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

2. Copyright © 2009 Nelson Education Ltd. All rights reserved.2 To recognize ambush marketing and its place in sponsorship.To recognize ambush marketing and its place in sponsorship. To understand the objectives and strategies of ambush marketing.To understand the objectives and strategies of ambush marketing. To understand how to prevent and protect your property against ambush marketing.To understand how to prevent and protect your property 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 ambush marketing.To understand the role of brand management in controlling ambush marketing. OBJECTIVES

3. Copyright © 2009 Nelson Education Ltd. All rights reserved.3 INTRODUCTION “ Ambushers [are like] thieves, knowingly stealing something that does not belong to them. A form of parasite, feeding off the goodwill and value of the organization, they are trying to deceive the public into believing they support. Like leeches, they suck the lifeblood and goodwill out of the institution.” (Michael Payne, Former Marketing Director, IOC)

4. Copyright © 2009 Nelson Education Ltd. All rights reserved.4 Maximized revenue from offering exclusivity in sponsorship.Maximized revenue from offering exclusivity in sponsorship. Desirability + increasing rights fees = growth in companies wanting to reap benefits without paying.Desirability + increasing rights fees = growth in companies wanting to reap benefits without paying. AMBUSH MARKETING

5. Copyright © 2009 Nelson Education Ltd. All rights reserved.5 Ambush Marketing: “A planned effort (campaign) by an organization to associate itself indirectly with an event in order to gain at least some of the recognition and benefits that are associated with being an official sponsor.” (Sandler and Shani, 1989) AMBUSH MARKETING

6. Copyright © 2009 Nelson Education Ltd. All rights reserved.6 First gained major recognition in 1984 Olympic Games. Kodak (ambusher) Vs. Fuji (sponsor)Kodak (ambusher) Vs. Fuji (sponsor) 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. AMBUSH MARKETING

7. Copyright © 2009 Nelson Education Ltd. All rights reserved.7 MAJOR ARGUMENT

8. Copyright © 2009 Nelson Education Ltd. All rights reserved.8 Responsibility of event organizers to develop programs that will enhance and protect sponsors.Responsibility of event organizers to develop programs that will enhance and protect sponsors. Consumers must be educated about the meaning of official sponsor.Consumers must be educated about the meaning of official sponsor. This is the responsibility of both the sponsor and the sponsee.This is the responsibility of both the sponsor and the sponsee. PROTECTION

9. Copyright © 2009 Nelson Education Ltd. All rights reserved.9 AMBUSH 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)

10. Copyright © 2009 Nelson Education Ltd. All rights reserved.10 Research on ambush marketing in Canada is sparse.Research on ambush marketing in Canada is sparse. International study found Canadians more disposed to view practice as unethical*.International study found Canadians more disposed to 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 RESEARCH * Seguin, Lyberger, O’Reilly & McCarthy, 2005

11. Copyright © 2009 Nelson Education Ltd. All rights reserved.11 Sponsoring media coverage of the event (including broadcast) and/or purchasing advertising in and around broadcast.Sponsoring media coverage of the event (including broadcast) and/or purchasing advertising in and around broadcast. Sponsoring subcategories within the event and exploiting this investment aggressively.Sponsoring subcategories within the event and exploiting this investment aggressively. Engaging advertising space at locations that are close to the event.Engaging advertising space at locations that are close to the event. Thematic advertising and implied association.Thematic advertising and implied association. TECHNIQUES

12. Copyright © 2009 Nelson Education Ltd. All rights reserved.12 Sponsors: “Because such activities reduce the effectiveness of the official sponsors’ promotional efforts while simultaneously denying the activity owner potential revenue, there is reasons to question the morality of this type of competitive practice.” (Meenaghan, 2004) Sponsees: “Property rights that are acquired or contractually leased by corporate sponsor must be exercised with due regard for the right of others, even those of direct commercial competitors”. (O’Sullivan & Murphy, 1998) ETHICS

13. Copyright © 2009 Nelson Education Ltd. All rights reserved.13 Should be a concern for rights holders both on its own and as a result of ambush marketing.Should be a concern for rights holders both on its own and as a result of ambush marketing. 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 general.Diminishing value of specific sport property and sport in general. CLUTTER

14. Copyright © 2009 Nelson Education Ltd. All rights reserved.14 BRAND MANAGEMENT

15. Copyright © 2009 Nelson Education Ltd. All rights reserved. Questions?