Sponsorship – A Marketing Tool in Sport Events

Sports sponsorship is a marketing tool that is frequently used by companies to reach a wide audience on a global basis so as to be placed higher than their competitors and to create awareness as well as make a higher profit margin. Through this platform, specific target audience alongside potential customers are reached as it able to penetrate through quite effectively in the promotional mix and as such, is a significant method being used by many organisations. The aim of this paper was to gain a deeper understanding of how companies use sponsorship in sport events as a strategic tool in their marketing program. In order to achieve this purpose, the paper describes and explains companies objectives with sport sponsorship, the threats being encountered by its usage and the reasons why companies decide to sponsor.