stroker
06-29-04, 03:42 PM
The other thread about IRL costs got me to thinking.
If the IRL has become more expensive than Champ Car, then why not run Champ Car instead?
Speculative answer: Because our sponsors want the exposure of Indy.
But if the TV ratings are continuing to decline, then isn't that sponsorship misplaced? Wouldn't the money be better spent in direct advertising, like the choice Tecate made this year?
Speculative answer: Our marketing department still feels that an Indy win is far more instantly recognizeable to the public.
But how do you measure that impact? What objective evidence do you have that Marlboro benefitted from their last two Indy wins? How do you establish that their sales increased or they had increased market awareness because of that sponsorship?
Speculative answer: Marlboro is far too large a name brand across too large a demographic and sales volume to pin on that one event sponsorship.
Okay, so if Argent Mortgage sees a sales increase this year directly attributable to winning the Indy 500, then that would be proof of your reasoning.
Speculative answer: You betcha.
And if there is no significant sales increase for Argent Mortgage between 5/04 and 5/05 attributable to the Indy sponsorship, then it might indicate that sponsorship was a waste of money.
Speculative answer: Sales are impacted by a number of effects. Mortgage rates are going back up, for example.
At the very minimum, if there's no sales increase then there would be less reason for Argent to sponsor a team next year.
Speculative answer: It depends on the marketing strategy--the first year might be part of a long-term investment into that demographic.
Anyway, I had this little debate with myself for a while. I'm going to be watching Argent sales, methinks. It might also be neat to try and identify incontrovertable sales increases due to Champ Car sponsorship... which makes me think of something all us fans can do... :) :thumbup:
If the IRL has become more expensive than Champ Car, then why not run Champ Car instead?
Speculative answer: Because our sponsors want the exposure of Indy.
But if the TV ratings are continuing to decline, then isn't that sponsorship misplaced? Wouldn't the money be better spent in direct advertising, like the choice Tecate made this year?
Speculative answer: Our marketing department still feels that an Indy win is far more instantly recognizeable to the public.
But how do you measure that impact? What objective evidence do you have that Marlboro benefitted from their last two Indy wins? How do you establish that their sales increased or they had increased market awareness because of that sponsorship?
Speculative answer: Marlboro is far too large a name brand across too large a demographic and sales volume to pin on that one event sponsorship.
Okay, so if Argent Mortgage sees a sales increase this year directly attributable to winning the Indy 500, then that would be proof of your reasoning.
Speculative answer: You betcha.
And if there is no significant sales increase for Argent Mortgage between 5/04 and 5/05 attributable to the Indy sponsorship, then it might indicate that sponsorship was a waste of money.
Speculative answer: Sales are impacted by a number of effects. Mortgage rates are going back up, for example.
At the very minimum, if there's no sales increase then there would be less reason for Argent to sponsor a team next year.
Speculative answer: It depends on the marketing strategy--the first year might be part of a long-term investment into that demographic.
Anyway, I had this little debate with myself for a while. I'm going to be watching Argent sales, methinks. It might also be neat to try and identify incontrovertable sales increases due to Champ Car sponsorship... which makes me think of something all us fans can do... :) :thumbup: