| A | B |
|---|
| sponsorship | Occurs when an individual or business provides products, services, or financial support for a sports team or an event. |
| corporate logo | The Graphic representation of a company's name. |
| corporate sponsorship | Using the name of a product or business as part of the name of an event venue such as Petco Park is an example of a type of this: |
| FTC (Federal Trade Commission) | Has the authority to regulate endorsements |
| Advantages of celebrity endorsements to businesses | 1) Studies show that consumers will buy products endorsed by celebrities more often than products that are not endorsed. 2) Viewers and listeners are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character. 3) Consumers tend to believe celebrities, especially those who are chosen for their good public image. |
| What a business seeks in a celebrity endorser | 1) A positive, charismatic, trustworthy image. 2) Is familiar to most consumers 3) Has a career in process (rather than being retired). 3) Presents few risks 4) Has a believable relationship with the product. |
| Possible disadvantages of celebrity endorsements | 1) They are expensive to the sponsoring company 2) A company sometimes regrets having ben associated with an athlete who has legal problems. |
| Costs of sponsorships to event producers | 1)Production of the event or game (venue rental, entertainment, staff 2) Selling the sponsorship (Salespeople, production of contracts) 3) Providing benefits to the sponsor (Sponsor tickets, signage, VIP treatment and hospitality for sponsors, media promotion, publicity, production of press releases. |
| Benefits for sponsoring businesses | 1) Increase sales and profits 2) Introduce a new product or service to a large audience 3) Become associated with a event in which the audience is a target market. 4) Earn the goodwill of the audience by showing a commitment to the event. 5) Entertain clients or potential customers. 6) serve as employee incentives 7) Enhance the company's image and improve community relations 8) Enter new markets or a niche market. |
| endorsement | A well known person's public expression of approval or support for a product or service. |
| Legal restrictions on endorsements | 1) The truthful opinions and beliefs of the endorser must be expressed in the endorsement. 2) Endorsers must have real experience with the product. If they haven't tried it, they can't talk about their experience with it. 3) The connection between the endorser and the advertiser should be clearly revealed. If the endorser receives free products or is paid , this should be revealed to avoid being deceptive. 4) The endorsements may not contain any deceptive or misleading statements. The statements must be substantiated by the advertiser. |
