6-1 Chapter 6 Ambush Marketing McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

6-2 Concept of Ambush Marketing Promotional Strategy Whereby a Nonsponsor Attempts to Capitalize on the Popularity/Prestige of a Property by Giving the False Impression that It Is a Sponsor Often Used by Competitors of the Property’s Official (Actual) Sponsors

6-3 Parasite Marketing A Parasite Attaches Itself to an Unwilling Host and Takes Nourishment From It An Ambush Marketer Attempts to Attach Itself to a Valuable Property and Extract Benefits from that Perceived Attachment

6-4 Why Ambush High Cost of Rights Fees It Has Been Shown to Work Consumers Not Offended by Ambushers Attitude Within Industry May Be Changing

6-5 Piracy Versus Ambushing Piracy Is Illegal Ambushing Represents an Ethical Dilemma for the Marketer Ambush Marketing Is Legal in Most Countries

6-6Piracy Infringements on the Intellectual Property Rights of the Event or Property (e.g. Using an Event’s Trademarks and Logos without Permission to Do So) Making an Overt Claim to Be Officially Associated with the Event or Property When Such Association Does Not Exist

6-7 Ambush Marketing Strategies Sponsor Media Coverage of the Event Sponsor Subcategories Make Sponsorship-Related Contribution to the Players’ Pool

6-8 Ambush Marketing Strategies Purchase Advertising Time During the Broadcast Replay Engage in Advertising to Coincide with the Timing of the Event Use Other Dilution Strategies

6-9 Sponsor Media Coverage of the Event Advertise During the Original Broadcast Example: Fuji Film Was an Official Sponsor of the Olympic Games, but One of the Major Advertisers during the Broadcast Was Kodak

6-10 Sponsor Subcategories “Ambushing Up” – Sponsor at a Lower Level with Objective of Being Associated with the Property at a Higher Level Example: adidas Was the Official Sponsor of the 2006 World Cup of Soccer, but Nike Sponsored the Brazilian National Team that Competed in the Tournament

6-11 Make Sponsorship-Related Contribution to the Players’ Pool Payments Made to Competitors Who in Turn Acknowledge This Involvement. May Serve as Performance Incentive Example: Speedo Promoted a Plan to Reward Olympic Swimmer Michael Phelps with a $1,000,000 Award if He Wins Seven Gold Medals in the 2008 Olympics

6-12 Purchase Advertising Time during the Rebroadcast of the Event Events Are Often Shown on TV Many Times After the Live Broadcast. There Are Fewer Restrictions Regarding Who Can Purchase Advertising Time. Example: The World Cup of Soccer Prohibits Advertising by Ambushers on Original Broadcast, but the Championship Game Will Be Rebroadcast on Various Sports Channels Where that Prohibition Will No Longer Be in Effect. This Represents an Opportunity for Nike to Ambush.

6-13 Engage in Advertising to Coincide with the Timing of the Event Even if the Ambusher Cannot Advertise on the Event Broadcast, It Can Advertise on Other Programs within that Timeframe Themed Advertising: Wendy’s Ambushed McDonald’s and the Winter Olympics by Showing Ads Featuring Winter Sports and Former Olympic Athletes

6-14 Engage in Advertising to Coincide with Timing of the Event (Cont’d) Traditional Advertising: Using Advertising that Represents a Normal Creative Execution for the Nonsponsor. Coors Light Was the Official Sponsor of Super Bowl XL. Budweiser Ran Advertising Throughout the Football Season on Many Networks and During Regular Season Games.

6-15 Other Dilution Strategies Purchase Tickets to the Event –Distribute Tickets; Use as Contest Prizes Confusion Technique –Duplicate Effort of an Actual Sponsor Create Own Event –Similar Event that Appeals to Same People

6-16 Other Dilution Strategies Sponsor Other Events at the Event Venue –Association with the Venue or Secondary Event May be Mistaken for Association with the Original Event Wear Nonsponsor’s Logo Clothing at the Event –Giveaway Shirts for Fans to Wear

6-17 When Should Ambush Marketing Be Considered?

6-18 Example of Ambush Marketing Sydney Olympics: Official Sponsor Was Nike; the Ambush Marketer Was adidas –adidas had hospitality centers and media centers where press could meet with adidas- backed athletes

6-19 Example of Ambush Marketing Major League Baseball All-Star Game: Sponsor Was Coca-Cola; Ambusher Was Pepsi-Cola –Pepsi Sponsored MLB, but Not the All-Star Game; The Ambush Marketing Effort Also Involved the Flying of the “Pepsi Balloon” Over the Stadium During One of the Official Competitions of All-Star Weekend (the Home Run Derby)

6-20 Protection from Ambushers Sponsors Should Learn How to Ambush Leverage with Collateral Support (Remember: Sponsorship Is Not a Stand- alone Promotional Activity) Clean Stadium (Devoid of Nonsponsor Signage)

6-21 Protection from Ambushers (Cont’d) Establish More Control Over Advertising Restrict Use of Virtual Advertising Limit Ability of Players to Endorse Brands of Nonsponsors Educate Consumers

6-22 Protection from Ambushers (Cont’d) Engage in Surveillance Programs Limit Number of Sponsorships Prohibit Pass-Along Strategy Incorporate Sponsor’s Name Lobby Governments to Enact Legal Restrictions

6-23 Are Preventative Measures Effective? No Event Is Immune to Ambushing Sponsor Who Understands How to Ambush Is Better Prepared to Assess Its Own Vulnerability Many of the Techniques Are Effective Many Events Now Require New Laws and Clean Stadia as Conditions for Staging an Event

6-24 Closing Capsule Ambushing Is Cheaper Than Sponsorship Ambushing Can Be Effective Ambushing Reduces Sponsor’s Benefits Sponsors Must Effectively Leverage