Factor Analysis of Sponsorship Towards Brand Awareness, Study Case : NVIDIA Gamers Event at CBN Digital Nation

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Factor Analysis of Sponsorship Towards Brand
Awareness, Study Case : NVIDIA Gamers Event at
CBN Digital Nation
Farizal Rivai Adiansyah
19013039
Proposal of BRM Lecture
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Abstract
1. Introduction
1.1 Background
1.2 Problem statement
1.3 Research objective
1.4 Research question
1.5 Research Implication, Scope, and Limitation
1.5.1
Implication
1.5.2
Limitation
2. Literature review
2.1 Sponsorship
2.2 Brand Awareness
2.3 Similar Research
2.4 Conseptual Framework
3. METHODOLOGY
3.1 Research Framework
3.2 Hypothesis
3.3 Data Collection Method
3.3.1
Research Question 1
3.3.2
Research Question 2
3.4 Validity and Reliability
3.5 Data Analysis
3.6 Conclusion
Reference
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Abstract
In current time, occour a big scale of change on marketing in business world. Many
company in previous years spend their promotion in advertising and promotion start
to change. View from the graph which IEG relese, sponsorship one of promotion
type start to grow at stable and stady pace. Nvidia is an American technology
company based in Santa Clara, California. It designs graphics processing units (GPUs)
for the gaming realishing this fact, Nvidia give sponsor to an event in Bandung.
Nvidia as a party that give sponsorship certainly has a certain hope in the event
which they sponsor, and how the relationship with the Nvidia costumer can be form
through the event.
This study want to prove that there is relationship between Nvida and their
costumer which is formed through the the event that they sponsor.
The author going to use qualitative analysis by conducting interview and field
observation. If the thesis is turn out to be right, there is a positive correlation
between sponsorship and brand awareness. Nvidia brand awareness going to growth
and going to affect their sales product
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1. Introduction
1.1. Background
Nowdays, the rate of change that is happening within the scope of big
business is fast and significant because of the new competitors that make the
competition tighter, technological progress, and changes in the needs and
desires of consumers themselves. This causes many companies to inevitably set
up the right strategy to survive in this business change and of course the main
can win the competition that is in it. To survive and win this market, a company
needs marketing that is considered a cutting edge for an activity that can affect
consumers
Explained in Marketing Management 14th (Philip Kotler &Kevin Lane
Keller) the American Marketing Association (AMA) define Marketing is the
action, set of foundations, and process for making, approach, show and trading
offerings that have an incentive for costumers, customers, accomplices, society
on the loose.
And Kotler and Keller define the marketing is a societal activity by which
someone/ a group get what they desire and wish through making, offering, and
freely exchanging products and services of value with others.
From the two definitions above we can said marketing is delivering
product or service that got have value to a costumer, its satisfied the costumer,
and its going to develop the costumer loyalty. To reach their marketing goal,
many companies must get their own unique value that can help them to get a
competitive advantage than other in the market. One of the competitive
advantages that a company can plan is brand (Chailan, 2008). According to Aaker
(1991), brand is an identity for a product so the product is different with others.
Furthermore explained by Fisk (2007), brand not only an identity for a product,
but also a reputation and promise. It shows that a brand is an important thing for
a product and company who want to get a successful business. So brands have
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their own competitions in business. And now days the brand competitions in
business continue to increase. This is due to the rapid business growth (Latham,
2007).
With this rapid growth business, the increasingly fierce competition encourages
companies to be more clever in their strategy. They are competing to win the
market by reaching all types of market segments, among other things by making
various product variants and improving their product with current situasion
development. However, the company also must create a brand equity so they got
a strong enough brand equity to their variant products. Brand equity is a set of
brand assets and other assets associated with a brand and can increase the value
of the product for the customer (Aaker, 1991). There are 5 category assets that
can help increase brand equity, which are brand awareness, brand association,
quality perception, brand loyalty, and brand asset. This 5 assets included in the
brand communcation process that is the strategy of delivering messages about
the benefits of products and services of a particular brand with the aim of
creating awareness and emotional experiene that brings to a particular brand
preference to the consumer.
Brand awareness affect perception and behavior, so brand awareness can be
regarded as key of brand asset or key opener to enter into other elements (Aaker
and McLoughlin, 2010). In other word as Simamora (2003) says, brand
awareness is an important component of brand equity. In addition, it can be said
that the formation of awareness is the first stage in communicating the brand of
a product. Along with that, Levidge and Steiner (1961) that consciousness is the
earliest stage in the ranking hierarchy of stimulus influence. So, it is reasonable
that consumers tend to buy brands they already know or familiar, because they
feel secure with something they already know.
According to Keller (2003) brand awareness relates to the strength of a brand
forming a knot and leaving the impression in the mind of a person who is then
reflected by his/her ability to identify the brand in various conditions.
Brand awareness needs to be formed and improve if a product wants its brand to
occupy the topmost position in the minds or minds of consumers for a particular
product category or often being called as top of mind brand (keller, 2003). But
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increasing brand awareness is not easy. Aaker (1991) mentions that in achieving
awareness involves two tasks that is to get a brand name identity and connect
with the product category. The company has a variety of ways to shape and
improve brand awareness for its products, one of which is by running a
promotion
Promotion, in marketing is one component marketing mix which is a tool to
achieve marketing objectives. Jerome McCarthy, classifies these tools into a 4P
which are product, price, place, and promotion. To get the maximum 4P strategy
output needs to be supported by good communication between companies and
their customers, it is commonly called marketing communication which is a
flexible element in marketing. Basically one of the marketing tools that is a
means to conduct communication activities is promotion, as where disclosed
Fandi TJiptono (2002) that the essence of promotion is a form of marketing
communication. Meanwhile, marketing communication itself can be defined as
the company's efforts to inform, convince, and remind consumers directly or
indirectly about the brands they sell (keller 1998) As the development of
marketing, marketing communication classic has evolved into IMC, Ducan (2005)
defines IMC as a process for planning, executing, and monitoring the messages
that create relationships with consumers. Belch & belch (2007) mentions some
tools that can be an option in running IMC such as advertising, sales promotion,
direct marketing, publicity, word of mouth, event and sponsorship
However in this recent days, promotion faced a big problem as Handoko
Hendroyono told that consumers now day feel bored and annoyed about
advertising. This is due to costumers being fed too many advertisement in a day.
This result the advertisement being inefficient because not only they failed to
deliver their value to build up the awareness and could make a negative stigma
toward their products. Beacause of it, company choose to pick another alternatif
and it is through sponsorship. Sponsorship according to Speed and Thompson
(2000) is to provide financial or other equivalent assistance to an activity by two
commercial organizations for the purpose of achieving commercial objectives.
Sponsorship is a form of promotion, but unlike advertising in the medium and
messaging is not strictly controlled by sponsors. Sponsorship is usually not
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handled through conventional media. Instead sponsorship may involve event
stage where advertising is unlikely to use the place. Activities that can be
sponsored include sports, art and social. Through this activity the company can
put its name in front of the public so it can cause consumer to aware about our
product or brand that can build up a brand awareness. Masterman (2007), cite
from Redmandarin (2004), expose a data which came from European Sponsors’
Survey about compaby objective to do a investment in sponsorship. And the
result show that around 69 percent company want to improve their brand
awareness from sponsorship. IEG and Statista
website(http://www.sponsorship.com/iegsr/2017/01/04/SponsorshipSpending-Forecast--Continued-Growth-Ar.aspx), that sponsorship continued to
growth around the world.
Total Global Sponsorship Spending © 2017 IEG, LLC. All Rights Reserved.
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Annual Growth Of Advertising, Marketing/Promotion And Sponsorship- Global
© 2017 IEG, LLC. All Rights Reserved.
From the statistics above, the sponsorship in marketing continue to grow at
stable and steady pace than other merketing tools.
1.2. Problem statement
Nvidia is an American technology company based in Santa Clara, California. It
designs graphics processing units (GPUs) for the gaming, cryptocurrency, and
professional markets, as well as system on a chip units (SoCs) for the mobile
computing and automotive market. They want to know how effective and
effiecient their sponsorship program for their brand awareness in an event
which they held in Paskal 23 Shoping Center Bandung
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1.3. Research Objective
This research will be conducted to analyze the factor analysis to
maximize the effectivity and efficientcy in sponsorship of brand NVIDIA to
increase their brand awareness through sponsorship. So, NVIDIA can
make an effective sponsorship which can improve their brand awareness
that can be effect to product sales.
1.4. Research question
1.
What is the correlation between sponsorship and brand
awareness?
2.
What are the factor that influence the brand awareness in
sponsorship ?
1.5. Research Implication, Scope, and Limitation
Implication
The purpose of this research is to help a company to maximize the
sponsorship effectiveness and efficiency .
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Limitation
This research only implemented in the NVIDIA sponsorship in
event NVIDIA Gamers Event at CBN Digital Nation which being held at 23
Paskal Shopping Center Bandung.
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2. Literature Review
2.1. Sponsorship
According to Anggoro (2002), sponsorship include into one of external media
public relation. Sponsorship is providance of financial support for a given event,
subject, activity, institution or individual it deserves to receive it. Javalgi (1996)
said sponsorship is a special staging event to support company goals, enhance
the company image, increase brand awareness or stimulation of the sale of
products and services directly.
Masterman (2007) also explains the notion of sponsorship as: "A mutually
benficial arrangement of the provision of resources of funds, goods, and services
by and individual or body (the sponsor) to an individual or body (right owner) in
a return for a set of objectives for the commercial gain . " From the above
definition it can be said that sponsorship is an inventory performed by an
individual / body (sponsor) in the form of giving cash, goods, and / or services to
individuals / bodies / activities (sponsee) whose purpose is to get the right to
connect individuals / recipient's activities with the sponsor
2.2. Brand Awareness
Brand awareness affect perception and behavior, so brand awareness can be
regarded as key of brand asset or key opener to enter into other elements (Aaker
and McLoughlin, 2010). And it going to affect the latter through its use as a
heuristic for choosing (e.g.,”I’m gonna choose this brand because already familiar
with the brand”). According to Aaker (1991), brand awareness is the ability of
consumers to recognize or reckon that a brand is part of a particular product
category.
According to Strategic Brand Management book 4th edition by Kevin Lane Keller.
Brand awareness consists of brand recognition and brand recall performance:
Brand recognition is consumers’ ability to confirm prior exposure to the brand
when given the brand as a cue. In other words, when they go to the store, will
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they be able to recognize the brand as one to which they have already been
exposed?
Brand recall is consumers’ ability to retrieve the brand from memory when given
the product category, the needs fulfilled by the category, or a purchase or usage
situation as a cue. In other words, consumers’ recall of Kellogg’s Corn Flakes will
depend on their ability to retrieve the brand when they think of the cereal
category or of what they should eat for breakfast or snack, whether at the store
when making a purchase or at home when deciding what to eat.
2.3. Similar Research
Title
Author
Objective
Methodology
Brand
Awareness
Theory
A
Descriptive Basri,
To determine Qualitative
Kevin Lane
Study of Isotonic Muhammad
bilateral
with
Keller
Drink
relationship
interview and
Rizki
Sponsorship
for
between BR20 obeservation
Running
Community
Communities in
toward
Indonesia,
sponsor
Study:
Case
the
Pocari
Sweat and BR20
Running
Community
PENGARUH
Herly
Find
SPORT
Winarti
influence
the Quantitative
of non
SPONSORSHIP
sponsorship
probability
TERHADAP
toward
sampling
RESPON
company
SPONSORSHIP
image
No
Mention
and
12
DAN CORPORATE
sponsorship
IMAGE
response
Conceptual Framework
Sponsorship
Brand awareness
Event
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3. Research Methodology
3.1. Research Framework
Problem
Identification
Literature
Review
Data
Gathering
• Interview
• Observation
Data Analysis
• SPSS
Result
• Summary
• Recommendation
3.2. Hypothesis
H1
There is a positive correlation between sponsorship toward brand
awareness
H2
With sponsorship in an event can impact to brand awareness to
growth
3.3. Data Collection Method
Interview
Author use interview and observation to gether the data directly to the
attandance in the event in NVIDIA Gamers Event at CBN Digital Nation which
being held at Paskal 23 Shoping Center Bandung. Taken from Basri (2017), there
are two types of interview, structured and unstructured
interview(McLeod,2014). In structured interview, the interview has a list of
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question and will not get out from the topic and the question which already
being prepared before. The unstructured interview different, its more like a
casual conversation but with a guidance. The author will use a questionare with
the people who attend the event and in deep open question after the questionare
to digging up data in conversation. The author will use judgmental sample to
decide the respondents that will be interview.
Research Question 1
To answer the research question 1 the author will use interview. The author will
interview 30 interviewees. Where the interview will be conducted to the event
attandance. The author will ask the interviewees whether they are influenced by
the sponsorship or not in finding a product. The outcome of interview is the
correlation of sponsorship and the brand awareness.
Research Question 2
To answer the research question 2 the author will use interview. The author will
interview 30 interviewees. Where the interview will be conducted to the event
attandance. The author will ask the interviewees what factor attract them to the
event which being sponsored, especially by NVIDIA. The outcome of interview is
what factors that influence people to see the event which being sponsored by
NVIDIA
Observation
The author will use the observation to observe the result of interview in research
question 1 and 2. The outcome of observation is the impact of sponsorship
toward brand awareness growth
3.4. Validity and Reliability
To validity this research the author will use spss program to make sure the data
has validity and reliability. SPSS is a comprehensive system for analyzing data.
SPSS can take data from almost any type of file and use them to generate
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tabulated reports, charts, and plots of distributions and trends, descriptive
statistics, and complex statistical analysis.
3.5. Data Analysis
A factor analysis will be used to analyze this data gathering. Factor analysis is a
method to analyze a number of observations, seen from intercorrelation to get
the variation that is show on the observation may based on a number of basic
category which is less than the shown category (Fruchter, 1954). Each research
question will analyze by factor analysis, to prove the hypothesis.
3.6. Conclusion
The conclusion of this research will be the assessment of NVIDIA sponsorship in
event toward brand awareness. It will provide about the factor that influence to
the brand awareness in event through sponsorship, the correlation between
sponsorship and brand awareness, and the impact of sponsorship toward brand
awareness. If the result is in accordance with hypotheses, the conclusion will be
sponsorship has positive correlation toward brand awareness and that is give
positive impact to increase brand awareness. Sponsorship through event must
be considered because can give impact to the brand awareness.
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Reference:
1.
Masterman, Guy. (2007). Sponsorship : For a Return on Investment.
2. Keller, K. L. Fourth Edition Strategic Brand Management: Building, Measuring,
and Managing brand equity. Essex: Pearson Education Limited
3. Kotler, Philip T & Keller, K. L. Fourteenth Edition Marketing Management .
4. Wikipedia, https://www.wikipedia.org/.
5. Basri, Muhammad Rizki (2017), A Descriptive Study of Isotonic Drink
Sponsorship for Running Communities in Indonesia, Case Study: Pocari Sweat
and BR20 Running Community
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