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Ambush Marketing



      Ambush Means surprise attack or attack from hidden position.

      Ambush Marketing is a marketing practice by which a company takes an advantage of event
      done by other companies without being an official sponsor of an event and without breaking
      any laws. The term "ambush marketing" was coined by the famous marketing strategist Jerry
      Welsh, while he was working as the manager of global marketing efforts for the American
      Express Company in the 1980s.

     Ambush marketing refers to companies promoting their brands or products by associating them
     with a team, league or event without paying for the privilege.

     It is the biggest bugbear for official sponsors at sporting events whose outlay often runs into tens
     of millions of dollars.

     Example of Ambush Marketing

     During World Cup 2011, Mahendra Singh Dhoni was endorsed by Sony Corp and Aircel, which
     were not official sponsors of the Cup whereas Reliance Communications, LG, PepsiCo, Reebok,
     Hero Honda, Emirates, Yahoo, Castrol, MoneyGram and Hyundai Motors India were official
     sponsors of ICC World Cup 2011 that was illegal as per ICC but as per Collage Sports
     Management, a firm that handles endorsement deals for several Indian cricketers, said there was
     generally a seven-day cooling off period for non-sponsors to take their advertisements off before
     the event begins.




Bharti Bhutani                              www.managementexplorer.com                         Page 1
Lufthansa Airlines printed a soccer ball on the nose of 40 of its planes. To the casual viewers, it
     might have seemed that the airlines were the official sponsor of Soccer World Cup 2006.
     However, Emirates was the official airline of the FIFA tournament.



     Types of Ambush Marketing

        •   Direct Ambush Marketing

            It takes place in the situation, when non-sponsor gives an impression of being an official
            sponsor by using words, players and logo associated with the events.



        •   Indirect Ambush Marketing

            There are several ways in which Indirect ambush marketing takes place; for example, by
            sponsoring the broadcast of an event or by sponsoring the subcategories of a major event.



     Strategies for Ambush Marketing

         Pourage Agreement

            The sale of products at event is a useful and high profile way for certain type of potential
            sponsors (soft drink and fast food suppliers) to raise their profile in association with a
            sport and also to sell their products.

         Corporate Hospitality and Ticketing

            This method consists of buying of tickets for event and offering hospitality and touring
            packages, which are not being sanctioned by the right owners.

         Engage in Major Non-sponsorship Promotions to Coincide with the event

            For example, organize contests to send consumers to the event, place hoardings or booths
            at strategic locations during the event etc.

         Sponsor the Broadcast of Event

            The ‘ambusher’ sponsors the broadcast of the event. The benefits of this approach are
            obvious when one considers that the media audience for most events is much larger than
            the onsite audience. In such an instance, the ‘ambusher’ is seeking a perfectly legitimate
            sponsorship opportunity in its own right.




Bharti Bhutani                              www.managementexplorer.com                         Page 1
 Sponsor Subcategories within the Major Event

            This is a very widespread and cost-effective method of association with an event of major
            public interest. Essentially, the ‘ambusher’ sponsor some lesser element attached to
            overall event and exploits this association through major promotional effort.

         Purchasing Advertisement time during the broadcast replay

            A company wishing to deny a competitor the full benefits of their event or broadcast
            sponsorship can engage in ambush marketing by buying advertising time in the slots of
            around repeat telecast of event.



     Benefits of Ambush Marketing

            Gain Brand Awareness at low cost and gain high public attention

     Skills required for Ambushing Marketing

        •   New Ideas

        •   Creativity & Innovation



     Conclusion

     It is impossible to completely stop ambush marketing because we can never stop the flow of
     new, creative and innovative ideas. An event is hit the most with ambush marketing, with it
     losing its value followed by the official sponsors who end up getting low returns in relation to
     huge amounts which they invest for sponsorship. Unless there is a proper legislation made to
     protect the interests of the official sponsors, it might be close to impossible to curb the onslaught
     of ambushing practices.




Bharti Bhutani                               www.managementexplorer.com                         Page 1

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Ambush Marketing: A Low-Cost Way to Gain Brand Awareness

  • 1. Ambush Marketing Ambush Means surprise attack or attack from hidden position. Ambush Marketing is a marketing practice by which a company takes an advantage of event done by other companies without being an official sponsor of an event and without breaking any laws. The term "ambush marketing" was coined by the famous marketing strategist Jerry Welsh, while he was working as the manager of global marketing efforts for the American Express Company in the 1980s. Ambush marketing refers to companies promoting their brands or products by associating them with a team, league or event without paying for the privilege. It is the biggest bugbear for official sponsors at sporting events whose outlay often runs into tens of millions of dollars. Example of Ambush Marketing During World Cup 2011, Mahendra Singh Dhoni was endorsed by Sony Corp and Aircel, which were not official sponsors of the Cup whereas Reliance Communications, LG, PepsiCo, Reebok, Hero Honda, Emirates, Yahoo, Castrol, MoneyGram and Hyundai Motors India were official sponsors of ICC World Cup 2011 that was illegal as per ICC but as per Collage Sports Management, a firm that handles endorsement deals for several Indian cricketers, said there was generally a seven-day cooling off period for non-sponsors to take their advertisements off before the event begins. Bharti Bhutani www.managementexplorer.com Page 1
  • 2. Lufthansa Airlines printed a soccer ball on the nose of 40 of its planes. To the casual viewers, it might have seemed that the airlines were the official sponsor of Soccer World Cup 2006. However, Emirates was the official airline of the FIFA tournament. Types of Ambush Marketing • Direct Ambush Marketing It takes place in the situation, when non-sponsor gives an impression of being an official sponsor by using words, players and logo associated with the events. • Indirect Ambush Marketing There are several ways in which Indirect ambush marketing takes place; for example, by sponsoring the broadcast of an event or by sponsoring the subcategories of a major event. Strategies for Ambush Marketing  Pourage Agreement The sale of products at event is a useful and high profile way for certain type of potential sponsors (soft drink and fast food suppliers) to raise their profile in association with a sport and also to sell their products.  Corporate Hospitality and Ticketing This method consists of buying of tickets for event and offering hospitality and touring packages, which are not being sanctioned by the right owners.  Engage in Major Non-sponsorship Promotions to Coincide with the event For example, organize contests to send consumers to the event, place hoardings or booths at strategic locations during the event etc.  Sponsor the Broadcast of Event The ‘ambusher’ sponsors the broadcast of the event. The benefits of this approach are obvious when one considers that the media audience for most events is much larger than the onsite audience. In such an instance, the ‘ambusher’ is seeking a perfectly legitimate sponsorship opportunity in its own right. Bharti Bhutani www.managementexplorer.com Page 1
  • 3.  Sponsor Subcategories within the Major Event This is a very widespread and cost-effective method of association with an event of major public interest. Essentially, the ‘ambusher’ sponsor some lesser element attached to overall event and exploits this association through major promotional effort.  Purchasing Advertisement time during the broadcast replay A company wishing to deny a competitor the full benefits of their event or broadcast sponsorship can engage in ambush marketing by buying advertising time in the slots of around repeat telecast of event. Benefits of Ambush Marketing Gain Brand Awareness at low cost and gain high public attention Skills required for Ambushing Marketing • New Ideas • Creativity & Innovation Conclusion It is impossible to completely stop ambush marketing because we can never stop the flow of new, creative and innovative ideas. An event is hit the most with ambush marketing, with it losing its value followed by the official sponsors who end up getting low returns in relation to huge amounts which they invest for sponsorship. Unless there is a proper legislation made to protect the interests of the official sponsors, it might be close to impossible to curb the onslaught of ambushing practices. Bharti Bhutani www.managementexplorer.com Page 1