Multiple choice 1
Why is a small-business owner more likely to sponsor a local high school or youth sports team than a national sports league?
a. The business owner wants to reach local consumers.
b. National sponsorship is too expensive.
c. Big-name teams don’t have loyal fans.
d. The business owner prefers amateur sports.
a. The business owner wants to reach local consumers.
If a tire company such as Goodyear Tires is the only tire-sponsor of an automobile racing event, its sponsorship is considered
a. exclusive.
b. small.
c. ambush marketing.
d. private.
a. exclusive.
How can a business help sponsor an event without paying big sponsorship fees?
a. Display a large banner inside the event venue.
b. Obtain an exclusive contract.
c. Donate items for participants to use.
d. Use ambush marketing.
c. Donate items for participants to use.
A winter-clothing company seeking a sponsorship that is aligned with its brand image is more likely to support a(n)
a. elite golf tournament.
b. snowboarding competition.
c. 5K running event.
d. basketball tournament.
b. snowboarding competition.
How do companies who serve as event sponsors usually measure sponsorship success?
a. Exclusive contracts
b. Ticket sales
c. Competition
d. Return on investment
d. Return on investment
Which of the following risks does the sponsor of a sports team face when the team develops a negative image:
a. Sponsorship clutter
b. Ambush marketing
c. Guilt by association
d. Labor disputes
c. Guilt by association
promotional technique whereby a non-sponsoring business tries to associate with an event to gain recognition as a sponsor
Ambush marketing
To exchange money, goods, or services for public recognition
Sponsor
A written agreement that is enforceable by law
Contract
When a company seeks to display its logo at a large sporting event, what does it hope to gain?
a. Brand recognition
b. Exclusivity
c. New customers
d. Competition
a. Brand recognition
The JB Company is one of many corporations that sponsor the Z Racing race car team. Every Z Racing car is covered with dozens of its sponsors’ logos. As a result, the JB Company may likely experience
a. brand recognition.
b. ambush marketing.
c. media attention.
d. sponsorship clutter.
d. sponsorship clutter.
Net profit divided by investment or the "bottom line" on how successful an ad or campaign was in terms of what the returns (generally sales revenue) were for the money expended (invested)
Return on Investment (ROI)
A short document outlining the terms of an arrangement between two parties
Letter of agreement
A term frequently used for sponsor
Partner
Why do companies prefer a formal, written contract when they agree to sponsor a sport or an event?
a. An official contract is exclusive.
b. An official contract is legally binding.
c. An official contract creates brand recognition.
d. An official contract eliminates competition.
b. An official contract is legally binding.
Which of the following must companies that sponsor sporting and entertainment events know:
a. The complexity of contracts
b. Their customers’ needs
c. The strategies of each team
d. The difference between sports and entertainment
b. Their customers’ needs
A contract agreement whereby a sponsoring business will be the only provider of the good or service for a sport/event
Exclusive sponsorship rights
The provision of financial or other support to an entity in exchange for public exposure
Sponsorship
An athlete, team, league, or event on a local, regional, national, or international level
Sports/event entity