Question

-What is the relationship between advertising and sponsorship? How are they the same and how are they different? Is one promotional tool better than the other?

- Think about that last question from the perspective of the consumer as well as that of the company. For example, how does advertising vs. sponsorship benefit the consumer?

And what does advertising vs. sponsorship allow the company to achieve?

Answer 1

Advertising and Sponsorship are two marketing tools used by organizations. They are co-related to each other .Both the tools are required for effective organizational growth. An advertising is a paid message in the form of visual, audio etc to sell a product,service or an idea.Radio ads, Big Hoardings or TV Commercials are examples of advertising.

Sponsorship is a marketing tool by which a company or entity agrees to commit money or other monetary benefits for an event in return for certain promotional benefits. An example of promotion is providing fund by large corporates for sponsorship for football matches. The football team in return will have the logo of the company printed on the jersey of the football team.Company can also pay for charitable events which will in turn promote their brands.

The sponsorship will increase the brand loyalty and brand equity by building associations and relationship.Advertisement help the brand to become popular and spread the message regarding the brand or product. Both are important part of marketing and advertisement should be used effectively to get the return on investment for th sponsorship made by the company

SIMILARITIES BETWEEN ADVERTISEMENT AND SPONSORSHIP

ADVERTISEMENT

SPONSORSHIP

Aims for Brand Awareness	Sponsorship also aims at Brand awareness
Increase revenue for the Organization	Sponsorship also help in increasing the value of brand through advertisement and in the course of time increase the revenue of the Organization
Advertising targets a specific audience	Sponsorship is also made to target a audience for a particular event for which the company is sponsoring

DIFFERENCES BETWEEN ADVERTISEMENT AND SPONSORSHIP

ADVERTISEMENT	SPONSORSHIP
Well suitable for introduction of new product in the market	Its is suitable for creating awareness for an already established product in the market
It creates and help in increasing brand awareness	It helps in increasing brand loyalty
It is a stand alone marketing channel	It is an integrated marketing channel

It does not involve in building affinity or relationship with another Organization	It mainly helps in Building affinity and relationship with the Organization for which the company is sponsoring
Advertisement may be less expensive than sponsorship in certain cases	Sponsorship may be more expensive than an advertisement of the brand

Both the marketing tools should be combined to achieve the objective of the organisation.In some situations advertising will be benefitial and during some circumstances the strategy of sponsoring an event will be more effective.

BENEFITS OF ADVERTISEMENT VS SPONSORSHIP TO THE CONSUMERS

• Educates the customer.Create awareness among the consumers through advertisement
• Creates brand loyalty through sponsorships
• Creates good reputation among customers
• Wide range of customers can be reached
• It helps the customers to differentiate the brand from other competitors

BENEFITS OF ADVERTISEMENT VS SPONSORSHIP TO THE COMPANY

• Increase revenue and sales for the company
• Created good reputation for the company
• It helps in building good relationship between other corporates and entities
• It helps in launching new brands or promoting new products of the company
• Enhance business values
• Provides the scope for generating new leads or customers for the company
• Helps in differentiating the company from their competitors.

Sponsorship and advertising should be both part of the same marketing strategy and should be implemented together.Sponsorship will help the company to put their name out there and advertising will explain what the brand is all about.