2.2.9

Sponsorship & Product Placement

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Sponsorship

Sponsorship involves paying athletes, celebrities or other organisations for them to advertise for a business.

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Nike

  • Nike pay lots of sportsmen and women to wear Nike clothing and Nike equipment.
  • Consumers that see famous sportsmen/women wearing Nike may be more likely to buy Nike clothing.
    • Roger Federer is sponsored by Nike and wears Nike tennis wear.
    • Rory McIlroy signed a 10-year sponsorship deal worth $250m with Nike in 2013.
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Celebrity endorsements

  • Celebrity endorsements are similar to sponsorship and famous people may use a product or be seen doing something.
  • Lenny Henry is a comedian that features in Premier Inn’s TV adverts.

Social Media

Firms can use social media for paid advertisements as well as for creating their own pages through which to share content. This is beneficial because it is an easy and relatively cheap way for businesses to promote their products.

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Targeting an audience

  • Social media can also be an effective way of making sure that a business targets the right people.
  • Businesses can pay Facebook or Instagram to target a precise group of people in a particular age group, for example, 18-25 year old people living in London.
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Changing adverts

  • Social media adverts can also be updated and changed cheaply and easily which is another benefit.

Product Placements

Products can be clearly featured (shown) in commercial TV programmes. Some examples of product placement are:

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James Bond

  • In James Bond, Daniel Craig frequently wears and mentions his brand of watch (Omega in Casino Royale).
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Coronation Street

  • Costa Coffee products appear in ITV’s TV show, Coronation Street.

Jump to other topics

1Enterprise & Entrepreneurship

1.1The Dynamic Nature of Businesses

1.2Spotting a Business Opportunity

1.3Putting a Business Idea into Practice

1.4Making the Business Effective

1.5Business Stakeholders

2Building a Business

2.1Growing the Business

2.2Making Marketing Decisions

2.3Making Operational Decisions

2.4Making Financial Decisions

2.5Making Human Resource Decisions

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