Olympic Games Is It Worth It Marketing Essay

Global selling is defined by the Oxford University Press as selling on a world-wide graduated table reconciling or taking commercial advantage of planetary operational differences, similarities and chances in order to run into planetary aims. With globalisation and advanced engineering, planetary selling becomes more of import, and some activities are used as new planetary selling tool such as world-wide athleticss events. The modern Olympic Game is held every four old ages since 1896 except in 1916, 1940 and 1944 because of the universe wars. For now, the Olympic Games are considered to be the universe ‘s most popular athleticss competition, with more than 200 states take parting, and so many companies use it as a planetary selling tool. But does this tool work good? This essay will discourse the benefits and the drawbacks of utilizing the Olympic Games as a planetary selling communicating tool and measure its effectivity.

Becoming a patron of the Olympic Games is one of the most common ways to utilize the Olympic as a planetary selling tool. Bing a patron is a large concern, it ever costs a company 1000000s of dollars to get the selling rights to utilize the events including its image and logo. The sponsor fee does non include the advertisement disbursal, intending that companies need to pass more money to advance their trade name or merchandises. Indeed, visa entirely was estimated to hold spent $ 886 million on its official sponsorship of the 2008 Olympic Game ( CNBC, 2008 ) . With such a big sum of money, being a patron of the Olympic Games seems truly hazardous. There are four chief disadvantages that a company may confront when they use the Olympic Games to advance their trade names.

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First, utilizing the Olympic Game- a world-wide athleticss event – can allow more people know the trade names or companies and happen some possible clients, it besides ignores the incompatibility in consumer demands. A client in America will be different from a client in South African. So a good planetary selling activity should non merely depend on the celebrity of the Olympic Game and utilize the same agencies of propaganda all over the universe. It besides needs different selling scheme for different states to turn to different consumer demands.

Furthermore, the incompatibility in consumer demands is non the lone factors different from one country to another and people in one state may besides respond otherwise as compared to a consumer in another state. To a company, clients are one of the most of import elements, so the reactions from consumers influence a companies ‘ following move. The Olympic Games normally lasts about two hebdomads, and during this clip, companies selling activities are received by people all over the universe. It is hard to roll up different reactions from different people and better the following selling method in clip. In the terminal, selling activities may be non attractive for some possible consumers which could take to fall of the whole planetary selling program.

Furthermore, consumers ‘ trueness is besides one of the factors act uponing planetary selling accomplishment. When people get used to purchasing goods of one trade name, it will be really hard to alter their pick. Using the Olympic Game let people cognize a trade name is effectual, but Nipponese might wish a merchandise to hold a traditional touch, whereas an American might wish to add a ex post facto modern expression to it. In this instance, the Olympic Game planetary selling scheme is hard to invent.

In the terminal, the Torahs of the land have to be considered. Normally, original company policies may be devised harmonizing to the Torahs of place states. But when it comes to the planetary graduated table, the abroad Torahs possibly are conflicting in these policies. The patrons spend dozenss of money to purchasers the right to utilize the Olympic Game logo and image, but if their advertizement could non published in some states merely because Torahs conflict, so all the attempt will be in vain. So it is necessary for a company to cognize Torahs and regulations abroad before they make the planetary selling scheme.

On the other manus, planetary selling besides brings benefits to companies. First and first, utilizing the Olympic Games as planetary selling tool can increase trade name awareness. As the Olympic Game is a world-wide athleticss event involved more than 200 states, about every state will buy broadcast rights. So publicizing at this minute can make possible clients all over the universe efficaciously, particularly with the Olympic image and logo. Furthermore, in an utmost instance, the patron may acquire a opportunity for free advertisement. In the 2008 Beijing Olympic Game, the last torchbearer- the jock who lights the bowl fire was Li Ning who is a former gymnast who won six decorations. In the last few proceedingss of the ceremonial, Li Ning run into the bowl and lighted the fire as one million millions of people watched. For that 2 or 3 proceedingss 1000000s of people who did non cognize this Li Ning trade name earlier learned it ( Pitt, 2010, p.282 ) .

Second, utilizing the Olympic Game as a selling tool to advance merchandises and trade names could besides increase trade name acknowledgment. An illustration of this is the survey carried out by John and Martin ( 2009, pp.126-127 ) in which compared trade name acknowledgment degree between Nike ( patron ) and Adidas ( non-sponsor ) by roll uping respondents of Australian grownups from nine months before the 2000 Olympics to three months after it. The consequences show that at the beginning of the study, 77 % of Australian persons recognized Nike, while merely 47 % of them knew Adidas. During the Games, the acknowledgment degree of Adidas suffered a bead from 67 % to 56 % , but Nike ‘s acknowledgment degree as official Olympic patron was still over 70 % .

Third, utilizing the Olympic Game as a selling tool becomes a alone experience. Global selling is a multi-million dollar concern but it is ne’er merely about money. Bing a successful patron of the Olympic Game and deriving expected benefits is non easy. It includes puting appropriate selling end, doing accurate selling niche and utilizing assorted selling schemes. All the factors can be practiced during the selling procedure. When the Olympic Games are over, patrons can acquire feedback and seek to better their selling policy to acquire more accomplishment in the following planetary selling activity. For illustration, the Coca-Cola joined the Olympic Torch Relay. Since 1996 Coca-Cola has been a member of the Olympic Torch Relay and started to utilize it as on of the important patron able components. In the following 5 Olympic Games, summer and winter, Coca-Cola learned from the successful old Olympic Torch Relay programmes and improved its selling schemes. As a consequence, Coca-Cola launched its new selling scheme. The company did non merely utilize the offline platform to advance but by utilizing both online and offline platform at the 2008 Beijing Olympics, to let more clients in China to cognize the Olympic spirit and to be more loyal towards the Coca-Cola trade name ( Choi, 2008, pp.248-249 ) .

Finally, planetary selling could take to lower selling costs and increase grosss. Worldwide sponsorship generated $ 866million for the 2006-2008 Torino/Beijing Olympic rhythms. Eleven transnational patrons paid an norm of $ 72 million each. More unusually, these Numberss represent merely the fees for sponsorship rights ; patrons still had to pay for the advertisement itself ( CNBC, 2008 ) . Harmonizing to this figure, the cost of utilizing the Olympic Games to advance trade name or merchandise is truly high, but is even higher if the company has to market a merchandise otherwise in every state that it is selling. In add-on with same input, the consequence of Olympic marketing tends to be 2-4 times more than conventional selling. GE illustrates this point clearly. GE is one of the Olympics ‘ Game patrons. During the Games its company-wide gross revenues grosss exceeded US $ 1.7 billion, includes NBC Universal, GE ‘s subordinate media company, more than US $ 1 billion in advertisement gross was made which bring forth a record and do Beijing the most successful Games in GE ‘s history ( Hanssen, 2009, pp.126-127 ) .

This essay has discussed the benefits and drawbacks that utilizing the Olympic Games as a planetary selling tool can convey to a company. Indeed, there are some disadvantages about the incompatibility in consumer demands and reactions, but all the jobs could be solved by following results and bettering selling scheme after the selling activity. However, the advantage of planetary selling is widely agreed, otherwise companies would non pass big sums of money on it. Overall, the benefits of the planetary selling outweigh the drawbacks and it would be interesting to happen what is the most of import factor could act upon the effects of planetary selling.

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