Sponsorship Advantages and Disadvantages

Abstract

Sponsorship is one of several tools that are part of a company's marketing communications mix intended to accomplish its business objectives. In many respects, sponsorship is similar to other forms of promotion in the sense that they all intend to promote and build the brand; however, it also has distinct aspects that can benefit companies. Traditionally, marketing practitioners and academics alike maintain that a unique advantage of sponsorship is that fans/consumers perceive it as indirectly benefiting them as well, and not just the sponsoring company, as is usually the case with the other forms of promotion.