Sponsorship is: understanding and role of its importance in marketing

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Sponsorship is: understanding and role of its importance in marketing

Sponsorship is understanding and role of its importance in marketing

Sponsors are a term that we often hear in various daily activities. These sponsor activities can be easily found in various mass media, such as TV, billboards, internet, etc. However, many people consider that sponsorship is advertising. In fact, actually more sponsors than advertising we usually see on TV.

Well, if you are curious about the actual understanding of sponsorship, then in this article we will present the complete understanding of sponsorship and various related things in it.

Sponsorship is

Basically, sponsorship is the word absorption taken from English, which in Indonesian has the meaning of sponsorship. Based on this explanation, we can interpret together that sponsorship is a form of applying a product promotion system by the company to the wider community.

But, these sponsorship activities are more than just advertising. In its application, the manufacturer’s company will cooperate with other parties who have the task of advertising their products to the community. The party will bridge the process of promotion of goods with mutually beneficial reciprocity.

Generally, the parties who carry out sponsorship activities will be given wages at the producer company that the product wants to advertise.

Some circles there are also those who argue that sponsorship is a form of material or financially support from a company to individuals, organizations or certain events.

However, support in the form of the material will be paid by reciprocity by the organization with the existence of product promotions with certain agreements. That means, sponsorship is a form of cooperation activities.

In marketing, sponsorship is a form of agreement-based activities from advertisers and also those who want to install an ad. In general, this agreement is in the form of payment of a number of funds that have been approved by the advertisers.

Instead, the advertiser must be able to promote the product that has been given by the company to the wider community.

Types of sponsorship

Until now, cooperation or sponsorship has often been carried out by many parties, especially the company or business owners who want to maximize their product promotion. This sponsorship activity is considered effective by business people because it can increase the value of the brand or product brand, even able to increase the good name of the company.

Until now, there are at least two types of sponsorships that are carried out by businesses, namely sponsorship brands and sponsorship events. Both types of sponsorship are carried out based on advertising concepts carried out by advertisers.

The following is an explanation of the Sponsorship Brand and Sponsorship Event:

1. Brand Sponsorship

Brand Sponsorship is a type of activity carried out by company brand by supporting a program, events or organizations carried out in the midst of society. Until now, this type of sponsorship brand is one of the very effective marketing strategies to be able to introduce the company’s name to the public.

Examples of the holding of this sponsorship brand actually have often met in everyday life, such as in a television program sponsored by a particular company, or in an event or a performance held in the city, such as a music concert, relaxed road, festival etc. . sponsored by various well-known brands.

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Simply put example is a famous company brand in the world, namely Coca-Cola who has sponsored a grand event of world football, the World Cup.

This is certainly able to bring his own profits to companies that do sponsorship brands. The following is the advantage of the running sponsorship brand:

  • Increase brand popularity

As we all tangent above, the main purpose of the sponsorship brand is to increase the popularity of a brand in the eyes of the wider community.

The community will be difficult to know the product or company if the company does not try to introduce it to the wider community. With the existence of sponsorship efforts, the company’s brand will be widely known by the community.

  • Increase product sales

Another advantage that can be felt by the company running a sponsorship brand is the increase in their product sales.

Even by carrying out this promotional activity, the community will be increasingly interested in making product purchases. The wider the sponsorship brand carried out by the company, the greater the chance will be in demand by many people.

  • Appearing differently from competitors

Doing marketing activities in the form of sponsorship brands will make company brands look different from other competitors.

If other companies are still carrying out traditional promotional activities such as distributing pamphlets or promotions on social media, then by carrying out brand sponsorship activities at an event or organization, the company’s name will be increasingly prominent in the eyes of the wider community directly involved in the event.

So, the company does not need to worry about other competitors, because the brand has dared to be different.

  • Improve brand reputation

The last advantage that can be felt by companies that carry out sponsorship brand activities is the increasing reputation of the brand in the eyes of the wider community.

Simply put example is a coca-cola brand which has been a major sponsor in the prestigious world class football championship, the FIFA World Cup. After they became the main sponsor of the world-class championship, the name of the coca-cola brand also has more value in the eyes of the public.

This will certainly have a positive impact on the company, where the company will receive a lot of product purchases or there will be other parties interested in investing in the company.

2. Sponsorship Event

Coulson and Thomas explained that the Sponsorship event was a form of activity that had the purpose of increasing the image of the company and made the wider community continue to remember the name of the company’s brand.

Sponsorship events are part of a business communication strategy that is very useful for building and also increases the level of community trust in the company’s brand.

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The final goal is also not different from the sponsorship brand, which is to increase the interest in purchasing public products. In addition, the company will also be different from other competitors, because they have a strong brand image in the eyes of the public.

This will provide benefits, because the image owned by the company cannot be equated between one company and another company.

Well, if the brand sponsorship does a form of cooperation at an event, the sponsorship event is the opposite. In this case, the media problem that will come to the Sponsorship event and publish the event voluntarily.

In general, many business people who organize this sponsorship event, because there are very many profits.

The main task of Sponsorship

As one of the promotional activities, various tasks and obligations that exist in sponsorship activities must certainly be done well. This aims for the main purpose of sponsorship activities to be achieved and able to satisfy the various parties in this form of cooperation.

Broadly speaking, there are two main tasks of sponsorship, namely:

1. Accounting Advertising campaign

The first task to do sponsorship is to succeed a advertising campaign from the company. The form of sponsorship cooperation in general always has a contract contract that has been signed by both parties.

For this reason, the main task of sponsorship is to succeed the advertising campaign as it has been contained and has been approved in the contract. If the main task cannot be fulfilled, the future conflict will appear.

2. Supporting marketing strategies

The next task that must be done by Sponsorship is to support the company’s marketing strategy according to what has been approved.

In this case, the company will usually create a proposal, which is the details of the marketing strategy or advertising that must be carried out after the two sides have agreed.

If the advertiser is unable to support the strategy set by the company, the company has the right to decide on cooperation.

3. Shows social responsibility

The last task that must be done by sponsorship is to show a sense of social responsibility, both from advertisers and the company. With the completion of duties and obligations, both parties can prove the existence of good intentions and social responsibility to increase mutual trusting.


Thus a complete explanation of sponsorship and related things in it. But what must be underlined is in carrying out sponsorship activities needed the right and accurate financial budget or budget.

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