Saturday, March 04, 2006

Sponsorship & Publicity

Consumers here in the Sultanate of Oman have often made varaible mistakes about companies and what they visualize as sponsorship from them in certain events like in special offers during festivity periods, for example; Muscat Festival.

The misonception lies that the consumer obviously thinks that he is in gain from the company when they offer their regular offers and an added-value to it at a lower price to consumer such him/her, when the truth lies in the fact it is the company who is actually in gain from them in the long term.

How is this so?

Let's say for instance, that Oman Mobile has advertised for an offer that allows you to pay for one of their postpaid packages at a lower price and at the same time offering you a some amount of free talking time plus free SMS/MMS. The gain that the consumer thinks he/she is into is that they pay less for more (even though it is the short term) but still states that with the number of consumers that think along that exact pattern the more consumer base the company will build and therefore increasing their profits from selling such service products in the long term.

The whole idea behind sponsorship isn't to invest into a special period of time to make it successful but rather it's the publicity the company gains behind it (granted that it comes at a high price, but this makes no matter to the firm at hand because it breaks even after they build their consumer base).

So next time you think that a company is sponsoring such a festive period, and they are offering an irresistable package - think again: what's in it for you?

2 comments:

Anonymous said...

Diddly squat is the answer! :)

Sleepless In Muscat said...

Andromeda:

it's nice to know we ride on the same wavelength ;oP