A Comparative Analysis of Sponsorship Objectives for U.S. Women's Sport and Traditional Sport Sponsorship

Abstract

Increasingly, corporations are relying on the merits of sport sponsorship to market their companies’ products and services (Howard & Crompton, 1995). In fact, North American companies increased sponsorship spending in 1998 by 15%, to $5.4 billion (Sponsorship Report, 1998). The emerging role of women in North American sport undoubtedly has been a significant catalyst for this growth trend in sport sponsorship. The number of female sport participants, as well as the number of female spectators, has escalated at a phenomenal pace, warranting attention from corporate America. Perhaps one of the most convincing issues influencing corporate sponsors to consider involvement with women's sport has been the increased recognition of women's strength in the U.S. marketplace and their expanded decision-making power (Lough, 1996). In 1993, Mechem estimated that by the year 2000, 61% of American women would be active in the work force. As increasing numbers of women have discretionary income to spend, and as the number of American women in decision-making roles has increased, corporate sponsors have become more and more interested in this previously neglected market segment. The competitive nature of today's marketplace makes the sponsorship of women's sport a viable avenue for tapping into this desirable market segment. With escalating rights fees and marketplace clutter, corporate rationale for sport sponsorship selection has been altered significantly. Irwin and Sutton (1994) found that results-oriented marketing motives appear to have replaced the philanthropic/ image-building philosophy of the past. While such marketplace developments would appear to present opportunities for the funding of U.S. women's sport sponsorship proposals, no empirical evidence has been generated to support this. Two primary questions remain unanswered in the sport sponsorship environment: (a) will sponsorship of American women's sport resemble “traditional” sport sponsorship, with selection decisions based on specific criteria, and (b) will emergence within the contemporary sport sponsorship realm necessitate an objective-driven market orientation? The specific objectives for this study included: (a) determination of the dominant factors utilized (e.g., motives, objectives, proposal components) by current sponsors of U.S. women's sport in sponsorship selection decisions involving, first, sponsorship proposals from women's sport entities and, second, sponsorship proposals from mainstream sport entities; (b) assessment of the relative importance of each set of factors; and (c) comparative analysis of the two sets of factors. This study utilized survey research methodology incorporating a modification of the Sport Sponsorship Proposal Evaluation Model (Irwin, Assimakopoulos, & Sutton, 1994; Lough, 1996). The results indicate that sponsors of U.S. women's sport desire measurable outcomes, such as increased market share and sales. The comparative analysis found that limited differences exist between general sport sponsorship objectives and women's sport sponsorship objectives. These findings suggest that in order to appeal most to corporate sponsors, those seeking such sponsors for women's sport properties should concentrate on providing business-building opportunities.

Corporate spending on sport sponsorship has increased dramatically within the past decade, reaching almost $19 billion worldwide. Within this same period of time, corporate spending for American women's sport sponsorship has surged more than 100%, from approximately $285 million in 1992 to $600 million in 1998 (IEG Sponsorship Report, 1998). A number of factors appear to have triggered the sudden rise in corporate spending.

First, women's sport has realized remarkable growth. For instance, 55 million women regularly participate in sport in the United States. Further, reports indicate that 55% of all volleyball players, 43% of all runners, and 41% of all soccer players are women (U.S. Industry & Trade Outlook, 1999). At present, over 31 million girls play team sports, and 39% of high school girls play varsity sports. This marks a significant increase, as previous accounts reported that in 1970 one in 27 girls played varsity sports, as compared to 1 in 3 in 1996 (National Federation of State High School Associations, 1997). The number of women participating in intercollegiate sport also has continued to increase, with over 110,000 American women active in 1997 (Women's Sports & Fitness, 1998). It is anticipated that increased participation will lead to increased consumer interest. As such, female competitors are more likely to become consumers of women's sport. Further support for this notion was found in 1996, when 85% of U.S. women surveyed reported that they were sports fans. This figure was up from 79% as reported in 1994 (Lopiano, 1999). As Forbes magazine noted in 1997, “The market research is clear: women are the next great business opportunity” (p. 130).

In 1997, the IEG Sponsorship Report indicated that $600 million was spent on the sponsorship of women's sport in the United States. This was a significant gain for this newly recognized sport product category, compared to the $285 million spent on such sponsorship in 1992 (IEG Sponsorship Report, 1998). One explanation for a portion of the gain is the creation of new women's sport properties, such as the Women's National Basketball Association (WNBA) and the Women's Professional Softball League (WPSL). Additionally, as companies investing in sport through sponsorship are intent on seeing a return on their investments (Irwin & Morris, 1996), it would appear that such a dramatic increase in sponsorship spending is a direct result of the apparent value derived from association with the women's sport product.