Why Sponsorship Is Considered as a Great Strategic Tool?

Why sponsorship is considered as a great strategic tool?

1. It is a mutually beneficial relationship between sponsor and sponsored The sponsor provides financial support for the club, the club in turn, places the bank’s logo on the players sports uniform, at the stadium, launches promotional audio and video clips during the breaks at the stadium or during the broadcast, etc.
2. To improve the image of a company

An emotional perception of the brand forms in this case because the sport is directly related to "full range" of emotions – from anxiety (concerns) of the outcome of the game to the happiness of victory. The Bank-sponsor is interested in the achievements of sponsored club – if the club wins, reaches certain results, increases public attention, and, consequently, the potential audience for a bank-sponsor, so more people are potentially interested in the products of the sponsor.

1. To increase the public awareness and the recognition

Sponsors try to sponsor projects that have a good chance of attracting news media and therefore offer publicity opportunities. Many sport tournaments are broadcasted internationally and reaches millions of people which means that the awareness level of a sponsor can shift drastically. Sponsorships can be an effective way of positioning brands in the marketplace.

1. To have an association with a sport, events, facilities, sport participants

Participation as a sponsor gives the opportunity to associative emotional experiences that accompany participation in an exciting and spectacular sporting event, to promote the bank. Sponsorship allows bank to build an associative relationship between the outstanding achievements of the athletes or teams with the values and professional qualities of the sponsor, increasing the efficiency of creation of the desired brand image. Also it helps to attract attention of new potential clients, e.g. fans.

1. To create entertainment opportunity

The possibility to invite to the sponsored event important clients and just the "right" people attracts lots of sponsors, and they use it actively, establishing new and strengthening the existing business contacts. The welcome atmosphere and general emotional rise, as a rule, is very favorable background for the negotiations and discussions the details of common projects in an informal setting.

Moreover, VIP clients of the bank can receive free tickets to these sponsored events.

1. To enhance employee motivation

For example, the sponsor of football club may reward its employees with free tickets to the most interesting matches, may hold an informal meeting with the players to distribute within their bank the attributes of club. Thus, sponsorship allows bank to set unusual intangible incentives to improve the quality of HR work.