Winning Competitive Advantage in Relationship Marketing Through Formula One
This source preferred by Bruce Braham
Authors: Jones, M. and Grant-Braham, B.
Journal: International Journal of Customer Relationship Management
The operation of a Formula 1 team is totally depedent upon its ability to attract sponsorship finance and then to effectively service such sponsors. For example, hospitality at Grand Prix and other related events may be used by sponsors to improve both internal and external relationships. A Formula 1 team should co-ordinate its sponsorship programmes to help its sponsors obtain the maximum benefit from their investment.
The research for this paper found that some Formula 1 teams tend to be reactive in their approach to sponsorship acquisition and servicing and it identifies a need for them to become more proactive in their approach.
Teams recognise the mutual value of hospitality orientated entertaining for both the sponsors and themselves. However, this paper identifies that Formula 1 teams have the opportunity to strengthen their existing sponsorship programmes and to attract further investment through creative approaches that provide maximum sponsor value. The paper also identifies that in addition to providing hospitality at Formula 1 Grand Prix and test sessions, that participation events are becoming increasingly popular. This represents an area of potential for Formula 1 teams to mix existing clients with potential investors to both strengthen existing programmes and to attract new sponsorships. The paper suggests that Formula 1 teams should seriously consider such corporate hospitality participation events to help them enhance their marketing relationships.