Sport Sponsorship, Internal Communications, and
Transcription
Sport Sponsorship, Internal Communications, and
SCHOLARLY COMMENTARY International Journal of Sport Communication, 2008, 1, 413-423 © 2008 Human Kinetics, Inc. Sport Sponsorship, Internal Communications, and Human Resource Management: An Exploratory Assessment of Potential Future Research Lilian Pichot and Gary Tribou University of Strasbourg, France Norm O’Reilly Laurentian University, Canada Successful sponsorship activities in sport often rely on the integration of relationship marketing, internal marketing, external corporate promotion, and strategic management. Although traditional marketing objectives such as brand integration and consumer targeting remain key components of promotional activities in sport, the use of sport sponsorship in today’s environment increasingly implicates personnel issues in the both the sponsor and the sponsee. In fact, sport sponsorship has become a useful tool for some sponsors and sponsees who seek to motivate and involve their employees more in company activities. Therefore, the focus of this commentary is on the internal-communication and human-resources management functions involved in sport sponsorship decisions. The use of mini-case analyses and a dual-perspective (external and internal objectives) approach allows for informed discussion, and suggestions are made for future research. Keywords: internal communication An investment, in general, is never risk free and is evaluated with respect to alternative investments. The same is true of investments in the sponsorship of a sporting event, in which risk outcomes range from very negative (e.g., shipwreck, car crash) to highly successful (e.g., achievement of specific marketing objectives, victory; O’Reilly & Foster, in press). Sponsorship evaluation must also include consideration of the fact that the committed resources could have been invested in another business operation, including human resources (O’Reilly, 2007). In fact, for the employees and managers of the sponsor, a sponsorship investment might replace the hiring of additional staff or increases in salary or bonuses for current Pichot and Tribou are with the Research Team on the Social Science of Sport, University of Strasbourg, Strasbourg, France. O’Reilly is with the School of Sports Administration, Laurentian University, Sudbury, Canada. 413 414 Pichot, Tribou, and O’Reilly staff. Clearly, the “buy in” of staff to a large sponsorship investment is a necessary step for a sponsor because a failure to involve or motivate personnel could lead to latent social conflict (i.e., absenteeism, laxity, and high turnover) and negatively affect employees (Walliser, 2003). Moreover, the sponsor must also involve its external stakeholders—communities, banks, suppliers, distributors, and so on—to maintain trust in these relationships (i.e., can the partner trust a company spending such resources in this way?; Cheng & Stotlar, 1999). Consequently, a sponsor must seek approval from not only its staff but also its external relationships, as well as highlight the importance of the image value transfer to both the internal and external audiences (Grimes & Meenaghan, 1998). Sponsorship is a communication tool that marketers consider along with other tools such as advertising, sales promotions, or direct selling. In certain situations, sponsorship is considered an advantageous choice because it often enables specific targeting, clear brand positioning, and the ability to market through a cluttered environment (Séguin & O’Reilly, 2008). Sport sponsorship is a global communication technique that aims to persuade spectators—both in stadium and via the media—that there is a link between the sport sponsee (event, or a team or individual engaged in the event) and the sponsor. The sponsor’s purpose involves marketing objectives such as the creation of brand and product awareness, sales or purchase intentions, or to build brand equity through the image transfer of sport value to the sponsor through the association promoted via the sponsorship (Derbaix, Gérard, & Lardinoit, 1994; Meenaghan, 1991, 2001; Quester, 1997; Tribou, 2007). It is the position of this research that a more formal role for internal marketing outcomes (e.g., motivating employees) in sport sponsorship be taken, alongside its external goals, to improve its overall effectiveness as a global communication tool (Cégarra, 1994). Furthermore, a coherent positioning of the sponsorship both internally (employees) and externally (customers and other stakeholders) should not be neglected; it enables the sport sponsorship to complement its sales perspective with the fulfillment of internal-communication and humanresources management functions (Boltanski & Chiappello, 1999). If the sport sponsorship seeks to build purchase intention and increase consumer desire for the product of interest (Seguin, Lyberger, O’Reilly, & McCarthy, 2005), the organizations involved must also communicate internally with their staff and effectively manage all their human resources. Background, Minicases, and Relevant Literature Brand Positioning A consumer’s behavior is not only utilitarian but also based on symbolic representations of products and brands (Baudrillard, 1970). Because sport plays an important role in Western society, it constitutes a powerful reservoir of symbols for companies to draw on—or position their products and brands—to reach consumer groups (Ohl & Tribou, 2004). To position a brand means to give it an identity that will distinguish it from competitor brands and bring it to the attention of the target markets (Trout & Rivkin, 1997). For many products, however, finding points of differentiation in the product itself or its uses is often challenging. For example, Sport Sponsorship, Internal Communications, and HR Management 415 the many brands of spring water possess almost identical products (water) with similar packaging; the products are almost identical (except to some experts, maybe) and the packaging is quite similar, rendering sponsorship as a potential tool to distinguish (reposition) a brand. To illustrate, one brand of spring water could be associated with tennis and its upper class, individualistic values (e.g., Perrier), whereas another brand could be associated with football—the world’s most popular sport—to pursue mainstream markets (e.g., Volvic). Positioning is generally accompanied by a targeted objective for a particular segment of consumers. Often, these segments will include persuasive opinion leaders. In France, for example, younger consumers are known to have little loyalty to brands, forcing marketers to adapt their brand strategies to avoid kids under 12 years of age, whose consumption is more and more autonomous, to target both (a) middle school and high school students (age 12–18), whose buying power is weak but who have high interest in powerful and symbolic brands, and (b) 18- to 25-year-olds who want to express their own personal differences in the brands they consume (Ohl, 2003; Tribou, 1999). Sponsorship can be the tool of choice here because it allows a youth-focused brand (e.g., video games, cell phones) to target and position its message to one or more select segments of prospective consumers (Ohl & Tribou, 2004; Séguin & O’Reilly, 2008). Sport-Event Proximity The question of proximity to the sport audience is an important consideration for the brands of sponsors who have no direct relationship with the sport sponsee (e.g., manufacturing firms, finance organizations, information-technology companies) because sponsors who are sport brands (e.g., Nike, Adidas) are able to build a legitimate association with specific sports such as basketball or football (McDaniel, 1999). Consequently, nonsport brands can adopt sport sponsorship as a means to build these associations, develop legitimacy, and increase their proximity to sport. Researchers recommend that such brands focus on enhancing their visibility and providing prospective consumers with experiential opportunities via an integrated mix of specifically targeted complementary actions to reinforce efficiency and increase proximity to the consumer in an effort to gain customer loyalty (Hallberg, 1995). This approach is often dubbed differentiated marketing (Hallberg, 1995), which was developed in contrast to mass-marketing tactics (Schultz, Tannenbaum, & Lauterborn, 1994). The practice of using all elements of the communications mix with event promotions (e.g., sport sponsorship) to increase efficiency refers to the theory known as the encoding variation (Unnava & Burnkrant, 1991). This theory assumes that the association of several communication tactics (e.g., press releases, television, radio, Internet, publicity, cinema) in various contexts at different times (e.g., follow-up of the event live on television, reading an article in the press the next day, follow-up summary on television several days later, consulting a sport Web site, discovering a sponsor’s store promotion) enhances the impact of the communication through increased stimuli leading to increased cognition by the target. This, in turn, increases the chances of selecting the brand for purchase, although the cost implications of multiple communication tactics must be considered (Unnava & Burnkrant). 416 Pichot, Tribou, and O’Reilly Brand Proximity Another important sponsor objective is to bring the brand closer to its target market in an effort to develop brand proximity, rather than brand notoriety. This distinction is best illustrated by considering the world’s best-known brands (e.g., Coca-Cola, Pepsi, Nike, Adidas), of whom the majority of the world’s population is aware but whose objective is no longer notoriety but to build proximity (and eventually loyalty) in their customers. For example, the French telecommunications company Neuf Telecom is the title sponsor of the French football (soccer) club Olympique de Marseille and is attempting to build proximity to the supporters of the club and build a relationship with the fans (Lardinoit, 2001). According to the BVA Sport Institute, only 25% of Olympique de Marseille supporters are Neuf Telecom customers—showing some but limited success. At a sporting event, spectators’ motivation derives from their emotional attachment to the team, the sport, and/or the players (Pons, Laroche, Nyeck, & Perreault, 2001), wherein the entertainment value of a “great show” (athletic performances, sport, media commentary, animation, cheerleading, etc.) enhances the spectator experience. Should the show be poor, however (lop-sided event, poor facility, etc.), a negative emotional fan reaction can result, although this risk is mitigated if high levels of proximity are achieved and sponsors can take advantage of the emotion to collect profit for the brand (Walliser, 1996). This does not always result a rational consumer decision, because loyalty to a sport brand is linked to emotion and passion. Feeling for the Brand To further explore the role of emotion in sport sponsorship, we can look to sensitivity theories, which are based on the idea that for fan behavior to change, emotional influences, as opposed to cognitive ones, must be present (Zajonc, 1968). Bagozzi (1980) applied this view to consumer behavior to explain the well-known fact in promotional advertising that consumers are sensitive to emotional speeches. In sponsorship, this view would take the position that the public will not be interested in the sponsor and its products until it feels sympathy (emotion) for them (Tribou, 2007), which, in turn, leads to cognitive interest. It is important to note, however, that the marketing efforts around brand feeling do not necessarily require high-volume campaigns, as noted by Krugman (1965), whose “minimal involvement” theory notes that consumers’ emotional feelings toward a brand can be reinforced, even enhanced, through weak messages. If we adopt our spring-water example again to illustrate, when consumers typically select a brand based on an impulsive (available) or irrational (my favorite athlete drinks it, so will I) choice, a subtle or simple message (e.g., product placement as part of a sponsorship, in which a top athlete or celebrity is seen drinking the brand) can be very effective. The literature provides us with three key factors in creating positive feelings in consumers’ minds for a sponsor’s brand. First, it is known that a similarity effect might encourage an emotional impulse (e.g., “Tiger Woods drives this brand of car, I’m like—or want to be like—Tiger; therefore I’m getting the same car”; Byrne, 1971). The similarity can involve physical appearance, public opinions, lifestyle, or values (e.g., loyalty, effort), wherein building the association through Sport Sponsorship, Internal Communications, and HR Management 417 the athlete’s personal life, and not just his or her sporting exploits, is recommended to sponsors because consumers can more easily identify with such traits. Second, the repetition effect can reinforce emotional attachments through familiarity (Zajonc, 1968); repeating a message to build emotional attachment to the sponsee is effective, provided the message is communicated over time and at a reasonable dose. Third, the impact of a highly emotional sporting event or moment is very powerful (Lardinoit, 2001) because a remarkable sporting achievement (e.g., new world record, championship upset) can reach beyond sport fans to mass markets. In this regard, both the sponsor and the sponsee (event) need to be prepared (i.e., trained commentators, media presence, athlete support, technology) for a remarkable moment to maximize its benefit (O’Reilly & Foster, in press). Note that each of these three factors (similarity, repetition, and moments) can be adopted by sponsors to achieve internal marketing objectives by selecting properties that match with the organizational culture (similarity), diffusing messages in an appropriate volume (repetition), and being prepared for a remarkable moment, such as if the sponsee captures a gold medal or a championship. Sponsees as Partners When a corporation determines that it wants to use sponsorship to achieve external or internal marketing objectives, selecting the property in which to invest is important. Externally, the selection of a partner seeks, in the end, to increase sales (Crompton, 2004), and internally, relationships, company pride, and employee motivation are the typical objectives. In both cases, the sponsorship’s influence on the sponsor’s image—through association with the selected sponsee—is an important antecedent, in which the sought effect on the sponsor’s image concerns several internal (employees, sales force, management) and external targets (clients, suppliers, prospects; Benveniste & Piquet, 2002; Nguyen-Thanh, 1991). Internally, the sponsor might seek, via internal communications management, to motivate its own resources—its sales force and distribution network (sales network, dealers, independent agents) directly involved in the communications process—as well as its “passive” employees, who are more or less affected by sponsorship on a day-to-day basis (Meenaghan, 1999). The sponsor seeks to position itself as a responsible civic organization (d’Almeïda, 1995; Boneu, 1990). The selection of a sport sponsee as a partner provides additional benefit because sport constitutes “a pedagogical potential in which the firm draws on its vocabulary, its beliefs, and its personal and professional development techniques” (Piquet, 1998, p. 68), which enables the sponsor through the resulting sport sponsorship to better mobilize and motivate company resources. Being a good corporate citizen with an accompanying social image has been important for organizations for over 20 years (Hébert, 1987; Marion, 1989; Westphalen, 1994). In France, for example, the early 1980s was a time when corporations were called on to maintain more stringent regulations and serve society (Sainsaulieu, 1992). Companies responded with action and promoting their partnership actions to be visible and, in turn, to obtain legitimacy from employees and the general public through developing a synergy of internal and external communications actions (Pichot, 1999). This typically involves the dual message of social responsibility or civic duty and the pursuit of a profitable enterprise (Laufer & 418 Pichot, Tribou, and O’Reilly Burlaud, 1980). For example, the France-based insurance company, Caisse d’Epargne, adopted a new communications policy (both internal and external) to change its image to be seen as a good corporate citizen (Pichot, 2001) by supporting the French Athletic Federation in educating youth and identifying young talent in the field of athletics. Management Functions of Communication and Human Resources in Sport Sponsorship Internal communication strategies seek to achieve a number of objectives, including explaining a company’s plans for the future to its employees (Westphalen, 1994). This commentary takes the view that sport sponsorship could be an effective means to develop and optimize these internal communications as part of an integrated internal marketing approach that seeks to balance employee needs with firm objectives (Bellemare, 1999; Seignour & Dubois, 1999). For example, La Poste, a government-owned corporation, maintained its sponsorship of the French Cycling Federation (to develop the sport of mountain biking) after a session with its employees in the mid-1990s. In addition to other objectives, the sponsorship of La Poste sought to reduce the gap between employees’ perceptions of the company and its communications and management practices. A second example involves Würth France, a manufacturer that sponsored the professional football club of Strasbourg. Würth France invited representatives from all its employee groups to attend matches and enjoy the hospitality usually reserved for senior decision makers. Yonnet (1998) argues that in these situations, sport is being used as a metaphor to symbolize solidarity in the work environment, wherein the collective goal is to succeed and at the same time grandiosely implement equality. Thus, we ask, what conditions would allow for a sport sponsorship to effectively promote internally to all staff? Intuitively, several possibilities are available to the sponsor to achieve its internal objectives with the use of sport sponsorship. These include (a) involving staff members directly in the sponsorship, (b) encouraging all staff to participate in the sponsorship outside of normal work hours, (c) organizing company teams to participate in the sponsored event (e.g., Dragon Boat team, relay team in cycling race), (d) implementing a public relations campaign concurrent to the sponsorship to involve decentralized units in the partnership, and (e) leveraging the sponsorship to recruit new talent to the organization. Clearly, sport sponsorship should be considered an integral element of internal communications planning. The partnership between Steelcase, a worldwide office-furniture provider, and the professional football (soccer) club of Strasbourg, France, provides a good example. Recently, the company sought to develop its brand image and be considered an important player in its regional market. As part of the sponsorship, Steelcase management negotiated the purchase of large blocks of tickets to Strasbourg’s matches around France for their employees and clients. The sponsorship also involved the discounted sale of team jerseys bearing the company’s logo and the organization of football (soccer) games among key partners and stakeholders of Steelcase. These activities enable Steelcase to build or enhance key relationships. A second example, EBC Informatique, a France-based information-technology organization that sponsors the Courrier Sud long-distance Sport Sponsorship, Internal Communications, and HR Management 419 rally in the Moroccan desert, leverages its sponsorship by entering two teams of five individuals (athletes and adventurous partners) in the competition. The progress of these teams and the rally is communicated to all employees during and after the event. Related Literature The literature provides some important foundations for this commentary. Fuchs (1995) has presented the internal benefits of sports sponsorship as a function of three intertwined systems in which the sponsor is concerned with engaging its staff, achieving marketing objectives, and supporting the sponsee. In the case of a sport sponsee, the sport attachment is an important component of the sponsor’s communication mix (Pichot, 2000). For example, organizations in France might select cycling-based sponsees (teams, athletes, or events) because of the strong connection that many French citizens have with the sport. Second, sponsorship actions for internal purposes might be embedded in a “culture within the network” strategy in which relationships with employees and other partners might be enhanced (Bartoli, 1990). In the case of sport sponsorship, these relationships via sport “become potential working relationships, a kind of social fabric that is a source or reactivity in favor of information exchange” (Burlot, 2001, p. 191). These new relationships established during the sporting get-togethers could later be used firsthand in the professional world to disseminate information relative to the job and the company (Burlot, 2000, 2005). Moreover, the relationships at work established thanks to the company’s involvement in sport can allow the internalization of the company’s organizational structure and improved employee morale (Burlot, 2005). Third, in the context of the work of Crozier (1991), sport sponsorship can be a useful tool to motivate employees in a decentralized company. To illustrate this, the sponsorship by the Azur Assurances professional football (soccer) teams not only allowed the operation of a network of salespeople and general agents within the regional management and an understanding of their company’s organization but also facilitated meetings between the “best” clients and the local regional notaries, to woo them, and to generate profit through the organization of public relations. Fourth, the external communication achieved through sport sponsorship might be a means to maintain internal cohesion at a time of restructuring or change of management (Pichot, 2007). For example, Steelcase adopted its corporate promotion policy based on the production sites restructuring and downsizing. The management carried out sales operations to allow its agents in the network to “invite their best clients and prospects to develop public relations and create business leads” (H. Babok, personal communication, April 8, 2005). Fifth, intercultural management (Bosche, 1993; Chevrier, 2000; Dortier, 1998) concerns mainly multinational businesses in which business units of different countries and cultures are joined together. The interdepartmental communication might cement employee relationships via sport by focusing on communication actions targeting the national entities as a whole. Sport sponsorship is a way to communicate a positive corporate image to both multinational clients and company staff. Würth France’s director of operations, who sponsors professional clubs, notes, 420 Pichot, Tribou, and O’Reilly Our partnership allows us to display to our multinational clients a corporate image of standardized customer service worldwide. This is why we gradually created a brand in all our markets; our seized business opportunity will allow us to clearly develop our brand image. (C. Herter, personal communication, February 12, 2007) In sponsorship, the organizations involved communicate the values of the sport that they wish to be associated with. This is done by a variety of tactics including opinions of leaders (sport stars, successful sport managers) and employee involvement. In the case of staff, they expect recognition as part of the exchange (Piquet, 1998), which links the sponsor and the sponsee through the association— this practice has been termed potlatch by Mauss (1983). Indeed, the sponsor and the sponsee enter into an alliance in which they commit themselves to each other and exchange products in an “orchestrated form of communication” (Winkin, 1981). It is this that makes sponsorship unique, when, as noted by Piliavin and Charng (1990), the sponsorship might be justified by its charitable rationale when employees feel pride in the company’s sponsorship endeavors. With sport partnerships, the produced symbols are decoded by the employees via an exchange between their passions and the organizational context (Ramanantsoa & ThieryBasle, 1989). A portfolio of sport sponsorships over time thus leads to a sponsor developing, in part, its identity through the association with the sponsees and via the involvement of employees and other stakeholders. In other words, the sponsor’s identity, as noted by Marion (1989), integrates “the registered image” (i.e., a set of opinions and collective performance by the company’s actors) in addition to the “broadcasted image” (i.e., ideas conveyed in speeches and associated with the company). Employees participate either directly within the scope of their professional lives or indirectly through their external discourses. Several angles are considered (Kapferer, 1998), including the sponsor’s objective characteristics (related to the sponsor’s core competencies, business, products, markets, results, and means) and the sponsor’s subjective characteristics (related to the sponsor’s image, the nature of its relationships with its public, its values, the dominant imagination it conveys, and its effects on its relationships with the client or the consumer). Clearly, the feelings expressed about the sponsor in and outside the organization make up an integral part of the sponsor’s identity. Concluding Remarks All things considered, a company’s strategy to use a sports approach, aiming to connect both internal and external communications, starts with the idea that external perception is mainly based on information communicated by employees. External perceptions of the company influence both the employee–company relationship and relationships between employees. From that point of view, sports sponsorship, as both an internal and external communications tool, can be viewed as a critical component of management strategy. When viewed in the context of increasingly dense networks of internal and external stakeholders, sponsorship might be adopted as a relationship-marketing tool. Sport sponsorship’s attractiveness in this regard resides in its ability to promote the company at various interrelated organizational levels, whether micro, meso, or macro, using the emotional connections to sport. 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