Critically discuss the importance of sponsorship in the event industry Essay

Critically discuss the importance of sponsorship in the event industry - Essay Example The benefit that the event experiences is funding that might not otherwise be available if this marketing opportunity was not possible. Sponsorship provides a mutually beneficial relationship between the sponsor and the organization of the event, a conduit for communication that then occurs between the event and the market that exploits that relationship. The benefits of this relationship are defined by the elevation of the image of the sponsor through association and the event through monetary resources from which to fund the event. The following essay will explore the relationship of the sponsor and the event, their unique blend of product and cause creating an opportunity for associations that connect through an emotional context to consumers. The essay will first explore the meaning of sponsorship, transitioning to the benefits to the sponsors and then to the event organization. Although a mutually beneficial relationship, there are issues that can arise that will cause problems for either the sponsor or the event. These issues will be examined for their effect on the sponsorship relationship. The conclusion of the paper reveals that sponsorship is a powerful resource in enhancing a brand, creating positive emotional context through transference of social equity from an active entity to a supporting entity. 2. Defining Sponsorship According to Damster and Tassiopoulos (2006, p. ... According to Bowdin (2006, p. 228), â€Å"sponsorship is said to be one of the most powerful mediums now used to communicate and form relationships with stakeholders and markets†. The relationships that are formed during the act of sponsorship connects the sponsor to the event, allowing the market to relate one to the other, in spite of direct relevance to the connectivity between the sponsoring entity and the purpose of the event. As an example, a soft drink may have no direct relationship to a sport, but still may become associated with the emotional connections that a consumer makes to that sport as it is then transferred to the soft drink. As suggested, not only events can be sponsored, but individuals through either their participation in an event or through their participation in their sport or craft can be sponsored by outside entities. A specific example of intra-sport types of sponsorship can be seen through the sponsor of a celebrity sports personality through the eq uipment that he or she uses. According to Pringle (2004, p. 126), â€Å"customers perceive outstanding performance to be inextricably connected with a piece of sporting equipment and can assume with a high level of confidence that if they too were to play using that particular guitar, piano, racket, bat, club, or pair of boots, then their own personal performance would certainly be no worse†. In associating a piece of equipment that is related to the expertise of a celebrity, a brand can benefit from the perceived superiority of its product. Therefore, when defining sponsorship on a larger scale in terms of event sponsorship, it must be understood that this is undertaken by a company in order to