (1995), Meenaghan (1999), and Olkkonen (2001). Meenaghan (1999) recommended investigating corporate sport marketing practices using a qualitative methodology, noting that many previous studies were based on sur- veys of sponsorship decision makers. Meenaghan was of the opinion that these replications meant declining returns in terms of improved understanding, and that usage of highly structured survey instruments imposed a researcher's ordinated view of practice. Farrelly (1995) indicated the need for both qualitative and exploratory research, arguing that the lack of flexibility in previous survey methodology resulted in some con- flicting evidence about sport marketing and sponsor- ship management. Olkkonen (2001) concluded from his analysis of literature that most of current sponsor- ship research shows a need for further development of theoretical frameworks and research designs that would allow a deeper, action-oriented understanding of this field of interest.

The possible integration steps and measures identi- fied through exploratory research and theoretical rea- soning were validated through discussions with experts to modify the framework and to finalize the questions for interviews with practitioners.

Expert Validation Validation of the theoretical framework was con-

ducted through two series of semi-structured surveys

242 Volume 14 • Number 4 • 2005 • Sport MarHeting Quarterly

and interviews with 16 sport marketing experts. The responses were based on the televised sporting events which the experts managed and/or evaluated. Panel members with the following experience were selected:

• 13 executives whose primary job was to manage and/or evaluate corporate marketing campaigns through televised sporting events—this status was ensured by examining the relevance of respondents' responsibilities and the relevance of the organization for which they worked.

• 3 academics specializing in sport market- ing—their experience was ensured by examining respondents' books or publications in refereed editions on sport marketing management or evaluation.

In addition, the questionnaire/interview guide ensured that the experts had experience with cam- paigns of integrated advertising and sponsorship. It was difficult to find the experts, as truly integrated marketing communication is still the exception rather than the rule (Percy, Rossiter, & Elliott, 2001). The recruitment stopped after 16 experts were found. This was considered an acceptable number similar to the panel sizes used by other expert-based studies (e.g..

Table I Gender and positions of respondents from 12 campaigns

Meenaghan, 1994; Richards, 2002). To warrant safety in numbers and representativeness of the key industry players on the expert panel, the validation was con- ducted with the following 7 female and 9 male experts: 1 female and 2 male academics (university professors/lecturers); 2 female advertising/sponsorship firm consultants (account director and principal con- sultant); 2 female and 1 male corporate executives (marketing, communications and sponsorship manag- er); 1 female and 1 male marketing firm consultants (senior director and account manager); 2 male market researchers (market research firm director and senior associate); 1 female and 3 male sport marketing/adver- tising firm consultants (managing director, principal consultant, account managers).

The identified management practices were assessed and discussed with experts using a series of self-admin- istered email and fax questionnaires followed by face- to-face and telephone interviews. The questionnaires were designed so that they could be completed and returned both electronically and in writing, and used as discussion guides for the follow-up interviews.

Campaigns

Office equipment

Petrol and oil

Consumer durables

Engine oil

Retail chain

Sport apparel

Consumer durables

Government

Financial services

Internal Gender

Female

Male

Female

respondents Position

Marketing manager

Advertising manager

Marketing services manager

Marketing manager

Advertising manager

Sponsorship manager

Sponsorship and advertising coordinator

Brand & sponsorship manager

External Gender

Male

Female

Male

Female

Male

Female

Male

respondents Position

Event producer

Account manager from the advertising company

Advertising firm account coordinator

Event manager

Account manager from the advertising firm

Research director from the market research firm

Account executive from the advertising firm

Account manager from the advertising firm

Account director from the advertising firm

Television channel sales manager

Advertising firm account director

Volume 14 • Number 4 • 2005 • Sport MarHeting Quarterly 243

"Integrated TV advertising and major event spon- sorship influence target markets mainly through

TV audiences. However, it is also important to use objectives specific to event sponsorship, such as the ability to affect live event spectators, participants,

and hospitality guests, including sponsor's business clients and employees."

Case Studies The qualitative case study approach based on semi-

structured in-depth interviews was selected to obtain information with minimum bias and also to ensure that all the key areas of integration were discussed. As it was important for the current research to test the constructed theoretical framework by observing the results of multiple cases and obtain comparative data on these cases, a 'collective' case study approach was chosen, involving 12 cases.

The first selection criterion was that each of these campaigns had to sponsor a televised event and to place advertisements during the broadcast of this event. Secondly, campaigns had to promote various types of brands which included sporting apparel, fast-moving goods for consumer and business markets (gasoline and engine oil), consumer durables (cars, watches), con- sumer services (investment and banking), business and home products (office equipment), and retail and pub- lic services. Thirdly, the selected campaigns had to pro- mote the brands through various types of sports—professional and amateur, team and individual, technical (car races) and physical (triathlon), and

through various event types—single- and multi-event competition series, national and international.

To select campaigns for the analysis, the researchers videotaped and observed broadcasts of sporting events on Australian television channels during 1998-2000. The events of the selected and analyzed campaigns included the Grand Final of the Australian Football League, Melbourne, 2000; the Olympic Games 2000, Sydney; and the Wimbledon Tennis Championships, London, 2000. Events and brands making the companies recog- nizable can not be mentioned for commercial confiden- tiality reason—some respondents were concerned that information about their corporations might be revealed to competitors. As one interviewed advertising manager said, "I ... am keen that this be confidential. As you can imagine this information is very sensitive."

The minimum requirement of each case study was two interviews—one with an internal respondent from the promoted corporation, and a second with an external respondent from the advertising agency, event management organization, or market research firm who worked to promote the analyzed corpora- tion. Respondents' gender and positions are shown in Table 1.

The 12 case studies were based on observations of broadcasts, interviews with practitioners, secondary data and internal corporate documents. Discussion guides were emailed or faxed to practitioners prior to the interviews. Respondents emailed or faxed back their initial responses, which were then discussed dur- ing the interviews.

Table 2 Relative Importance of steps according to 16 experts and campaigns which Integrated advertising and sponsorship on these steps

Integration steps Mean importance (16 experts)

Campaign strategy development 3.8 including pre-assessment and concept development

Management judgment test

Consumer pre-test

Campaign tracking

3.3

2.9

3.7

Std. deviation (16 experts)

0.4

0.9

1.0

0.5

Campaigns (24 practitioners)

10 campaigns: office equipment, petrol and oil, 4 consumer durables, engine oil, retail chain, sport apparel, financial services

6 campaigns: petrol and oil, 2 consumer durables, retail chain, sport apparel, financial services

4 campaigns: petrol and oil, consumer durables, retail chain, financial services

9 campaigns: retail chain, petrol and oil, 3 consumer durables, engine oil, retail chain, sport apparel, financial services

244 Volume 14 • Number 4 • 2005 • Sport MarHeting Quarterly

Therefore, data were obtained from the practitioners' written responses as well as through the interviews. Interviews were tape-recorded where possible and when permitted.

Results The best practice steps validated by the experts were

used to benchmark the current practices, as shown in Table 2. The 16 experts indicated importance of the campaign steps on a four-point scale, and the 24 execu- tives revealed the number of their campaigns out of 12 which managed advertising and sponsorship in integra- tion on these steps. Table 2 demonstrates that the importance of the campaign steps determined by the experts was consistent with practitioners' level of use.

Achievements of the investigated campaigns were benchmarked against the criteria of exposure, process- ing, communication effects, and audience action. The experts agreed that it is necessary to utilize all four cri- teria in sequence: The four objectives are incremental (i.e., exposure is necessary to have awareness, awareness is necessary to have attitude change, and attitude change is necessary to have action). While all four issues are important and necessary, action is the quan-

Table3 Summary of 12 campaigns' integration on campaign steps and achievement of objectives

tifiable factor but it is difficult to measure due to con- founding variables. The experts pointed out that only the most developed campaigns utilized the necessary objectives and measures. Although all four criteria are important, not all companies monitor and comprehen- sively measure each event and TV show. Measuring impact on the target audience over many months and many events, companies often are not evaluating each particular event or campaign against all important measures. For many companies the primary basis for evaluation is simply the cost of being within a televised event versus the cost of buying standard TV advertising.

The importance of integration stressed in the litera- ture was supported by the opinions of 16 experts and confirmed by the effectiveness of the integrated cam- paigns demonstrated by 24 practitioners, as summa- rized in Table 3.

Campaigns that measured the four objectives and changed target markets' behavior tended to be better integrated. As shown in Table 3, four of the six cam- paigns that reached all four important objectives also integrated advertising and sponsorship on all four campaign steps, whereas the three worst performing campaigns that achieved only one or none of the four

Integration and achievement

Advertisements and sponsorship integrated at campaign strategy development

Advertisements and sponsorship integrated at management judgment test

Advertisements and sponsorship integrated at consumer pre-test

Advertisements and sponsorship integrated at campaign tracking

Exposure objectives achieved

Processing objectives achieved

Communication effects objectives achieved

Audience action objectives achieved

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Volume 14 • Number 4 • 2005 • Sport MarHeting Quarterly 245

objectives, integrated advertising and sponsorship on one or none of the four campaign steps. Therefore, the following experiences of the integrated campaigns which achieved expert-recommended objectives could be considered as best practice in corporate marketing through televised sporting events.

"It seems that integrating advertising and sponsorship for three to eight years could be more

effective than only sponsoring an event for over 10 years without integration, objective setting,

and evaluation."

Step 1. Developing campaign strategy based on corpo- rate aims and plans including pre-assessment, objective setting, and concept creation

To fulfill corporate aims (the ultimate goal being changed target market behavior), advertising and sponsorship should be integrated at the campaign strategy development step. As shown in Table 3, only two of the 12 analyzed campaigns failed to integrate sponsorship and advertising at this step: the govern- ment organization gained increased exposure only, and the consumer brand company did not demonstrate any achievements at all. On the other hand, seven cam- paigns which affected audience action and increased corporate sales, had set objectives for both advertising and sponsorship as part of campaign strategy develop- ment, and reached their goals.

Corporate Plans which Drive Campaign Strategy and Pre-assessment. The open response results indicated that integrated advertising and sponsorship should be assessed, developed, and managed as part of a broad corporate sport marketing program and as part of advertising, marketing, employee involvement, and overall business objectives, strategies, and plans. (The gasoline and oil company integrated event sponsorship with TV advertising within the marketing mix and marketing plan/steps/actions, within the performance measurements and within staff management. The cor- poration set objectives for both advertising and spon- sorship and developed the two media together with a common final goal of increased brand usage, which reached 72%.)

Not all corporate marketers are pro-active in sport marketing pre-assessment and objective setting. Therefore, event managers should drive the campaign strategy development by requesting company objec- tives and plans from their corporate partners. (One interviewed event producer worked with a television channel and advertising firm to develop ads consistent with the corporate strategy and sold them as part of an integrated campaign package. Initially the office equip-

ment corporation was only after sponsorship, but bought the whole package.)

Integration of the campaigns into the corporate employee involvement programs helped to achieve such objectives as enhanced client relations and increased business-to-business sales through hospitali- ty. Staff rotation was a helpful approach, with person- nel from the human resources department, sales, and other company areas working on sport marketing proj- ects. Involvement of employees, particularly customer service staff, improved company communication and morale, which was reflected in enhanced customer service and better relationships with clients, and it led to increased revenues.

The investigated campaigns were part of extensive programs of sponsoring and advertising through sport- ing events rather than isolated 'one-ofF projects. Most of them were linked with long-term sponsorship agree- ments and incorporated into broad event marketing programs such as Olympic marketing. The events, therefore, were often chosen to fit within other compe- titions and sports already used to promote the compa- ny. To choose events and advertising media that would affect target markets' actions, both sponsorship and advertising should be pre-assessed during strategy development. (An international consumer durables (cars) producer pre-assessed advertising together with sponsorship using internal data as well as data from an external market research firm and from the event man- ager, asking how the campaign would maximize the target audience; increase recall and recognition of the promoted brand and message; improve attitudes towards the brand among target markets; and how advertising should be integrated with sponsorship to enhance or increase product trials, sales, loyalty figures, market share, and return on investment. This systemat- ic pre-assessment led to developing a campaign cen- tered around a sales promotion—a new car launched during the event—and an ultimate increase in sales.)

Objective Setting Increased sales can only be achieved if a campaign

can expose the brand message to target audiences, change the target markets' attitudes toward the brand and make them want to buy it. One organization of the 12 analyzed aimed not to sell products, but to reduce drunk driving. Such campaigns also require the firm to expose the message to the target audience, change the audience attitude, and convince it to take a desired action. Therefore, the following key objectives should be set during strategy development and measured after the campaign is launched:

Objective 1. To increase exposure, which occurs when advertising and sponsorship messages are placed in the

246 Volume 14 • Number 4 • 2005 • Sport Marketing Quarterly

media that reach the target audience. Exposure is measured by the size of the audience of television viewers or Target Audience Rating Points, and the number of event spectators and sport followers. The data are obtained through consolidated people meters by companies like ACNielsen and through customized material from media monitoring agencies.

Objective 2. To enhance processing, which is the target markets' response to the advertisement or sponsorship message. Processing is measured by the percentage of target markets who are aware of and recall and recog- nize the promoted message, brand, advertisement, and sponsored event. The data are received through cus- tomized consumer surveys by market research agencies.

Objective 3. To improve communication effects, which are measured through the target markets' desired attitudes, brand image in their minds, and intention to take a desired action or purchase the pro- moted brand. Improved client and employee relations and their perception of brand image are measures spe- cific to sponsorship alone. The data are acquired through customized consumer surveys by market research agencies as well as internal corporate client and employee surveys.

Objective 4. To change or increase target audience action or sale, or use of the promoted brand. Target audience action, or consumer action, is measured through the percentage of target markets performing the desired action, through product or service sales, market share, or number of customers. The data are obtained using internal sales system, customer data- base, as well as through customized surveys by market research agencies. The surveys reveal brand usage and market share based on the percentage of consumers indicating use of the promoted brand.

Integrated TV advertising and major event sponsor- ship influence target markets mainly through TV audi- ences. However, it is also important to use objectives specific to event sponsorship, such as the ability to affect live event spectators, participants, and hospitality guests, including sponsor's business clients and employees. Integrated campaigns may also enable TV commercials to target these audiences, (e.g. a financial services com- pany featuring its employees in commercials to improve the corporate brand image among staff, and a sport apparel producer featuring event participants in com- mercials integrated with the sponsorship of the 2000 Olympics.) By doing so, advertisements effectively con- vey the link between the event and sponsor brands and assist sponsorship to pass the event brand image to the image of the sponsor's brand.

The results of this study suggested that well-managed and achieving campaigns use their primary corporate goals (e.g., increased sales) within the set of objectives

reflecting the process of consumer buying behavior rather than in isolation. The need for systematic and sequential use of buying behavior objectives is consis- tent with recent recommendations (e.g., Meenaghan, 2002; S:COMM Research, 2003) and is a modification of earlier findings which stressed that corporate sport marketing objectives are highly variable, contingent, and situation-specific (Hirons, 1990; Kuzin & Kutepov, 1994; Quester, 1995). Different words used for describ- ing the same objectives seem to cause misunderstand- ing within the industry and create the impression that common sport marketing objectives do not exist. (The objective of processing, or consumer response to the promoted message, was generally described as "aware- ness" of a brand or advertising or sponsorship, but also was categorized as "advertising and sponsorship recall." Communication effects objectives of improved image or attitude of the promoted brand among the con- sumers were described as "brand image," and as "con- sumer attitude.") The results of this study showed that, despite differences in terminology, any objective used by any sport marketing industry personnel to develop, implement, and evaluate corporate marketing cam- paigns through televised sport can be classified as one of the four objectives: exposure, processing, communi- cation effects, and consumer action.

Concept Creation After the "right" event is chosen for sponsorship and

the "right" media for advertising, and campaign objec- tives are in place, the campaign concept should be developed. The most common practice of the exam- ined campaigns was that the messages of sponsorship and advertising were bonded around a single concept. (Messages about the best players competing at one of the world's most elite tournaments bonded with mes- sages about excellence of the premium consumer durables brand advertised during the event.)

The concepts were based on creative/inventive and unique/original promotions that bonded the promoted brand or message with the event, and the advertising and sponsorship messages were placed to reinforce each other. (The advertisements highlighted the speed and power of the promoted cars, thus bonding with the speed and excitement of the football event, and the advertisements were reinforced through consistent arena signs captured by the camera when the referee was shown announcing a goal. Commercials promot- ing sport apparel were created in the form of live inter- views with the sponsored athlete. The commercials were placed during the event broadcast. The athlete was shown wearing the promoted product during the event and was seen wearing it when talking about the brand's benefits during the commercials-interviews.)

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Concepts of achieving campaigns tied together all the possible sponsorship opportunities to promote and sell the brand. (A concept of a gasoline and oil company had consistent advertising and sponsorship messages, took nearly every occasion for cross-promotion, and created a bond between the brand and the event. Sponsorship signage was placed at key positions exposed to the cameras at the event venue, on objects, on people, and on the Scoreboard superimposed on the television screen. The promoted product and related merchandise were sold at the event. Advertisements featured the event in which they were placed and pro- moted product sales through a competition for Olympic tickets which could be won by purchasing the product. This maximum use of the sponsorship and advertising cross-promotional opportunities and bonding of the event with the promoted brand were developed and circulated, based on the corporate mar- keter's directions, by a written plan and a brief to external campaign managers.)

These findings demonstrated again that the critical point of an effective campaign is what Irwin, Sutton and McCarthy (2002) called "promoting a promo- tion," or integrating all elements for a consistent, broad, and sweeping message. Opening an opportunity for further investigation, the current study suggested that important factors of developing effective promo- tions were 1) an attempt to affect consumers on the key buying behavior steps and, most importantly, to change target market behavior; and 2) a combination of creative, analytical, and organizational competencies of corporate marketers, their advertising agents and event managers. (The first wave of the financial firm's campaign raised awareness of the company as an event sponsor and humorously featured company staff as athletes participating in the event. The sponsorship program at the same time involved the staff as event volunteers and involved customers as event guests. The second advertising wave was also based on the event and company staff theme but it was more to improve the company image rather than to attract attention. The third wave, which was conducted during and after the event, depicted the key demographic types of the targeted markets who were purchasing the promoted financial services. This concept was developed to call consumers to action in investing with the company and was developed under the structured, creative, and analytical (research-based) direction of the corporate marketer. As a result, the campaign returned a double- digit payback to the sport marketing investment.)

Step 2. Testing campaign with corporate managers. After draft advertisements and sponsorship(s) are

developed, they should be tested with corporate man-

agers to check that the ads and sponsorship(s) are "on strategy" with corporate marketing objectives and tar- get audiences. Despite being fully utilized by only half of the campaigns, the management judgment test was an important pre-requisite for reaching campaign objectives. Table 3 shows that all six campaigns which tested advertisements and sponsorship with corporate managers achieved the bottom-line campaign objective of consumer action, whereas only one of the six cam- paigns which did not test the two media at this step influenced audience action and increased sales. Only the most advanced campaigns are currently using the management judgment test to its full capacity. (The gasoline and oil producer achieved four important campaign objectives. Senior managers of the company tested advertising and sponsorship elements together. The test was organized by the corporate marketing manager at the briefing stage and at the concept devel- opment stage. The two media were evaluated against the four criteria of exposure, processing, communica- tion effects, and consumer action. The test also deter- mined whether the draft advertising and sponsorship messages fitted the target markets specified in the cor- porate business and marketing plans.)

Step 3. Testing campaign with targeted consumers. The results also indicated that before the launch of a

campaign, draft advertising together with sponsorship messages should be assessed via a consumer pre-test to adjust the "creative" according to the target markets' feedback. Oualitative focus groups measuring process- ing and communication effects were the common method of consumer pre-test. As indicated in Table 3, advertising and sponsorship were integrated at con- sumer pre-test only by the four campaigns that demonstrated achievement of all four campaign objec- tives. Being a standard management tool of conven- tional television advertising, benefits of the consumer pre-test are still to be fully utilized by sport marketing campaign players. (The gasoline and oil company's campaign pre-tested advertisements and sponsorship with consumers as one integrated concept through focus groups. The test was organized by an advertising firm. Corporate campaign managers did not have a great understanding of the target markets that buy and change car oil themselves. The corporate staff could not test the campaign either, as they did not represent the target markets. Therefore, consumer feedback was particularly important for this campaign's television ads and sponsorship signage and their integration to be effective.) A formal consumer pre-testing should be used when corporate campaign managers are not users of the promoted product or service. No official and only casual pre-testing may be needed if the company's

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staff responsible for campaign management represent- ed target markets of the promoted brand, such as ath- letes within the sporting apparel company depicted in Table 3.

Step 4. Tracking campaign performance. Evaluating the achievement of objectives set for

advertising and sponsorship at the strategy develop- ment stage is a key prerequisite of an effective and well-integrated sport marketing campaign. As Table 3 shows, three of the 12 campaigns which did not man- age advertising and sponsorship together on campaign tracking, achieved only one of the four important cam- paign objectives or did not demonstrate objectives achievement at all. A comprehensive campaign evalua- tion helps corporations to achieve their organizational objectives and increase sales. It helps event managers, advertising firms, and other campaign participants to retain corporate sponsorship and advertising dollars. (The evaluation of the gasoline and oil company's campaign was commissioned by the marketing manag- er within the corporate marketing program's budget using internal company data as well as data by media monitoring and market research firms. Because the campaign was timely and comprehensively evaluated, the campaign managers were able to demonstrate achieved objectives of exposure [planned TARPs]; pro- cessing [increases in advertising and sponsorship recall]; communication effects [increase in brand asso- ciation with motor sport, in the popularity of the event, and in brand perception and favorability]; and consumer action [increase in proportion of target mar- kets using the brand].)

Campaign Duration It seems that integrating advertising and sponsorship

for three to eight years could be more effective than only sponsoring an event for over 10 years without integration, objective setting, and evaluation. The three worst performing campaigns sponsored the analyzed events for over 10 years prior to integration, whereas only one of the six best performing campaigns spon- sored the event for more than a decade. The other five best achieving campaigns started event sponsorship together with advertising three to eight years prior to the investigated campaigns. Farrelly (2002) indicated similar campaign durations, noting that the current sponsorship contracts with the Australian Football League had, on average, been in existence for over three years and the average contract duration is four years, the minimum time required to generate mean- ingful sponsorship outcomes.

Summary Successful corporate marketers and event managers

integrate sponsorship and advertising to cross-promote the two media and multiply the effect of the marketing investment. By investigating the theory and practices of integrated advertising and sponsorship, this study identified the key techniques that led to increased cor- porate sales— f̂our campaign steps and four objectives with necessary performance measures.

The four steps included: 1. Developing campaign strategy based on corpo-

rate aims and plans including pre-assessment, objective setting, and concept creation

2. Testing campaign with corporate managers 3. Testing campaign with targeted consumers 4. Tracking campaign performance. The four objectives comprised: 1. Increased exposure (measured using consoli-

dated people meters information by compa- nies like ACNielsen and customized data by media monitoring agencies)

2. Enhanced processing (evaluated using con- sumer survey statistics by market research agencies)

3. Improved communication effects (assessed based on consumer survey numbers by market research agencies as well as internal client and employee survey material)

4. Changed or increased target audience action (measured via internal sales/customer data and customized survey information by research agencies on market share and brand usage).

This 4 x 4 matrix could be useful to all players pro- moting brands through televised sport, particularly corporate marketers, advertising firm executives, and event producers.

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