HISTORY OF SPONSORSHIP

The history of sponsorship is deeply rooted in ancient practices of patronage and

philanthropy, where wealthy individuals supported festivals, civic projects, and artistic
efforts in return for recognition and social esteem. In ancient Greece, for instance,
Choregus funded and led festival performances, receiving major recognition akin to
performers. Similarly, the Romans participated in patronage, sponsoring gladiatorial
games and chariot races for public favor. By the 14th century, patronage spread to arts
and culture, exemplified by the Medici family's support for Renaissance artists. Over time,
the idea evolved into modern sponsorship, coinciding with the growth of mass markets in
the 19th century. Tobacco and other companies began sponsoring entertainment shows,
clubs, and sports teams to promote their names. The rise of radio in the early 20th century
further expanded sponsorship possibilities, with companies like Atwater Kent and Daily
Mail sponsoring radio programs in the US and UK. This trend continued with television,
where brands like Coca-Cola and Pepsi sponsored shows to reach broader audiences.
Notably, soap operas developed as a popular sponsorship vehicle, pioneered by Procter
& Gamble. Sports sponsorship took off in the 1920s with baseball radio broadcasts
sponsored by businesses like Westinghouse, Wheaties, and Ford. Coca-Cola's
partnership with the Olympics in 1928 marked a major milestone in modern sports
sponsorship. The subsequent advent of televised sports events in the 1930s further
propelled the growth of sponsorship. The 1960s and 1970s marked a golden age for
sponsorship, characterized by its increasing complexity and significance in marketing
strategies. Overall, sponsorship has grown from ancient patronage to a sophisticated
commercial discipline, showing the enduring relationship between sponsors, audiences,
and brands across millennia Whatling, S. (2023, April 12).

Figure 1: Sport Sponsorship – Logic of Sport Products

Sponsorship is a tool that is part of the communication mix with the ultimate aim to sell.
In this method, which is more subtle branding, the reputation of the company does not
interfere with the participant or consumer, but creates a special relation without appeal to
the latter’s conscience. Sponsorship allows targeted actions and helps to better position
the brand and its image (Derbaix and Lardinoit, 2001). Sponsorship role is to customize
and brand to define a given character to build or develop a brand image (Deimel and
Zentes, 1991). Indeed, branding, for example, a telecommunication company combines
its image; a football or tennis does not have the same objectives and guidelines (Harvey,
2001).
Sponsorship is still regarded in textbooks as a communication tool, which has a
significant importance in many companies´ marketing mix (Séguin & Bodet, 2015, p. 306).
The sponsor buys and exploits an association with a sponsored entity for marketing
purposes (Thwaites & Chadwick, 2004, p. 351). In this process, the sponsor acquires
rights “to affiliate or directly associate with a product or event for the purpose of deriving
benefits related to that affiliation or association” (Mullin, Hardy & Sutton, 2014, p. 231).
Therefore, sport sponsorship is mainly perceived as an economic exchange between
sponsor and sponsee, where value is embedded in the sponsorship rights sold by a
sponsee and used by sponsors. Therefore, traditional approaches follow the logic of sport
products (Woratschek & Griebel, 2020), which is depicted in Figure 1.
The sponsee, e.g. a team, creates value in form of sponsorship rights by cooperating
with various actors such as leagues, media companies or consultants (Woratschek &
Griebel, 2020, pp. 1-2). These rights include performance rights, e.g. jersey
sponsorship, and usage rights, e.g. involve athletes to create content for social media
(Woratschek & Buser 2018, p. 38). To use these rights, the sponsor provides the
sponsored entity with financial payment, in-kind payment or services (Thwaites &
Chadwick, 2004, p. 351). Sponsors utilize the value embedded within the rights to
pursue commercial objectives. As shown in Figure 1, sport agencies often act as
intermediary between sponsors and sponsees.

IMPORTANCE OF SPONSORSHIP

In today's competitive marketing landscape, sponsorships remain a powerful tool for

businesses to enhance brand awareness, improve image, and gain valuable publicity.
This is especially true within the Information Technology (IT) industry, where innovation
and brand recognition are crucial for success.
However, simply throwing money at a partnership isn't enough. As a recent study by
Gladden and Sutton (2009) shows, the key to maximizing the benefits of sponsorships
lies in cultivating strong relationships with partners through the principles of relationship
marketing. (Gladden, J. M., & Sutton, W. M. 2009)
The level of commitment from both parties also plays a major role. Research by Palmatier
et al. (2013) suggests that the strength and speed of commitment from both the sponsor
and the sponsored entity greatly influence the success of the partnership. (Palmatier, R.
C., Dant, R. P., Grewal, D., & Kennedy, E. H. 2013) A strong, long-term commitment
fosters a sense of trust and allows for a more strategic approach to activations, eventually
leading to a more impactful sponsorship.

A successful sponsorship hangs on the alignment of brand values and overall strategies.
When a sponsor's image and values resonate with those of the entity they are supporting,
the relationship feels more authentic and impactful. Consumers are more likely to connect
with a sponsorship that feels genuine, leading to a more positive view of both the sponsor
and the sponsored entity. (Gladden, J. M., & Sutton, W. M. 2009)
Sponsorships hold immense potential for success within the IT business. By
embracing the principles of relationship marketing, businesses can develop strong, long-
term partnerships that deliver true value for all parties involved. From fostering
commitment and understanding motives to aligning values and strategies, this approach
ensures that sponsorships become a powerful tool for driving brand recognition,
enhancing image, and achieving marketing objectives in the competitive landscape of the
IT industry.
BUSINESSES THAT USE SPONSORSHIP BUSINESS MODEL

McDonalds - McDonald’s reaches out to every level of

sport, from the international level of the Olympic Games to
local minor hockey. It believes in sport as a way to
encourage our children to incorporate activity into their
daily lives. Sitapara, J. (2022, September 21).

Puma- This German sports apparel company is known to

have been sponsoring Olympics since a long time
Sitapara, J. (2022, September 21).

Redbull- One of the pioneers i n energy drinks, Redbull

is a major sponsor of sports and cultural events. It
sponsors adventure sports events, races, marathons and
urban dance and music events. Sitapara, J. (2022,
September 21).
REFERENCES:

• Whatling, S. (2023, April 12). A brief history of sponsorship. Redmandarin, World-leading

Sponsorship Agency. https://redmandarin.com/a-brief-history-of-sponsorship/
• Buser, M., Woratschek, H., & Schönberner, J. (2020). The Business Model of Sponsorship
Engagement in Sports: Brief and Straight to the Point. SMAB Relevant Management Insights,
8, 1-6. Retrieved from https://www.smabayreuth.de/publishing/research-series/
• Woratschek, H., & Griebel, L. (2020). The Logic of Sport Products in Sport Sponsorship.
SMAB Relevant Management Insights, 5, 1-4. Retrieved from https://www.sma-
bayreuth.de/publishing/relevantmanagement-insights/
• Gladden, J. M., & Sutton, W. M. (2009). A relationship marketing framework for sport
sponsorship. Sport Marketing Quarterly, 18(4), 220-230.
• Palmatier, R. C., Dant, R. P., Grewal, D., & Kennedy, E. H. (2013). Commitment antecedents
and performance consequences in channel relationships. Journal of Marketing, 77(1), 1-22.
• (2012). The Impact of the Effectiveness of Sponsorship on Image and Memorizing: Role of
Congruence and Relational Proximity. Procedia - Social and Behavioral Sciences, 109, 913-
924.
https://doi.org/10.1016/j.sbspro.2013.12.564.(https://www.sciencedirect.com/science/article/
pii/S1877042813052038)
• Sitapara, J. (2022, September 21). 40 Companies to approach for Event Sponsorship [New
Updates in 2020]. Medium. Retrieved from https://medium.com