Copyright © 2009 Nelson Education Ltd. All rights reserved. Ambush Marketing Chapter 13.

Copyright © 2009 Nelson Education Ltd. All rights reserved.

Ambush MarketingAmbush Marketing

Chapter 13Chapter 13

2Copyright © 2009 Nelson Education Ltd. All rights reserved.

• To recognize ambush marketing and its place in To recognize ambush marketing and its place in sponsorship.sponsorship.

• To understand the objectives and strategies of ambush To understand the objectives and strategies of ambush marketing.marketing.

• To understand how to prevent and protect your property To understand how to prevent and protect your property against ambush marketing.against ambush marketing.

• To explore the ethics of ambush marketing.To explore the ethics of ambush marketing.

• To understand the role of brand management in controlling To understand the role of brand management in controlling ambush marketing.ambush marketing.

OBJECTIVESOBJECTIVES


INTRODUCTIONINTRODUCTION

“ “ Ambushers [are like] thieves, knowingly stealing something Ambushers [are like] thieves, knowingly stealing something that does not belong to them. A form of parasite, feeding off that does not belong to them. A form of parasite, feeding off the goodwill and value of the organization, they are trying to the goodwill and value of the organization, they are trying to deceive the public into believing they support. Like leeches, deceive the public into believing they support. Like leeches, they suck the lifeblood and goodwill out of the institution.”they suck the lifeblood and goodwill out of the institution.”

(Michael Payne, Former Marketing Director, IOC)


• Maximized revenue from offering exclusivity in Maximized revenue from offering exclusivity in sponsorship.sponsorship.

• Desirability + increasing rights fees = growth in Desirability + increasing rights fees = growth in companies wanting to reap benefits without paying.companies wanting to reap benefits without paying.

AMBUSH MARKETINGAMBUSH MARKETING


Ambush Marketing:Ambush Marketing:

““A planned effort (campaign) by an organization to associate itself A planned effort (campaign) by an organization to associate itself indirectly with an event in order to gain at least some of the indirectly with an event in order to gain at least some of the recognition and benefits that are associated with being an official recognition and benefits that are associated with being an official sponsor.”sponsor.”

(Sandler and Shani, 1989)(Sandler and Shani, 1989)



First gained major recognition in 1984 Olympic Games.First gained major recognition in 1984 Olympic Games.• Kodak (ambusher) Vs. Fuji (sponsor)Kodak (ambusher) Vs. Fuji (sponsor)

Some potential impacts include:Some potential impacts include:• Diminishing the value of sport propertiesDiminishing the value of sport properties• Increasing clutter in an already cluttered marketplace.Increasing clutter in an already cluttered marketplace.



MAJOR ARGUMENTMAJOR ARGUMENT


• Responsibility of event organizers to develop programs Responsibility of event organizers to develop programs that will enhance and protect sponsors.that will enhance and protect sponsors.

• Consumers must be educated about the meaning of Consumers must be educated about the meaning of official sponsor.official sponsor.

• This is the responsibility of both the sponsor and the This is the responsibility of both the sponsor and the sponsee.sponsee.

PROTECTIONPROTECTION


AMBUSH MARKETING RESEARCHAMBUSH MARKETING RESEARCH

Sandler and Shani (1989)

Sandler and Shani (1993)

Shani and Sandler (1998)

McCarthy and Lyberger (2001)

Crompton (2004)

Seguin, Lyberger, O’Reilly and McCarthy (2005)

Séguin and O’Reilly (2008)


• Research on ambush marketing in Canada is sparse.Research on ambush marketing in Canada is sparse.

• International study found Canadians more disposed to International study found Canadians more disposed to view practice as unethical*.view practice as unethical*.

• Most respondents not aware of ambush marketing.Most respondents not aware of ambush marketing.

• Significant differences in attitudes between countries.Significant differences in attitudes between countries.

CANADIAN RESEARCHCANADIAN RESEARCH

* Seguin, Lyberger, O’Reilly & McCarthy, 2005


• Sponsoring media coverage of the event (including Sponsoring media coverage of the event (including broadcast) and/or purchasing advertising in and broadcast) and/or purchasing advertising in and around broadcast.around broadcast.

• Sponsoring subcategories within the event and Sponsoring subcategories within the event and exploiting this investment aggressively.exploiting this investment aggressively.

• Engaging advertising space at locations that are close Engaging advertising space at locations that are close to the event.to the event.

• Thematic advertising and implied association.Thematic advertising and implied association.

TECHNIQUESTECHNIQUES


Sponsors:Sponsors:““Because such activities reduce the effectiveness of the official Because such activities reduce the effectiveness of the official sponsors’ promotional efforts while simultaneously denying the sponsors’ promotional efforts while simultaneously denying the activity owner potential revenue, there is reasons to question the activity owner potential revenue, there is reasons to question the morality of this type of competitive practice.”morality of this type of competitive practice.” (Meenaghan, 2004)(Meenaghan, 2004)

SponseesSponsees::““Property rights that are acquired or contractually leased by Property rights that are acquired or contractually leased by corporate sponsor must be exercised with due regard for the right corporate sponsor must be exercised with due regard for the right of others, even those of direct commercial competitors”.of others, even those of direct commercial competitors”. (O’Sullivan & (O’Sullivan &

Murphy, 1998)Murphy, 1998)

ETHICSETHICS


• Should be a concern for rights holders both on its own Should be a concern for rights holders both on its own and as a result of ambush marketing.and as a result of ambush marketing.

Clutter leads to:Clutter leads to:

• General fragmentation of the marketGeneral fragmentation of the market• Difficulty in diffusing messagesDifficulty in diffusing messages• Diminishing value of specific sport property and sport in Diminishing value of specific sport property and sport in

general.general.

CLUTTERCLUTTER


BRAND MANAGEMENTBRAND MANAGEMENT

Copyright © 2009 Nelson Education Ltd. All rights reserved. Ambush Marketing Chapter 13.

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