The study of sports marketing in corporate sponsorship of Olympic games

Authors: Shan-Neng Chen; Mu-Lan Hsu; Chien-Hsun Su; Chin-Tien Hsu

Journal: Chia Da Management Review. Jun. 2005, 25(1): 29-66.

Keywords: Sports Marketing; Sport Sponsorship; Sponsorship of the Olympic game; Corporate Sponsorship

Abstract:
Sports are one of the most popular activities in spite of culture, age, gender and social class. The enormous amount of potential profit actively attracts numerous corporations to join the field of sports marketing activities. In fact, sports marketing can be regarded as the most popular item of those marketing activities that the U.S.A. corporations are engaged in. It is estimated that 80% of corporate sponsorship is consumed in sports marketing and 25~30% of annual growth rate is maintained. We'd like to select the Modern Olympic Games, held once in every four years and the largest sports event of all, as our study subject. The database ranges from 1984 to 2000 and covers 5 events since the International Olympic Committee (IOC) has set up a special function department and kept detailed record of corporate sponsorship since 1981. Regression analysis techniques and historical analysis method are employed to study the following two topics: (1) To classify and induce the attributes of the corporations involved and those which are upgraded as the Olympic Partners. (2) To test the correlation between the four variables: the number of visitors, the number of contestants, the number of TV viewers of the games, and the amount of corporate sponsorship. Some of the conclusions are outlined as (1) There is significant positive correlation between the number of TV viewers of the games and the amount of corporate sponsorship. (2) Eight propositions are presented, e.g. IOC includes around ten corporations to maintain sponsorship level, the once included corporations strive to remain top in the list, the corporation's asset or performance level is not a significant indicator of the sponsorship for the Olympic Games.