A number of factors infulence the success of any organization, but it is generally acknowledged that the development of a variable strategy is one of the most important. Nevertheless, nonprofit organizations such as sport governing bodies have been co...
A number of factors infulence the success of any organization, but it is generally acknowledged that the development of a variable strategy is one of the most important. Nevertheless, nonprofit organizations such as sport governing bodies have been concerned primarily with their survival because of the limited funds available to them. Consequently, these sport governing bodies have tended to focus on their immediate circumstances rather than on long-term initiatives.
We acknowledge that sport governing bodies' dependency of external agencies often limits their flexibility in initiating strategic planning and their short-term vision has hindered their development. Therefore, in order for sport governing bodies to increase their autonomy, anticipate changes and challenges in their environment and develop a vision, they need to become more pro-actively involved in strategy formulation. That is, sport governing bodies must become more self-sufficient and less dependent on government funding and executives' contribution.
From this viewpoint, revenue generation is essential for their autonomy. In order to gain revenue generation, sport marketing is very important to sport governing bodies. Sports sponsorship at all levels of sport marketing is becoming more popular and commonplace as sport governing bodies attempt to gain access to additional resources. Sponsorship marketing is needed not only to raise necessary funds, but to achieve more independence which will serve to increase the quality of their programming. But, unless these sport governing bodies understand their product and the potential benefits that they offer from a sponsor's commercial viewpoint, the likelihood of receiving sponsorship support will be minimal.
The need for greater understanding of the sponsorship process is exacerbated by current market trends. Because the demand for sponsor is far greater than the supply. Clearly, sport governing bodies who understand and are able to fulfill the criteria that are of importance to commercial sponsors will have greater success in attracting sponsors than those who fail to address these fundamental tenets of marketing. A sponsorship policy with clearly defined goals and objectives consistent with the company`s overall marketing objectives would screen out many sports.