Sport sponsorship as a strategic investment in China: perceived risks and benefits by corporate sponsors prior to the Beijing 2008

Olympics
Xinquan Sheena Yang et al. International Journal of Sports Marketing & Sponsorship 2008

Introduction
Sports sponsorship has developed into a major industry in the global marketplace. Very few examination regarding how sponsorship works in Chinese cultural and economic context.

Literature review and theoretical framework:

The explanation the relationship between the parties involved in a sponsorship; exchange relationship. The identification of sponsorship objectives and benefits; brand equity.

 3 paradigms of factors and processes of sport sponsorship management

Sponsorship and integrated marketing

Sponsorship and relationship marketing

Sponsorship and strategic alliance

Integrated Marketing

Brand Equity

Sports Sponsorship

Relationship Marketing

Relationship Benefits

Comparative Advantage

Strategic Alliance

Objectives:
To examine the application of sports sponsorship in China by using 3 paradigms of factors and processes of management. To confirm if the international and national corporate sponsors conceptualized sport sponsorship as a strategic investment.

Objectives (contd):
The benefits and risks of sport sponsorship perceived by corporate sponsors.

The cultural differences perceived as a barrier for international corporations to enter the sport sponsorship market in China.

Methodology
Purposive sampling method:
A sample of corporate sponsors was selected on two criteria: diversity and innovation More than 108 documents from 4 websites represented 3 distinct categories; government, sport industry and mass media.

 Qualitative research: (decision making and

ambush marketing) Stage 1: pilot interviews
7 experts in sports sponsorship interviewed subjects worked for 3 Chinese organizations and 2 universities To refine the interview questions

Qualitative research (contd) Stage 2: in-dept interview

They were conducted with;
12 corporate senior managers 11 corporations (5 international, 6 domestic)

All interviews were conducted in Chinese, tape recorded, transcribed and translated to English.

Results and discussion:

Perceived benefits
Brand equity Relationship benefits Perceived risks
Poor execution Inadequate investment in leveraging Sports performance fluctuation

Termination cost
Opportunity cost

Conclusion:
3 direct implications:
1. Fee to obtain sponsorship right is only first step. Need professional management. 2. Sport sponsorship is strategic investment, need long-term commitment. 3. Sport sponsorship can be mutually beneficial strategic, win-win results.

Conclusion (contd):
Cultural differences are not the barrier for international corporate sponsors in China.

Integrated marketing and relationship marketing strategic should be applied to the execution of sport sponsorship agreements.

Limitations and future study:

Limited on time and participant availability.

To study the strategies of sponsorship partnership formation and tactic of sponsorship implementation.

Thank you for your attention

Tanaporn Panich 53910313