Sponsorship is an integral part of marketing. When deciding on a
sponsor,
many factors such as objective, demographic and budget are
thoroughly
considered. The overall objective of sponsorship is to increase
sales and
using basic marketing strategies, companies can effectively
estimate their
expected profit. However, sponsorship is sometimes so
effective to a
marketing platform, that it can accumulate indirect benefits
as well.
Although not as easy to predict, sponsorships can lead to indirect
sales.
One way this happens is when advertisers host executives at
sponsored
events. Any sales that accumulated due to that event are usually
not
factored in to profit calculations. Companies often neglect or
wrongly
estimate this source of revenue.
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