Friday, June 20, 2014

Indirect Benefits of Sponsorship

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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