How should companies determine the best way to allocate marketing dollars between conventional promotional programs and affinity marketing programs? The former simply stress the benefits of buying a specific brand, while the latter prominently and publicly identify a company’s association with a particular sport, entertainment event, nonprofit organization or social cause. Experiments we have conducted suggest that the research method known as conjoint analysis could be a valuable market research tool to help companies predict which of several alternative affinity marketing affiliations would provide the best return on investment. Furthermore, based on both theory and our initial findings from a set of studies using conjoint analysis, many companies will obtain better returns through creating an affinity with a social cause than through affiliating with other, more clearly commercial ventures.
The Potential Returns From Affinity Marketing
According to an article in the IEG Sponsorship Report, spending on sponsorships in North America during 2005 was expected to reach $12.1 billion, with 69% going to sports, 10% to entertainment tours and attractions, 5% to the arts, 4% to festivals, fairs and annual events, 3% to associations and membership organizations and 9%, or about $1.15 billion, to social causes.1 Elsewhere, another article claimed that $9 billion was spent by corporations in 2001 on all types of social initiatives, including strategic philanthropy.2
Clearly, companies are making... To read the complete article, login or sign-up using the form below.
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