Impact on Brand Equity

Abstract

Recently, traditional marketing communication elements are faced with challenges of reaching increasingly fragmented consumer markets. The companies are forced to find new communication ways due to the highly cluttered market environment. Consequently, corporate sponsorship of sports has become an increasingly popular and one of the fastest growing marketing communication tools which bypasses media clutter and provides the environment where a brand can differentiate itself from the others. Red Bull sponsors various kinds of sport and athletes and through the years became the representative brand of ‘extreme sports culture’ social identity. Therefore, the paper focuses on the Red Bull sport sponsorship and strives to investigate its possible effects and reveal its impact on different aspects of brand equity. Throughout the paper several theories within the fields of cognitive and behavioural learning are applied. First part of the analysis investigates sponsorship through the spectrum of cognitive learning mechanisms whereas second part explores Red Bull’s sponsorship from the behavioural perspective. Achieved...