Murray State University
NASCAR Sponsorships and Their Affect on Market Definition
Institution
Murray State University
Faculty Advisor/ Mentor
David Eaton
Abstract
A typical fortune 500 company will spend millions of dollars on advertising every year to try and affect their market. These dollars gain them market share, create brand loyalty, and increase overall demand for that market, among other things. But what about advertising in NASCAR? Are NASCAR’s advertising goals the same? If they are, are they being fulfilled? I am studying the popular sport of NASCAR racing and the millions of dollars in sponsorship that flood that business every year. I am looking at the amount of money that goes into the sport and how that money correlates in individual companies to other advertising expenses, revenue, and adjusted stock prices. I am also looking at the winning consistency of a driver to determine if driver success correlates with how well the driver’s sponsor company does in the stock market. Also, I am trying to determine if companies only look at monetary benefits from NASCAR sponsorship or if there are other goals they are attempting to meet. My basic hypothesis is that on multiple levels it is not worth it for all types of companies to invest in NASCAR racing due to many factors. Since the sport has grown considerably in the last ten years, there have been a number of atypical companies sponsor cars that were not seen through the 1970’s and 80’s. Has the nature of NASCAR sponsorship changed over the years?
NASCAR Sponsorships and Their Affect on Market Definition
A typical fortune 500 company will spend millions of dollars on advertising every year to try and affect their market. These dollars gain them market share, create brand loyalty, and increase overall demand for that market, among other things. But what about advertising in NASCAR? Are NASCAR’s advertising goals the same? If they are, are they being fulfilled? I am studying the popular sport of NASCAR racing and the millions of dollars in sponsorship that flood that business every year. I am looking at the amount of money that goes into the sport and how that money correlates in individual companies to other advertising expenses, revenue, and adjusted stock prices. I am also looking at the winning consistency of a driver to determine if driver success correlates with how well the driver’s sponsor company does in the stock market. Also, I am trying to determine if companies only look at monetary benefits from NASCAR sponsorship or if there are other goals they are attempting to meet. My basic hypothesis is that on multiple levels it is not worth it for all types of companies to invest in NASCAR racing due to many factors. Since the sport has grown considerably in the last ten years, there have been a number of atypical companies sponsor cars that were not seen through the 1970’s and 80’s. Has the nature of NASCAR sponsorship changed over the years?