‘ It is the unauthorized association of a business or organization with the marketing of a particular event-gaining benefit for the marketing right or licensing fee applicable in order to be associated with an event, such as sporting event’. - Jerry Welsh
The term "ambush marketing" was invented in the early 1990s by a marketing executive at American Express, Jerry Walsh. original concept :idea of healthy competition the term has acquired negative connotations now :akin to commercial theft Cashes in on the goodwill and popularity of the event by creating an association between itself and the event without having to pay any sponsorship fees. Associate themselves with a sponsored event such as the Olympic or Commonwealth Games or the Rugby World Cup.
Ambush marketing is an attempt by a third party to associate itself directly or indirectly with an event(s) or the event(s) participant(s), typically major sporting events like the Olympics or the World Cups, without their sanction, thereby depriving the official sponsors, suppliers and partners of much of the commercial value deprived from the ‘official’ designation. It is for this reason that ambush marketing is frequently referred to as parasitic marketing.
TO get maximum returns on the marketing buck. Official sponsorship costs are forbiddingly high, even for deep-pocketed marketers, and simply unaffordable for others.
To undermine the branding efforts of rivals by stealing the attention, increasing the clutter and confusing the viewers.
(i) McDonald’s had paid a hefty sum of money for the right to be an official sponsor of the Games. Wendy became the proud sponsor of ABC’s broadcast (ii ) 1992 Barcelona Olympics, official sponsors including Reebok paid $700 million to be the official sponsors but when the US basketball team won gold, Nike sponsored the press conference. (iii) Winter Olympics held in Lillehammer, Norway in 1994, where Visa was one of the official sponsors for the Olympic Games . American Express (Visa’s counterpart) launched an advertising campaign with the slogan: If you are traveling to Lillehammer, you will need a passport, but you don’t need a visa.
Advantage of a major event to increase brand awareness while not spending the money to be a sponsor.
Increase in competition: when there is an increase in competition the prices go down.
It decreases the commercial value of the event
It creates unhealthy competitive environment.
It may adversely effect the funding of the event as it will be beneficial
for the company to be an ambusher instead of roping huge amounts
Li Ning isn't just China's most famous gymnast. He's also created the most popular Chinese shoe company, Li-Ning. Coca Cola and Adidas, had spent more than $70 million just for the right to be a sponsor imagine how executives at Adidas must have felt when Li Ning stole the biggest moment in the entire Opening Ceremonies
Countries which have passed ambush marketing laws (a) Australia The Sydney 2006 Games Protection Act 1996 Melbourne Commonwealth Protection 2006 The Olympic Arrangements Act 2000. The Australian Grands Prix Act 1994 and regulations 1996 (b) South Africa Two relevant statutory provisions both introduced in 2001 to cater for 2003 Cricket World Cup (c) United Kingdom The London Olympic Games and Paralympic games Act 2006(LOGA) (d) Caribbean Nations ICC Cricket World Cup West Indies 2007 Bill
Possible ways of ambush marketing (i) The sale of unauthorized or pirated goods or services (ii) The sale of goods or provision of services using marks, indicia or dates that (although not official trade marks) are suggestive of a connection with the event (iii) The placement of billboards displaying the ambush marketer’s name near the venue or venues of the event (iv) The use of photographs of the sporting venue as background to the marketing campaign in a way that suggests sponsorship of the event (v) Sponsorship of the city where the event is being held or even a particular location (vi) Giving away free tickets to the event as prizes in an advertising campaign and then advertising in such a way as to suggest sponsorship
(vii) Arranging aerial advertising over the venue immediately before or during the event so as to suggest sponsorship or association (viii) Sponsorship of individual participants in the competition and the purchase of media slots and billboard advertising before the event to promote the advertiser’s goods or services (ix) The giving away of free merchandise such as caps, t-shirts or even small flags bearing the advertiser’s logo with the aim that spectators will wear the caps or t-shirts or wave the flags and be picked up in numbers by television coverage or still photographs. (x) Advertising using the match schedules/broadcast schedules