2007:288 BACHELOR THESIS Sport Sponsorship as a Marketing

2007:288

B A C H E L O R T H E S I S

Sport Sponsorship as a MarketingCommunication Tool

A Case Study of Two B2B Companies

David Mäki Niklas Sjöstrand

Luleå University of Technology

Bachelor thesis Marketing

Department of Business Administration and Social SciencesDivision of Business Administration and Management

2007:288 - ISSN: 1402-1773 - ISRN: LTU-CUPP--07/288--SE

TO OUR RESPECTIVE FAMILIES

Mäki & Sjöstrand 2007

Preface

It is with great pride that we hereby present our bachelor thesis. During this ten week long process we have gained a lot of knowledge of this research area and it has been a lot of fun.

We would like to send a special thanks to our supervisor Tim Foster whose advice, and detail-pickiness helped us finish this thesis with excellence. Also big thanks to Stefan Enbom at SSAB Tunnplåt Tore Fällén at LKAB, who found time in their busy schedule and answered our questions which gave us valuable information for our thesis.

Luleå, May 2007

_________________________ __________________________ David Mäki Niklas Sjöstrand


Abstract

Sport sponsorship has become as important part of the marketing communication mix for companies today. The purpose of this thesis is to provide a better understanding on the use of sports sponsorship as a marketing communication tool. In order to reach this purpose, research questions focusing on the objectives of sports sponsorship, as well as how a company selects which sports entity to sponsor, were stated. Based on these research questions, a review of the relevant literature was conducted resulting in a conceptual framework, which then guided the study's data collection. In order to collect the data, a qualitative, case study approach was used, using interviews as the data collection tool. The findings of the study indicate that employee relations, company image, increased community involvement and goodwill are important objectives for sport sponsorship. Furthermore, geographic reach, possibility for goodwill toward the community, the possibility to enhance employee relations are all major selection criteria for the sponsorship.


Sammanfattning

Sport sponsring har idag kommit till att bli en mer och mer viktigare del av företags marknads kommunikations mix. Syftet med den här uppsatsen att är att förse oss med en förståelse om användandet av sport sponsring som ett marknadskommunikationsverktyg. För att uppfylla detta syfte ställdes forskningsfrågor som fokuserar på målen med sport sponsring, så väl som hur ett företag väljer vilken sport enhet som ska sponsras. Baserat på dessa forskningsfrågor, gjordes en granskning av relevant litteratur vilket resulterade i ett teoretiskt ramverk, som sen vägledde studiens datainsamling. För att samla in data, gjordes en kvalitativ fallstudie, där intervjuer användes som datainsamlingsmetod. Slutsatserna av studien indikerar att förhållandet till anställda, företagets image, ökat engagemang i samhället och goodwill är viktiga mål med sport sponsring. Fortsättningsvis är geografisk räckvidd, möjlighet till goodwill mot samhället, möjligheten till att förbättra förhållandet till anställda alla viktiga val kriterier för sponsorskapet.


Table of Contents

1. INTRODUCTION................................................................................................................ 11.1 Background ................................................................................................................ 1

1.1.1 Sponsorship ........................................................................................................ 11.1.2 Sport Sponsorship .............................................................................................. 2

1.2 Problem discussion..................................................................................................... 31.3 Overall Purpose and Research Questions................................................................... 4

2. THEORETICAL REVIEW ................................................................................................ 52.1 Objectives with sport sponsorship.................................................................................... 52.2 Selection of Sport entity ................................................................................................... 82.3 Conceptual Framework .................................................................................................... 9

2.3.1 Conceptualization of RQ 1: Objectives in sport sponsorship ................................... 92.3.2 Conceptualization of RQ 2: Selection of sport entity ............................................. 10

3. METHODOLOGY............................................................................................................. 123.1 Research Purpose: Primarily Descriptive....................................................................... 123.2 Research Approach: Qualitative Research..................................................................... 133.3 Research Strategy: Case Study....................................................................................... 133.4 Data Collection: Documentation and Interviews ........................................................... 143.5 Sample Selection: Judgemental Sampling ..................................................................... 153.6 Data Analysis ................................................................................................................. 163.7 Validity and Reliability .................................................................................................. 173.8 Outline of Research Methodology ................................................................................. 19

4. EMPIRICAL DATA .......................................................................................................... 204.1 SUB-UNIT 1: SSAB Tunnplåt....................................................................................... 20

4.1.1 RQ 1: Objectives ..................................................................................................... 204.1.2 RQ 2: Selection ....................................................................................................... 21

4.2 SUB-UNIT 2: LKAB ..................................................................................................... 224.2.1 RQ 1: Objectives ..................................................................................................... 224.2.2 RQ 2: Selection ....................................................................................................... 23

5. DATA ANALYSIS ............................................................................................................. 255.1 Objectives with Sport Sponsorship ................................................................................ 25

5.1.1 SUB-UNIT 1: SSAB ............................................................................................... 255.1.2 SUB-UNIT 2: LKAB .............................................................................................. 265.1.3 Matrix Summary ..................................................................................................... 27

5.2 Selection of Sport Entity ................................................................................................ 275.2.1 SUB-UNIT 1: SSAB ............................................................................................... 285.2.2 SUB-UNIT 2: LKAB .............................................................................................. 285.2.3 Matrix Summary ..................................................................................................... 29

5.3 Comparison of SUB-UNITS: SSAB and LKAB ........................................................... 305.3.1 Objectives with sport sponsorship........................................................................... 315.3.2 Selection of sport entity........................................................................................... 31

6. FINDINGS AND CONCLUSIONS .................................................................................. 336.1 What are the company objectives with sport sponsorship?............................................ 336.2 How does a company select which sport entity to sponsor? .......................................... 346.3 Implications and Recommendations .............................................................................. 366.3.1 Implications for theory ................................................................................................ 366.3.2 Implications for practitioners ...................................................................................... 366.3.3 Implications for future research .................................................................................. 37


LIST OF REFERENCES ...................................................................................................... 38APPENDIX A - INTERVIEW GUIDE (ENGLISH) .......................................................... 41APPENDIX B - INTERVJU GUIDE (SWEDISH) ............................................................. 43


List of Exhibits

Exhibit 2.1: Sponsor objectives is either corporate or product/brand-related 7

Exhibit 2.2: Selection Criteria 9

Exhibit 2.3: McCook’s Criteria for selection 9

Exhibit 3.1: Relevant Situations for Different Research Strategies 14

Exhibit 3.2: Sic sources of Evidence: Strengths and Weaknesses 14

Exhibit 3.3: Case Study Tactics for Four Design Tests 18

Exhibit 5.1: Objective Summary 27

Exhibit 5.2: Selection Summary 30


List of Figures

Figure 1.1: The Role of Sponsorship in the Promotion Mix 1

Figure 2.1: Stages in the sponsorship management process 5

Figure 2.2: Organizations objectives with sponsoring according to Dolphin 6

Figure 2.3: Leveraging Sponsorship through IMC 8

Figure 3.1: Research Methodology 12

Figure 3.2: Criteria for case sub-units 16

Figure 3.3: Sub-units in case 16

Figure 3.3: Graphical outline of Research Methodology 19

INTRODUCTIONMäki & Sjöstrand 2007

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1. INTRODUCTION

This first chapter will start with information on the background of our chosen area of research. This will then be followed by a problem discussion on Sports Sponsorship and at the end of this chapter we will state our overall purpose of this thesis and state our research questions.

1.1 Background

According to Jobber (2004) the promotion mix consist of advertising, personal selling, sales promotion, public relations, direct marketing, internet and online promotion. These vehicles of promotion are used by companies to deliver/communicate a message to their customers about a product (Ibid). There are many different ways for marketers to communicate a brand, such as TV, radio, or sponsorship (Keller, 2001). Figure 1.1 will show a sponsorship’s role in the promotion mix:

1.1.1 Sponsorship

Sponsorship is a business relationship (Jobber, 2004) between two parties who are the sponsor and its stakeholders and the sponsored and its stakeholders (Olkkonen, 1999). The sponsor gives financial support (Dolphin, 2003), resources or services (Jobber, 2004) to a leisure or sporting activity (Dolphin, 2003), or an individual or company which offers in return some rights and association that may be used for commercial advantages (Jobber, 2004).

It was during the 1980s when sponsorship started to grow in popularity among marketers, partly because sponsorship was an excellent supporting element to the promotional mix. Itwas also far less costly than traditional media advertising. (Brassington & Pettitt, 2000) Today sponsorship is the fastest growing form of marketing (Dolphin, 2003) and has become a part of company’s strategy to create a corporate image and a brand positioning (Farrelly, Quester

Advertising

Sales-Promotion

Personal Selling

PR

Sponsoring

Supply Image

Interact

Inform

Figure 1.1 The Role of Sponsorship in the Promotion MixSource: Abrahamson, Forsgren & Lundgren (2003), p. 4


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& Burton, 2006). According to Verity (2002) sponsorship has, during the last 20 years, had a steadily growing proportion of companies’ marketing budgets.

Bennett (1999) states that sponsorship is:

”… an important tool of marketing communication that seeks to achieve favourable publicity for a company and/or its brands within a certain target audience via the support of an activity not directly linked to the company’s normal business.”

Erdogan and Kitchen (1998) clarifies this by stating that companies use sponsoring as an attempt to improve how their brand is received. Sponsorship can also play a powerful role when a company wants to enter a foreign market which makes sponsoring a valuable and powerful communication tool (Dolphin, 2003). The reason for why sponsorship is such a powerful tool is according Nicholls et al. (1999) because customers are reached through their hearts and mind. Further Dolphin (2003) states that sponsorship as an activity is more extensive than other forms of marketing communications.

Companies that want to sponsor have a large quantity of entities and activities to choose from. Examples of such entities and activities are community activities, charities, teams, tournaments, arts and sports (Bennett, 1999). The most popular sponsorship medium is sports sponsorship (Bennett, 1999) which accounts for over 75 per cent of all sponsoring (Dolphin, 2003).

1.1.2 Sport Sponsorship

Sports sponsorship is not a recent phenomenon. Back in ancient Rome gladiatorial games was sponsored by Roman patriarchs in order to create public appreciation (Shannon, 1999). The modern form of sport sponsorship was developed in the United States during the 1950s when two companies sponsored then President Eisenhower’s physical fitness program (Shannon, 1999).

Originally, sports in Europe were self-financed, but after some time national and government started to support sport by means of taxes. Sports were seen as healthy way for people to spend their time. Sport grew and this support was no longer enough. In 1974, a study about the commercialization of sports was made. Researchers came to the conclusion that sports would not survive without financial support from businesses and industries. (Jiffer & Roos, 1999)

What many companies are now starting to realizing is that sport sponsorship also is a valuable way to reach new markets (Shank, 1999). Farrelly et al. (2006) explains that sport sponsorship is increasingly used by companies as an image and brand-positioning platform. Thru sport sponsorship companies can reach large audiences, and sometimes communicate with audiences that would be difficult if using normal advertising (Brassington & Pettitt, 2000).

Sport sponsorship offers high awareness, all-embracing television and press coverage. It also has the ability to attract a broad cross-section of the community and it can reach small specific niches. Most importantly, sport sponsorship has the power to break down cultural barriers. (Bennett, 1999) Companies use sport sponsorship to achieve specific company objectives (Amis, Slack & Berrett, 1999).


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Jobber (2004) continues with stating that the five principal objectives of sponsorship are to gain publicity, create entertainment opportunities, foster favourable brand and company associations, improve community relations and create promotional opportunities.

Farrelly et al. (2006) and Amis et al. (1999) states that the primary objective for a company to sponsor is to use the image of the sport entity to define, enhance and/or even re-establish their own image. A Consumer associates sport with different values such as; healthy, young, energetic, fast, vibrant, and masculine. (Jobber, 2004)

1.2 Problem discussion

The old, conventional view of sponsorship is that it is a short-term transaction and just a marketing communication tactic (Urriolagoitia & Planellas, 2007). Olkkonen et al. (2000) and Fahy et al. (2004) states that sponsorship is not only a company process which aims to send incentives to different target markets that will generate more sales. Many companies still have this old traditional view of sponsorship and this is why so many sponsorship programs have failed (Fahy, Farrelly & Quester, 2004).

The modern sponsors have started to recognize that sponsorship has an important strategic role for any company (Urriolagoitia & Planellas, 2007). It is also a resource that is capable of winning sustainable competitive advantages, and the fastest growing form of marketing (Dolphin, 2003). Tripodi (2001) goes even further by stating that sponsorship has “… the potential to become the marketing tool of the 21st century”. Still, there is a lot to be learned about sponsorship (Chadwick & Thwaites, 2005), which is according to Dolphin (2003) is almost ignored in marketing and public relations literature.

According to Verity (2002) and Tripodi (2001) the objectives for sponsorships can be both corporate-related objectives and product/brand-related objectives. Farrelly et al. (2006), states that the primary objective for sponsoring companies is to use the image of the sponsored sport entity to define, enhance or even re-establish their own image. It is important to set clear objectives for a sponsorship and carefully plan activities associated with the sponsorship (Brassington and Pettitt, 2000).

Nowadays companies choose whom or what to sponsor for strategic reasons (Fahy, Farrelly & Quester, 2004). Companies should complement their own positioning by linking themselves to events or sports that can help their image-building (Fahy, Farrelly & Quester, 2004). The challenge for managers, because of the growing complexity of sponsorship relationships (Fahy, Farrelly & Quester 2004), is to create strong foundational principles which act as the relationships base (Urriolagoitia & Planellas, 2007). Many sponsorship investments failbecause companies do not support their original investment with sufficient advertising, public relations and other promotional expenditures (Fahy, Farrelly & Quester, 2004).

It is difficult to assign value to the outcome of sponsorship (Fahy, Farrelly & Quester, 2004). Several authors (Dolphin 2003; Olkkonen, Tikkanen & Alajoutsijärvi, 2000) suggest that more research is necessary in order to determine how to measure the effectiveness of a sponsorship. Dolphin (2003) has also noted that many researcher requests a systematic approach to sponsorship management and evaluation.


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Much of the existing research on sponsorship is focusing on the sponsor and how companies should manage sponsorship as a part of their promotional mix (Olkkonen, Tikkanen & Alajoutsijärvi, 2000). On area of sponsorship that has gained a growing interest among researchers is the selection process of who, and what should be sponsored (Jiffer & Roos, 1999). Dolphin (2003) further suggests that future research on sponsorship should focus on if there is any variation and uncertainty in the selection of sponsorship activities.

1.3 Overall Purpose and Research Questions

The overall purpose of our thesis is to provide a better understanding of the use of Sport Sponsorship as a communication tool. We have also outlined two research questions to help us in gaining better understanding in Sport Sponsorship as a promotion tool.

RQ 1: What are the company objectives with sport sponsorship?

RQ 2: How does a company select which sport entity to sponsor?

THEORETICAL REVIEWMäki & Sjöstrand 2007

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2. THEORETICAL REVIEW

In the first chapter we gave a short introduction to our chosen area of research and a problem discussion on the same area and ending the chapter with stating our overall purpose and our two research questions. In this chapter we will present literature that is related to our stated purpose and research questions. We will finish this chapter with a conceptual frame work based from the theories.

In the Sponsorship management process model, seen in Figure 2.1, which Chadwick (2005) has developed are several stages that an organization should go through before they decide if they should sponsor a sport entity. We will focus on parts of the two first stages in Chadwick’s (2005) process of sponsorship, objective setting and Screening and selection.

According to Chadwick (2005) the first stage of the sponsorship management process is Objective setting. Here the sponsoring organization should set up specific/quantifiable objectives for the sponsorship program. Chadwick (2005) continuous with that the sponsoring organization should use sponsoring strategically and tactically, the objectives set should be consistent with these approaches.

The second stage in the Sponsorship management process is Screening and selection.According to Chadwick (2005) every organization that considers to sponsor should have a structured process on how to consider a sponsorship proposal. Chadwick (2005) argues further that sponsoring organizations should ensure that they are able to screen and select sponsor proposal on both a proactive and reactive basis.

2.1 Objectives with sport sponsorship

According to Dolphin (2003) sponsorship is an activity associating the organization with a third party activity designed to achieve a series if separate but mutual agreed objectives.Dolphin (2003) continues by stating some corporate objectives (seen in Figure 2.2), these are; enhancing corporate image, increasing awareness of brands, stimulate the sales of products or services and leveraging the corporate reputation. If a sponsorship is going to be successful the objectives must be achieved (Ibid).

Objectivesetting

Executionof the deal

Screening and

selection

Contractcontent

Evaluation

Criticalsuccessfactors

Figure 2.1 Stages in the sponsorship management processSource: Adapted from Chadwick, (2005), p. 330


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Enhancing corporate image

Sponsorship can be used to alter the public perception about the companies. It can boost community involvement and that this is an excellent way of giving back to the community that supports the organization. Sponsorship can also be used a tool that can build relationships, create goodwill and enhance employees´ motivations; long-term sponsorship can do much in enhancing the sponsoring organizations image (Dolphin, 2003).

Increasing awareness of brands

When an organization chooses to sponsor a sport entity Dolphin (2003) argues that the increasing of brand awareness accurse naturally from the sponsorship. He continuous with that sponsorship is excellent to use if the organization wishes to achieve name recognition-raising the profile of the organization brand (Ibid).

Stimulate the sales of products or services

According to Dolphin (2003) it is of importance for customers whether or not an organization are social responsible.

Leveraging the corporate reputation

If the sponsoring organization and the sponsored sport entity have clear stated objectives both sides of the both sides should benefit from the activity (Dolphin, 2003). Sponsorship is highly regarded for its ability to enhance organizations identity, awareness and image (Ibid). According to Zafer Erdogan & Kitchen (1998) sponsorship improve brand or company perceptions by flanking individual beliefs about the company or brand by connecting them to an event or organisation that is highly valued by target consumers.

Increaseawareness of

brands

Leveragingcorporatereputation

Sponsorshipobjectives

Stimulate sales of products or

services

Enhancecorporate

image

Figure 2.2 Organizations objectives with sponsorship according to Dolphin(2003)

Source: Authors own construction


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The setting of objectives enables the company to undertake a post-evaluation of the sponsorship in accordance with the objectives, thus creating effective management of sponsorship via tangible evidence of their investment. (Tripodi pp. 4, 2001)

According to Tripodi (2001) sponsorship objectives can either be corporate or product/Brand related (see exhibit 2.1). Tripodi (2001) continues by stating that the two most important reasons for to why companies invest in sponsorship are the objectives of creating/improving brand awareness and changing/enhancing the company’s image.

Tripodi (2001) argues that if there are no objectives with the sponsorship the company can not know if their investments are worth it. By having measurable objectives this problem is overcome and the decision whether to renew or not to renew a sponsorship contract is easier.

Objectives should be specific. Setting an objective with increasing brand awareness is to loosely define but still better then no objective at all. (Tripodi, 2001) The best way would be if the objective is not only quantified but also who to target and within a particular period of time. (Tripodi, 2001)

To maximise a sponsorship investment, it is recommended that all four elements of the traditional promotional mix (i.e. advertising, public relations, sales promotions and personal selling) are used together with the sponsorship (Figure 2.5). Also, a sponsorship is going to be more efficient when supported by other communication mix elements. (Tripodi, 2001)

A. Corporation-related Objectives

Increase public awareness of the company and its services; Enhance company image; Alter Public Perception; Increase Community Involvement; Build business/Trade relations and Goodwill; and Enhance staff/employees’ relations and motivation.

B. Product/Brand-related Objectives

Increase target market awareness; Identify/build image within target market (positioning); Increase sales and market share; and Block/pre-empt competition.

Exhibit 2.1 Sponsor objectives is either corporate or product/brand-relatedSource: Adapted from Tripodi, (2001), p. 4


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According to Tripodi (2001) a sponsorship needs to be advertised, publicised, personally sold by the sponsor to customers/clients through corporate hospitality packages, to utilise tie-ins such as sales promotions and involve other communication techniques such as directmarketing initiatives and an on-line presence in order for the sponsorship to be fully exploited to achieve maximum effectiveness.

Tripodi (2001) argues that the sponsorship must be leveraged with these additional promotional activities if the medium is going to augment a company’s communicationsstrategy, and thus improve the company’s overall marketing impact.

Today’s sponsorship has evolved into a selection process where sponsor proposals must for fill criteria that the companies have before they are selected. This process makes it possible for companies to develop objectives for the sponsorship that are compatible with their overall marketing strategy and therefore enhancing the impact of the sponsorship on the company’s marketing efforts. (Tripodi, 2001)

2.2 Selection of Sport entity

Tripodi (2001) states that there is a selection process, in sponsorship, where sponsor proposals must meet some criteria that the companies have before they are selected.

Both Tripodi (2001) and Walliser (2003) states that the most important reason to why companies participate in sponsorship is to increase awareness about the company and enhance the company’s image. Walliser (2003) states both popularity and the image of the sport entityas criteria for choosing sponsor proposal.

Walliser (2003) also discusses a process, called the managerial process of sponsorship, which includes setting objectives, selecting, organizing and executing the sponsorship, and, finally, controlling the outcome, as be for we will focus on the two first stages of the process, setting objectives and selecting. Walliser (2003) continuous with stating that when selecting which sport entity to sponsor there are several criteria that the proper sport entity must for fill (See Exhibit 2.2).

Advertising

Sponsorship

Other promotional toolse.g. Direct Marketing,Internet Marketing, Merchandising/POS

Public Relations

Sales Promotion Personal Selling

Figure 2.3 Leveraging Sponsorship through IMCSource: Tripodi, (2001), p. 10


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McCook et al. (1997) also states a list of criteria that companies should look for in a potential sponsoring party. The criteria investigate the process which companies undertake when deciding whether or not to sponsor a sport entity. See exhibit 2.3:

2.3 Conceptual Framework

We will use this conceptual framework as a guide line to how our data collection will be carried out and with this conceptual framework we will try to answer our stated research questions, which can be found in chapter one. We have chosen the most relevant theories, for our study, to rely on when conducting this research.

The chosen theories that will be used in this study are based upon two important parts of sponsorship. Objectives of sport sponsorship and selection of which sport entity to sponsor are clearly connected. If the company has clearly stated objectives then it will help them in selecting the most suitable sport entity to sponsor.

2.3.1 Conceptualization of RQ 1: Objectives in sport sponsorship

The theories most relevant to answer the first research question: what are the objectives in sport sponsorship? The theories we have chosen to base our study on and to use when trying to answer our research question are Dolphin (2003) and Tripodi (2001). According to Dolphin (2003) companies should have four main objectives with their sponsorship.

Exhibit 2.3 McCook’s Criteria for selectionSource: Adapted from McCook et al, (1997), electronic resource

Perceived affinity between sponsor product and sponsored activity Affinity between targets of sponsor and sponsored Popularity and Image of the potential sponsored party Willingness to cooperate from the sponsored party (Long-term basis) Geographic reach Contact frequents Quality of contact Expected sponsorship cost/benefits The type of rights received Possibility to integrate the sponsorship into the marketing strategy

Exhibit 2.2 Selection CriteriaSource: Adapted from McCook et al, (1997), electronic resource

Increase Sales Enhance corporate image Increase brand name awareness Generate favourable media interest Community goodwill Employee/sales force goodwill Sampling opportunity


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Enhance corporate image Increase awareness about brands Stimulating sales of products or services Leveraging corporate reputation

We will also, as stated above, rely on the theory of Tripodi (2001) in this study:

A. Corporation-related Objectives

Increase public awareness of the company and its services; Enhance company image; Alter Public Perception; Increase Community Involvement; Build business/Trade relations and goodwill; and Enhance staff/employees’ relations and motivation.

B. Product/Brand-related Objectives

Increase target market awareness; Identify/build image within target market (positioning); Increase sales and market share; and Block/pre-empt competition.

2.3.2 Conceptualization of RQ 2: Selection of sport entity

The theories most relevant to answer the second research question: how does a company select which sport entity to sponsor? The theories we will use in attempting to answer our second research question are, McCook et al. (1997) and Walliser (2003).

McCook et al (1997) lists seven criteria for selection of proper sport entity for sponsoring:

Increase Sales Enhance corporate image Increase brand name awareness Generate favourable media interest Community goodwill Employee/sales force goodwill Sampling opportunity

The authors mention one more interesting criteria that we will include in our study:

Exclusivity for the corporate

We will also use ten criteria from Walliser (2003) in our study:

Popularity and Image of the sport entity The willingness to cooperate from the sport entity Similarity of targets between the company and sport entity


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Perceived similarity between the company’s product and the sport entity’s activity Geographic reach Expected costs/benefits from the sponsorship Types of rights received The possibility to integrate the sponsorship in to existing marketing strategy The offered frequency of contact with the targeted customers The quality of contact with the targeted customer

The reason to why we choose to use criteria from McCook et al. (1997) and Walliser (2003) is because these theories give us a broader base to stand on when collecting data. They complement each other in a good way and we wanted to use both theories because it gives us a more extensive study.

METHODOLOGYMäki & Sjöstrand 2007

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3. METHODOLOGY

In the previous chapter relevant literature and theories for our study was presented that resulted in a conceptual framework for the research questions. In this chapter we will present the methodology used in this thesis. It will show how we approach our study. The chapter will finish with a discussion of the validity and reliability of out study.

In figure 3.1 below is a graphic outline of the chapter:

3.1 Research Purpose: Primarily Descriptive

According to Saunders (2007), and Yin (2003), research can be divided into three different categories of studies. Choosing the a analytic strategy for a research will help the researcher treat evidence fairly, produce compelling analytic conclusions, and rule out alternative interpretations (Ibid). The different types of studies are: exploratory, descriptive and explanatory studies (Saunders, 2007).

With exploratory studies researchers can clarify the understanding of a problem. There are three ways of conducting exploratory research; a search of literature, talk to experts on the subject or conduct focus groups interviews. It is flexible and adaptable to change (Saunders, 2007).

A descriptive study tries to define and test rival explanations (Yin, 2003). Saunders (2007) explains that the objective of descriptive research is “to portray an accurate profile of persons, events or situations”. This type of study can be an either an extension or a forerunner of an exploratory research or a explanatory research (Ibid).

Explanatory studies are establishes casual relationships between variables. It focuses on a situation or a problem to try to explain relationships between the variables (Saunders, 2007).

In view of the fact that we want to gain a better understanding of sport sponsorship and how it is used as a marketing communication tool, our thesis is to some extent exploratory. The thesis is also descriptive because we portray the objectives of sport sponsorship and the how companies select which sport entity to sponsor. The thesis is also partly explanatory because we try to explain the findings of their study and summarise them by answering their research questions and draw conclusions.

Research Purpose

Research Approach

Research Strategy

Data Collection

SampleSelection

Data Analysis

Validity/Reliability

Figure 3.1 Research MethodologySource: Adapted from Foster (1998), p. 81


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3.2 Research Approach: Qualitative Research

There are two main methodological approaches that are extensively used within in social science; quantitative and qualitative research. Which approach to choose depends on the on what kind of information that is studied (Denscombe, 2000).

With a qualitative research authors aim to transform what is observed, reported or registered into written words. Recorded interviews are transformed into transcripts, observations are registered in field notes, and pictures are described in words. Thus, qualitative research ofteninvolves words as the central unit of analysis. The conclusion that is drawn from a qualitative research is based on non-quantifiable data such as attitudes, values and perceptions (Denscombe, 2000). This type of research is often associated with small-scale studies (Ibid) and does not strive towards generalizing the problem; the purpose with a qualitative research is to gain a deeper understanding about the problem area (Saunders, 2007).

Based on the description of qualitative research and the purpose and research questions of this thesis, we have decided to use a qualitative approach when conducting our research. This is because, when using a small-scale study we can look at specific variables in depth and will therefore gain a better understanding of how companies use sport sponsorship as a marketing communication tool.

3.3 Research Strategy: Case Study

The purpose with this thesis is “to gain a better understanding of sport sponsorship as a marketing communication tool.” And the purpose is divided into two research questions:

What are the company objectives with sport sponsorship?How does a company select which sport entity to sponsor?

According to Yin (2003) there are five primary research strategies within social science, which are; experiments, surveys, archival-analysis, history and case studies. When selecting which strategy to use, researcher must look at three conditions; the type of research questions posed, the extent of control an investigator has over actual behavioural events, and the degree of focus on contemporary as opposed to behaviour events (Foster, 1998).

A case study focuses on one or a small amount of research units. The main benefit of a case study is that is gives the researcher the possibility to devote himself to subtleties and difficulties in complex social situations (Denscombe, 2000). This is explained in the Exhibit3.2.


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The authors have chosen to use a case study according to Yin’s (2003) model because we are going to focus on a small amount of research units. Using a case study is the most appropriate in order to answer the research questions (Ibid), since it gives us the possibility to gain a rich understanding of the context of the research (Denscombe, 2000). Because we want this thesis to help us gain a better understanding of our research area, the most suitable strategy to use is a case study.

3.4 Data Collection: Documentation and Interviews

When collecting data for case studies, there are six sources of evidence when performing a case study: documentation, archival records, interviews, direct observation, participant-observation, and physical artefacts. No source is better than the other (Yin, 2003).

The data collected in this study comes from documentation and two interviews which strengths and weaknesses are outlined in Exhibit 3.2 above.

Source of Evidence

targeted – focuses directly on case study topics

insightful – provides perceived casual inferences

stable - can be reviewed repeatedly

unobtrusive-not created as a result of the case study

exact - contains exact names, references, and details of an event

broad coverage – long span of time, many event, and many settings

bias due to poorly constructed questions

response bias inaccuracies due to poor recall reflexivity – interviewee gives

what interviewer wants to hear

Strengths Weaknesses

Documentation

Interviews

retrievability – can be low biased selectivity, if collection is

incomplete reporting bias – reflects

(unknown) bias of author access – may be deliberately

blocked

Exhibit 3.2 Six sources of Evidence: Strengths and WeaknessesSource: Johansson & Utterström (2006), adapted from Yin (2003), p. 86

Strategy

Requires Control of Behavioural

Events?

Focuses on Contemporary

Events?

No

Yes

Exhibit 3.1 Relevant Situations for Case Study as a Research StrategySource: Adapted from Yin (2003), p.5

Case Studyhow, why, why not?

Form ofResearch Question


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The source for documentation information can be: letters, agendas, administrative documents, formal studies or evaluations, and newspapers. When performing a case study one should use documents to confirm and add to evidence collected from other sources. Documents are useful when preparing for an interview because titles and names of organisations that may be misspelled can be corrected. Documentation should be considered as secondary data because it was most likely written to another audience and for some specific purpose other the purpose for the case study. (Yin, 2003)

Interviews are one of the most important sources of case study information. Interviews are guided conversations. Thus even if researchers are pursuing a consistent line of inquiry, the case study interview is likely to be fluid rather than rigid. In general, case study interviews are of an open-ended nature. This means that the interviewer can ask key respondents about facts about a specific matter as well as their own opinions about certain events. In a second type of interview the respondent is interviewed for a short period of time. This type is called a focused interview. This interview may still be open-ended and it may also have conversational character, but the interviewer is more likely to follow specific series of questions which has originated from the case study protocol. (Yin, 2003)

Since we have specific questions to ask, which will allow us to collect the data necessary to answer our research questions; we are going to conduct two focused interviews in this study. Still we want to keep some characteristics of an open-ended interview, in order to maintain the flexibility of the interviews. The interviews were conducted in Swedish, and we used an interview guide as a guideline for the interviews. The interview guide was sent in advance to the respondents in order for them to prepare for the interview. Also, this enabled us to collect the data needed to answer the research questions. To describe the background of the chosen companies, data was collected from their homepages and annual reports.

3.5 Sample Selection: Judgemental Sampling

According to Saunders (2007) there are two ways to select a sample: probability sampling which means that the units are selected randomly, and non-probability sampling which means that all units do not have the same chance to be selected. To select a sample to our case study, we have chosen to use judgemental sample which is a non-sampling method that allows us to select the case that seems most suitable to answer our research questions. This method is most common when working with small samples such as a case study where the case has to be particularly informative. (Saunders, 2007)

When choosing the sample for our study, we wanted to select two large Swedish companies with a connection to Luleå. The companies, which become sub-units in our study, should also be involved in sport sponsorship of local sport entities. As seen in the figure 3.2 below.


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We looked at the websites of the largest sport entity in Luleå: Luleå Hockey, where we found that the entity are sponsored by both SSAB Tunnplåt which is the biggest steel sheet manufacturer in Scandinavia and one of Europe’s leaders in the development and manufacture of high-strength steel grades, and LKAB which is an international world leading, high-tech mineral group that produces upgraded iron ore products for the steel industry.

We believe that SSAB Tunnplåt and LKAB will be excellent candidates to provide us with the information that we need. In order to find a suitable respondent at SSAB Tunnplåt and LKAB we contacted Luleå Hockey who directed us to Stefan Enbom at SSAB Tunnplåt, who is the sport entities contact. Regarding LKAB we were referred to Tore Fällén who is the Communication Manager at LKAB. These persons position at their respective companies made them suitable respondents for our study.

3.6 Data Analysis

When we have collected the empirical data, the process of analyzing the data begins. The analysis is done with the aim to answer the objectives that we have with this thesis. According to Yin (2003) a data analysis is a process where one examines, categorizes, tabulates, tests or otherwise recombines both quantitative and qualitative evidence (in this case the qualitative data) to address the initial propositions of a study. Miles and Huberman (1994) states that either a with-in case analysis or a cross-case analysis can be used on case study data.

SSAB Tunnplåt

Connection to Luleå Hockey Both companies sponsors Luleå Hockey SSAB Tunnplåt has department office and

production facilities in Luleå. LKAB has its Head Office in Luleå and

production in Kalix, Gällivare/Malmberget, and Narvik.

LKAB

Figure 3.3 Sub-units in case

SUB-UNIT 1

Connection to Luleå Hockey sponsors the sport entity located or have parts of company in Luleå

SUB-UNIT 2

Figure 3.2 Criteria for case sub-units


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Miles and Huberman (1994, p.10-11) presents these three simultaneous flows of activity that the analysis consists of:

Data Reduction: The process of selecting, focusing, simplifying, abstracting, and transforming the collected data. The purpose with data reduction is organizes data so that conclusions can be drawn and verified. (Ibid).

Data Display: An organized, compressed assembly of information that permits conclusion drawing and action. It helps us to understand what is happening and either analyze further or take action. (Ibid).

Conclusion Drawing and Verification: A qualitative analyst must from the start of data collection decide what things mean – noting regularities, patterns, explanations, possible configurations, casual flows, and propositions. (Ibid).

When the data for each research question is collected we are going to reduce and simplify the data with the use of a with-in analysis. Miles and Huberman (1994) explain a with-in case analysis as the comparison of the data collected against the theory used in the study. This will be done according to our conceptualisation.

3.7 Validity and Reliability

According to Denscombe (2000) it is of utmost importance to judge the quality of the research. This is done by testing if the research instruments are neutral, called validity which refers to how well a research method measure what it is supposed to measure (Saunders, 2007). One should also test if other researchers can draw the same conclusions, called reliability.

Yin (2003) presents four test that are commonly used to judge the quality standards of a research: construct validity, internal validity, external validity, and reliability.

Construct validity: establishing correct operational measures for the concepts being studied (Yin, 2003, p. 34).

Internal validity: establishing a casual relationship, whereby certain conditions are shown to lead to other conditions, as distinguished from spurious relationships (Ibid).

External validity: establishing the domain to which a study’s findings can be generalized (Ibid).

Reliability: demonstrating that the operations of a study – such as the data collection procedures – can be repeated, with the same results (Ibid).

Yin (2003) continues by suggesting that there are different tactics to apply when dealing with the different types of tests that should be applied throughout the case study. These tactics are presented in Exhibit 3.3 below.


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We only conducted one case study, with two interviews in our thesis; this is due to the time limitations. In order to increase the construct validity of our research we let our supervisor Mr. Tim Foster, assistant professor with the Department of Business Administration and Social Science, review our questions before we conducted the interviews. Further we contacted Luleå Hockey’s marketing department to find the persons most suitable to answer our questions at SSAB Tunnplåt and LKAB. We also sent the respondents parts of the interview guide in advance so that they could prepare for the interview. This was made order to further increase the construct validity of our study. During the interviews we used a digital sound recorder so that nothing of what the respondents answered was overlooked. Since the Swedish was the mother tongue of the researcher and the respondents, our interview questions was translated into Swedish and the interview was conducted in Swedish. After the interviews we translated the answers into English, which could decrease the construct validity of our study, but the decrease would be minimal since both we have studied English at LTU.

In order to increase the internal validity of our study we used pattern matching when comparing the empirical data to our conceptual framework. Pattern matching compares an empirical based pattern with a predicted on (Yin, 2003). We compared the empirical collected data to the theoretical frame of reference.

The interview with Mr. Enbom at SSAB Tunnplåt was a face-to-face interview but the interview with Mr. Fällén from LKAB was a telephone interview, and we had to send additional questions to both respondents which led to a decrease of the external validity of our study.

Tests

Use case study protocol Develop case study database

Constructvalidity

Use theory in single- case studies Use replication logic in multiple-

case studies

Do pattern-matching Do explanation-building Address rival explanations Use logic models

Use multiple sources of evidence Establish chain of evidence Have key informants review draft

case study report

Data CollectionData Collection

Research Design

Research Design

Data AnalysisData Analysis Data Analysis Data Analysis

Data CollectionData Collection

Composition

Case Study Tactic Phase of research in which tactics occurs

Internal validity

External validity

Reliability

Exhibit 3.3 Case Study Tactics for Four Design TestsSource: Yin (2003), p. 34


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In our study, there are factors that increase the reliability of our study. We have carefully explained were we found our data, which questions we asked and to whom. We have also, in detail, explained the methodology of our study, and we have also added both the English and the Swedish version of the interview guide which can be found in Appendix A and B. When conducting the interview, we were careful to not ask leading questions and the collected data from the interviews was presented to ensure that we interpreted their answers correctly. These factors were not enough for our study to have high reliability, since we did not use a case study protocol nor did we develop a case study database which lowers the reliability of our study. As mention before, we also had to ask additional questions via e-mail which lowers the reliability of our study.

3.8 Outline of Research Methodology

In Figure 3.4 below, we have summarized the methodology used in the thesis.

Research Purpose

descriptiveexploratoryexplanatory

Research Approach

qualitative

Research Strategy

case study

Data Collection

interview&

document-tation

SampleSelection

SSAB Tunnplåt

&LKAB

Data Analysis

with-in case

analysis

Validity

Figure 3.4 Graphical outline of the Research Methodology

Reliability

EMPIRICAL DATAMäki & Sjöstrand 2007

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4. EMPIRICAL DATA

Chapter 3 presented the methodology used in our thesis. In this chapter we will present the empirical data that we collected through two interviews. The order is as follows: SSAB Tunnplåt then LKAB. We will start out by giving a short background of the company. Then we will present the data collected for each research question separately.

4.1 SUB-UNIT 1: SSAB Tunnplåt

SSAB Tunnplåt is a subsidiary to the SSAB Group and was formed in 1988 by the joining of the steelworks in Luleå and Borlänge. The company has a coking plant, blast furnaces and steel works in Luleå. SSAB Tunnplåt is the biggest steel sheet manufacturer in Scandinavia and is one of Europe’s leaders in the development of and manufacture of high-strength steel grades. In our thesis SSAB Tunnplåt will be referred to as simply SSAB. The company employs 4400 people worldwide. In the year of 2006 the company had a profit after tax that amounted to SEK 4,341 million. During the first quarter of 2007, their sales have increased with 15 %.

According to Mr. Enbom, financial director and responsible for sponsoring activities, the company spends 0, 05% of the annual turnover on sport sponsoring activities. SSAB divides its sponsoring activities into three different categories; elite sports, youth sports, and cultural sponsorships. Regarding the elite sport sponsoring, the main focus is on Luleå Hockey which SSAB has been a major sponsor of for over 25 years.

4.1.1 RQ 1: Objectives

As explained above, SSAB is active in three different categories of sponsorship, Elite sports, youth sports and art sponsorship. The main reason to why SSAB is active in youth sports is that it is a social sponsorship. SSAB want to enhance their company image in the local communities that they are active in, Borlänge and Luleå, by taking a social responsibility. SSAB has objectives with altering public perception of the company and increasing community involvement in the local community’s that they operate in.

Since SSAB is the largest private employer in Luleå it is important for them that the public perception about their company is of good nature. SSAB must be able to attract future employees, young women and men from the local communities. SSAB states that sponsorship is a part of building this company image. The main reason/objective with sponsoring LuleåHockey as principal sponsor is to enhance their employee relations not to create awareness of brand. SSAB says that they want to provide their employees with Elite sports. Their employees should be able to attend Elite-hockey in their local community.

SSAB has no intention, with their principal sponsorship of Luleå Hockey, to increase sales. It is more, as mention above, employee relations that are their main objective, but also increase public awareness about the company in their local community. SSAB continuous with that they do not believe the sponsorship can help with sales abroad as much as it can help with production rates due to content employees. SSAB does not use their principal sponsorship for creation of financial relations it is more focused on employee relations. The sponsorship of


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Luleå Hockey does not include any marketing objectives, except the positioning of their product brand, DOMEX, one of their strongest product brands. But SSAB has no expectations that this would contributing to increased sales. SSAB admits that they use their principal sponsorship in customer entertainment. If there is a hockey game the same evening that a customer is in town SSAB says that they rather take the customer to the game then to a pub.

4.1.2 RQ 2: Selection

Regarding the selection of sport entity to sponsor, SSAB has a sponsorship policy that they uses when screening sponsorship proposals, SSAB categories their sponsorship efforts in to three different categories, Elite sports, youth sports, art sponsorship. In the category of elite sports SSAB mentions Luleå Hockey as their Flagship but adds that they are partially involved in women sports as well and here SSAB mentions Luleå Basket, the women basketball team in Luleå, as the other main sponsorship in the elite sports category. In the category, youth sports, SSAB mention that it does not only include youth sports teams, but also other kinds of youth activities. SSAB continuous with that they want to be involved in as many different activities and team as possible. SSAB states that they try not to make a different on how much to sponsor each youth activity, but mentions that there is an obvious difference when sponsoring a sports team with 50 young players and when sponsoring a sports team with 500 young players. This is a way for SSAB to give back to the community that it is active in, goodwill toward the community

SSAB participate in youth sports sponsorship because it gives them a chance to enhance their image and reputation in the local community but more importantly enhance the relationship with their employees. SSAB employees are active in different youth sports and by sponsoring these activities SSAB hopes that it will generate feelings of pride among employees for working at SSAB, their company contributes to the local community. Geographic reach is provided by Luleå Hockey, SSAB by being principal sponsor if Luleå hockey benefits from Luleå Hockey’s “geographic reach” by supporters and fans. They will be able to attract future employees. SSAB believe that the costs of the sponsorship will transform in to benefits such as content employees and will act as support for future recruitment.

Regarding the SSAB sponsoring of Luleå hockey there is a similarity of targets between the company and the sport entity since SSAB’s sponsoring is directed to their employees who are supporters of Luleå Hockey which Luleå Hockey wants to see them coming to games.

Because SSAB is principal sponsor of Luleå Hockey it render in some kind of exclusivity but it is not something that SSAB demands.

SSAB agreed that there is a Perceived similarity between the company’s product and the sport entity’s activity. Hockey is hard and tough and the general standing about the steel industry is that it is hard and macho, that Luleå hockey players are called “Luleå Stålmän” (freely translated to Luleå steel-men). This is something that SSAB tries to change since the steel industry is considered to be very macho, and SSAB wants to attract female employees. The main criteria/reason to why SSAB is involved in Luleå Hockey as principal sponsor is because there is and always have been a large interest of hockey among employees. If the interest in Luleå Hockey, among SSAB employees, starts to decrease then it would not be so interesting for SSAB to sponsor Luleå Hockey. So it is extremely important that Luleå Hockey stays successful so that SSAB employees feel pride in being connected to the team.


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The Image and Popularity of Luleå Hockey is important for SSAB in striving towards enhancing employee relations.

As mentioned above, SSAB uses their sponsorship of Luleå Hockey as a tool for enhancing the employee relationship. Beside the larger sponsorship programs, SSAB have special employee sponsoring programs were every employee that is active in any form of sport activity can apply for sponsorship from their employer, SSAB. From all applications turned in SSAB randomly select 20 who will receive sponsorship packages.

4.2 SUB-UNIT 2: LKAB

LKAB was founded in 1890 and is fully owned by the Swedish state, represented by the government and the Ministry of Enterprise, Energy and Communications. The LKAB Group, which consists of 30 companies, has 3700 employees in 15 countries. The LKAB Group will be referred to as LKAB in our thesis. LKAB’s revenue in 2006 amounted to SEK 14,615 million. The majority, approximately 3100 employees are located in Sweden. It is in the north of Sweden where their chief asset are located; the Ore fields. It is also in the north of Sweden, in Luleå, where the head office of LKAB is located.

Mr. Fällén who is the communication manager at LKAB says that it is impossible to state an amount of how much the company spends on sponsoring activities. Mr. Fällén continues by saying that if he was to estimate the amount it would be between SEK 5 million and SEK 7 million. The reason for why LKAB does not know the amount is because as an organisation, they do not construct a yearly budget. LKAB only sponsor entities in the places where the company is located; Kiruna, Gällivare/Malmfältet and Narvik. They also sponsor in Luleå where they focus on what Mr. Fällén mentions as the three elite clubs; Luleå Hockey, Plannja Basket, and Luleå Basket.

4.2.1 RQ 1: Objectives

LKAB’s objectives with sport sponsorship or with sponsorship in general are not to be as “out-there” as other big Swedish companies such as Ericsson. Since LKAB is only sponsor-active in the places where they are carrying out activities, the primary objective for LKAB is to take good care of employee relations. The secondary objective is maintaining the company image by increasing community involvement and shows the public that LKAB cares about their employees and the places where the company carries out activities which LKAB hopes leads to alter the public perception about the company toward the better. According to Mr. Fällén it is all about taking responsibility for the county where their employees work and live.

LKAB focuses their sponsoring to the locations that they are doing business and by sponsoring locally it will lead to increased public awareness about the company. LKAB hopes that this will assist them in future employments.

The objective with their sponsoring of Luleå Hockey is somewhat different from their other sponsoring activities thus it is more business related. LKAB connects its brand to Luleå Hockey, an already established and successful brand, as an attempt to strengthen the northern region. Still, the sponsoring of Luleå Hockey is not any attempt to create new financial relations, increase sales, and improve their positioning or to reach any marketing objectives


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according to Mr. Fällén. Instead their sport sponsorship is what LKAB calls “in-house sponsoring” where, for example, employees during a special “LKAB day” are transported by bus to Luleå and are given the opportunity to take their family to a hockey game.

LKAB says that they have no marketing objectives with their sponsorships. Mr. Fällén continuous with that “you will not sell more iron ore by using a sign in a local sport event”.

LKAB also have two scholarships that they give out every year during springtime. It is both a cultural- and sports scholarship of 50 000 SEK in each scholarship. Mr. Fällén says that the reason to why they have these scholarships is that it gives them an opportunity for increased community involvement, Goodwill and work on their company image. It is about creating more value around the LKAB Company. These nominees for the scholarships are often mentioned by employees within LKAB and this, according to Mr. Fällén, another step in working with the employee relations.

In conclusion, Mr. Fällén explains that what they in the end want to achieve with all their sponsoring activities is to increase the value off the trademark LKAB in regard to future employments.

4.2.2 RQ 2: Selection

Regarding LKAB’s selection of which sport entity to sponsor, the main reason for choosing a sport entity is that the entity is active in the places were the company is active, as mention before; Kiruna, Gällivare/Malmberget, and Narvik. Entities outside these areas do not get selected for a sponsorship by LKAB.

The sport entities that the company selects help the company to enhance their corporate image and it creates community goodwill. The selection is not made in head quarters, because LKAB has two employees at every place of activity that is responsible for which sport entity that will be sponsored. Mr. Fällén explains that this is because those two people have more knowledge about the sport entities in the area than he would, sitting at the head office in Luleå.

The willingness for cooperate from the sport entity as a criteria is sometimes used by LKAB but it is rather unusual. According to Mr. Fällén occasionally LKAB want special issues to be addressed (ex: policy) and then cooperation is preferred. But this is rather unusual in the case with LKAB.

LKAB does not have any sponsorship activities on a country basis, they focus on the local communities that they are active in. with exception of Luleå hockey, Plannja basket and the women basketball team Luleå Basket which is a county involvement from LKAB’s, Mr. Fällén continuous with mentioning these sponsorships as a county-responsibility for the company. Similarity of targets between LKAB and the sponsored sport entity is important because LKAB want to reach out to their employees and the local community. At the same time LKAB does not consider perceived similarity between the company’s product and the sport entity’s activity when screening between different proposals.

According to Mr. Fällén LKAB does not request exclusivity as sponsor but continuous with that any kind of sponsorship includes rights that the sponsoring company receives and that


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this is something that LKAB expects. This is a criterion that LKAB considers when selecting which sponsor proposal to choose.

The possibility to integrate the sponsorship in to existing marketing strategy is an important criterion to consider when selecting sponsorship, especially regarding global sponsorship and national sponsorship. This is sometimes considered by LKAB but unusually because their sponsorships are often on local bases.

According to Mr. Fällén the quality and possibility for exposure when screening between different proposals is something that LKAB does not consider. LKAB focuses on the type of sponsorship and which to choose and not the exposure criteria.

When it comes to selecting Luleå Hockey as a sport entity to sponsor, Mr. Fällén again mentions that LKAB wants to take show responsibility for the county which in return will lead to an increase in employee goodwill. With LKAB’s sponsorship of Luleå hockey the popularity and image of the team was of importance, according to Mr. Fällén.

When sponsoring a sport entity the costs for the sponsorship are always of importance, according to Mr. Fällén, but he also states that when it comes down to the deal LKAB will not argue about small money if there is a chance for Goodwill toward the local community.

Mr. Fällén says that LKAB focuses its sponsorship toward their employees and it is about strengthening the brand LKAB for future recruitments of employees.

In conclusion the selection of sponsorships by LKAB is focuses toward the local communities that they are active in and the county, Norrland, where they work.

DATA ANALYSISMäki & Sjöstrand 2007

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5. DATA ANALYSIS

In chapter four we presented the data that we collected for our thesis. In this chapter we will both analyze and compare the collected data to our conceptual framework. We will look for similarities as well as differences between theory and collected data. The data for each research question will be presented separately.

5.1 Objectives with Sport Sponsorship

In the conceptual framework of our thesis, Dolphin (2003) states that companies should have four main objectives with their sponsoring; enhance corporate image, increase awareness about brands, stimulating sales of products and services, and leveraging corporate reputation.

Furthermore in our conceptual framework, Tripodi (2001) states that objectives with sport sponsorship can be divided into either corporate-related objectives or product/brand-related objectives.

5.1.1 SUB-UNIT 1: SSAB

SSAB’s main reasons to why SSAB sponsor are to enhance corporate image, alter the public perception of the company and to increase the community involvement but the main objective with sponsorship for SSAB is employee relation. The data from SSAB are generally consistent with the theory by Dolphin (2003) especially on two points, enhancing corporate image and leveraging corporate reputation.

It is of importance for customers whether or not an organization are social responsible (Dolphin, 2003). In the case with SSAB, they state that the company must be involved in sponsoring youth sports so that their Image in the local community is enhanced and that their employees feel that their employer takes a social responsibility.

According to Erdogan & Kitchen (1998) sponsorship improve brand or company perceptions by flanking individual beliefs about the company or brand by connecting them to an event or organisation that is highly valued by target consumers. This is why SSAB is principal sponsor of Luleå Hockey, their employees are supporters of Luleå Hockey and by sponsoring them they want their employees to feel pride that their company is sponsoring their team.

The data from SSAB is more consistent with the theory by Tripodi (2001) about corporate-related objectives. Tripodi (2001) mentions following as corporate-related objectives with sport sponsorship; Increase public awareness of the company and its services, Enhance company image, Alter Public Perception, Increase Community Involvement, Build business/Trade relations and goodwill, Enhance staff/employees’ relations and motivation. The data from SSAB is consistent with all but one of these objectives and that is building business/trade relations. However the data from SSAB about their objectives with sport sponsorship is not consistent with Tripodi (2001) product/brand related objectives. SSAB does not use their sponsorship of Luleå Hockey for increasing their sales rates or increasing their target markets awareness about the company. The only product/brand related objective


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of Tripodi (2001) that was slightly consistent with SSAB’s objectives with sport sponsorship was the positioning objective.

Corporate-related objectives are more important for SSAB then product/brand related objectives. This is indicated by the collected data, the company is using there sponsorship for enhancing and maintaining their employee relations. The company also use sponsorship in building their image in the locally communities so that their will be an attractive future employer for young people. Both Tripodi (2001) and Walliser (2003) state that enhancing corporate image is one of the main reasons to why participate in sport sponsorship.

Dolphin (2003) states that sponsorship can boost community involvement and that it is a excellent way of giving back to the community that support the company. Sponsorship can also be used for enhancing employee relations and create goodwill. (Ibid) The data collected from SSAB regarding sport sponsorship is exceedingly consistent with this statement. It sums up all the reason to why SSAB is participating in sport sponsorship.

5.1.2 SUB-UNIT 2: LKAB

The collected data from LKAB indicated that corporate-related objectives are more important then product/brand related objectives. The primary objective that LKAB have is enhancing employee relations and the second objective is enhancing company image by increasing the community involvement. These are coherent with the theory by Tripodi (2001). LKAB also states that their sponsorship in the local communities hopefully will lead to an increased public awareness about the company which will assist them in future employment. The sport sponsorship in the local communities will lead to altered public perceived toward the better about LKAB.

LKAB’s sponsorship of Luleå Hockey is different from the other sponsorships that LKAB have. Luleå Hockey is not active in the local communities where LKAB are active but Luleå Hockey have support among LKAB employee so again this is a step toward enhancing employee relations. This is coherent with the theory by Tripodi (2003)

LKAB give out two scholarships, cultural- and sport scholarship, and this is a way for them to give back to the community. Increasing community involvement, goodwill and enhance company image. These are coherent with theory by Tripodi (2003). Most of the nominees for these scholarships are nominated by LKAB employees, and this is another step in LKAB efforts in enhancing their employee relations. There is coherence between the collected data and theories by Tripodi (2001) and Dolphin (2003)

LKAB have no product/brand related objectives with their sponsorships and this is not coherent with Tripodi (2001) that states that there are product/brand related objectives that companies have as objective.

Tripodi (2001) mentions build financial relations as an objective that companies use in sport sponsorship, so is not the case with LKAB.

Dolphin (2003) also states increase awareness about brands, stimulating sales of products or services and leveraging corporate reputation as objectives used by companies in sport


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sponsorship. However, LKAB uses none of these in their sponsorships because they don not see any reason for marketing objectives at all in their sponsorships.

5.1.3 Matrix Summary

We will summarize our analysis of the first research questions in a table (Exhibit 5.1) where the theory from the conceptual framework will be compared with the data that is derived from the two interviews in our case study:

Both companies are generally in line with the theory about corporate-related objectives. This is not surprising since both companies are Business-to-business (B2B) companies and, as Mr. Fällén stated, do not sell more of their products if they put their logo on football team jerseys.

5.2 Selection of Sport Entity

When selecting which sport entity to sponsor a company should look use specific criteria to see if the entity will help the company achieve the objectives that have been set for sport sponsorships. As explained in our conceptual framework. We used a list of criteria created by McCook, Turley and Riley (1997), and another list of criteria created by Walliser (2003)

Theory- Objectives SSAB LKAB

Company ImageIncrease public awareness about the companyAlter the public perception about the company Increase community involvement Financial relations Employee relationsGoodwillCustomer entertainmentIncrease target market awareness Brand positioning Increase salesIncrease market sharesCompetition with other company’s

Codes to understand the matrix:

Important in theory and for respondent Important in theory, somewhat important for respondent - Important in theory but not for respondent Somewhat important in theory and for respondent - Not important in theory but for respondent - Not important in theory, somewhat important for respondent -- Not important in theory or for respondent

---

------

Exhibit 5.1 Objective Summary


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5.2.1 SUB-UNIT 1: SSAB

When selecting which sponsor proposal to accept SSAB uses a screening process, they divide their sponsorships into three different categories: elite sponsorship, youth sports and art sponsorship. SSAB also uses other criteria when screening proposals, the location of the sport entity and that the sport entity is supported by /or-participated by their employees.

When it comes to selecting sponsorship, data collected from SSAB indicated that they selection is based on the possibility for community goodwill and employee goodwill. SSAB is involved in sponsoring youth sport just for this reason. These selection criteria are consistent with the theory by McCook (1997). Walliser (2003) states geographic reach as one criteria and this is consistent with the data collected from SSAB. SSAB want to reach the local communities that they are active in so that they can enhance corporate image to ease them when employing from the communities.

The reason to why SSAB is principal sponsor of Luleå Hockey is because their employers are supporters of this hockey team. This gives SSAB an opportunity of goodwill toward their employees. It is their employees that affect which sport entity SSAB select to sponsor.

When comparing the theories by McCook et al (1997) and Walliser (2003) with the collected data from SSAB most of the theories stated criteria do not cohere with the data. The only criteria that theories have stated that is coherent with the collected data are; Enhance company image, Image and popularity of the sport entity, employee goodwill, community goodwill, geographic reach, benefits from the sponsorship and Perceived similarity between the company’s product and the sport entity’s activity.

However, SSAB does not consider Increase brand name awareness, Increase Sales, Generate favourable media interest and Sampling opportunity, which are all included in the theory by McCook et al (2003).

Moreover, the company does not consider, the willingness to cooperate from the sport entity,Types of rights received, the possibility to integrate the sponsorship in to existing marketing strategy, the offered frequency of contact with the targeted customers, the quality of contact with the targeted customer, which is included in the theory by Walliser (2003) over criteria to consider when selecting sport entity.

5.2.2 SUB-UNIT 2: LKAB

Considering the selection process LKAB has a geographic approach to their sponsorship. They only sponsor sport-entities from the local communities that they are active in. This is coherent with the theory by Walliser (2003) where it is stated as geographic reach.

The data collected from LKAB indicates that the company uses their sponsorships to enhance their corporate image and to give community goodwill. McCook et al (1997) states these as criteria for companies to consider when choosing sponsor proposal so this is coherent with theory. LKAB also uses their sponsorship as a way for employee goodwill, which as well is coherent with McCook et al (1997) theory.


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The only exception that LKAB have taken from their geographic approach to sponsorship is the sponsoring of Luleå Hockey. The reason to this sponsorship is because the popularity and Image that Luleå Hockey has in the region. This is, for LKAB, another step toward enhanced employee relations. Both of these reasons are coherent with the selected theories in our framework, McCook et al (1997) and Walliser (2003)

When LKAB is considering sponsor proposals the costs of the sponsorship is always taken in consideration but is there a chance for goodwill toward the community then LKAB is more willing to invest. McCook et al (1997) have community goodwill as criteria to consider so the collected data is coherent with the theory. Walliser (2003) states costs of sponsorship as criteria for consideration so as well here there is coherence between the theory and collected data.

Walliser (2003) also states the willingness to cooperate from the sport entity and LKAB does consider this of somewhat importance when screening proposals. LKAB does consider similarity of targets between the company and sport entity when selecting proposal because they want to reach their local community and employees. This is also coherent with the theory by Walliser (2003)

Types of rights received stated by theory as a selection criteria and this is considered by LKAB in their selection process so reality and theory is coherent. However, the possibility to integrate the sponsorship in to existing marketing strategy is not of importance for LKAB when screening proposal. It is of more importance when sponsoring global or national.

Walliser (2003) states that, perceived similarity between the company’s product and the sport entity’s activity, the offered frequency of contact with the targeted customers, the quality of contact with the targeted customer as selection criteria used by companies when selecting sponsorships. However, none of these criteria are included in the selection process by LKAB.

Moreover, McCook et al (2003) also presents sampling opportunity, increase Sales, generate favourable media interest and increase brand name awareness as selection criteria but none of them are considered by LKAB when choosing sport entity.

5.2.3 Matrix Summary

We will summarize our analysis of the second research questions in a table (Exhibit 5.2) where the theory from the conceptual framework will be compared with the data that is derived from the two interviews in our case study:


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As seen in the table, there are three criteria that seem to be important for both companies when selecting which sport entities to sponsor; the geographic reach of the entity, the possibility to create goodwill towards the community, and the possibility to enhance employee relations. These three company criteria are the only ones that go in line with the theory.

5.3 Comparison of SUB-UNITS: SSAB and LKAB

Now, we are going to compare the two sub-units according to the matrix summaries. The two research questions will be compared separately.

Theory- Selection SSAB LKAB

Popularity and Image of the sport entityThe willingness to cooperate from the sport entitySimilarity of targets between the company and the sport entityPerceived similarity between the company’s product and the sport entity’s activityGeographic reachExpected costs/benefits from the sponsorshipExclusivity for the CompanyTypes of rights receivedThe possibility to integrate the sponsorship in to existing marketing strategyThe offered frequency of contact with the targeted customersThe quality of contact with the targeted customerPossibility for goodwill toward the community Possibility to enhance employee relationsSampling possibilities

Codes to understand the matrix:

Important in theory and for respondent Important in theory, somewhat important for respondent- Important in theory but not for respondent Somewhat important in theory and for respondent- Not important in theory but for respondent- Not important in theory, somewhat important for respondent-- Not important in theory or for respondent

Exhibit 5.2 Selection Summary

-

---

---

-

-

---

---


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5.3.1 Objectives with sport sponsorship

A simplification of the data that is being discussed is displayed in Exhibit 5.1.

When comparing the collected data from each of the two companies in our study we can see a clear similarity in objectives. For both companies corporate-related objectives are more important then product/brand related objectives.

The main objective for both SSAB and LKAB with their sponsorship activities is to enhance employee relations but there are more similarities. Both SSAB and LKAB want by sponsoring different activities enhance their company image among the local community by increasing the community involvement. SSAB wants to take it a step further and hopefully alter the public perception of the company.

The cross-case analysis indicated that neither of the companies uses their sponsorship activities for marketing purpose. Neither SSAB nor LKAB use increasing sale as an objective. Another similarity between the two companies is that neither of them uses their sponsorship as a competitive advantage in competing with other companies.

The objective that is in somewhat used by the companies is the positioning objective in the product/brand related objectives. The two companies use positioning in the sense that they want to position the company’s brand in the local community as something good. This they hope will ease them in recruiting in the future.

Neither SSAB nor LKAB use financial relations as an objective in their sport sponsorship activities. It is of no importance for either SSAB or LKAB. Overall both companies strive to enhance employee relationship. They want to give back to the community that they are active in and where there employees are living.

5.3.2 Selection of sport entity

A simplification of the data that is being discussed is displayed in Exhibit 5.2.

Concerning the selection process in sport sponsorship, the main selection criteria were somewhat the same for both companies. Both SSAB and LKAB had an interest in sponsoring in the local market rather then on a national platform. Geographic reach was a criterion that both SSAB and LKAB considered when screening sponsor proposal. They want to reach their employees and others living in the local communities that they are active in.

The other striking similarity in selection between the two companies was that they both looked for the possibility for goodwill toward the local communities when choosing proposal, this together with the possibility to enhance employee relations was their main selection criteria when screening sponsor proposal.

The popularity and image was somewhat important when SSAB chose to sponsor Luleå hockey, same as when LKAB chose to sponsor Luleå Hockey. For SSAB the popularity and image that Luleå Hockey has was important because employees at SSAB are huge supportersof their local hockey team. When LKAB chose to sponsor Luleå Hockey the popularity and


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image of the team was important, but more on a county level, LKAB wanted to enhance their image by showing a local county responsibility.

LKAB mentioned that cost of sponsorship is of some importance when considering proposals but if there where possibilities for goodwill toward the community or possibility to enhance employee relations then costs where not such big a deal.

The cross analysis reviled that LKAB considered types of rights received when selecting which proposal to choose, something SSAB did not consider. Neither of the two companies did consider the right of exclusivity as a criterion.

The data reviled that LKAB considers similarity of targets between the company and sport entity, when screening different sponsorship proposal, this is because they wanted to reach their local community and employees with their sponsorship. This was something that SSAB did not consider in their selection process.

The comparing analysis reviled that LKAB did consider the willingness to cooperate from the sport entity when screening between different proposals. This was because LKAB wanted to know that if there was any issue that they want address they would get cooperation from the sport entity. This was of no importance for SSAB.

The comparing analysis reviled that neither of the tow companies considered the offered frequency of contact with the targeted customers, the quality of contact with the targeted customer or sampling opportunity when selecting which sponsor proposal to choose.

FINDINGS AND CONCLUSIONSMäki & Sjöstrand 2007

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6. FINDINGS AND CONCLUSIONS

In chapter five we analyzed the data that was collected for our study. In this chapter we will present the findings from our research and present our conclusions. By answering our research questions stated in chapter one, this chapter will serve the purpose of the thesis:

“To gain a better understanding of the use of Sport Sponsorship as a communication tool”.

After that we will present our implications for management, for theory, and for future research.

6.1 What are the company objectives with sport sponsorship?

Our research indicates that B2B companies have several corporate related objectives with their sponsoring of sport entities. The primary objective is to enhance the relation to their employees. Other main objectives are to increase their community involvement, and to create company goodwill in the community.

Regarding the primary objective of enhancing employee relations companies emphasizes the importance of how employees feel about the company that they work for. This is because a happy employee is a productive employee. When an employee is satisfied with their employer they will most likely talk positive about the company to their friends and family, and when the word gets around that the company takes responsibility and cares about their employees, future employments and recruitments will be much easier.

Other objectives that are of important for B2B companies are to enhance the companies’ image in the community by increasing their community involvement. Companies tries to alter how the public percept the company. With the sponsoring of elite teams and mostly youth teams, Companies want to show mostly their employees that they are responsible companies. Companies want to create goodwill towards the community. And by doing this, create a relationship with their employees that much more than just an “employer-employee relation”.

Objectives such as financial relations, increase sales, and to face competition with other companies is not important for B2B companies. They have no product/brand-related objectives with sport sponsorship. A B2B-company does not sell more of their products if they put their logo on the jerseys of a youth football team. Instead companies see their sport sponsoring as more of a social sponsorship of the community.

In the case of elite sponsoring, companies objectives can somewhat differ. Some companies can sponsor a entity of their employees are hockey fans who usually goes to games. LKAB’s sponsorship of the sport entity is also directed to their employees but in the way that they want to create company goodwill by showing them that they work for a company that is committed to county of Norrbotten. In order to increase the community involvementcompanies sponsors a lot of youth teams in many different sport genres. The members of the youth teams are very likely to have some sort of connection to either of the companies. They


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could be related to an employee or perhaps it could be a neighbour, or the neighbour’s relative.

To sum up, there are some objectives that are very important for B2B companies. These objectives are ranked as followed:

Employee relations Goodwill Company image Increase public awareness about the company

Increase community involvement

There are objectives that are of somewhat importance for B2B companies. These objectives are:

Alter the public perception about the company Brand positioning

Objectives that are of little importance for B2B companies are:

Increase target market awareness Increase market shares Customer entertainment

Then, there are many objectives that our responding companies did not feel was important at all. Such as:

Financial relations Increase sales Competition with other companies

In conclusion, B2B companies have altruistic objectives with their sport sponsoring. Their sport sponsorship activities have nothing to do with their sales or promotional activities towards either customer or industry. Instead it is all about “boosting” employee moral and trying to create goodwill with both employees and people living in the community where the companies are active.

For B2B companies who have more selfish objectives with their sport sponsoring activities, there are three key questions that B2B companies should consider before or during objective setting for sport sponsorship activities:

How can we integrate the sponsorship in the existing marketing strategy? Can we use sport sponsorship to create financial relations with other sponsors? Can the sponsorship be useful in increasing sales?

6.2 How does a company select which sport entity to sponsor?

For sponsoring B2B companies it is essential that the sport entities are located in the places where the companies are active. They want to support the community where their employees


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work and live. It is important for the companies to show both their employees and all the other people in the community that they care about them and that the companies do take care of them.

It is also important for the company that the selected sport entity gives them a possibility to create community goodwill, which in return goes hand in hand with decision to sponsor local entities. Employees should feel that they work for a fair company. In order to make the employees extra motivated during working hours. B2B companies involve their employees in different sport sponsoring activities. These activities support the very important objective to enhance employee relations.

When selecting sport entity B2B companies do not believe that exclusivity rights, the offered frequency and the quality of contact with the targeted customers or the sampling possibilities is a criteria to consider when selecting sport entity. This confirms the idea that the companies sport sponsoring is focusing “in-house”, on their employees.

To sum up, there are some very important criteria that B2B companies consider whenselecting which sport entity to sponsor. These criteria are ranked as followed:

Possibility to enhance employee relations Geographic reach Possibility for goodwill toward the community

There are some selection criteria that are somewhat important for B2B companies. They are ranked as followed:

Popularity and Image of the sport entity The possibility to integrate the sponsorship in to existing marketing strategy

Selection criterion that for B2B companies is of little importance is:

Perceived similarity between the company’s product and the sport-entity’s activity Expected costs/benefits from the sponsorship When B2B companies selects sport entities to sponsor. There some criterion that of no importance. They are:

The willingness to cooperate from the sport-entity Similarity of targets between the company and the sport-entity Exclusivity for the Company Types of rights received The offered frequency of contact with the targeted customers Sampling possibilities.

In conclusion, B2B companies select sport entities to sponsor according to the objectives set for their sponsorship programs. Companies do not seem to believe or consider sport sponsorship as a path to find new customers, strengthen relationship with already existing customers. How the selection of sport entity could affect these aspects of their marketing activities.


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6.3 Implications and Recommendations

6.3.1 Implications for theory

The purpose of this thesis has been to investigate and provide us with better understanding of a specific area of research, sport sponsorship. What we wanted to do was to gain better understanding of sport sponsorship by answering our research questions; why companies sponsor sport entities and how they select what to sponsor. We conducted two interviews with two of the largest sponsors of the local hockey team, Luleå Hockey, SSAB which is the principal sponsor of Luleå Hockey and LKAB which is roughly the same size and a B2B company as SSAB.

We then analysed these interviews and answered our research questions, we performed an additional data collection with each company because we felt that we did not get enough dept on some of our questions during the first interview. We constructed a questioner which we emailed to both companies and gained more dept by doing this. We are content with our findings regarding the research questions but feel that we only see the tip of the ice berg, sport sponsorship. The area, sport sponsorship, is immensely interesting to investigate and we feel that due to lack of time we could not investigate as deep that we originally wanted but we are pleased with our findings.

We wanted to contribute to already existing research but as stated in chapter one, there is a need for further research consideration. When looking at the theories that were used in our research, we can discover some issues with the theories about objectives with sport sponsorship. Some of the theories that exist today are still regarding sport sponsorship as a one time transaction instead of the more modern sport sponsorship which integrated in the marketing mix can play a major part in creating sustainable advantage in the market place. Also, many of the theories is focusing on business-to-customer (B2C) companies and what their objectives with sport sponsoring.

Other than these issues, we believe that the theories that we used has been appropriate and relevant for our research.

6.3.2 Implications for practitioners

In our thesis, we have investigated the use of sport sponsorship as a marketing communication tool for two companies on the sponsoring side of the sponsorship relationship. Thus, the managerial implications will concern the managers of the companies sport sponsoring activities.

It is of great importance that managers start to integrate sport sponsorship more into the marketing communication. Both SSAB and LKAB should take their sponsoring activities to another level, as an attempt to enhance their image in not only the county of Norrbotten but also in the entire country of Sweden.

Managers should consider sport sponsorship as a tool to reach new markets. It is also important for managers to take in consideration that sport entities or individuals in the entity


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can have a poor reputation and will most likely rub of on the company and thereby damaging the company’s reputation and/or image. We believe that marketers should use sport sponsorship as follows:

Integrate sport sponsorship in existing marketing communication Use sport sponsorship as a market penetration tool Sport sponsorship as a marketing tool for national use The possibility for customer entertainment trough sport sponsorship The company should try to sponsor sport entities which they have perceived similarities

with. (Ex: Luleå hockey and SSAB, tough hockey team and strong steel producer) The companies should try to leverage the sponsorship more. Demand more in return for

invested money.

6.3.3 Implications for future research

Our findings and research is not generalizable for sport sponsorship relationship or for other sponsoring companies. We focused on the two B2B companies; SSAB’s and LKAB’ssponsorship of Luleå Hockey and this makes our finding only valid towards these companies and their relation with this team. We recommend that further research should be conducted on more companies to see if the findings are generalizable or not.

When working with this thesis, several issues has come up that we believe could be subjects for future research. There is a possible for research on:

Further research on B2B company objectives with sport sponsorship Evaluations methods of sport sponsorship The relationship between the sponsor and the sponsored sport entity The effect of sponsorship on employee relations Local sponsorship effect on public perception about the company Sponsorships effect on the company’s brand Sport entities sponsor selection process Sport entities objectives with sponsorship The effect of sponsorship on the sport entity’s image Sport sponsorship as a marketing tool on a national perspective Difference in objective between B2C companies vs. B2B companies Difference in Selection process between B2C companies vs. B2B companies


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LIST OF REFERENCES

Books:

Brassington, F. & Pettitt, S. (2000). Principles of Marketing 2nd edition. Harlow: Pearson Education Limited

Denscombe, M. (2000). Forskninghandboken – för småskaliga forskningsprojekt inom samhällsvetenskaperna. Lund: Studentlitteratur.

Jiffer, M & Roos, M. (1999). Sponsorship – A Way of Communicating. Stockholm: Ekerlids Förlags.

Jobber, D. (2004). Principles and practise of marketing 4th edition. Maidenhead: McGraw-Hill, cop.

Miles, M & Huberman M. (1994). Qualitative Data Analysis 2. ed. Thousand Oaks: SAGE Publications, Inc.

Shank, D., M. (1999). SPORTS MARKETING – A Strategic Perspective. New Jersey: Prentice-Hall Inc.

Saunders, M. (2007). Research methods for business students, 4. ed. Harlow: Financial Times/Prentice Hall, cop.

Yin, R. (2003). Case study research: design and methods, 3. ed. Thousand Oaks: Sage Publications, cop.

Articles:

Amis, J., Slack, T. & Berrett, T. (1999). Sport sponsorship as distinctive competence. European Journal of Marketing, Vol. 33 No 3/4, pp. 250-272

Bennett, R. (1999). Sport sponsoring, spectator recall and false consensus. European Journal of Marketing, Vol. 33 No 3/4, pp. 291-313

Chadwick, S. & Thwaites, D. (2005). Managing sport sponsorship programs: Lessons from a critical assessment of English soccer. Journal of Advertising Research, Vol. 45 No 3, pp. 328-338

Dolphin, R. (2003). Sponsorship: perspectives on its strategic role. Corporate Communications: An International Journal, Vol. 8 No 3, pp. 173-186

Erdogan, B. & Kitchen, J. (1998). Managerial mindsets and the symbiotic relationships between sponsorship and advertising. Marketing Intelligence & Planning, Vol. 16 No. 6, pp. 369 – 374

Fahy, J., Farrelly, F. & Quester, P. (2004). Competitive advantage through sponsorship – A conceptual model and research propositions. European Journal of Marketing, Vol. 38 No.8, pp. 1013-1030


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Farrelly, F., Quester, P. & Burton, R. (2006). Changes in sponsorship value: Competencies and capabilities of successful sponsorship relationships. Industrial Marketing Management, Vol. 35 No. 8, pp. 1016-1026

Farrelly, F., Quester, P. & Mavondo, F. (2003). Collaborative communications in sponsor relations. An International Journal, Vol. 8 No 2, pp. 128-138

Ferrand, A. & Pages, M. (1999). Image management of sport organisations: The creation of value. European Journal of Marketing, Vol. 33 No 3/4, pp. 387-401

Keller, K. (2001). Mastering the Marketing Communication Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs. Journal of Marketing Management, Vol. 17 No. 7/8, pp. 819-847

McCook, K., Turco, D., & Riley, R (1997). A Look at the Corporate Sponsorship Decision-Making Process. Cyber-Journal of Sport Marketing. [On-line]. Available. http://www.ausport.gov.au/fulltext/1997/cjsm/v1n2/mcook.htm [2006, November 13.].

Meenaghan, T. & Shipley, D. (1999). Media effect in commercial sponsorship. European Journal of Marketing, Vol. 33 No. 3/4, pp. 328-347

Nicholls, J., Roslow, S. & Dublish, S. (1999). Brand recall and brand preference at sponsored golf and tennis tournaments. European Journal of Marketing, Vol. 33 No. 3/4, pp. 365-386

Olkkonen, R. (2001). Case study: The network approach to international sport sponsorship arrangement. Journal of Business & Industrial Marketing, Vol. 16 No 4, pp. 309-329

Olkkonen, R., Tikkanen, H. & Alajoutsijärvi, K. (2000). Sponsorship as relationships and networks: implications for research. Corporate communications: An International Journal, Vol. 5 No. 1, pp. 12-18

Shannon, R. (1999). Sports marketing: an examination of academic marketing publication. Journal of Services Marketing, Vol. 13 No 6, pp. 517-534

Tripodi, J. (2001). Sponsorship - A confirmed weapon in the promotional armoury. International Journal of Sports Marketing & Sponsorship, March/April

Urriolagoitia, L. & Planellas, M. (2007). Sponsorship relationship as strategic alliance: A life cycle model approach. Business Horizons, Vol. 50 No 2, pp. 157-166

Verity, J. (2002). Maximizing the marketing potential of sponsorship for global brands. European Business Journal, Vol. 14 No 4, pp. 161-172

Walliser, B. (2003). An International Review Sponsorship Research: Extension and Update. International Journal of Advertising, Vol. 22, pp. 5-40.

http://www.ausport.gov.au/fulltext/1997/cjsm/v1n2/mcook.htm


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Licentiate Thesis

Foster, T. (1998). Industrial marketing communication: an empirical investigation on the use of marketing communication tools. Department of Business Administration and Social Science, Luleå University of Technology. Luleå, Sweden.

Bachelor Thesis:

Abrahamsson, J-T., Forsgren, T. & Lundgren, H. (2003). Sport Sponsorship as a marketing communication tool. Department of Business Administration and Social Science. Luleå University of Technology, Luleå. Sweden.

Johansson, M. & Utterström, T. (2006). Sport Sponsorship – A Marketing Communication Tool in Swedish Companies. Department of Business Administration and Social Science. Luleå Univeristy of Technology, Luleå. Sweden.

Material from the Internet:

www.luleahockey.se 2007-05-03www.plannjabasket.com 2007-05-03www.ssabtunnplat.se 2007-05-03www.lkab.se 2007-05-04

Interviews:

Enbom, Stefan, Financial Director at SSAB Tunnplåt, Luleå, 2007, May 8th at 13.20Fällén, Tore, Communication Manager at LKAB, Luleå, 2007, May 15th at 14.15

http://www.luleahockey.se

http://www.plannjabasket.com

http://www.ssabtunnplat.se

http://www.lkab.se


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APPENDIX A - INTERVIEW GUIDE (ENGLISH)

Company name:Name/position of the respondent: Field of business:Annual turnover (SEK):Numbers of employees:Percentage of marketing budget used for sport sponsorship:What types of sports are you sponsoring and how?

Objectives in sport sponsorship

1. What are your objectives with sport sponsorship? Are they the always the same or do they change for each sponsorship?

2. Do you have corporate related objectives in your sport sponsorship? If yes, what are they? Company Image Increase public awareness about the company Alter the public perception about the company Increase sales Increase community involvement Financial relations Employee relations Goodwill Customer entertainment

3. Do you have marketing objectives in your sport sponsorship? If yes, what are they? Increase target market awareness Brand positioning Increase sales Increase market shares Competition with other company’s

4. Do you have anything to add regarding objectives in your sport sponsorship?

Selection process in sport sponsorship

5. How do you select a specific sport sponsorship?

6. Do you specific criteria you consider when choosing which sport entity to sponsor? If yes, what are they?

Popularity and Image of the sport entity The willingness to cooperate from the sport entity Similarity of targets between the company and the sport entity Perceived similarity between the company’s product and the sport entity’s activity Geographic reach


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Expected costs/benefits from the sponsorship Exclusivity for the Company Types of rights received The possibility to integrate the sponsorship in to existing marketing strategy The offered frequency of contact with the targeted customers The quality of contact with the targeted customer Possibility for goodwill toward the community Possibility to enhance employee relations Sampling possibilities

7. Do you have anything to add regarding selection in sport sponsorship?


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APPENDIX B - INTERVJU GUIDE (SWEDISH)

Allmän information om FöretagetFöretag:Namn/position:Bransch:Årlig omsättning:Antal anställda:Procent av marknadsförings budget som går åt Sport sponsring:Hur sponsrar företaget sport? Vilka sporter sponsrar ni?

Mål med Sportsponsring

1. Vad har ni för mål med sportsponsring? Variera era mål för varje sponsring eller är det samma för varje sponsring?

2. Har ni några företagsrelaterade mål med sponsringen? Om Ja, vilka? (Förbättra) företagets Image (Öka) uppmärksamheten hos allmänheten (Ändra/förbättra) allmänhetens uppfattning om företaget Simulera försäljningen (Ökat) engagemang i lokala samhället (Bygga) finansiella relationer Relationen med anställda Goodwill Underhållning för kunder

3. Har ni några produkt/märkesrelaterade mål? Om ja, vilka? Öka mål marknadens medvetenhet om företaget Positionera företagets/produktens märke Öka försäljningen Öka sina marknadsandelar Konkurrera med andra Företag

4. Har ni något mer att tillägga angående mål med sportsponsring?

Val av sportenhet för sponsring

1. Hur väljer ni vilken sport enhet att sponsra?

2. Har ni några specifika kriterier ni beaktar när ni väljer sportenhet? Om ja, vilka? Populariteten och Imagen hos sport enheten Viljan att samarbeta hos sport enheten Likheten mellan målmarknader hos företaget och sport enheten Likheter mellan företaget och aktiviteten sport enheten utövar Geografiska räckvidden Kostnaden för sponsringen


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Möjlighet till exklusivitet Förväntade fördelar från sponsringen Vilka rättigheter företaget får av sponsringen Möjligheten att integrera sponsringen i företagets existerande markandsföring Möjlighet till exponering mot företagets målmarknad Kvalitén på den erbjudna exponeringen Möjlighet till goodwill mot samhället Förbättra relationen med anställda Möjlighet för stickprovsundersökning

3. Har ni något övrigt att tillägga angående val av sport enhet för sponsring?