sport sponsorship as marketing communication tool …

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VYTAUTAS MAGNUS UNIVERSITY FACULTY OF ECONOMICS AND MANAGEMENT MARKETING DEPARTMENT VOLKAN UMUT SPORT SPONSORSHIP AS MARKETING COMMUNICATION TOOL IN LITHUANIAN COMPANIES Master Diploma Paper Programme: Marketing and International Commercial, State code 621N50005 Study Field: Marketing Advisor: Doc. Dr. Aušra Pažėraitė (degree, academic position, name, surname) (signature) (date) Defended: Doc. Dr. Rita Bendaravičienė Dean of the Faculty of Economics and Management (signature) (date) Kaunas, 2016

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VYTAUTAS MAGNUS UNIVERSITY

FACULTY OF ECONOMICS AND MANAGEMENT

MARKETING DEPARTMENT

VOLKAN UMUT

SPORT SPONSORSHIP AS MARKETING COMMUNICATION

TOOL IN LITHUANIAN COMPANIES

Master Diploma Paper

Programme: Marketing and International Commercial, State code 621N50005 Study Field: Marketing

Advisor: Doc. Dr. Aušra Pažėraitė

(degree, academic position, name, surname) (signature) (date)

Defended: Doc. Dr. Rita Bendaravičienė

Dean of the Faculty of Economics and Management (signature) (date)

Kaunas, 2016

2

CONTENT

SANTRAUKA…………………………………………………………………………………… 3

ABSTRACT……………………………………………………………………………………… 4

GLOSSARY OF TERMS……………………………………………………………………....... 5

INTRODUCTION………………………………………………………………………………... 7

1. SPORT SPONSORSHIP AS MARKETING COMMUNICATION TOOL. THEORETICAL

ASPECTS……………………………………………………………………………………...….

9

1.1. Definition and forms of communication in the context of sports sponsorship…………. 9

1.2. Characteristics of sport sponsorship……………………………………………………. 14

1.3. Sponsorship in the marketing-mix…………………………………………………….... 17

1.4. Theoretical models of effective marketing communication……………………………. 20

2. FIELD ANALYSIS……………………………………………………………………………. 29

2.1. Sponsorship in Lithuania. Kauno Zalgiris case……………………………………….... 29

2.2. Overview of Zalgiris Kaunas sponsors…………………………………………………. 32

2.3. Methodology of researches……………………………………………………………... 36

2.4 Study of Zalgiris‟s sponsorship effectiveness………………………………………….... 38

3. DECISIONS IN ORDER TO IMPROVE THE COMMUNICATIVE USING

SPONSORSHIP AS A TOOL……………………………………………………………………

45

3.1 Problem clearing and problem solving logic……………………………………………. 45

3.2 Model implementation…………………………………………………………………... 51

3.3 Risks and special issues of model implementation…………………………………….... 53

RESULTS AND CONCLUSIONS………………………………………………………………. 60

REFERENCES………………………………………………………………………………….... 63

ANNEXES...……………………………………………………………………………………... 67

3

SANTRAUKA

Baigiamojo darbo autorius: Volkan Umut

Pilnas baigiamojo darbo

pavadinimas:

Sporto rėmimas kaip Lietuvos įmonių marketingo

komunikacijos priemonė

Baigiamojo darbo vadovas: Doc. Dr. Aušra Pažėraitė

Baigiamojo darbo atlikimo vieta ir

metai:

Vytauto Didžiojo universitetas, Ekonomikos ir

vadybos fakultetas, Kaunas, 2016

Puslapių skaičius: 73

Lentelių skaičius: 1

Paveikslų skaičius: 30

Priedų skaičius: 2

Darbo tikslas - panaudojant analitinius teorinius metodus, suformuoti modelį, kuris

užtikrintų efektyvią komunikacija kompanijoms, naudojančioms sporto rėmimą. Darbas susideda iš

trijų dalių: pirmoji dalis skirta teorinei marketingo komunikacijos analizei, sporto rėmimui ir

efektyviai komunikacijai. Antroji dalis susideda iš Kauno Žalgirio organizacijos pristatymo, tyrimo

apie komandos rėmimą bei rėmėjus, rėmimo efektyvumą paremtu duomenų analizavimu naudojant

apklausų metų surinktais duomenimis, pristatoma tyrimų metodologija, kuri buvo suformuota

apklausos autoriaus. Trečioji dalis atskleidžia efektyvios komunikacijos modelį, naudojant sporto

rėmimą kaip vieną iš marketingo įrankių, jo įdiegimo bei galimų kliūčių numatymą. Darbo

pabaigoje pristatomos išvados.

4

ABSTRACT

Author of diploma paper: Volkan Umut

Full title of diploma paper: Sport sponsorship as marketing communication tool in

Lithuanian companies

Diploma paper advisor: Doc. Dr. Aušra Pažėraitė

Presented at: Vytautas Magnus University, Faculty of Economics and

Management, Kaunas, 2016

Number of pages: 73

Number of tables: 1

Number of figures: 30

Number of annexes: 2

Main aim of the work – using analyzed theoretical models and concepts to develop model

ensuring the effective communication for the companies using sports sponsorship. The work

consists of three main parts. The first chapter is dedicated to theoretical analysis of marketing

communications, sport sponsorship and models of effective communication. The second part

concerns the characteristics of Kaunas Zalgiris, researches about its sponsors and sponsorship

effectiveness based on the analyzing data collected during the survey and represent the

methodology of researches made by the author. The third part include the presentation of the model

of effective communication using sport sponsorship as marketing tool, the proposals about its

implementation and possible risks. At the end of the work results and conclusions are being

presented.

Key words: communication, sponsorship, Kaunas Zalgiris, effectiveness, komunikacija,

rėmimas, Kauno Žalgiris, efektyvumas

5

GLOSSARY OF TERMS

Communication - process aimed to cause the change of consciousness of the recipient of

the information intended by the sender. Communication consists of the following actions made by

the sender to encode thoughts, giving media (physical transfer to the consignee through the formal

or informal channel), receive support by the recipient message, the reproduction of the information

content (decoding) and feedback (Mortensen, 2007).

Effective communication is not merely about exchanging information between you and

your audience. It is about making what you want to say, what you actually say and what your

audience interprets, consistent. (Andersen, 2007).

Message - is a discrete unit of communication intended by the source for consumption by

some recipients or group of recipients. (Baddeley, 2009).

Marketing communication – the term that is used to describe all he promotional elements

of marketing mix which involve the communications between an organization and its target

audiences on all matters that effect marketing performance. (Pickton & Broderick, 2010).

Integrated marketing communications - the concept under which a company carefully

integrates and coordinates its many communication channels to deliver a clear, consistent and

compelling message about the organization and its products. (Kotler et al., 2007).

Marketing-mix - a broad category of interrelated elements (activities, processes, methods

and techniques) used in the enterprise and forming together an integrated system of impact on the

market environment the company (customers, competitors). (Mortensen, 2007).

Target audience - is a particular group of consumers within the pre-determined target

market, identified as the targets or „recipients‟ for a particular advertisement or message. (Kotler et

al., 2007).

Sponsorship - any commercial agreement by which a sponsor, for the mutual benefit of the

sponsor and sponsored party, contractually provides financing or other support in order to establish

an association between the sponsor‟s image, brands or products and a sponsorship property in return

for rights to promote this association and/or for the granting of certain agreed direct or indirect

benefits. (European Sport Association)

Sponsor - a person or organization that pays for or contributes to the costs involved in

staging a sporting or artistic event in return for advertising. (Sandler, 2011).

Sponsee - one who is sponsored. (Sandler, 2011).

Sport - form of human activity, aimed to improve physical fitness within the competition,

individually or collectively, according to the rules. (Quester, 2011)

6

Sponsorship-linked marketing - comprises giving products, services and brands to the

judgment of the public by supporting events, teams, people, programs and other activities in order

to achieve the objectives of marketing communication. (Peacock, 2016).

Effectiveness - operation, the aim of which is to achieve the desired effect with the

minimum amount of available resources, or to achieve the best results using a certain amount of

resources. Economic efficiency is reflected in achieving a specific goal by using this in the most

efficient and least wasteful of resources (Amandeep, 2010).

Promotion - the impact on the consumers of products of the company, involving the transfer

of the information to adequately raise awareness about company‟s products or services and the

company itself in order to create preferences for them in the market. (Lee, 2009)

Public relations - conscious, planned and continuous efforts aimed at building and

maintaining mutual and beneficial relationship between the organization and its environment.

Public relations is, in other words, shaping the image of the organization in the environment by

conducting activities that affect the perception. (Joep, 2011).

Long-term memory - has unlimited capacity and characterized by permanent storage – we

can easily recall the needed information. (Andersen, 2007).

Awareness - is the ability to directly know and perceive, to feel, or to be conscious of

events, objects, thoughts, emotions, or sensory patterns. In this level of consciousness, sense data

can be confirmed by an observer without necessarily implying understanding. (Schramm, 2008).

Brand - is a name, term, design, symbol or other feature that distinguishes one seller's

product from those of others. (Mortensen, 2007).

Brand loyalty - is defined as positive feelings towards a brand and dedication to purchase

the same product or service repeatedly now and in the future from the same brand, regardless of a

competitor‟s actions or changes in the environment. (Bransford, 2008).

Survey - a method of gathering information from a sample of individuals. (Arora, 2012).

Questionnaire - is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. (Shiu, 2009).

Model - system of assumptions, concepts and relationships between them that allows to

describe (model) in the approximate way some aspect of reality. (Frain, 2011).

Consumer behavior - the study of individuals, groups, or organizations and the processes

they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy

needs and the impacts that these processes have on the consumer and society. (Mortensen, 2007).

7

INTRODUCTION

Nowadays, at the time of the fast growing economy information and communication gain

more and more attention. Dynamic development of the market forces companies to act in the

environment with many strong competitors where standing out on the market is getting more

complicated as well as getting and saving customers. It‟s not enough to make research and learn the

needs of the customers, produce satisfying products for those needs and to set a competitive price.

One of the most importing thing is to find out the way how to “deliver” certain information about

the product to the customer and persuade him to buy it. So the way how the company communicates

with stakeholders and ability to choose appropriate communication tools determines its success and

profitability.

Relevance of the topic. Under the conditions of competition when price and quality of the

products are comparable the clue of distinguishing different producers is their way of

communication with the market. Among different communication tools sponsorship is characterised

as one of the rapidly developing form of promotion. Developing of the sponsorship intensifies

because of market‟s saturation by traditional forms of advertising and decreasing of its efficiency

and effectiveness. Advertising is often considered by customers as obtrusive and burdensome, but

sponsorship is considered as more subtle and therefore more effective communication tool.

Sponsorship is a good method for companies to exchange the information with the environment, to

improve the degree of brand awareness, to create the desired image of the company and brand and

of course to reach the target group.

Sponsorship is strongly connected with different spheres of life, especially social life, e.g.

sport, culture, science, education, medicine, social care and so on. Supporting various socially

acceptable spheres of life gives the company a chance to be considered by the customer as the one

whose products and actions are reliable and worth to buy. That fact gives certain economical effect.

Sport as one of social spheres deserve considerable attention as in XX century it has became a

mandatory component of education, an important element of recreation, and above all, as a sport

professionally-high-performance, took the form of mass spectacle combined with business. Million

people attend matches of their favorite teams or sportsmen, million people gathering together in

front of the TV or in special fan-zones to cheer for their team, country or city – and in such way

they become a wide target audience that may accept or ignore certain information depends on the

choice of communication tool by the sponsor.

Scientific problem. Lithuanian companies aim to get more customers, create a positive

image of its products and the company itself supports national teams, but they are interested not

8

only in supporting teams and investing in their development but also in getting profit from such

investments. To make sponsorship works for their benefits they should find effective

communication model. So the problem is: what kind of a model should be developed in order to

ensure the effective communication for the companies using sports sponsorship?

Object of the work –effective communication using sport sponsorship.

Aim of the work – to develop the model ensuring the effective communication for

companies using sports sponsorship.

Main objectives:

1. To analyze the communication aspects of sport sponsorship as an important element of

marketing from the theoretical point of view also providing the analysis of sport sponsorship

evaluating their meaning for companies‟ marketing strategies;

2. To perform field analysis assessing current state of sport sponsorship in Lithuania using

example of Zalgiris Kaunas and its sponsors and investigating the communication‟s

effectiveness in sport sponsorship by inquiring potential recipients of communication

process;

3. To offer an effective model for communication using sports sponsorship and ways of its

implementation.

Logical structure of the work. The work includes three main parts. In the first part author

describes communication in the context of sports sponsorship providing its definition and

describing its forms. Second chapter aimed to analyze Zalgiris Kaunas as perspective team for

sponsoring, to make a overview of its sponsors and to analyze gathered primary data about the

effectiveness of communication between sponsors and potential customers. The last part presents

decisions made by author in order to improve the model of effective communication using sports

sponsorship.

Methods and techniques – analysis of the literature and other sources on the researched

problem, method of surveys, deductive and inductive logic.

9

1. SPORT SPONSORSHIP AS MARKETING

COMMUNICATION TOOL. THEORETICAL ASPECTS

1.1. Definition and forms of communication in the context of sports

sponsorship

Nowadays the central element of economic activities is consumers. Consumers influence on

the success of the companies and especially on its market place. According to marketing

philosophy, the company should aim to maximize profits by maximizing customer‟s satisfaction.

The producer should offer something that the consumer wants to buy. So one of the main purpose is

to learn the needs of the buyers and create the product that they will purchase. To do this the

company should constantly communicate with consumers and it can do it with the help of different

communication tools.

Generally, term “communication” comes from Latin “communicatio” which has many

meanings: to share, divide out, communicate, impart, inform, join, unite, participate in, “literally” to

make common (Shah, 2009). Therefore, the same way as the original Latin word had many

meanings - today word “communication” is very abstract and interpreted by scientists in different

ways. That is why it‟s impossible to find a single working definition.

Some scholars define communication simply as sharing of information or the giving and the

receiving the messages or the transfer of information (Roszak cited in Turner, West, 2013). Such

definitions assume that people are like computers that exchange the information. People are

anything but not machines. Their communicative behavior is very complicated and varied. People

accept every message in very different ways. It is wrong to think that once somebody send a

message, it will be for sure perceived correctly. Communication is about exerting influence on

person‟s behavior by what another person say, it is guided by psycho-logic, but it is never about just

giving the information (Mortensen, 2007). The author of Communication Theory offered postulate

that is accepted by many scientists: “Communication occurs whenever persons attribute

significance to message-related behavior” (Mortensen, 2007).

Communication also may be defined as the unity of information, message, and

understanding (Luhmann, 2012). Understanding of the information is very important and connects

with selection. People link the communication with selection and make certain decisions or make

other people decide.

Upon the whole communication take place when one individual directs a set of symbols to

another individual with the aim of changing something, either something the receiver is doing (or

10

not doing) or changing his or her world view (Newstrom, 2014). Here it is important to understand

the diversity of meanings that people give to different messages they get and importance of their

behavior after getting this messages as a feedback and indicator of communication‟s effectiveness.

With the aim to create brand awareness, advertise products or in common to deliver to the

potential customers some information that can persuade them to make a purchase companies may

use different forms (types) of communication.

Two basic forms of communication that may be used in both marketing communications and

sponsorship – verbal and visual. Verbal communication is based on speaking to send a message

(Schramm, 2008). In sports sponsorship verbal form of communication is used in mentioning the

name of the sponsor, name and characteristics of sponsor‟s products. The underlining of sponsor‟s

importance in organizing the event, supplying it by needed inventory and players by needed

equipment or outfit help to inform the consumers about the company‟s name, build the awareness of

its activity, participation in social and sports life. More frequently mentioning of the sponsor by

organizers helps to create more positive and accurate image that will remain in the minds of the

participants.

Visual communication is based on communication through a visual aid and is described as

the conveyance of ideas and information in forms that can be read or looked upon (Sless cited in

Lester, 2011). Visual communication is the most effective form especially in sport sponsorship,

because at sport events people focus their attention mostly on action and actors that take part in that

action. For example attending basketball match fans may ignore information get in verbal way that

is not related to the game, but all time looking on the banners, posters on the playfield, logo of

different companies on the sportsmen‟s outfit they will remember it and recognize in the future.

Communication consists of some basic elements: communicator, communicatee, message,

communication channel and feedback (Mortensen, 2007). The communicator is someone who want

to send a message with certain content, information, idea, order, suggestions etc. Communicatee is

the receiver of the message for whom the communication is meant. Communication channel (the

media) connects the sender (communicator) and the receiver (communicatee). Feedback shows the

effect or the reply to the information that was got by receiver. All those elements create a

communication model (Fig. 1).

Figure 1. Communication model

Source: The Pfeiffer Library Volume 25, 2nd Edition: http://home.snu.edu/~jsmith/library/body/v25.pdf (accessed

February 5, 2016)

11

According to above communication model firstly sender encodes the information by

transforming it to the form needed for understanding and making effect on receiver. Then choose

the appropriate channel and send the message. In its turn the receive decodes the message and get

some information that can correspond to the one encoded by sender or differ if the encoding process

or channel was chosen wrongly. Such model takes place in all types of communication, also in

corporate communication that concerns marginally the diploma‟s topic.

In the past term “marketing communication” was used under other names such as

“advertising” or “promotions”, but now it used as individual term with its own meaning. It is used

to describe all the promotional elements of marketing mix which involve the communications

between an organization and its target audiences on all matters that effect marketing performance

(Pickton & Broderick, 2010). It is worth to note that marketing communication shouldn‟t be used as

relevant or alternative to advertising, because advertising is a part of marketing communications.

Concerning promotions, marketing communications is a broader concept.

Also marketing communications sometimes confuse with public relations. This terms has

differences, but also can be complementary. Firstly until 1980s to communicate with the

stakeholders companies used marketing and public relations as separate instruments (Cornelissen,

2007). According to traditional point of view marketing was dealing with markets and public

relations with all the public (except customers and consumers). Later companies found out that

promoting customer‟s loyalty and brand awareness can also be helpful to increase sales and

marketing public relations appeared (Caywood, 2011). They began to use techniques of public

relations in marketing.

Nowadays marketing and public relations are strongly overlapped. Marketing involves

product development, pricing, distribution, promotion and also marketing communication. The last

consists of mass media advertising, direct marketing, sales promotion, corporate advertising,

product publicity and sponsorship (Cornelissen, 2007). Corporate advertising, product publicity and

sponsorship are common elements with public relations and have significant influence on creating

company‟s positive image, awareness and sales.

Another popular word in modern business literature is “corporate communications”.

Marketing communications is one of three forms of corporate communications (fig. 2). The

difference is that marketing communications refers strictly to marketing activities, management

communication includes communications by managers with internal and external target groups and

organizational communication comprises internal communication activities at the corporate level

(Pickton & Broderick, 2010).

12

Figure 2. Forms of corporate communication

Source: the figure has been created by the author, based on Pickton and Broderick, 2010

By J. Cornelissen corporate communication is a “management function that offers a

framework for the effective coordination of all internal and external communication with the overall

purpose of establishing and maintaining favorable reputations with stakeholder groups upon which

the organization is dependent” (Cornelissen, 2007). It is a message that company wants to send to

the stakeholders to inform them about their mission, vision, main activities, profitability, investment

attractiveness, quality and uniqueness of produced products, ethics and all other information it

needs or have to share. For company‟s sustainability and success the main thing is what image and

view sit among key stakeholders. To build, maintain and protect that image and reputation company

should competently use the communication.

Some scholars define (Goodman, 2011) corporate communication more widely and

underline that it consists of “such traditional disciplines as public relations, investor relations,

employee relations, community relations, advertising, media relations, event communication,

sponsorship, labor relations, government relations, technological communications, training,

employee development”

Marketing communications create the biggest part of the corporate communication budget

(Van Riel, 2011) and include all those forms of communication that support sales of particular

goods and services and also corporate promotions. The last one is more than important as images

and impressions of the organization influence on success of its goods and services.

In recent years term „integrated marketing communications” (IMC) is becoming popular as

a lot of scientists underline that the greatest marketing communications impact is possible when all

elements are integrated and comprise the whole. Since many authors discuss the concept of

integrated marketing communications there are many definitions. For example, it is defined as a

process for managing the customer relationships that drive brand value and as a cross-functional

process for creating and nourishing profitable relationships with customers and stakeholders by

strategically controlling or influencing all messages sent to these groups and encouraging data-

driven, purposeful dialogue with them (Duncan, 2009). Kotler offers to understand IMC as the

Corporate communications

Marketing communication

Organisational communication

Management communication

13

concept under which a company carefully integrates and coordinates its many communication

channels to deliver a clear, consistent and compelling message about the organization and its

products (Kotler et al., 2007). Pickton and Broderick (2010), that made a great research of IMC and

combine all its theoretical and practical aspects, offer a complex definition based on their

experience and analyze of other author‟s definitions: IMC is a process which involves the

management and organizational of all agents (individuals and organizations) in the analysis,

planning, implementation and control of all marketing communications contacts, media, messages

and promotional tools focused at selected target audiences in such a way as to derive the greatest

enhancement and coherence of marketing communications effort in achieving predetermined

product and corporate marketing communications objectives.

According to IMC communication model differs from the one that is introduce on the Figure

1. Some authors underline the importance of adding more key elements to that model: marketing

communications context, communication loop, receiver response, brand equity and “time period

+1” (Figure 3).

Source: Pickton and Broderick, 2010

The marketing communication context is internal and external environment in which

communication takes place and that influences on the nature and meaning of communication

process. The communication loop is connected with feedback and performs the connection of the

receiver with sender (Pickton & Broderick, 2010). Communication loop recognizes the two-way

nature of communication. One-way communication is from sender to a target audience with no

feedback or dialogue. If some feedback has place by using, for example, research, then we can talk

about two-way asymmetric communication. The most effective form is two-way symmetric

Figure 3. The IMC communication model

14

communication when direct dialogue (with the help of interactivity and near-immediate response)

between the sender and the audience take place.

Next element is the receiver responses to the marketing communication process that create

the brand equity – attitudes, associations and behaviors (e.g. perceived quality and loyalty). The

“time +1” element aimed to show that brand equity is changes over time and response to

communication process can influences on the subsequent process and output of a communication in

future.

Thereby modern concept of communication in marketing is based on integration of different

marketing activities engaging all components and all external and internal processes of the

company. In this work author will mainly pay attention on sponsorship as marketing

communication tool of the companies which purpose is to deliver a range of promotional messages

to its target markets or better target audiences. But also as described before theory of marketing

communication should be taken under attention. Sponsorship as a tool will be effective only in

integration with other marketing activities and only if common marketing communications models

will be used.

1.2. Characteristics of sport sponsorship

Sponsorship is considered as one of marketing communication tools with the biggest

potential, which allow s the company to create good relationship with its customers. World becomes

more and impersonal place and people looking for a sense of community – of belonging. Often such

sense of belonging can come from different interests - sport, arts, charitable beliefs, educational

institutions etc. Those interests become an important part of the life as they make people think that

they are the part of the community (e.g. fans of sport team or fans of basketball). By using

sponsorship companies introduce a brand to the market that has some special cultural meaning.

Sponsorship offers the opportunity to connect with people when they are experiencing or

undertaking an activity that they enjoy and have chosen to be involved in. Companies buy the rights

to associate themselves with special events, kinds of sport, teams or sportsman. For example,

watching match of the favorite football team and noticing that all players are in T-shirts with the

logo of Adidas its fans on the subconscious and conscious level can be more loyal to that brand

which will have for them more personal meaning.

Origins of the sponsorship can be traced to Ancient Greece. Popular then and still ongoing

Olympic Games was sponsored by rich citizens and government – winners accepted symbolic

prices also got money, nourishing provided by town, exemption of paying taxes and so on. All those

presents allowed sportsmen to hire a coach and better preparation for the next games. In such way

the participant of Olympic Games in exchange for those benefits worked on good image of his town

15

and country, because victory meant not only glory but also favor of the gods for him and the town

he represented (Sandler & Shani, 2011).

Origins of modern sponsorship (support in exchange for benefits) we can find in modern

traditions of patronage that appeared in ancient times. The idea of patronage was firstly provided by

Gaius Clinius Maecenas at the beginning of our era and then the idea of culture and art supporting

spread all over the Europe. Usually sponsors were the popes, kings, princess, and nobel people.

America and other continents and islands could be never discovered if there were no people who

were ready to sponsor risky and costly trips.

Nevertheless, patrons of art, culture and sport were never disinterested, because they were

trying to develop their good image, positive public opinion, show their richness, power – all this to

achieve own goals and or facilitate governance. In the end of the XIX and beginning of XX century

big companies, banks, financiers, politics continued the idea of patronage in the form of sponsoring

events, certain persons, institutions etc. Supporting activities that are socially important formed a

positive image of the sponsor in the public and impact on economical success.

Nowadays sponsorship is defined by European Sport Association as “any commercial

agreement by which a sponsor, for the mutual benefit of the sponsor and sponsored party,

contractually provides financing or other support in order to establish an association between the

sponsor‟s image, brands or products and a sponsorship property in return for rights to promote this

association and/or for the granting of certain agreed direct or indirect benefits”.

Pickton and Broderick (2011) defines sponsorship as a contribution to an activity by a

commercial organization in cash or in kind, with the expectation of achieving corporate and

marketing objectives. According to Quester (2011) sponsorship refers to a marketing activity that

involves investing in a property (e.g. an event, sport or art),with the view of deriving commercial

benefits from the associations more particularly in terms of marketing communication, with this

property. Quester (2011) also underline the importance of event marketing that aimed to secure

corporate sponsorship and to maximize PR opportunities with the help of marketing activities that

are planned and implemented around the event.

Brooks (cited in Caywood, 2011) notes that sponsorship has different characteristics than

other elements of communication mix. It allows the sponsor more intimate relations with

consumers, it has strong influence on their emotions. Potential of sponsorship can be used to change

the attitude, increase the awareness of brand and company, build and keep positive relations.

From the point of marketing communications, sponsorship is a marketing strategy aims at

promoting the brand, trademark or image of the company. Most of authors underline that

sponsorship is not only about supporting of events or persons. The main goal of sponsorship is to

send a message to the target audiences that will deliver them the information that such company and

16

product exist, about its activities and importance with providing possibility to watch favorite sport

game, visit exhibition of famous artist, attend concert etc. Awareness of company‟s brand and

loyalty of the customers is used later by the companies to get into the new markets, to strengthen

the current position of the product and of course to achieve certain financial goals.

Analyzing the definitions of sponsorship the author can submit the next:

- Sponsorship is every form of sponsor‟s participation in the costs of certain intention (money

payments, providing free stuff, services etc.) with the aim of promotion,

- Promotion is based on disseminating the name of the brand, company, its logo or trademark,

- Participation in the costs of certain event or individuals means that financing is made for

achieving certain goals.

Sponsorship shouldn‟t be confused with investments into sport and other spheres of social

life if those investments are made to get profits as in business, with altruistic support (e.g. charity).

That‟s why it is important to define basic characteristics of classical sponsorship:

1. Mutual benefit of the sponsor and the sponsee:

- sponsor makes available a certain amount of money or other resources

- sponsee performs the action for the sponsor, which directly or indirectly contribute to

the objectives of the sponsor,

2. Combination of advertising, public relations and sales promotion instruments in the

promotion of the company, which serves communication, image building and gaining

popularity, reaching economical effects,

3. Indirect way to promote a business or product (media discuss about the sponsee and mention

sponsors),

4. Conscious and systematic approach to decision-making, planning, organization, control of

own activity and sponsee‟s activity according to the results of financing and equipping of

certain items (services),

In addition to global and international rich sponsorship offers a wide and diverse range of

possible activities, from the small community-based grassroots sports programs to the largest and

most dominant event in the sporting arena, the Olympic Games. The most popular area of

investments for sponsors is sport that represents 70% of all sponsorship budget (comparing to 3%

allocates to arts and 9% to a third party or cause (Quester,2011).

Sponsorship as a form of marketing communications rapidly became very popular and continue

to grow. This situation has certain reasons. First of all, traditional forms of marketing in some way

became less successful. For example, with the increasing of commercial television and radio

stations too much advertising appeared. So sponsorship was seen as an alternative and often cheaper

form of gaining exposure that avoids clutter and allows a sufficiently distinctive message to be seen

17

and/or heard. Secondly, sponsorship together with forming audience awareness create also an

association between the values the sponsored entity exemplifies and the sponsoring company

(Pickton & Broderick, 2011). The third reason is that sponsorship can break the cultural and

linguistic barriers as sport and cultural activities are the ones with global appeal. The forth reason

refers to the getting wider and multiply target audience. Sponsorship influence strategic partners,

company staff, civic officials, government regulators and of course customers all over the world

(Quester, 2011). And in conclusion as Sleight (cited in Pickton & Broderick, 2011) pointed out –

“sponsorship works because it fulfils the most important criteria of a communications medium – it

allows a particular audience to be targeted with a particular message”.

Sponsorship has different forms: sponsoring individuals, organizations, teams, events and

causes (Cornwell and Weeks, 2010). The sponsorship of individuals refers to sponsoring mostly

sportsmen and women. An individual performer is paid a fee to endorse a certain product or service.

But such form of sponsorship can be very risky because of unpredictability of the human behavior.

Celebrities are always insight and any scandals or fail can make a bad influence on the brand. From

the other side celebrities determine fashion and give the example of consumer‟s behavior to their

fans and others. Sponsoring organizations is connected with company‟s social responsibility, for

example sponsoring environmental organizations shows that company take care of the environment

or its product also help in it. Sponsoring teams is one of the most popular form and strictly connects

with sport. Sportsmen get equipment and other stuff (e.g. clothes) in a good quality and in needed

amount but with logo of sponsor‟s company or product. Sponsoring causes occurs when a company

forms a strategic relationship with a specific social cause or causes that are mutually beneficial to

all parties (Sandler and Shani, 2011).

To be successful and profitable sponsorship should be integrated to other components of the

marketing communication mix and additionally the sponsorship as the form of marketing

communication and promotion should be integrated with other marketing activities: formation of

the product, its price and distribution. So more attention should be paid to sponsorship in marketing

mix and sponsorship marketing.

1.3. Sponsorship in the marketing-mix

As it was mentioned before sponsorship is a tool of marketing communications but it is

important to underline that at the same time it is the tool of sponsorship-linked marketing and

considered as a form of promotion.

Sponsorship-linked marketing comprises giving products, services and brands to the judgement

of the public by supporting events, teams, people, programs and other activities in order to achieve

the objectives of marketing communication. This process involves exposing the company or brand

18

in the media and using marketing tools in order to obtain a promotional and business reaction

favorable for external and internal relationships of the sponsor (Peacock, 2016).

Sponsorship-linked marketing enables companies to reach their target market more easily than

with the help of other methods of communication, discloses a product/service directly on the market

and become an excellent mechanism for translating marketing objectives of the company to the

benefit of the community (Cornwell and Weeks, 2010). Marketing should include the total brand

experience, and not just its use. Customers has to lust after the brand, not only to be aware of it and

prefer it. Sponsorship must connect the brand to the life, to have contact with all the senses, find a

common interest with the audience. Implementation of all described functions of sponsorship-linked

marketing is connected with integration of sponsorship to elements of marketing-mix.

Type of product has a significant influence on the choice of forms of promotion that the

company should use in the market. Sponsorship can be used by the companies producing consumer

products and industrial products. Sponsorship is easier in terms of realizing by the manufacturer of

consumer goods, because then the relations between the sponsor and the sponsee may be closer

(Allori & Garzone, 2011). The right choice of sponsee is also important. If sponsor produces goods

of mass consumption then sport sponsorship will be suitable as it can get the appropriate target

audience. For example, the sport sponsorship will be appropriate for producers of sport clothes or

sport equipment.

Promotional activities depend on the characteristics of the product: functionality, packaging,

trade mark, a guarantee provided by the producer, the technical services provided by the supplier.

For example, sponsors actively use packages for promotion to inform that producer of the product

are the sponsors of the certain event, team or sportsman (in case of individual sponsorship) (Figure

4,5).

Figure 4. Coca Cola packaging for the Olympic Games

Source: Pacaging design http://www.thedieline.com/blog/2012/6/12/coca-cola-packaging-for-the-olympic-

games.html accessed on 25th of February

19

Figure 5. Lay’s packaging with the photo of sponsored by them football player Messi

Source: Packaging Strategies http://www.packagingstrategies.com/articles/87190-potato-chip-brand-launches-

football-themed-packaging accessed on 25th of February

Next important and often the main element of the product used by sponsors is trademark

(brand). Using of sponsorship has sense in the case of the brand products, because only they can be

identified by the consumer. If the company is well-known on the market it uses only its logo at the

time of sponsored events. Company with the brand that is less known cannot use only logo because

their image will not stay in the consciousness of potential consumers (Quester, 2011). In such case

important thing is organizer‟s comments about the sponsor during the event. Entering new market

or introducing the new product can be supported by sponsorship to increase the awareness of the

brand. As positive image and perception of the product is important sponsorship can be used at all

stages of product‟s life cycle.

Sponsorship is also should be integrated with price. Usually companies use penetration price

strategy and high price strategy. Penetration price strategy means that company provide moderate

price to make as more consumers as possible make a purchase. In this case product is standard and

mostly only price is competitive (Joep, 2011). It is important to underline the characteristics of the

product and its price to show that it is accessible for everyone (for example beer and other drinks,

sport clothes, food products). But sometimes low price can be associated with bad quality. Entering

the market with using low prices can be successful if consumers know about the product‟s

advantages.

High price strategy refers to luxury products and take place when company wants to underline

the product is unique (Cornwell and Weeks, 2010). In this case, promotion should accentuate

prestige associated with consuming or using the product (e.g. rolex watch or jewelry). Sponsor

should choose for sponsorship such events or individuals that are connected with its products.

Company that has exclusive products (e.g. expensive alcohol) with high price doesn‟t have to

sponsor events of pop culture or such sports as football or boxing. Companies with standard

20

products will not be successful sponsorship at elite events (e.g. golf tourneys). Still sometimes there

cannot be one rule. For example football is loved by different people (rich and poor), so sponsors

may have various types of audiences coming from different social class.

Making decisions about sponsorship companies should think about the image of the network of

distribution in which companies will sell the products. Type of distribution channels must be

connected with the product and amplify its image. Luxury products are sold in exclusive places that

inform the customer about the status and advantages of those products. For example Rolex is the

sponsor of all famous golf tourneys - Masters, US Open, The Open Championship and PGA

Championship, Louis Vuitton is the sponsor of Louis Vuitton Trophy – introduction to the start in

the the America's Cup (prestigious regatta).

Sponsorship can be perceived as the tool of promotion, but connections between them are

twofold. Form one side sponsorship can be used as a tool of promotion adopted for achieving

certain objective (e.g. social responsibility) (Cornwell and Weeks, 2010). From another side

sponsorship can be the axis of the promotion (e.g. changing the attitude of the consumers to the

company). Also sponsorship can support another elements of promotion in the company or be

supported by them.

Summarizing, sponsorship is very complex activity considered as important and effective tool

of marketing , It helps to represent the product and the producer itself to appropriate audience. What

is important that presentation should be provided in integration with other marketing and

organizational activities of the company. It should be linked with such marketing-mix elements as

product, price and distribution, that helps to create an appropriate message about the product and/or

the company and deliver this message in effective way using marketing communication model. As

this model takes into the account such additional elements as communication loop, marketing

communication context, receiver response, brand equity an time period +1, it provide the process

during which the right messages are received by the right people in the right way. Effective

communication model in sponsorship ensures positive economical effects and brand awareness.

1.4. Theoretical models of effective marketing communications

Sponsorship first of all aims to improve the perception of brand performance by linking

people‟s beliefs about the brand to an event or organization that the target audience values highly

(Cliffe and Motion, 2001). In that way sponsorship can positively affect consumer attitudes towards

a brand‟s attributes (Browns et al., 2010). To do this sponsor should communicate with potential

customers using effective communication models. There are no models particularly for sponsorship,

as it‟s a part of integrated marketing communication mix, common for advertising and public

relations communication models will be analyzed in order to make a theoretical background for

further research of the author.

21

In marketing communication literature majority of models are cognitive information

processing models based on Cognitive Information Processing Theory. This theory describe the 3

stages process of how information is stored in memory (Atkinson and Shiffirn,1968), that are

represented on Fig. 6.

Figure 6. The information-processing model

Source: Baddeley, 2009

People receive a lot of different information through different senses, which is hold in their

own register for micro seconds and after only some of them transferred to the short term memory

(Halpern, 2008). Sensory memory processes information for very short time (less than 1/2 second

for vision, about 3 seconds for hearing) (Baddeley, 2009). After information enter sensory memory

it is forwarded to working memory (or short-term memory) or disappear.

Working memory is creating by our paying attention to an external stimulus, an internal

thought, or both (Branford, 2008). The duration of this type of memory is 15-20 seconds if it will

not be repeated (maintenance rehearsal). After repeating it can last around 20 minutes. The number

of units that can be processed is from 5 to 9 (Miller, 2016). It is important on this stage to point out

important information and to organize the effective process of rehearsal to transfer needed

information to the long-term memory.

Long-term memory has unlimited capacity and characterized by permanent storage – we can

easily recall the needed information (Andersen,2007). This type of memory is the base of people

knowledge. Long-term and short-term memory are linked by encoding and retrieval processes that

should transfer information from temporary store to long-term memory. Encoding take place trough

organization, elaboration, meaningfulness, link with schema. Retrieval refers to processes that

enable individuals to search memory and access information for active processing in working

memory (Shah & Miyake, 2009).

22

Marketing communication models are based on the Information Processing Model are The

Hierarchy of Effects and AIDA (attention, interest, desire and action) models.

The Hierarchy of Effects was offered by Lavidge and Steiner (1961) describe stages form

the one when the product first coming into company‟s target customers‟ awareness to the one when

the decision about purchase is made. Stages of the model are the next (in order): awareness,

knowledge, liking, preference, conviction, purchase (Fig. 7) (Lagae,2012). Stages grouped to 3

categories – Cognitive (awareness and knowledge), affective (liking and preference) and conative

or behavioral (conviction and purchase).

Figure 7. The Hierarchy of Effects model

Source: Pauley Creative, 2016

Cognitive stage aims to give the information to the potential customer, to create content that

will make people to pay attention on it and motivate the target customer to remember the message,

to be aware of company and its product (Halpern, 2008). Affective stage intended to create

customers attitude to the brand, the feeling customers associate the brand with. Behavioral stage

refers to making a purchase or just only the purchase decision (Andersen,2007).

Another marketing communication model is AIDA (attention, interest, desire and action)

(fig. 8). These stages are also divided into 3 categories: cognitive (attention), affective (interest,

desire) and behavioral (action). Therefore, first off all message should grab the viewer‟s attention

and create brand awareness. Then interest in the benefits of the product or service should be

generated together with sufficient interest to encourage the buyer to start to research further (Rawal,

2012). Next objective is to create emotional connection by showing brand personality, make people

not just liking the product, but desire it. The last stage is form downloading the brochure about the

product to becoming a regular customer (Lagae, 2012).

23

Figure 8. AIDA model

Source: Rawal, 2012

More recent model than AIDA is DAGMAR (defining advertising goals for measuring

advertising results) model. It was developed by Russell Colley as a tool to set objectives and

measure the result of advertising (Solomon, 2009). There are 4 phases:

Awareness – customers should be made aware of existing of certain product or service,

Comprehension – consumers have to understand the offer and how it will benefit them,

Conviction – the decision about purchasing should be made,

Action – the result followed by buying the product.

In order to communicate effectively with target audience It is important to create a message

with precised statement. According to the model after advertising was undertaken the further

measure should be provided to explore whether the process was effective or not and whether the

objectives have been met (Frain, 2011).

Another marketing communication model is ATR (Awareness, Trial, Repeat purchase or

Repurchase) that focuses on encouraging repeat purchases (fig. 9).

24

Figure 9. ATR Model

Source: Frain, 2011

According to ATR model in the purchase process there are also as in previous model some

systematic steps as cognitive, affective and behavior. First of all, potential customers must become

aware of product or brand and the awareness can be strong (unaided) or fairly superficial (aided)

(Egan, 2014). After the customer will find the product matched to his requirements and deliver a

competitively superior value – he would like to try the product. If the customer‟s perceptions are

inaccurate, he can refuse to make a purchase (Chaffey, 2013). As a result of matching customer‟s

expectations and expected delivered value the person make a purchase and may be inclined to buy

the product again (repurchase) (Egan, 2014). If the product missed, the expectations the customer

will not buy it again unless the product will be still needed or competitive brand are even worse.

This model is alternative to AIDA and it proposes that the repeating of purchase is the main goal of

advertising and sponsorship that work on reassuring of the existing customers that they have made

the right choice of the product or service.

Cho Syngho (2009) performed the Composite Model of Sponsorship Matching in Light of

Brand Choice Behaviour that is based on psychologist and corporative theories. The model consists

of 7 levels: unconsciousness, perception and self-congruity, schematic evaluation, attitude

formation, attitude, intention and behaviour (fig. 10).

25

Figure 10. The Composite Model of Sponsorship Matching in Light of Brand Choice

Behaviour

Source: Cho Syngho, 2009

First of all the concept of the product may influence a positive attitude toward the product

and make the person have a willing to buy it in case if product‟s concept is close to that person‟s

life concept. So finding something similar between the characteristics of the product and its own

lifestyle and self-perception person in an unconscious or conscious way will prefer it as one that is

closed to its self-image. For measuring brand properties of sponsors and sports Aaker (1997)

developed a model of Brand Personality Scale (fig. 11).

Figure 11. Brand Personality Scale

26

Source: Aaker, 2010

Next level is schematic evaluation – sponsor should match the sponsee, in other words be

suitable for efficient promotion. Matching help in creating positive attitude towards sponsorship

programme. Attitude formation is important as it was described in many model (e.g. dual-mediation

model), that it influence on customer behaviour (fig. 12).

Figure 12. Dual Mediation model

Source: Source: Cho Syngho, 2009

When the attitude is formed the customer began to feel buying intention to make a purchase and

finally make a brand choice by making that purchase. Consumer cognitively understands and

evaluates a set of brand attributes significantly influences the likelihood of brand choice.

The important continuation of all models is their implementation. Implementation represents

moving an idea from concept to reality (Shah, 2009).

Bhattacharyya (2006) offered such stages of model implementation as exploration,

installation. Initial implementation, full implementation and expansion and scale-up (fig. 13) that

can be adopted to the model created by author.

27

Figure 13. Stages of model implementation

Source: created by the author on the base of Bhattacharyya at al. (2006)

Many managers assume all described models of marketing communications as the basis for

setting sponsorship objectives and measuring sponsorship effects (Woodside et al., 2009). Still

those models very often include variables that are difficult to measure and relationship between

some of them should receive empirical support. Also sometimes, the repetitive nature of purchase

behavior is ignored (Chaffey, 2013). Sponsors usually may communicate only by its brand and

logo, so the most important for them is cognitive stage of marketing communication. Sponsor

should attract, make potential customer to remember it and to be aware of it to make a purchase

later and even more important as it was mentioned in ATR model to repeat the purchase. Most of

the models refer to advertising and its particular properties, but still acceptable to other elements of

integrated marketing communication mix as sponsorship.

Author adopted higher proposed models in order to make initial model of effective

communication in sport sponsorship (fig. 14) that will be developed, deepened and expanded after

field analysis and researches.

Exploration

Installation

Initial implementation

Full implemetation

Expansion and scale-up

28

Model on the figure 10 consists also from 3 stages (cognitive, affective and behavior) that are

appropriate to all communication processes in marketing. First stage include stimuli (visual, sound,

perception of image) which goals is to pay attention on sponsor and its product. After paying

attention what should be connected with transferring stimuli to working and later long-term

memory sponsor should make people like him, prefer to another ones and desire to know more

about it and its product. On this stage emotions, feelings and gratitude to sponsor are very important

elements especially in sport sponsorship. If the sponsee provide appropriate emotions and sponsor

do everything to pay attention on its brand then potential customer will have the feeling of gratitude

to it and in most cases prefer it rather then another competitive company. Emotions also form the

desire to make a purchase, especially in sport. For example fans will desire to have similar T-shirt

of the same brand as their favorite players. Then if the desired product matches the customer‟s

needs and purchasing possibilities the purchase will take place. However, what is very important

sponsor should act effectively and all time support the liking and preference by the customers of its

brand in total and certain products in order to ensure repurchase.

In the next chapter author will conduct field research to gather primary data and offer later

adopted model of communication in the sponsorship.

Figure 14. Initial model of communication in sport sponsorship

29

2. FIELD ANALYSIS

2.1. Sponsorship in Lithuania. Kauno Zalgiris case

During the period between World War I and World War II the state didn‟t have funds to

support social activities so they were based on private sponsorship. In 1932 law regulations for

sports were passed and the House of Physical Culture was established to support the development

of social activities (Jakubavičienė, 2010). However, sport clubs still were looking for sponsors to

establish competition prizes, pay various bills, promote talented sportsmen, etc. In addition, national

minorities such as Poles, Jews, Germans were using private sponsorship to maintain their sport

clubs. Sponsors were mostly represented by the founders of sport clubs, which can be considered as

the initiators of professional sports in Lithuania. Football, track and field athletics, boxing, car

racing, horse riding and shooting were most attractive for sponsors (Jakubavičienė, 2010). Aiming

to promote physical culture and following the trends from Europe politics, celebrities, businessmen

were taking part in supporting sport clubs, championships and sportsmen.

When in 1940s Lithuania was occupied by Soviet Union, it was forced to adopt soviet Union

political, economic and social system. Until the independence from USSR the main organizations

and departments that were regulating sport activities were Voluntary Sports Societies (VSS) of the

USSR, Dinamo, society in cooperation with Army, Aviation, and Fleet (DOSAAF), and CSKA

sports societies (Riordan, 1977). VSS united working people and students to participate in sports.

The societies provided a sponsorship for various sport events and often existed on the volunteer

donations from the workers of the certain industry with which they were associated (Riordan,

1977). Their aim was first of all to promote and develop physical culture and sports and to provide

facilities and conditions for sports training and improvement in athletes' skills.

From the time Lithuania became independent in 1990 new government continued to support

sport and other social activities, but in the market economy private sector again became main

sponsor of clubs, sportsmen and sport events. In 2010 the market research company “Synopticom”

made a research among Lithuanian companies with the aim to explore sport sponsoring trends.

During this research 300 representatives were surveyed (owners, CEOs, marketing and PR

executives). Results showed that (Sport Management Association, accessed 10-03-2016):

- Six out of ten companies that do not sponsor sports now, would consider doing it;

- 80 % of sport sponsors assert that their sponsorships had provided bigger profit and brand

awareness and most of them are planning to continue sponsoring;

- 55 %of the companies underlined that businessmen were encouraged to sponsor sports in order

to establish connections with target groups and clients;

30

- Usually the most sponsored sport activity is basketball, auto sport takes the second place

among sponsors' priorities, as it would be considered by one third of the respondents, while 25

percent would possibly sponsor football.

Sponsorship in Lithuania is regulated by “Law on Charity and Sponsorship of the Republic of

Lithuania” from July 11th 2001, that establishes the framework for providing and receiving charity

and sponsorship, the purposes of providing and receiving charity and sponsorship as well as the

providers and recipients of charity and sponsorship. It also regulates charity and sponsorship

accounting and control where the providers and/or recipients of charity and/or sponsorship are

entitled to reliefs from taxes and customs duties prescribed by the laws.

The most popular sport in Lithuania is basketball. It is also the sport in which Lithuanian teams

are very successful. Basketball is called the “second religion” for Lithuanians (The official

gateway of Lithuania, accessed 10-03-2016). The most popular matches among Lithuanians are

matches of Lithuanian national team in the Championships. Except of national team the most

popular and followed are “Vilniaus Lietuvos rytas” and “Kauno Žalgiris” that represent the largest

cities in the country – Vilnius and Kaunas.

In this way basketball matches attract the largest crowds to arenas and TV screens and became

the most attractive events for sponsors. Additionally basketball national team and other teams that

represent certain cities have the biggest amount of sponsors from Lithuania and abroad. Author will

describe Kauno Žalgiris team as perspective for sponsorship and its sponsors.

Basketball club Zalgiris was established in 1944 and soon became a power, winning multiple

Lithuanian basketball championships (Official website of BC Zalgiris, accessed 11-03-2016). It is

considered as the oldest and titled Lithuanian basketball team, a multiple winner and medalist of

the USSR and the Lithuanian championship, the winner of the Euroleague in 1999. Žalgiris is one

of 11 European clubs that has Euroleague A Licenses that gives the possibility to take part in the

regular-season phase of the Euroleague (Euroleague. Club Profile, accessed 11-03-2016).

The name “Zalgiris” means green grove and was given in honor of the victory of Lithuanians,

Belarusians and Poles over the Teutonic Order in the Battle of Grunwald (lit. Žalgirio mūšis)

Official website of BC Zalgiris, accessed 11-03-2016). The logo of the club represents a green and

white shield with the sign "BC Žalgiris", a basketball, and the letter "Ž" (Figure 15).

31

Figure 15. The Logo of Zalgiris Kaunas

Source: Official website of BC Zalgiris: http://zalgiris.lt/en (accessed 11-03-2016)

Dominant colors that underline identity of the club, team, fans and other items are both

green and white. The uniforms (“home” and “away” variant) of players are introduced on Figure 16.

Figure 16. “Home” and “away” uniform of Kaunas Zalgiris

Source: FIBA database (accessed 11-03-2016): http://boards.sportslogos.net/topic/95106-fiba-uniform-database-fiba-

word-championship-2014-all-quarter-finalists-uniforms-added/?page=3

Kaunas Zalgiris from the beginning of its establishment was playing very good what proves

the fact that in three years in 1947 the team won the USSR Premier Basketball League (Official

website of BC Zalgiris, accessed 11-03-2016). But the real fame came in 1980s when Zalgiris

became a champion three times in a row in Soviet Union National League championships from

1985 till 1987. At this time a big role in the development of the team played new talents such as

Valdemaras Chomičius, Rimas Kurtinaitis, Arvydas Sabonis and coach Vladas Garastas

(Euroleague. Club Profile, accessed 11-03-2016) .

Another succesful season was in 1998-99 when Zalgiris once again won the LKL title, the

5th one in a row against BC Atletas. In the same season they surprised the fans of basketball by

their win. They were crowned European champions. The team was coached again by Jonas

32

Kazlauskas and led by former NBA players Tyus Edney, Anthony Bowie, George Zidek and great

Lithuanian talents (Official website of BC Zalgiris, accessed 11-03-2016).

Next years Zalgiris had a lot of changes in the structure, sponsors, coaches. A lot of good

players left the team to play in the richest European clubs. The 2012-13 and 2013-14 seasons were

successful for Zalgiris: it started the Euroleague season with 5 wins in 5 games, the best start in the

club's history in Euroleague, finished first in the group for the first time in 13 years, with an 8-2

record, dominated the LKL and the VTB League and so on (Official website of BC Zalgiris,

accessed 11-03-2016).

To sum up Kaunas Zalgiris was 28 times a champion of Lithuanian League (last wins 2001,

2003, 2004, 2005, 2007, 2008, 2011, 2012, 2013, 2014, 2015), Soviet Union League - 3 times

(1985, 1986, 1987), Lithuanian Cup – 6 times (1990, 2007, 2008, 2011, 2012, 2015), Euroleague –

once in 1999, FIBA Saporta Cup – once in 1998, FIBA Intercontinental Cup – once in 1986

(Eurobasket. Sport I.T., accessed 11-03-2016). In this way the company can be considered as

attractive for sponsorship. Alternation of wins and losses are a natural phenomenon and depends on

many factors. One of the main factor is availability of finance for the development of the team, the

relevant fees for the players and the coach, providing necessary equipment. Very often players left

the team looking for higher payments. So sponsorship for Zalgiris the same as for many others sport

teams is important element to continue playing and winning. The popularity of basketball among

Lithuanian and reputation of Kaunas Zalgiris attracted many sponsors that are aiming to reach target

audiences (fans of Zalgiris and basketball in common).

2.2. Overview of Kaunas Zalgiris sponsors

BC Zalgiris has 4 types of sponsors that has next statues: general sponsors, main sponsors,

top sponsors, sponsors, media sponsors (Official website of BC Zalgiris, accessed 11-03-2016). The

main characteristics of general sponsors, main sponsors and sponsors are represented in the Table 1.

Table 1

The main Characteristics of Kaunas Zalgiris sponsors

Name of the

sponsor

Country Size Products

General sponsors

Kaunas City

municipality

Lithuania - Government organization

OlyBet Estonia Revenue 4

million

EUR, 530

employees

pre-match and live sports betting and virtual

gaming possibilities.

33

Main sponsors

Lietuvos

energija

Lithuania 5100

employees

power and heat distribution and supply, natural gas

trade and distribution as well as construction and

maintenance of power plants and grid

Kauno Tiltai Spain 1000

employees

motorway and road construction projects; e

construction of tunnels, railways, airports, water

ports, erection of engineering and energy networks,

production of building materials, and installation of

waste facility sites.

Utenos Lithuania Revenue :

469,98 mln.

lt

Beer and other alcoholic beverages

Bosca Lithuania n/d alcoholic beverages

Top Sponsors

Akropolis

Kaunas

Lithuania 109

employees

Shopping and entertainment center

Vici Lithuania 7500

employees

crab taste sticks, surimi products and fish

Kauno

Vandenys

Lithuania 502

employees

Water Supply and Irrigation Systems

Kauno Svara Lithuania 488

employees

research & investing information

Perlas Lithuania n/d Jewelry, bijouterie

Sponsors

Vytautas Lithuania 205

employees

Mineral water

Vilkyskiu Lithuania n/d Cheese

Renault France Revenue:

45,33

billion EUR

Automobile manufacturer

Gjensidige Norway 41.54

billion EUR

Insurance services

Lytarga Lithuania 582

employees

ferrous metals, pipes, building materials, fasteners,

agricultural machinery, tractors, agricultural

machinery and others

TonyResort Lithuania n/d 4 stars hotel; conference halls

Adidas Germany Revenue

14.49

billion EUR

Sport clothes, shows, equipment

Husquarna Sweden 170 mln outdoor power products including robotic mowers,

garden tractors, chainsaws and trimmers

Sanistal Denmark 30mln EUR

119

employees

Plumbing, Heating, Air-Conditioning

34

Aksa Lithuania 251

employees

ferroconcrete manufacturer

Kautra Lithuania 766

employees

Logistics services

Fiskars Finland Revenue

767.5

million

EUR

Traditional craft and garden product

Freda AB Lithuania n/d furniture

Grozio

chirurgija

Lithuania n/d aesthetic and day surgery, dentistry and well being

services

McDonalds United

States

28,1 billion

EUR

fast food restaurants

Aon Lithuania 95

employees

Insurance

Wellman Lithuania 2

employees

Real estate

AutoBroliali Lithuania 24

employees

Used cars trading

Admen Lithuania 104

employees

Advertising services

Baltic Travel

Service

Lithuania n/d Tourism services

Taupkase Lithuania 24

employees

Banking operations, financial intermediation

services.

Source: the table has been created by the author, based on official web-sites of companies and database of

rekvizitai.vz.lt (accessed 13-03-2016)

According to Table 1 the sponsors of Kaunas Zalgiris are mostly Lithuanian companies –

72%, and only 28% are the subsidiaries of foreign companies (Germany, Sweden, Estonia, United

States, Denmark, Norway, France, Spain. The predominance of Lithuanian companies is explained

by big popularity and success in the present first of all in the home country and region. Foreign

countries sponsor Zalgiris with the aim to promote their product and connect it emotionally with

beloved by Lithuanians sport activity influencing on people‟s predisposition to purchase it.

Sponsors of Zalgiris are the representatives of different sectors of economy. According to

the Figure 17 most of sponsors (25%) provides financial, insurance and trade services (e.g.

Gjensidige, Aon, Wellman), 22% of the companies produce food products and beverage (e.g.

Bosca, Utenos, Vilkyskiu), 19% are transport manufacturing companies (e.g. Renault, Husquarna),

16% of companies relate to the sector of entertainment, tourism and leisure (e.g. Akropolis,

TonyResort, Baltic Travel Service). Among sponsors, there are also companies that produce

furniture, logistic services, medical services, energy and others. Prevailing sponsors are medium-

35

sized and large companies that has more funds for different types of promotions including

sponsorship.

Source: the figure has been created by the author, based on Table 1

The general sponsors are Kaunas City Municipality and OlyBet. OlyBet is the new betting,

virtual games and slot machines brand name in Lithuania “OlyBet” under “Olympic Casino”. It

became a general sponsor in 2014. Zalgiris representatives underlined that “with such a powerful

general sponsor on board, they are able to strengthen the team with a couple of experienced players

and will also be able to build a bright future for the team” (Official website of BC Zalgiris, accessed

13-03-2016). OlyBet is already a leader in betting and virtual games market in Estonia and Latvia

that is now being introduced in Lithuania. So supporting Zalgiris OlyBet will make it entering

Lithuanian market more effective and arouse interest to its products among wide target audience.

Kaunas City Municipality became a general sponsor of Zalgiris in 2013 and combine around

30% of Zalgiris budget (budget of the club include: 3 million EUR – from sponsors, 2 million EUR

from government, 870 thousands - from Lietuvos energija and 1,5 million from ticket sales)

(Official website of BC Zalgiris, accessed 13-03-2016). But the biggest support Kaunas City

Municipality realized by investing into building the new multi-purpose indoor arena - the largest

indoor arena in the Baltics. This arena became a home arena for Kaunas Zalgiris. The arena's

maximum possible seating capacity for basketball games is 15,552, and 20,000 spectators for

concerts. Žalgiris Arena has had the highest attendance rate in Euroleague for 2 consecutive seasons

(2011-2012 and 2012-2013).

3% 3%

19%

16%

25%3%

3%

22%

3% 3%

Government organizationsEnergy productionTransoprt manufacturingEntertainment, tourism and leisure Finances, insuranse and tradingLogisticsFurniture productionFood industry and beverage

Figure 17. Sponsors of Zalgiris according to economic sectors

36

Sponsors aim to earn benefits by using Zalgiris as a sponsee – get new customers, hold

constant customers, build the awareness of their brand, deliver message to potential customer, but

the important thing is to make research whether they use sponsorship effectively as communication

tool or there are barriers and problem in communication models between sponsors and their target

audience that has to be fixed. To make that research author will use the method of survey.

2.3. Methodology of researches

In this work author try to create the model of effective communication in sport sponsorship

on the base of theoretical and practical data. All work represents the multistage process of creating

the model that will solve the existing problem. The problem is efficiency of companies‟ sponsorship

activity.

Naert (2013) offered next step of building model:

1) Plan the study,

2) Define the system,

3) Build the model,

4) Run experiments,

5) Analyze the output,

6) Report results.

Some of these steps were missed by the author (run experiments and analyze the output) due to

lack of time and first of all lack of resources for such experiments.

During the process of model creating it is important to make an analysis in a proper way.

Researcher should correctly identify the cause-and-effect relationships between different facts.

More attention should be paid on key impact factors and less on factors with little impact(Fritz,

2012).

Theoretical background of the work was made by analyzing the literature and internet

sources refers to the scientific problem. By adopting the existing models author offered the initial

model more appropriate to sport sponsorship that will be later developed and extended on the base

of empirical data and Kauno Zalgiris case. Empirical data was accumulated by using techniques of

survey.

Scientists offers different methods to monitor and measure sponsorship, its results and

effectiveness. Usually they are (De Pelsmacker et al.,2011):

1) exposure-based methods,

2) methods to measure the communication effects of sponsorship,

3) sales and market share measures

4) feedback from participating groups

37

The multipurpose tool for second and fourth methods is survey. Author made a questionnaire

(Annex A) that will help to analyze the role of sponsorship in the opinion of people who attend

sport events and the effectiveness of communication processes occurring at the time of sponsorship.

So to see if the sponsors of Kauno Zalgiris act effectively and to reveal the problem in

communication between sponsors and their target audience (purpose and goal of survey) the survey

technique was chosen.

Today the word “survey” is used most often to describe a method of gathering information

from a sample of individuals (Arora, 2012). This “sample” is usually just a fraction of the

population being studied (Shiu 2009). The tool used during the survey to collect and record

information about a particular issue of interest is questionnaire.

There are certain steps of making survey. First of all the researcher have to clarify the

purpose of a survey and formulate its goals. Then verify the resources and choose a survey method.

Another step is writing the questionnaire and making its pilot test to consider if any changes are

needed. After the survey took place gathered data should be processes and stored and later analyzed

and interpreted (Arora, 2012).

Questionnaire has advantages and disadvantages. Advantages are foremost its practicality,

possibility of collecting large amount of people‟s answer in a short period of time. Also, the result

of questionnaires can usually be quickly and easily quantified, compared with another studies (Lee,

2009). The disadvantages are uncertainty that respondents answered the questions truthfully, the

fact that people may read differently into each question and therefore reply based on their own

interpretation of the questions, a level of researcher imposition (Amandeep, 2010).

Questionnaire designed by the author include close-ended and open-ended questions. Close-

ended questions have answer that should be chosen by the respondents and this type of questions is

preferred as it allows to count the frequency of each response easily (Arora, 2012). Open-ended

questions characterized by asking the respondents to answer in their own words and those answers

later categorized into a smaller list of responses that can be counted and analyzed (Shiu, 2009).

Sampling method that was used in the survey is nonrandom as questionnaire was sent firstly to

random persons but only answers of the respondents who attended matches of Kauno Zalgiris or at

least watch them on TV were analyzed. The research took place in February -March 2016 and

lasted for 3 weeks (from 22 of February till 14 of March). The questionnaire was changed into

online version and sent with the help of e-mail and social networks.

The questionnaire consists of 24 questions that were made by the author to gather data for

building the effective communication model in sponsorship with the case of Kaunas Zalgiris.

Questions 1-2 (Annex A) are aimed to see the frequency of watching or attending the matches of

the team, that shows in what scale respondents can be aware of the team life, achievements and

38

also sponsors (as the frequency is more than the person faces the information about sponsor and

sponsor‟s product and can give better evaluation of its effectiveness and perception). Questions

3,4,5 (Annex A) should help to reveal the preferences of the respondents concerning the brands

sponsors are offering and connecting with Zalgiris and additionally the trust to those sponsors.

Questions 6-8 (Annex A) are aimed to analyze the perception of the sponsorship in common by the

respondents. Answers on these questions will help to see if sponsorship negative or positive for

them, weather they understand the meaning of sponsorship and their attitude to sponsorship.

Question 9 (Annex A) what types/firms of sponsorship are more effective for respondents.

Questions 10-13 should help the author to evaluate the attitude of the audience to the sponsor in

total and the sponsor‟s message. Question 14 (Annex A) created to see the character of the

respondent‟s awareness of sponsors of Zalgiris. And questions 15-24 are aimed to see whether the

actual sponsorship is effective – to see if respondents are aware of the products of sponsor or not.

The interviewed persons (total amount 231 persons) were first of all fans of Zalgiris and their

accompanying persons. Respondents were mostly male (77%) in the age of 25-35 years (36%) and

35-45 years (44%) that were students (29%) or employed (63%). 42% of interviewed persons

attend Kaunas Zalgiris matches once per 3 months, 18% - once per 6 months and 40% - once per

year. Respondents more often watch matches on TV or on-line: 63% - once per month, 12% - once

per 3 months, 12% - more than once per month, 10% - once per 6 months, 3% - once per year.

2.4. Study of Zalgiris’s sponsorship effectiveness

This subsector introduce the results of provided survey together with their analysis.

87% of respondents purchased products and services from brands associated with Kaunas

Zalgiris what can be explained by wide range of products and services of the team‟s sponsors. At

the same time 73% of interviewed noticed that they would prefer products and services that are

being associated with Zalgiris. Furthermore 63% of respondents have more trust to the companies

that may allow themselves to be sponsors.

Most respondents generally think that sponsorship is positive for sports (62%) and only 15%

consider it as negative (Fig. 18). Sponsorship besides its economic purposes support the

development of sport within the promotion of healthy lifestyle and its positive influence is very

often unquestionable. All sport events and sportsmen need financial resources, so sponsors are

looking for the best of them to introduce their brand contribute to “natural selection”. Only if

sponsors see the perspective of certain event or personality - they cooperate and invest to get short

term or long-term benefits. Organization of professional and interesting spectacle is not possible

without sponsors, as it requires significant resources. From the other side, people who evaluate the

influence of sponsorship as negative, underline that sometimes sport events lose on its

professionalism and become much commercialized - just a platform for advertising the sponsors, so

39

concept of the game is changing. Sometimes sponsors require performance, but not professional

competition.

Respondents were asked to identify the goals of sponsors in sponsorship, in other words

with what purposes sponsors spend money on sponsee. Interviewed persons could choose more than

one answer. 29% of responses concerned the raising awareness of the brand (219 responses), 25%

of responses were related to forming the connection with fans (187 responses). It is very hard to

evaluate the changes of quantitative indicators influenced by sponsorship, therefore qualitative

changes are more important. Awareness of the brand and emotional connection with fans lead to the

creating of certain preferences in consumer‟s consciousness, which directly or indirectly cause

purchase or repurchase. Sponsorship helps to strengthen the purchase intention and in such way

helps the company to get its revenue. But according to complicated processes of purchase behavior

tracing the connection and evaluation of the results of sponsoring become a time consuming and not

accurate enough process.

Less respondents think that sponsors aim to increase sales (159 responses, 21%) and to

compete against competitors (134 responses, 17%). The lowest number of responses concerned the

raising of awareness of products (64 responses, 8%) (Fig. 19). Sponsor promote usually its brand.

As big sponsors usually have different products with different names produced in some daughter

companies it has more sense to work on brand awareness. Nevertheless, this fact depends on the

size of the company and on the specifics of its products. For sure increasing of the sales is one of

the most important goals, because in market economy enterprises should strive to be rational and

don‟t waste their resources if they want to expand their activity and have revenues. Additionally

important element of successful company is the proper use of competitive advantages and taking

advantage over their competitors.

62%15%

23%

positive

negative

don't know

Figure 18. Attitude of the respondents to the sponsorship

40

According to 56% respondents the main reason that a connection between a consumer and a

sponsor is successful is emotional attachment (Fig. 20). For 26% of interviewed persons the main

reason is in meeting their needs, for 8% - influences attitudes and behaviors, for 7% - goodwill

feeling and only for 3% - valuing them by sponsor as consumers (Fig. 20). Last researches in USA

showed that 78% of consumers prefer products of the companies that support close to their heart

initiatives (Schwarzenberger, 2013). Sport it is always very strong positive emotions, and with them

it is much easier to build the desired marketing message. If advertising take place in the indifferent

environment and try to create any emotions – sponsorship already take place in the emotional

environment and thereby is more effective. Consumers appreciate the satisfaction of their needs of

certain event or person. For example, fans will be very thankful to sponsor that helped to engage to

the game their favorite player, facilitate their favorite team enter in particular league, provide

equipment for better conditions of the game and so on. Respondents declare also that successful

sponsorship has to impact on their attitude and behavior, so sponsor message should be clear

enough, emotional and valued to cause any actions from their side. Consumers have to understand

that company value them and support sport or sportsmen to satisfy them and in such way take into

consideration their interests.

159

65

219

134

187

0 50 100 150 200 250

Increase Sales

Raise Awareness of Products

Raise Awareness of the Brand

To Compete against Competitors

To Form a Connection with Sports Fans

Figure 19. Goals of sponsors according to the respondents

41

Respondents were offered to choose the most effective type of sponsorship and 82% of them

chose visual tools as banners, screens, team clothes, prizes and so on. From another side, 41% of

interviewed persons think that information about sponsors appearing too often during the match,

25% of respondents think that that information appears often and for 34% - it does not bother

(Fig.21). Of course, sponsors want to have as much benefits as possible, consequently fans are

inundated by corporate logos as companies scramble to stick their brand on every aspect of the

game. However, sponsors should not forget that for many fans sport is very important sphere of life,

sometimes it affects their honor and pride. Therefore, they require the respect to the sport events

and certain traditions. The example of exaggeration when players do not wear the name of their

team on their T-shirts, but the name of the highest paying sponsor. Or when the team change the

name including the name of sponsor.

These facts are confirmed by the responses that concern general attitude to sponsor‟s

information – for 41% of respondents it is essential and for 34% - neutral (Fig. 22). So most of

7%

56%8%

26%

3%Goodwill Feeling

Emotional Attachment

Influences Attitudes and Behaviours

Meeting the Consumer Needs

That they Value them as Consumers

41%

25%

34%

0%

Too often

Often

Doesn’t bother me

Not enough

Figure 20. Reasons of successful connection between a consumer and a

sponsor according to the respondents

Figure 21. Respondent’s attitude to the frequency of

sponsor’s information

42

people are used to visual appearance or verbal mentioning about the sponsors. Nevertheless 20% of

interviewed persons consider it like annoying and only 5% find it interesting (Fig. 22).

Most of fans of Zalgiris (56%) believes that sponsors should be appropriate to the content of

sport event (in this case directly or indirectly connected with basketball, sport in common or healthy

lifestyle) (Fig. 18). And 23% of respondents think that it is not important sponsors to be in any way

connected with the type of sponsored sport or event (Fig. 23). Sport is first of all entertainment. For

many people it is a way to organize their leisure, to relax and to support their interests, so there is a

small chance that they want to think about insurance, logistics, industry, consulting and other

things. Consumers will more effectively perceive the message connected with other aspects of

entertainment, because they will be closer to them at that moment. Still mentioning certain brands

in different spheres of life may stay in their long-term memory and have a positive influence on

purchase behavior. Every company can be a sponsor, but everything will depend on how good

message they will create to communicate with target audience and how effectively they will affect

on conscious and subconscious of potential consumers.

20%

5%

34%

41%

Annoying

Interesting

Neutral

Essential

Figure 22. General respondent’s attitude to sponsor’s

information during the match

43

78% of respondents mentioned that they remember the sponsors of Kaunas Zalgiris.

Interviewed persons were asked to list those sponsors. The most frequently answered sponsors were

Adidas (189 responses), OlyBet (168 reponses), McDonalds (122 responses), Utenos (113

reponses), Lietuvos energija (85 reponses), Kaunas City Municipality (83 reponses) and Vytautas

(59 reponses). Consequently fans pay more attention not on general or top sponsors, but on usual

sponsors from Lithuania or companies with global well-known brand.

In order to see if respondents fields of activity of Zalgiris‟s sponsors they were asked to

define the produced products or services of them. The biggest awareness of sponsors‟products and

services are related to the companies that produce food products and beverage (Utenos – 92%, Vici

– 82%, Bosca – 78%), big national energy company (Lietuvos energja), shoping and entertainment

center Akropolis – 93% (Fig. 24). Lesser known are industrial companies.

The survey showed that general attitude to sponsorship among fans and their accompanying

persons that represent the target audience for sponsors is positive. Respondents understand the need

56%

12%

23%

9%

Yes, of course

Maybe

Not really

No

64

91

24

92

78

93

82

15

12

23

OlyBet

Lietuvos energija

Kauno Tiltai

Utenos

Bosca

Akropolis Kaunas

Vici

Kauno Vandenys

Kauno Svara

Perlas

Figure 23. Accordance of sponsors to the content of sport event

Figure 24. The awareness of sponsors’ products and services by

respondents (% of correct reponses)

44

of teams and events to be sponsored and messages with the information about the sponsor during

the matches is quit essential or neutral for them. Still most of people consider too often mentioning

of sponsors as annoying. Respondents were often aware of the sponsors‟ brands and product but

basically those ones that are already well-known and connected in direct or indirect way with sport

activities or healthy life style. Respondents also underlined the importance of emotional

attachments in successful connection between potential customers and sponsors. That facts confirm

that most of people attending or watching matches feel that emotional connection, they are thankful

on a conscious and subconscious level to sponsors that provide them the possibility to enjoy the

match of favorite team or sport and they prefer or would like to prefer sponsor‟s products or

services. Gathered secondary and primary data will be used by the author in the next chapter to

offer improvements for communication model in sponsorship analyzing the problems and barriers

of communication between the sponsors and target audience using the example of Kaunas Zalgiris.

45

3. DECISIONS IN ORDER TO IMPROVE THE

COMMUNICATION USING SPONSORSHIP AS A TOOL

3.1 Problem clearing and problem solving logic

The main object of the work is to create a model that will provide the simulation of effective

communication between company and target audience by using such marketing tool as sponsorship.

Firstly the study was planned by identifying the scientific problem, objectives of the master

thesis, relevance of the problem and logic structure. Then to set in order theoretical and practical

parts of the study plan was created. After the system of creating the model was defined in detail.

Theoretical part helped to see the essence of sponsorship and communication in total in the context

of sponsorship. Important step was to analyze already exciting models to offer own preliminary

model more appropriate to sponsorship then other marketing communication tools. Later to develop

and improve the preliminary model author had to gather and analyze primary and secondary data

using the case of Kaunas Zalgiris. The practical part was helpful to detail already offered model

providing it by actual information from market research (survey). Author was looking for key

impact factors that influence on customer‟s attitude and behavior leading to purchase process. In

this chapter the improved model will be introduced and described as a report of study‟s result.

Communication in sponsorship is very complicated and multifaceted process, as there are many

factors that influence on represented by the sponsor brand perception and brand choice. Still three

main stages can be extracted: cognitive, affective and behavior (fig. 25).

46

Figure 25. Model of effective communication using sport sponsorship as marketing

tool

47

Cognitive stage is the stage when the potential customer pay attention on the sponsor and its

brand. To do this sponsor should use different stimuli – predominantly visual and sound – to affect

on people‟s memory. Repeatable presentation of the message that sponsor wants to deliver to the

target audience will help to reach the working memory and later long term memory. It should take

place during sport events by using logo and products on banners, screens, equipment, elements of

stadium‟s infrastructure, clothes of the players and also on awards. The visual representation of the

sponsor‟s brand was recognized by the respondents during the research as the most effective. It

means, that when fans are observing the game they all time meet graphic messages on the field,

screen, players and those images stay in their memory. Auditory messages during broadcasting are

less effective, because on a subconscious level miss the significant part of the information that is

not connected with the game.

Sponsors of Zalgiris should continue to use logo display as the most common way of

showing the legitimate relationship with the event. Logo that possesses high visual fluency

influence in such way: people process and recognize its meaning with greater automaticity, that is,

faster and with more elaborate and deeper comprehension, than when exposed to a visual stimulus

with low fluency. It is easier to perceive stimuli that are presented for a long rather than a short

duration or with high rather than low clarity. Moreover, it is also easier to perceive stimuli one has

seen before rather than novel stimuli.

Effective graphic presentation of the sponsor at the sport event using its logo should be:

Simple and understandable,

Exactly in accordance to the logo that company has (appropriate color, parameters, position

and so on),

Unique (shouldn‟t be similar to others in order to avoid its associating with other sponsors),

Without any abusive signs or images,

As much connected with game or team as possible to underline the connection between

sponsor and sponsee.

It also can be effective to combine logo with some words or sentences that shows the mission of

the sponsor, appeals to support team or certain players. Effective message should fits in the time

period from 4 to 10 seconds, and the individual parts of the message should fit in the intervals from

0.1 to 0.5 seconds.

Sound stimuli help to deliver more information about the sponsor by paying attention on

what it produces, its characteristics, history, product diversity, and what is important for the next

stage – the role that company played in organizing the event and letting it to be realized. Sound

stimuli has bigger potential during broadcasting of the games. First of all, when people watch the

match on TV or Internet commenting of the event is important integral part of the program. Having

48

more attention of the fans commentators may deliver more information about the sponsors and

facilitate the positive image of the sponsors, underline their contribution to the development of the

team, time of cooperating with the team or any other characteristics that will be useful for sponsor.

Especially beloved by the sponsors are any breaks during the match that allow commentators to

remind the auditory all mentioned before information about the sponsor and increase its

effectiveness by this.

It is important to make sound message short, laconic and informative, because the research

showed that trying to pay attention on the sponsor organizers may overdo and make it bothering and

insistent that can have negative impact on brand perception.

41% of respondents during the survey found that information about the sponsor appears too

often. Nevertheless, sponsor‟ messages is essential for the same amount of respondents. The

message about the sponsor should be unobtrusive. For example, company‟s logo on the clothes will

certainly stay in people‟s memory as players are in the center of audience‟s attention during the

whole game. This fact is verified during research as Adidas and Olybet whose logo is on the clothes

of Kaunas Zalgiris players (fig. 26) were among the companies that respondents listed as ones they

remember and are aware of their products.

Figure 26. Example of using OlyBet‟s logo in frame of its sponsorship of Kaunas Zalgiris

Figure 26. Example of using OlyBet’s logo in frame of its sponsorship of Kaunas Zalgiris

Source: http://www.krepsinis.net/naujiena/zalgiris-pristate-nauja-namu-rungtyniu-apranga/254472

49

Creating the message that should reach the target audience more appropriate way to combine

visual and auditory forms of delivering certain message focusing on the visual one that is

recognized as the most efficient.

Image of the brand at this stage means that audience is already know the brand and it put its

attention and strengthen the emotional connection between that audience and the company. The

research showed that visitors of Zalgiris‟ matches put more attention on national brands (Utenos,

Lietuvos energija) and well-known global brands (McDonalds, Adidas) – ones that they already

heard or saw somewhere. That‟s why cognitive stage become more important for the companies

that just entered the market and want to introduce themselves and their products by sponsoring

popular sport events and teams.

Sponsors already made a good choice by choosing Kaunas Zalgiris. As the basketball in

national sport - it attracts a lot of people that are potential customers. Additionally Kaunas Zalgiris

in one of the favorite teams among Lithuanians and one of the oldest with many wins.

Summarizing, on the cognitive stage in order to create effective communication with

potential customers basing on the case of Zalgiris, sponsors should:

1. Choose the appropriate type of message that should be delivered to the target audience

combining visual and auditory forms with the dominance of the first one,

2. Provide high frequency of appearance of message without making it obtrusive,

3. Use the logo as the most known image of brands,

4. Choose appropriate form or spot for placing the message – to pay more attention the best

places are team‟s uniform, awards, equipment.

Next stage is affective stage that aims to make an emotional connection between audience

and sponsor, wake up certain feelings and gratitude to sponsor. 56% of respondents that took part in

a survey underlined the importance of emotional connection with a sponsor. Sponsorship allow the

event to be planned and organized, support teams and players in its developing and improving. On

this stage of the important clues is matching sponsor and sport (congruence). This logical relation

enables people to transfer the image of the event to the products, vice versa. That‟s why brands

connected with Zalgiris will induce in target audience positive (if the team is wins) or negative

feelings (when it loses). Therefore, people store the products in mind more easily for those

elaborative information and linkages created due to the highly fit between the event and sponsor.

Here such companies as Utenos, Vici, Bosca and Lietuvos energija made a right choice of sponsee –

sport event is always strongly connected with food industry as complimentary to entertainment and

energy is the source any broadcasting or real game cannot have place. So potential customers using

directly or indirectly those products will transfer on them the image of Zalgiris. Since low

congruence creates a high conflict and disturbance of the perception, people would need more

50

processing time to rationalize the relationship between the sponsor and the event as in case of such

industry companies sponsoring Zalgiris as Aksa, Sanistal, Fiskars.

Every company despite the kind of activity can be the sponsor, but the research shows that

more than half of the respondents perceive the message and remember it when it concerns food and

beverage or close to sport theme. Sponsors of Kaunas Zalgiris that engaged in industrial production

were not remembered by the audience despite the frequency of the sponsor‟s message.

Having the certain knowledge about the sponsor and its product together with connected

with them emotions and feelings 73% of respondents underline that will prefer the sponsor‟s

product to another one produced by another company. For example, fans of Zalgiris will prefer

buying sport outfit produced by Adidas then Nike as their favorite team wear the clothes produced

by this company. Fans will on unconscious or conscious level prefer to drink beer produced by

Utenos that is also kind of symbol of the game and team. Also participants of the research agreed

that they have more trust to the companies that have enough funds to be sponsors.

Very strong emotional connection can have place during the presentation of prizes to the

winners of the game. In this case sponsor that established the prize is firmly associated with such

notions as a victory, leadership, championship. All the spectators present at the stadium, see the

ceremony, and thus the probability that the overall emotional lift of te fans will help to secure

sustained positive association with the brand of the sponsor.

Summarizing, on the affective stage in order to create effective communication with

potential customers basing on the case of Zalgiris, sponsors should:

1. Adopt and connect the characteristics of their products to the characteristics of the

basketball game and features of the Kaunas Zalgiris,

2. Help the sponsee to develop and reach new heights, because its wins and other success

will enhance the emotional connection between audience and sponsors,

3. Underline the best functional properties of the product in the message that sponsor want

to deliver to audience on the stadium or those ones that are watching matches in the TV

or Internet.

In this way people become aware of the company, its brands and products, began to have

positive attitude to it and consequently can have a desire and intention to buy it. So we move to the

last stage - behavior stage.

Customer according to previous experience and influence made by delivering sponsor

message make a brand choice and thereafter a purchase. 87% of respondents already purchased

Kaunas Zalgiris sponsor‟s products. Company is not interested by single purchase, because

sponsorship sometimes is very costly process. Sponsor is interested in creating the loyalty to its

product and repurchase. To provide repurchase sponsors should create the product that will meet the

51

needs of the customers and expectations of product‟s value. Customer loyalty is considered an

important strategic issue, which can help a company to outperform competitors and to be successful

on the market by achieving the high market share. Loyalty very often can be temporary and to

maintain it sponsor should try to make its sponsorship constant or change it without any harm to the

team or sport event. When the company stops to sponsor team and causes financial problems and

difficulties in team‟s games as it happened with Zalgiris in 2009, then gained loyalty may be turned

to disloyalty and cross out all previous successes.

Loyalty is so important for sponsors, because loyal customer will be:

More trustful to the company and its brands,

Less sensitive to the gentle changes of the prices, products characteristics, presence

of additional services connected with the product, negative opinions of other

customers,

Less opened to the messages of the competitors,

More interested in new products of the sponsor,

A good informer for other potential customers.

In addition, customer retention reveals how much real value a company is creating and

predicts future cash flow. Loyal customers tend to make the repurchase. Understanding this

company should use sponsorship for creating loyalty, but this process can be long-termed. Usually

it is not enough to sponsor one event, sponsorship should be constant or long-termed.

3.2 Model implementation

The most important thing in model is that it should be useful and easy for implementation as

it represent the simplified version of certain concept. Stages of model‟s implementation were

discussed in the first chapter and introduced on the picture 13.

On exploration stage sponsor has to identify if there is a need in the company to change

something and consequently decide if there is a need to use the model. Company that is already a

sponsor should evaluate the efficiency of its sponsorship and decide if its activities has to be

improved or can stay without changes. The easiest way to evaluate that efficiency is to use survey

techniques. As benefits and results of sponsorship are hardly measured the decision should be made

on the base of marketer‟s experience and opinion based on the analysis of current situation. The

company that just begin to plan using sponsorship as marketing communication tool should decide:

if it has enough resources to be a sponsor;

if its brand is matching sport activity;

if the target audience that will attend the sponsored sport event is appropriate to the one

identified in its marketing strategy.

52

Sponsor should analyze the possible sectors of sponsorship and whether it will be able to give

appropriate financial or material resources for next spheres:

1. Organization of the sport event (room rental, the necessary equipment and tools,

participants accommodation, food and other.);

2. Payment of its technical personnel (technicians, porters, guards, cleaners, etc.),

3. Paying the work of the sports personnel (judges, the secretariat, the doctor and others.),

4. Preparation and conduction of the entertainment program,

5. Advertising of the sporting event (this can also include the development of attributes,

anthem, emblem, theme of the site and the work of operators, etc.);

6. Financial support of the prizes;

7. Providing the safety of the event,

8. Insurance of the participants,

9. Paying the work of the management and marketing services an others.

During the stage of initial implementation sponsor should choose the content of message it

want to deliver to potential customers together with the channels of delivering of this message.

Certain person or persons is appointed to choose and cooperate with the sponsee. Persons that will

work with the model oversee the implementation process, build communication and feedback

loops, develop a site plan for putting the new practice in place.

On the stage of the initial implementation sponsor should make a trial implementation, review

the whole process, provide a feedback and make decisions about needed modifications, continuing

using that communication tool or looking for another one.

Moving to full implementation consider complete engagement in the sponsorship process,

confirmation of the process as the one that is efficient and the one whose benefits are recognized by

the company. Many sponsors works with Kaunas Zalgiris for a long term that shows that for them it

is a profitable cooperation. As Zalgiris has as sponsors very big and known companies as OlyBet,

Lietuvos Energija, Adidas and others it became attractive for smaller and less known companies as

Admen or Taupkase and provide significance financial support.

Expansion or scale-up is about to increase the number of sponsored events and make the

practice of sponsorship on the base of the represented model and its implementation by cooperating

with Kaunas Zalgiris a verified and efficient process. On-going monitoring and evaluation should

be provided. It can be made by:

Following the news of new trends in basketball,

Monitoring successes of Kaunas Zalgiris,

Monitoring successes of separate players of Kaunas Zalgiris,

Monitoring the regional and world championships in basketball,

53

Monitoring the satisfaction of the auditory by the game of Kaunas Zalgiris,

Besides the lack of opportunities to implement the model of effective communication by

using sponsorship that was offered by the author the described process can be taken into

consideration by the companies. It is important to provide the target audience with the clear,

informative and appropriate message that will stay in their memory and also obtain the emotional

connection with sport event or team. The process of active work will not finish on the affective

stage – it should be even more diligent at the behavior stage during the purchase. Even awareness of

the product by target audience and its preference will not ensure the crucial repurchase.

3.3 Risks and special issues of model implementation

There are certain risks that can take place during and after the implementation of the model

that are represented on the Figure 27. Those risks were determined by the author on the base of

discussed before theoretical problems and conclusions from the researches.

Negative associations. In some situations the image of the sponsored entity may have a negative

impact on the company providing support. While this is most likely to be the case where an

endorsement of an individual athlete (e.g. doping scandal with Dainius Salenga) is made, it can also

involve a team or event. For example, in case when the sponsored team is losing the match and even

Figure 27. Main risks of model implementation

54

has bad results during the season is unlikely to provide its sponsor with the type of image they are

expecting from the association. Kaunas Zalgiris nowadays doesn‟t have such glory as before, but

the team is working hard on improving their games and stay in the attention of the public staying

one of the strongest team in Lithiania and competing on the regional and continent level with the

best basketball teams of the Europe. Whatever the form of sponsorship, it is important to ensure that

the event is welcomed by the targeted audience and the partnership organization is completely

ethical in its activities. The sponsor cannot risk becoming involved with an event which is

unprofessionally managed or one with a slightly dubious reputation.

Sponsorship clutter. There is also the possibility that events may become “overly sponsored”.

Too much sponsors of event or team may confuse the target audience and there will be barriers in

attracting their attention. Especially it can be risky for the companies that are not well-known and

that just became the sponsors, because the participants of the event will most probably notice brands

that are already known or those one that has the better placement of their sponsor message. Of

course audience will most probably notice and remember the message from such known companies

as Kaunas City municipality, McDonald or Vici than ones of the new sponsors of Zalgiris –

Gjensidige, TonyResort or Freda.

Less amount of sponsors will help to attract more attention for the target audience, make the

message, which the company want to deliver more noticeable and significant. Still, mangers of the

teams trying to get as more benefits from sponsorship as possible enhance sponsorship clutter when

they do not limit their amount together with frequency and placements of their presence during the

game.

Over-commercialization. Excessive commercialization can turn off sponsors. When sponsorship

is very importunate and insistent the message the sponsor want to deliver can irritate the potential

receiver and again bring to its negative perception. As it is noticeable in the study of Kaunas

Zalgiris – 41% of respondents think the information about the sponsor appears too often and for

20% - it is anooying. Of course, most of sport event‟s participants understand that that event take

place thanks to sponsors, but sponsor shouldn‟t spoil the humor and attitude of the target audience

connected with the event that is emotionally very important for them. Plastering advertisements

over every inch of a stadium or arena has become more than common in sport, but not always have

positive influence on the people who watch the game. In case of watching game on TV too long

breaks increase the common time of the broadcasted sport event what can also irritate. For example

if the basketball match lasts 2 or 2,5 hours, with advertisements and mentioning sponsors that time

may increase up to 3 or 3,5 hours. Example of over-commercialization using uniform of Zalgiris‟

players introduced on the figure 28 and emphasize its unaesthetic view.

55

Figure 28. Example of over-commercialization using Zalgiris’ players uniform

Source: NKL, < http://www.nklyga.lt/lt/news/top-10-vasara-nkl-palike-ir-i-aukstesni-lygi-persikele-krepsinkai/>,

accessed 5 May, 2016

Evaluation problem. Sponsorship is also risky because, like other marketing communication

tools, while it can have significant benefits these are extremely hard to make an assessment

empirically. There are a multitude of techniques used by marketing companies which range from

surveying customers (as it was made in the research provided by the author) to see if they are

influenced by sponsorships to evaluating the amount of media exposure a sponsored event receives.

Still none of the many evaluation methods provide a particularly valid form of evaluation and each

can be confounded by factors such as use of other marketing tools, carry-over effects from previous

campaigns, and uncontrollable environment factors.

Also, it is important to underline that even if sponsorship is well integrated into a company‟s

marketing mix, there are sometimes signs that sponsorship investments are not producing the

returns that they once did. What is paradoxically, the reduction of effectiveness is sometimes the

overall success of this form of marketing communications.

Risks are evaluated by the author on the base of the “risks metrics” method (fig. 29).

56

Figure 29. Evaluation of the risks for sponsors of Kaunas Zalgiris

Risks that sponsors may have cooperating with Kaunas Zalgiris are medium or low. The

lowest risk is negative associations. The probability of this risk is small because of positive

achievements of the team during last 10 years and its positive image among fans. Even small

defeats will not be critical for the sponsors, because fans understand the fundamentals of the game

and inevitable alternation of victories and defeats. Due to attitude to basketball in Lithuania and big

experience of Zalgiris negative associations will have marginal impact on sponsor. To avoid or

reduce this risks sponsors should:

1. Monitor successes and failures of the team and players,

2. In critical situation invest in some changes that were practiced before – change of the

couch, team players, team captain,

3. Support the image of the team and players, help in their motivation and personal

development,

4. Maintain increase the standard of the home stadium in Kaunas.

Sponsorship clutter and over-commercialization have medium risk. They are more

probable than negative associations. The owners of the team always try to maximize their benefits

from sponsorship and can try to attract more sponsors for supporting team, but such behavior will

have critical impact, because it will make marketing communication ineffective and main message

will not be delivered to consumers.

To avoid these risks sponsors has to:

57

1. Cooperate with the management of the Zalgiris discussing common goals and benefits,

ways of further partnership, mutual positive influence,

2. Determine clearly the level of sponsorship (general, main or usual sponsors) – sponsors

that make the biggest contribute to the team or game should get more benefits and bigger

awareness than other secondary sponsors,

3. Add the value to the experience of the fans by offering them expected “show” with good

quality of its management and equipment,

4. Choose the priority message that sponsors want to send to the potential customer, focus

on the most important information and the most important products or services company

wants to promote.

Evaluation problem is also medium risk, but has high probability connected with mentioned

before problems of measurement of effectiveness based on more qualitative effects of sponsorship

(brand awareness, intention to purchase) then quantitative. To reduce the evaluation risks next steps

can be done:

1. Make the marketing department of the company provide appropriate marketing

researches, that will be constant and helpful for later decisions about sponsorship and its

types,

2. Evaluate the brand loyalty and repurchase process looking for connection with

sponsorship activities,

3. Compare benefits from sponsoring different objects including Zalgiris in order to find

the best solutions and methods of actions.

Integration of sponsorship to company‟s marketing mix if it is made in a bad way is critical

for sponsor and its probability is quite high. Big experienced companies use the benefits of

sponsorship by implementing it to product, place, promotion, price strategies. Companies often use

the information about the fact of them being the sponsor of some important sport events on the

package of the product (McDonalds, Adidas), in advertising, in different promotional materials

what helps to get more customers. To avoid the risk of not effective integration of the sponsorship

sponsors should:

1. Use the fact of sponsorship in the product strategy by enhancing the emotional

connections between products and customers, building customer loyalty,

2. In case of general and main sponsors whose expenses for sponsorship are high, company

should include those expenses to the price strategy,

3. Match sponsorship with other forms of promotion, especially advertising and public

relations (for example as Utenos does by using the logo of Żalgiris in its ads on the web-

page, fig. 30),

58

4. Use the benefits of the sponsorship for encouraging and motivating personnel. Company

can provide its workers with free tickets to the matches of Zalgiris as a reward for good

work or any successes. This form of rewarding can be accepted with appreciation

especially taking into consideration big popularity of the basketball among Lithuanians.

Figure 30. Example of integrating sponsorship to marketing-mix of Utenos

Source: Utenos, < http://www.utenosalus.lt/>, accessed 13 March, 2016.

Risks should be all time monitored and reduced to make the marketing communication using

sport sponsorship effective and investments in sponsorship rational.

One of the important special issues that sponsors should take into consideration is growing

popularity of the sponsorship among the companies from the different sectors of economy. One of

the main reasons of such popularity is that sponsors understand and appreciate its benefits.

Companies that are already acting like sponsors of Zalgiris or those ones that plan to become its

sponsors should understand the complexity of that process and make all needed steps to use sport

sponsorship as effective communication tool. It is not only about giving money and presenting the

logo – it is the multi-stages process that require professional approach together with constant

attention and improvements of the sponsorship process. The condition for the effective and efficient

implementation of sponsorship projects is not only the right choice of the subject of sponsorship,

but also the use of reliable methods of evaluation taking into account all areas of sponsorship‟s

return on investment. They allow to compare the economic value of the investments with the

marketing profit obtained as a result of actions that were carried out.

59

Sponsors may use the offered model in planning the sponsorship process stage by stage, that

will help them to increase possible benefits, to reduce the expenses and to create and deliver

appropriate message to the target audience.

Summarizing, sponsorship is without a doubt unique marketing communication tool that in

case of appropriate use may bring many benefits by creating brand awareness, achieving target

audience, enhancing the sales, building the customer loyalty and so on. Sponsorship as other

marketing tools is closely connected with psychology of customer‟s behavior, cognitive processes.

The main goal of the sponsor is to choose the appropriate to its products sport or team and organize

the unobtrusive process of delivering the message about the sponsored brand or product, make the

target audience pay attention on it, remember, connect with positive feelings and emotion, and later

prefer it among the competitive brands or products. There are always risks in sponsorship on which

many factors impact and the clue of successful and effective communication is to foresee the

potential customer‟s expectations and preferences simultaneously create an affective message and

place it in a right place and right time.

60

RESULTS AND CONCLUSIONS

The following conclusions can be made:

1. Modern concept of communication in marketing is based on integration of different

marketing activities engaging all components and all external and internal processes of the

company. This concept has been developed into integrated marketing communications theory that

underline the importance of diverse and at the same time unified messages and conjunction and

controlling of all channels of delivering this messages,

2. One of important and efficient tools in marketing communications is sport sponsorship that

is significant especially in increasing the awareness of the company, its products and customers

loyalty thanks to strong emotional connection between audience of the sponsee and the sponsor‟s

brand,

3. Sport sponsorship should be integrated with such marketing-mix elements as product, price

and distribution, that helps to create an appropriate message about the product and/or the company

and deliver this message in effective way using marketing communication model,

4. Models of effective marketing communications are mainly based on psychological theories

of short-term and long-term memory and consumer buying behavior. Three main stages can be

distinguished: cognitive (attract attention), affective (to interest a potential customer and make him

desire some product), behavior (the process of purchase),

5. Marketing communication models helps to set the objectives for sponsorship, measure its

effects and helps to organize the effective process of delivering sponsor‟s message to the target

audience,

6. Kaunas Zalgiris is a team with long history, many achievements and popular in Lithuania

and Europe, what make it very attractive for sponsors,

7. Sponsors of Kaunas Zalgiris are mostly Lithuanian companies from financial, insurance

and trade sector, food industry and transport sector. The general sponsors of the team are

representatives of administrative and entertainment sectors - Kaunas City Municipality ad OlyBet,

8. The survey showed that general attitude to sponsorship among fans and their

accompanying persons that represent the target audience for sponsors is positive. Respondents

understand the need of teams and events to be sponsored and messages with the information about

the sponsor during the matches is quit essential or neutral for them. Still most of people consider

too often mentioning of sponsors as annoying,

9. That facts confirm that most of people attending or watching matches feel that emotional

connection, they are thankful on a conscious and subconscious level to sponsors that provide them

61

the possibility to enjoy the match of favorite team or sport and they prefer or would like to prefer

sponsor‟s products or services,

10. The model of marketing communication using sport sponsorship as marketing

communication tool consists of cognitive, affective and behavior stages.

11. On cognitive stage sponsor using visual and sound stimuli together with image of the

brand work on attracting the attention of the audience. As Kaunas Zalgiris case showed the

audience remember more visual images of national or well-known on the international market

brands and also short, laconic and informative messages form the sponsor,

12. Affective stage of the model includes different elements that all together aims to form the

awareness of the company and/or its products. In sport sponsorship important elements are

emotions and feelings that strongly connect the potential customers with the team, its sponsors and

that are leading to certain product became liked and preferred by those customers,

13. Behavior stage leads to purchase, but despite the act of purchase that says about good

sponsorship and good communication (e.g. 87% of respondents already purchased Kaunas Zalgiris

sponsor‟s products), really effective sponsorship can be if it will provide stable process of

repurchase,

14. The main risks and special issues of model implementation are negative associations,

sponsorship clutter, over-commercialization, evaluation problems. Sponsorship is becoming non-

effective as a marketing communication tool when emotion connections are negative – providing

positive emotions during successful games sponsor gain more thankful audience and additionally

better awareness and bigger sales. The events and teams should not be “overly sponsored”, because

it reduce the perception of sponsors in total and every of them separately. The process of evaluating

the sponsorship effectiveness is quit complicated according to the nature of sponsorship, but can be

made using the frame of offered model and experience of marketers that organize and manage the

sponsorship,

15. Created by the author model of marketing communication using sponsorship as

marketing communication tool integrate the common elements of theoretical models analyzed in

the first chapter and conclusions from the researches made during field analysis. It allows to

sponsors to explore their current process of sponsorship in cooperation with Kaunas Zalgiris and see

risks and effectiveness of the sport sponsorship and possible benefits. Model is based on

physiological theories and particular facilities of sport sponsorship determined using case of Kaunas

Zalgiris,

16. Despite the marketing communications are significance elements in successful company,

models of effective communication in the analyzed sources are not enough appropriate for sport

sponsorship. The novelty of the DP is first of all author‟s attempt to create a model that will allow

62

to organize the effective communication process between sponsors and audience during sport

events.

17. Based on the case of Kaunas Zalgiris basketball team the developed model can be used

for current sponsors of the team to change or improve the message that they try to deliver to the

potential customer and delivering channels they use. Additionally model can be used by the new

sponsors of Zalgiris or other teams to make a decision whether their sponsorship has chances to be

effective and successful.

18. The problem study can be developed in the future and supplemented by new element and

structures that can be revealed if model will be brought to real life and again analyzed using similar

techniques and methods.

63

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ANNEXES

68

Questionnaire

1. How often do you attend Zalgiris Kaunas matches?

a) Once per year

b) Once per 6 month

c) Once per 3 month

d) Once per month

2. How often do you watch Zalgiris Kaunas matches on TV or Internet?

a) Once per year

b) Once per 6 month

c) Once per 3 month

d) Once per month

e) more than once per month

3. Have you purchased products or services from brands associated with Kaunas Zalgiris?

a)yes

b)no

4. If given the choice between two similar products or services, however one being associated

with Kaunas Zalgiris, would you be more inclined to purchase the one associated with Zalgiris?

a)yes

b)no

5. Do you have more trust to companies that can allow themselves to be sponsors?

a) Yes

b) Maybe

c) No

6. Do you believe sponsorship is positive or negative for sports?

a) Positive

b) Negative

c) I don‟t know

7. How do you think Sponsorships are used by the sponsor to… (you can choose more than one

response)

a) Increase Sales

b) Raise Awareness of Products

c) Raise Awareness of the Brand

d) To Compete against Competitors

e) To Form a Connection with Sports Fans

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8. What in your opinion is the main reason that a connection between a consumer and a sponsor is

successful?

a) A Goodwill Feeling

b) Emotional Attachment

c) Influences Attitudes and Behaviours

d) Meeting the Consumer Needs

e) That they Value them as Consumers

9. How do you think what type of sponsorship is more effective?

a) Visual (banners, screens, team clothes)

b) Auditory (broadcasting)

10. Do you think sponsor‟s information during sport events is:

a) Annoying

b) Interesting

c) Neutral

d) Essential

11. Do you think information about sponsors during sport event take place

a) Too often

b) Often

c) Doesn‟t bother me

d) Not enough

12. Do you think sponsors should be appropriate to the content of sport event?

a) Yes, of course

b) Maybe

c) Not really

d) No

13. Do you remember the sponsors of Kaunas Zaligis?

a) Yes

b) No

14. If yes please list Kaunas Zalgiris sponsors

15. What products/services OlyBet produces?

16. What products/services Lietuvos energija produces?

17. What products/services Kauno Tiltai produces?

18. What products/services Utenos produces?

19. What products/services Bosca produces?

20. What products/services Akropolis Kaunas produces?

70

21. What products/services Vici produces?

22. What products/services Kauno Vandenys produces?

23. What products/services Kauno Svara produces?

24. What products/services Perlas produces?

Age 15-25

25-35

35-45

45-55

55+

Gender Male

Female

Student

Employed

Unemployed

Retries

71

Questionnaire. Responses

Question Possible Answers Number of

responses

%

1. How often do you attend Zalgiris

Kaunas matches

Once per year 92 40

Once per 6 month 42 18

Once per 3 month 97 42

Once per month 0 0

2. How often do you watch Zalgiris

Kaunas matches on TV or

Internet?

Once per year 6 3

Once per 6 month 23 10

Once per 3 month 28 12

Once per month 146 63

More than once per

month

28 12

3. Have you purchased products or

services from brands associated

with Kaunas Zalgiris?

yes 201 87

no 30 13

4. If given the choice between two

similar products or services,

however one being associated

with Kaunas Zalgiris, would you

be more inclined to purchase the

one associated with Zalgiris?

yes 169 73

no 62 27

5. Do you have more trust to

companies that can allow

themselves to be sponsors?

yes 145 63

maybe 67 29

no 19 8

6. Do you believe sponsorship is

positive or negative for sports?

Positive 143 62

Negative 35 15

I don‟t know 53 23

7. How do you think Sponsorships

are used by the sponsor to… (you

can choose more than one

response)

Increase Sales 159 21

Raise Awareness of

Products

64 8

Raise Awareness of the

Brand

219 29

To Compete against

Competitors

134 17

To Form a Connection

with Sports Fans

187 25

8. What in your opinion is the main

reason that a connection between a

consumer and a sponsor is

successful?

A Goodwill Feeling 16 7

Emotional Attachment 129 56

Influences Attitudes and

Behaviours

18 8

Meeting the Consumer

Needs

60 26

72

That they Value them as

Consumers

8 3

9. How do you think what type of

sponsorship is more effective?

Visual (banners, screens,

team clothes)

190 82

Auditory (broadcasting) 41 18

10. Do you think sponsor‟s

information during sport events is:

Annoying 46 20

Interesting 12 5

Neutral 79 34

Essential 94 41

11. Do you think information about

sponsors during sport event take

place

Too often 95 42

Often 58 25

Doesn‟t bother me 78 34

Not enough 0 0

12. Do you think sponsors should be

appropriate to the content of sport

event?

Yes, of course

129 56

Maybe 37 16

Not really 53 23

No 12 5

13. Do you remember the sponsors of

Kaunas Zaligis?

Yes 180 78

No 51 22

14. If yes please list Kaunas Zalgiris

sponsors

Adidas 189 81

Olybet 168 73

Mc Donalds 122 53

Utenos 113 49

Lietovus energija 85 37

Kaunas City 83 36

Vytautas 59 26

% of correct responds

15. What products/services OlyBet

produces?

64

16. What products/services Lietuvos

energija produces?

91

17. What products/services Kauno

Tiltai produces?

24

18. What products/services Utenos

produces?

92

19. What products/services Bosca

produces?

78

20. What products/services Akropolis

Kaunas produces?

93

21. What products/services Vici

produces?

82

22. What products/services Kauno 15

73

Vandenys produces?

23. What products/services Kauno

Svara produces?

12

24. What products/services Perlas

produces?

23