The effect of sponsorship on the financial development of federations as a promotional activity and Basketball Federation case study

The advancements in technology and the related increase of mass supply and demand around the world caused a rapid increase in business to business competition. In order for businesses to stay afloat, have a more advantageous position over their competitors and reach the target audience, promotional activities have come into prominence.In order to achive these aims and cater to the needs of the public, a marketing tool stands out with its difference from classical marketing tools. The name of this marketing tool is sponsorship. As well as contributing to the financial development of institutions and organizations, sponsorship has become an eminent financial tool for federations. The aim of this research is to study the effect of sponsorship on the financial development of federations in the case of basketball federation. No study on basketball federation has been found in the literature. One of the targets of this study is to make up for this deficiency and stand as a source for further studies. In this study, sponsorhip as a promotional activity and the effect of sponsorship on the financial development of federations are researched. As the research sample, basketball federation has been studied and the data of the basketball federation over certain years has been analyzed and findings on the financial development of sponsorship has been made. In the findings section, it is found out that sponsorship has positive effects on the financial development of basketball federation and there is an increase on the use of sponsorship as a promotional activity. It is discovered that sponsorship activities have an important place and an ever-increasing role in standing out among rivals, creating and increasing brand recognition, differentiating from competitors, creating an emotional bond with the target audience, creating brand loyalty which is increasingly difficult, and reaching the target audience with the most correct budget.