Brand FIT - Journal Articles 23/11/12

Managing consumer response to event sponsorship.

My dissertation topics have taken a turn and over the last couple of weeks I've looked at variables of brand fit between a sponsor and an event. Two particular articles have stood out in doing so:

• The Impact of Brand Cohesiveness and Sport Identification on Brand Fit in a Sponsorship context. (Gwinner, K & Bennett, G 2008)
• Sponsorship-linked Marketing: The role of articulation in memory. (Cornwell et al, 2006)

The Impact of Brand Cohesiveness and Sport Identification on Brand Fit in a Sponsorship context.

This particular article looked into the effects of sport identification and brand cohesiveness as predictors of brand fit in a unique sponsorship context by examining consumer responses to the event sponsorships of the Dew Action Sports tour. Also assessed was the impact of brand fit on two important consumer behavioural outcomes: attitude towards sponsors and purchase intention.

The article firstly identifies key reasons for sponsoring, such as increased brand awareness, establishing global competitive presence, increased brand image, building positive attitudes, increased sales and increased ability to target the 'correct' consumers. A key quote from the text notes, providing the basis for study points out that:

'Fit between a sponsoring brand and a sponsored event has been shown to have a significant influence on variables such as attitude towards the sponsor, and ultimately, purchase intentions'

They note the importance of examining variables influencing and being influenced by the brand fit construct.

Sponsoring Brand Fit

Consumers are more likely to identify a brand as a sponsor of an event if there is some sort of relationship between the product and the event. This is the fit. Fit = relevance, complementarity, compatibility. Fit can be conceptualised in terms of functional (the product is used in the event) or image dimensions (the image of the event and sponsorship brand are similar). Consumers link attitudes, invoking positive or negative images and included in the transfer of images might be an increase/decrease in consumer assessment of the sponsor.

McDonald (1999) - Percieved match between sponsor and event influences consumers response to the sponsorship activation. Consumer intentions (ie. purchase) are influenced by the level of perceived fit between event and sponsor. Fit can determine the amount of thought that consumers give to the relationship between sponsor and event.

Brand Cohesiveness

A cohesive brand image results in stronger levels of brand related knowledge because ties to other pieces of information can be made more clearly. A brand's image will be more cohesive if the same positioning has been used consistently over time, images have been consistent and associations with other entities share similar themes. Non-ambigious. Consistency is the key. Cohesiveness develops brand knowledge and makes it easier for the individual to eventually see connections, if present, between the sponsor and the event.

Hypothesis: High perceptions of brand cohesiveness results in higher perceptions of event-sponsor fit.

Sport Identification

Relating previous research to sport, it's theorised that identifying with a sport partly conducted to enhance self esteem by aligning oneself with sports that have positive qualities. So, one can strenghten self esteem through emphasising the positive aspects of a sports and minimising negative aspects (in-group). Also, one can contribute to self esteem by emphasising the vice versa of another sport. (out-group). Focus on negative aspects of commercialism. Suggests that sponsors should take a noble, altruistic approach to sponsorship, emphasising the care for the welfare of the sport. This should be undertaken to ensure no negative psychological tension occurs in the consumer's minds. To minimise the negative association, highly identified fans may attempt to view the sporting sponsorship as congruent. (ie. greater fit). That is, they might adjust their thinking to search for a logical event sponsor connection. if successful, this lessens the perception of the sponsor commercialising the sport for personal benefits. So, in an attempt to maintain the desirability of the sporting event's image and therefore enhance their own self identity, highly identified fans may be more broadminded in examining fit potential.

Hypothesis: Higher levels of identification with a sport will result in higher perceptions of event-sponsor fit.

Attitude towards sponsoring brand

The article highlights that consumers take into account the presumed motivation of companies and this impacts their purchase decision. Perceived sincerity of the sponsor has the highest correlation with the sponsor event-fit construct. Ie. More altruistic motives than exploitive motives. Rifon et al (2004) noted congruence between cause and sponsor leads to more positive attitudes toward the sponsoring brand. Thus altruistic motives, derived from percieved event-sponsor fit, lead to more favourable attitudes towards sponsoring brand. Also consistency betwen event's image and sponsoring brand has significant  positive impacts on attitude. (Koo et al, 2006). Schema's - More congruent the event sponsor's and brand's images are, the more likely schemas held in memory will be activated, increasing the likelihood of positive attitudes being derived from sponsorship. 

Hypothesis: Higher perceptions of event-sponsor fit results in a more positive attitude towards the sponsoring brand.

Purchase Intentions

Koo et al(2006) found brand attitude to be a significant predictor of sponsor purchase intentions. Also, key relationship between consumers's attitude toward a sponsor and their intentions to use the product in the future (Speed and Thomson, 2000). Accordingly:

Hypothesis: A positive attitude toward the sponsoring brand results in higher purchase intentions.

So, the link is:

Brand Cohesiveness/Sport Identification

Event-Sponsor Fit

Attitude Towards Sponsor

Purchase Intentions 

Theoretical Implications

Findings of the study conducted support that brand cohesiveness leads to greater brand knowledge which in turn results in a greater ability to see dimensions common to the event and the brand, which serves to increase fit. Support the argument based on highly identified fans modifying their thinking about an event-brand pairing to more easily find fit to preserve positive self identity. Both these implications increase the understanding of how consumers view brands in a sport sponsorship context.

Managerial Implications

Results of the study support that attitude has a positive influence on consumer's purchase intentions.  Thus those that perceive fit between an events image and the sponsoring brand exhibit a significantly better attitude. From a managerial perspective this reveals that it might be more difficult to increase positive attitudes towards a sponsoring firms among individuals that fail to perceive fit between brand and event. So, effective ways to communicate fit should be utilised to those who attend the event. 

It was found that perceived fit impacted purchase intentions through one's attitude towards the sponsor. Because purchase intentions are one of the main focuses for the sponsoring firm to consider, the findings suggest that fit should be considered as an important criteria when companies make sponsorship selection decisions. So, understanding the variable affecting fit is of intense interest to brand managers considering sponsorship purchases to promote their brands. 

Firms should be consistent in in their promotional and communicative strategies toward consumers, which, as support by the study research (consistency leads to a stronger brand cohesiveness), increases perceived fit between the event and sponsoring firms. 

In terms of sport identification, separate marketing efforts and strategies could be developed to target low and highly identified sports fans based on their profiles and preferences. If the goal is to increase perceived fit amongst attendees, then event properties should consider how to approach and communicate with high and low identified fans. 

eg. Segmented markets - increased perceived fit.

HIGH ID - Identify perceived fit initiatives - Strategy a)

LOW ID - Identify perceived fit initiatives - Strategy b)

Firms seeking to sponsor an event may also wish to consider these findings and base their sponsorship decisions on whether or not an event will be likely to reach highly identified fans.

CLD.

Twitter: @callumldraper

Facebook: www.facebook.co.uk/callumldraper

:)

Journal Articles 29/10/2012 - Brand Image Creation

With my dissertation topic still to be finally decided upon, I read three pieces in the latter stages of last week looking at image creation and the creation of value through brand building to help with the decision. These were as follows:

1. A model of image creation and image transfer in event sponsorship - Gwinner, K.

2. Image management in sport organisations: the creation of value. Ferrand, A and Pages, M.

3. Measuring Brand Equity across Products and Markets. Aaker, D. 

Each article had a slightly different focus, but what I was looking to get out of them was a deeper insight into the creation of value in a brand, and methods that management may undertake in the process of doing so. I'll summarise and highlight key points within each of the articles below and in subsequent posts, both for my benefit to reinforce what I've learnt, and also for those with a keen interest in brand management:

1. A model of image creation and image transfer in event sponsorship - Gwinner, K (1997)

The article opens with a brief introduction on the development of event sponsorship, particularly in the reasons why organisations undertake it. A movement away from the view that event sponsorship should be seen as obligatory suggests that the opportunity for commercialisation has been recognised by organisation management and as a result they expect some form of reasonable return for their initial outlay. 

In order to create value from a sponsorship however, it's identified that many features of 'brand association' play a critical role in determining the 'differential response' (ie. the eventual purchase decision). In an attempt to consider the creation of value from event sponsorship the paper looks at what factors are involved in creating image at an event and then the subsequent transfer of this image, to the brand. The article in part relates to celebrity endorsement and this holds significance in the movement of meaning, whereby consumers acquire the meaning of the product through consumption. Meaning movement in the sense moves from the event to the brand when the two are paired together at the event. Image represents the cumulative interpretation of meanings or associations attributed to events by consumers.

The article highlights three main components that form an event's image. These are the type of event (eg. sports related, music related etc), the characterisitics of an event (eg. event size, professional status) and individual factors (eg. number and strength of meanings). Propositions or hypotheses are made throughout identifying the impact sponsorship will eventually have on the brand image. 

eg. P2a: Direct experience and/or indirect information (word of mouth/advertising etc) with an event type WILL influence event image.

The transitional process noted by the article was as follows: Determinants of event image - Event Image - Image transfer (moderated by variables) - Brand Image. 

Moderating variables are perhaps the key characteristics that determine whether an event's image will project onto the brand image. The factors were as follows:

• Degree of similarity: A product can have either functional or image related similarity with an event. F = when the sponsoring product is actually used by participants eg. INNOCENT drinks. I = where the image of the event is related to the image of the brand. eg. PEPSI and Jackson World Tour (youth, excitement). It's suggested that functional or image based similarites forge stronger ties and help the consumer to link the event image with the brand.
• Level of Sponsorship: Basically, multiple sponsors at an event lessens the probability that a particular brand will forge an association with the event. Different 'levels' of sponsorship attempt to tackle this issue. (ie. higher dollar = increased association [exlusivity])
• Frequency of Event: An ongoing event should have the benefit of more firmly establishing a link between the event and the brand due to repeated exposure). However, this isn't to say that unique, one-off events will not attract large media attention and forge strong associations.
• Product Involvement: Involvement level impacts attitude formation, which is a component of image. In low involvement products, such as energy drinks and cereal bars, purchases are quick and so forging a strong link between an event and brand increases the likelihood of consuming the product. However, high involvement products - such as a new TV, and generally more expensive items require much more information about them. As such, the endorsement will hold little or no relevance to the eventual purchase decision.

Event sponsorship is an INDIRECT form of promotion, that is to say that the product is behind the event itself. The ELM model (Petty and Cacioppo) suggests persuasion occurs along two routes, either central and periphery. The peripheral persuasion route suggests that an attitude change through the association of the object with positive or negative cues. Theorizing from this model, it can be established that peripheral routes (ie. indirect event sponsorship) forge associations that are more beneficial towards low involvement goods. To highlight this the article proposes:

P6a: Brand attitudes of low involvement goods will be strongly influenced by event image.

P6b: Brand attitudes of high involvement goods will be weakly influenced by event image.

P6b: Persuasion processes take place on the peripheral route of the ELM model.

Second and third articles to follow :)

CLD.
Twitter: @callumldraper
Facebook: www.facebook.co.uk/callumldraper

UEFA host Corporate Social Responsibility Conference

European Football governing body UEFA has hosted a seminar with a central focus on corporate social responsibility (CSR) attended by Europe's national football governing bodies.

UEFA took to Sarajevo, Bosnia and Herzegovina, in a bid to continue evolving their sport inside a topic that is becoming increasingly prevalent within today's society. Alongside the topic of sustainability, CSR is debatably the most pressing issue on a global scale within organisations as football continues to expand and so participants from national associations along with major stakeholders inside the football world attended the seminar with the knowledge that this is a topic that increasingly requires attention.

CSR is a systematic approach to management whereby an organisation seeks to increase social responsibility throughout all aspects of the corporate body, that is economically, financially, environmentally and socially. Functions of CSR policies are often self-regulating and work in compliance with ethical standards in order to elicit a positive perception of an organisation's activities. CSR work holds the potential to offer extremely positive opportunities in terms of future planning and beneficiaries for the footballing community in the long run. A number of steps could be taken by football associations in pursuit of CSR aims such as:

• Identifiying a strategies/policies main purpose, values and goals. (Economic)
• Identifying senior management hierarchically throughout the organisation to demonstrate responsibility. (Economic)
• Identifying key stakeholders and thus producing specific strategies to satisfy each of them. (Finance)
• Identifying potential costs and benefits. (Finance)
• Adopting efficient communication policies. (Social)
• Identify key 'green' areas throughout the organisation that hold the potential for improvement. (Environmental)

This seminar is not to say however, that governing bodies have not already identified the importance of CSR and it is clear that football associations are continually producing CSR work, the extent to which is often in comparison with the size of the body in question. Countries in attendance offered various examples of social responsibility they had produced already within their governing body. Such an example was provided by the Irish FA, whereby they demonstrated the strategy and visions behind their community-targeted 'Football for All' programme. Such a scheme epitomises the direction in which football must continue to move, in collaboration with it's hierarchical model of governing bodies, if it is to satisfy it's diverse communities and also protect it's integral ethics and values.

The European football market easily distinguishes the need for CSR to be at least in the thoughts of football associations with it's wide range of different cultures, ideas and knowledge. Of course, it is a learning process that most probably, will never end and continuously evolve and it's interesting to see what goes on 'behind closed doors' within UEFA, so to speak. The ability for ideas behind CSR to be shared at least on a European basis and put to best use is a superb use of time.

This is a topic I'm not sure many football fans adhere to, or perhaps understand the importance of in comparison to the need for goal-line technology, but it's excellent to see UEFA identifying one of the worlds most pressing issues at present business-wise, and relaying it's importance to the organisations it governs!

CLD

Twitter: @callumldraper

Facebook: facebook.com/callumldraper

The end of NPower sponsorship.

The Football League will be on the lookout for a new title sponsor throughout the 2012/13 season after partner NPower decided to opt out of renewing it's sponsorship at the end of the season.

NPower sponsorship as of
the 2013/14 season
will be no more.

The utility provider signed a three-year deal back in 2009 worth £21m as it looked to position itself as a positive energy provider in the minds of the football community. Since then, the company has had a change in directorship as then marketing-director Kevin Peake left NPower last year, leading to speculation around the decision against renewal. Incidentally the change of leadership meant a change in company brand positioning.

It is understood recently appointed top marketer Debbie Britton oversaw a thorough brand and strategy review upon assumption of her post. The results of their findings effectively produced the collective agreement within the energy company for the necessity to move it's marketing 'in a different direction'.

The Football League's chief commercial officer Richard Heaselgrave is now free to negotiate with other brands after the period of negotiable exclusivity between NPower and The Football League has now expired.

Previous title sponsors of the Football League since 1993 have been Endsleigh Insurance (1993-1996), Nationwide (1996-2004) and Coca-Cola (2004-2010).

CLD.

@callumldraper

The use of Twitter - Schalke 04

Schalke 04 have taken an interesting insight into a method of motivating their players by taking to social media site Twitter to showcase tweets encouraging their stars.

LCD screen's can be found throughout their training base with stirring tweets acting as constant inspiration to the players, coaches and staff alike. The screens are surrounded by the club's branding in a technique that could be used to encourage the players to become autonomous in their feelings towards the club, and thus intrinsically believing and understanding what the club and it's heritage stands for.

It would be interesting to know whether the tweets are moderated to ensure only the 'right sort' of tweets reached the players, or if they are left leaving the players free to interpret any tweet themselves, as with any club, a certain amount of abuse can be found in the small corners of the twittersphere.

This is just one of the many examples Schalke provide of how getting the little things right throughout the club can make a big difference in getting things right on the pitch as they currently sit high-flying in 3rd position in the Bundesliga.

Good to see Twitter being put to good use in the media, and not to criticise and single out players on what they have/have not said (and subsequently deleted!) - well done Schalke 04!

CLD.

@callumldraper

The 'Wiggins Effect'

Following an abundance of British Cycling success at London 2012, spearheaded by the performances of Bradley Wiggins, all-rounder franchise Halfords have recorded record bike sale increases in the second quarter.

Of course, sales increases were expected in specific areas as a result of the games, of which associated companies may/may not have budgeted for, yet Halfords recorded a near 15 per cent rise (14.7%) in bike sales figures in the second quarter of the financial year alone surely surpassing all expectations!

Timely launched brands such as the Victoria Pendleton and Chris Boardman ranges, matched with excellent staff knowledge in store are notable explanations for the rise. It is these features that those in high positions within Halfords will be looking to maintain and improve upon in the upcoming months as the legacy continues. The Pendleton range in particular stands out as a brand launched purely off the back of the Olympics, aiming to encourage women to participate in cycling at the most basic of levels. The range is advertised by Pendleton wearing dress, showing that the ladies can act and be natural whilst taking part in the sport.

The news will come as a delightful reprieve to Halfords who, following the resignation of chief executive David Wild based on a profit warning issued following record levels of rainfall affecting sales of outdoor products earlier on in the year, were clearly in search of some good news! Luckily it arrived and long may it continue!

CLD.