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Using sports marketing to engage with consumers

Curriculum Topics
• Marketing
• Promotion
• Above-the-line and below-
the-line promotion
• Sponsorship

Introduction To support this growth plan, Kia has to develop its brand identity.
In the past Kia has competed mainly on price, using a competitive
Today’s consumers have higher expectations than ever before. pricing strategy. The challenge for Kia has been to increase
Dramatic improvements in media, communication and transport awareness of its brand within European markets. Alongside this it
have made the world’s economy more connected. Products has created positive perceptions of its products through high
developed in one country have become increasingly attractive in profile sponsorship deals. It wants consumers to view the brand
other parts of the world. However, entering markets in other parts as a manufacturer of cars of great quality and design. To do this it
of the world is not an easy task. Entrants face many different has harnessed the power of sports marketing to influence
challenges as they try to develop their brand profile. This is consumers’ perceptions of its products.
especially evident in mature markets like the UK car market. This
market has a number of long established brands. The awareness Marketing
and brand loyalty that exists for established brands form a barrier
to entry for new organisations. This case study illustrates how The Chartered Institute of Marketing defines marketing as:
Kia, a South Korean motor company, has used sports marketing ‘The management process responsible for identifying,
to develop its brand identity in the European motor market. anticipating and satisfying customer requirements profitably.’

In simple terms, it is the process where customer needs are identified

The Kia Motors Corporation, based in South Korea, has
and serviced through the products and services that satisfy them.
12 manufacturing and assembly plants and subsidiaries in
165 countries around the world. Globally the Hyundai Kia Group is
now the fourth largest car company in the world. Kia Motors UK has
more than 166 dealerships. It also has plans to grow the network to
support the increasing demand. Kia is a relatively new entrant to the
UK car market. However, it has become more well known in recent
years. Kia does not have the same level of brand heritage in the UK
as it does elsewhere in the world. Kia aims to overcome this through
its massive ambition and plans for growth in the European market.

Brand profile: Ingredients, elements and Barrier to entry: Obstacles that may Sports marketing: Linking the activities Brand identity: The values or
GLOSSARY

characteristics that make up a brand at a prevent a competitor entering or of an organisation with sports events that ‘personality’ of a brand that are expressed
particular moment in time. contesting a market e.g. licensing reach massive audiences in order to through its name, design or logo.
Mature markets: A market in which the agreements or dominant brands. create and develop positive associations. Subsidiaries: Firms that are owned by
prospects of future growth have another business.
diminished.

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This starts with a process of planning at the very top of an For example, the marketing mix for Kia is based around:
organisation. Senior managers determine the long term aims of • product – good design and quality alongside a high level of
the organisation. An aim for Kia is to become a major player in the customer service, Kia’s unique selling point is its 7 years
UK car market. Planning is then followed by a process of research warranty
through which customer needs are identified. A business then has • price – competitive prices provide an advantage over
to establish processes that enable it to satisfy these needs. Kia competitors
wants to bring a fresh, fun and dynamic approach to the UK car • place – with 166 dealerships there is a large and expanding
market. Its marketing strategy supports its objectives with a number of outlets
focus on increasing brand awareness. It aims to emphasise the • promotion – this includes a new sponsorship in cricket and
great design and quality of Kia’s products, while still offering long term partnerships in football and tennis.
competitive prices.
Promotion
Marketing Strategy
Promotion is about communicating with customers and potential
customers. It has a number of purposes, for example:
Marketing Objectives
• to increase awareness – such as the range of vehicles Kia offers
• raise brand recognition – this is important in an industry with
Brand Awareness
over 30 major players in the UK
• to increase demand – thereby helping to meet the objective of
The marketing mix comprises of the 4Ps and is a useful way of growth in the UK
summarising the marketing strategy of an organisation. Every • to improve brand perception – promotion communicates the
organisation will have a unique marketing mix. Organisations need fun approach of the Kia brand
to create a unique mix of: • to highlight the superiority of the product – e.g. the high quality
• the right product and great design of Kia cars.
• sold at the right price
• in the right place The acronym AIDA is useful when developing a promotional mix.
• using the most suitable promotion. Promotion activities help to:

A capture a customer’s attention

stimulate their interest in a product,

I brand or organisation

D create a desire for the product

encourage action, which occurs when

A they purchase the product.

To reach its promotional objectives, Kia uses conventional

techniques alongside extensive use of sports marketing such as
sponsorship. Sponsorship involves a business paying to be
associated with another organisation, event or even television
programme. Sports marketing allows Kia to reach a large
audience and create positive associations. Sports sponsorship
enables Kia to be linked with superiority in another field.

Marketing strategy: Budgeted plan(s) to Marketing mix: The combination of Unique selling point: Product with a Sponsorship: Where a firm funds a
GLOSSARY

meet customer needs through product, product, price, promotion and feature not offered by competitors. It sporting community or cultural event in
price, promotion and distribution. distribution (place) used to generate gives it distinctive appeal in the market return for exposure of their name or
Brand awareness: Degree of customer profitable sales – often called the 4Ps. place. brand.
recognition for a brand.

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For example, Kia was involved with the FIFA World Cup in Korea Above-the-line and
and Japan in 2002 through sponsorship. Since then it has below-the-line promotion
become partners of the World Cup until 2022. This enables Kia to
link its activities with well-attended and well publicised football There are a number of approaches to promotion that are open to
matches that are enjoyed by large groups of people. organisations. Above-the-line promotions use mass media
methods. This type of promotion focuses on advertising to a large
Sponsorship also helps to develop good public relations with audience. It includes print, online media, television and cinema
European audiences. Public relations helps to build positive advertising.
perceptions of the brand. This enables Kia to engage with
potential customers who then view the organisation in a positive As the fourth largest car company in the world, Kia is a big brand.
way. This is particularly important in markets where the brand It offers a range of products targeted at different market
identity lacks awareness and profile, such as when a new brand segments. Above-the-line activities include adverts in the press.
enters a marketplace. By associating with exciting and interesting They also produce online banner advertisements, place
sporting events Kia shows that it is also exciting and interesting. advertisements on billboards and use their website to meet the
Kia proves it is a major player in the UK market through its needs of their consumers. Recent TV advertising campaigns have
sponsorship links with such high profile sporting events. included the ‘small yet mighty’ cat for the new Picanto and the
‘future proof’ Kia cee'd, emphasising the 7 year warranty. TV
Kia’s sponsorships include:
advertising has also been used to relay the message that Kia is
• Cricket. A new 5 year partnership with Surrey County Cricket
an official FIFA partner.
Club including extensive branding, shirt sponsorship and
naming rights for the historic Kia Oval cricket ground.
Making a message memorable to a large audience is not always
• Football. Kia is the official sponsor for both the FIFA World Cup
easy. It is difficult to tailor a promotion to a specific group of
finals and UEFA Championships. These long term partnerships
consumers through above-the-line promotions. This is because
(through to 2022) include extensive branding and promotional
it is viewed by a mass audience with different tastes and needs.
opportunities, also extends to other associated tournaments
Above-the-line promotion is also very expensive.
(Women's World Cup, Under 21 Championships, etc). Kia is
also shirt sponsor for a number of major clubs in Europe and
Below-the-line methods are very specific, memorable activities
around the world, including Athletico Madrid in Spain and
focused on targeted groups of consumers. They are under the
Bordeaux in France.
control of the organisation. Kia uses these techniques to target
• Tennis. Kia sponsored the Australian Open for 10 years.
clearly defined consumer groups rather than a mass audience like
Rafael Nadal is Kia's global ambassador.
its above-the-line activity. The purpose of these activities has been
to develop the brand by creating awareness and building a brand
You can find out more details about Kia’s sponsorships at
profile. Below-the-line methods include:
www.kia.co.uk - see About Kia and Sports Sponsorships.
• sponsorship
• sales promotions
• public relations
• personal selling
• direct marketing.

Sponsorships have helped to raise Kia’s profile amongst key

target markets. Kia has also developed its relationships with
consumers through public relations. Traditional press releases
work alongside newer forms of marketing. For example, Kia uses
digital and social media as an integral part of its below-the-line
activity. This helps to create relationships with customers online.
GLOSSARY

Public relations: Organisational Market segments: Recognisable Banner advertisements: An Below-the-line: Indirect sales
communications with external consumer groups of people with similar advertisement that is embedded into a promotion other than advertising e.g.
stakeholder groups (e.g. customers, the needs and characteristics. web page. price promotions and point-of-sales
community, the media) and also with the Above-the-line: Promotion through displays.
general public. advertising: TV, radio, internet, press etc.

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www.kia.co.uk

These channels include blogs and social networking sites such as The T20 form of the game has helped the sport appeal to a larger
Facebook. Kia also has its own YouTube channel to emphasise its audience. Sponsorship provides Kia with a presence beyond which
brand presence amongst target consumers. This enables them to many expect. It also provides Kia with a very high profile and famous
develop eCRM, allowing Kia to collect data from customers and site in the heart of London, ‘The Kia Oval’. The relationship has also
use it in a variety of ways for interaction. It also helps to create the involved branding, on-line marketing and shirt sponsorship.
basis for viral marketing. This is when messages are so widely
received that they are passed on either electronically or by word of Surrey County Cricket Club’s partnership with Kia will last for at least
mouth to other customers. 5 years, from 2011 until 2015. This will allow Kia to reach a new
audience. It will also help Kia to be viewed as a permanent player
Kia also supports a variety of environmental issues, shown within the UK car market. This helps exhibit big brand behaviour. Kia
through below-the-line promotions. For example, Kia works in is therefore demonstrating that it is a main player in the car market
partnership with Trees for Cities, an independent charity which through high profile sponsorship deals. This reinforces the size and
aims to create social cohesion through inspiring people to plant scale of the Kia brand.
and love trees. Environmental issues are high on public agenda.
Partnerships like these are an important way for Kia to Sponsorship is not simply an advertising message that engages with

demonstrate its commitment to supporting public concerns. an audience at a particular time. It creates deeper engagement with
Kia’s potential customers. It also provides a platform for other

Sponsorship exciting events to take place. For example, sponsorship of T20

games at the Kia Oval enables a variety of other activities to take
Sponsorship involves positioning and matching brands together. It place such as the Kia Catch and promoting the Stick Cricket Game.
develops a relationship that is both comfortable and positive for With Kia Catch, any crowd member successfully catching a six can
both businesses. Kia’s partnership with Surrey County Cricket claim a £100 prize, courtesy of Kia. Stick Cricket is an online batting
Club was its first venture into cricket. Cricket is becoming an game which is available through both the Surrey County Cricket
increasingly popular sport. Club and Kia websites.

Conclusion
It is very difficult for a large brand, no matter how good the products
are, to enter a mature market in which existing brands are popular.
This is a major challenge for Kia in the UK car market. Kia has
created a variety of partnerships through different forms of
sponsorship. These sponsorship deals help Kia raise its brand profile
and create positive associations with key sporting events and
athletes. Associating the brand with high profile sporting events
demonstrates the fresh, fun and dynamic qualities of the brand. Kia
has entered into a series of long term investments that will allow it to
engage with consumers for the duration of the sponsorship deals.

1. Describe what is meant by the marketing mix.

QUESTIONS

2. Explain the purpose of promotion within the marketing mix.

3. Analyse why organisations might choose below-the-line
promotions in favour of above-the-line promotions.
4. Evaluate how sponsorships differ from other forms of
promotion.
GLOSSARY

Blogs: Personal online journal that is eCRM: Electronic customer relationship Viral marketing: The passing on of
frequently updated through discussion. management. messages either by word of mouth or
electronically from customers through to
other customers.

Kia | Using sports marketing to engage with consumers