Abstract

The growth in the holding of mega events is an important contemporary phenomenon. Such events involve the participation of thousands of people, the viewership of many more through local and global television broadcasts and the direct involvement of three categories of individuals and organisations, the holders of these events, their sponsors and their organisers.

This dissertation investigates the various reasons for sponsors and organisers to engage in event associated activity, the benefits they can obtain from their actions and the possible disadvantages and dangers of engaging in such actions.

The dissertation is conducted with the use of secondary sources of information, the application of library research techniques and the adoption of an interpretivist and qualitative approach to the issue.

The findings of the research reveal that whilst the sponsoring and organising of events can result in substantial benefits to both these parties, they need to be aware of the various dangers and risks that can come about from mistakes in their approach and inadequacies in their abilities with regard to the sponsoring and management of events.

Chapter 1: Introduction

1.1. Overview

Event Management is not just one of the most visible of contemporary business activities in the advanced as well as emerging nations; it also represents a swiftly growing and highly remunerative business sector (Armstrong, 2001, p 17). Humans have been organising events of different types and sizes since historic times. Huge sporting events were organised by the Romans and the Greeks for the enjoyment of their citizens. People have been organising small and large events like birthdays and weddings for ages. Most ancient societies have histories of music, drama and theatre, which were strengthened, reinforced and conveyed through generations by the holding of village, town and city events of different hues (Armstrong, 2001, p 17).

The growth of sporting and cultural activity across the world over the last two centuries has tremendously increased the type, the variety, and the size of events in the modern era. Sporting events like the Soccer World Cup and the Olympics have become mammoth global events that are furiously pursued by nations for the furtherance of their political, economic, social, and cultural objectives. Whilst the Olympics and the World Cup are global events, even a small village football competition qualifies to be termed as an event and has significant local implications (Armstrong, 2001, p 17).

The rapid growth of incomes and populations across the world, along with tremendous changes in social and cultural attitudes, and advances in areas of sports, entertainment, tourism, travel and communication, have transformed the holding of events into a huge global activity with significant political, economic, social and cultural implications (Allen, 2000, p 31). Such growth in events has resulted in their use by various individuals and organisations for meeting their own objectives (Allen, 2000, p 31).

Events, in the first place, have opened up huge business and commercial opportunities for their organisers (Armstrong, 2001, p 21). Event management has become a recognised mainstream business activity that is associated with project management and is taught in many universities. It is now a business sector that is not only growing rapidly, but is also providing commercial and employment opportunities to thousands of organisations and individuals (Armstrong, 2001, p 21).

The growth in variety and size of events, as well as in their participation by thousands of people, has resulted in the area becoming extremely attractive to organisations as an avenue for marketing and promoting their organisations, their products and their services (Allen, 2000, p 37). Business firms now routinely sponsor various types of events to achieve their organisational, marketing and sales objectives. Such events give them platforms of different types to reach their customers, their broader consumers, their communities and society at large (Allen, 2000, p 37).

Mega events like national or international cultural and sporting events attract thousands of participants and millions of viewers. Such events are extremely complex to organise and attract numerous sponsors who often expend significant sums of money to participate in them.

1.2. Definition of Problem

The growth of the event management sector has resulted in the generation of strong commercial opportunities to event organisers and of an attractive channel for marketing communication for business firms.

Business firms by and large use events as marketing channels by assuming the role of event sponsors (Fahy, et al, 2004, p 1013). Whilst sponsoring entails financial expenses to meet some or all of the costs of sponsored events, it gives sponsors rights to advertise their products through the various channels associated with specific events. Mega events furthermore provide sponsors with visibility to millions of TV viewers in addition to thousands of spectators (Fahy, et al, 2004, p 1013).

Organisers on the other hand manage events of different types that include charity shows, balls and dances, sporting events, weddings and birthdays, elaborate conferences and country fairs (Getz, 1997, p 67). Large events require extensive planning and coordination skills and provide their organisers with greater commercial and income opportunities, as well as chances for improving their event management skills (Getz, 1997, p 67).

The contemporary fascination with events has however also resulted in indiscriminate event management activities by organisers and equally rampant sponsorship activity by business firms (Westerbeek, et al, 2005, p 55). Such unbridled expansion in organisational activity, as well as in sponsorship actions, often leads to adverse consequences for the stakeholders of individual events. Events, especially if they are large in scope and specialised in nature, involve numerous complex activities and careful planning and coordination. Their quality is bound to suffer in various ways if their management is short of perfect (Westerbeek, et al, 2005, p 55). The indiscriminate use of sponsorships by organisations, desperate to convey their marketing messages in an increasingly cluttered world, often results in the choice of suboptimal and inappropriate events for communication of marketing messages (Westerbeek, et al, 2005, p 55).

Such problems essentially arise because of confusion in the minds of marketing organisations and organisers about the purpose of events and the benefits that can come about from events, both to sponsors and to organisers. These problems again increase with the size of events. The problem for this study can thus be defined in terms of the following question:

What is the role of sponsorship and what are the specific benefits that can accrue to organisers and sponsors of mega events?

The resolution of such a question will help organisers and sponsors in knowing more of the benefits and disadvantages of organising and sponsoring specific events and help them in taking appropriate decisions.

1.3. Purpose

The purpose of this dissertation is to specifically investigate the benefits that can arise to the organisers and sponsors of events. The objectives of the dissertation are elaborated as under:

• To ascertain the role of sponsorship in the organisation of mega events
• To ascertain the advantages and disadvantages of sponsoring such events
• To ascertain the advantages and disadvantages of organising such events

The analysis and results of the dissertation will be useful for organisers of events, business corporations that make use of events, or intend to do so, to convey their messages, and to students of event management. The study takes up a fundamentally important aspect of event management and its results should not only increase the knowledge of readers, but also sharpen and improve the actions of organisers and sponsors.

1.4. Scope of Study and Research M