Corporate sponsorship and Ambush marketing

1. Corporate sponsorship and
Ambush marketing （伏击营销）
Topic 9
• What is corporate sponsorship and its benefits of event
sponsorship?
• Stages in developing the event sponsorship strategy.
• What and why ambush marketing?
• What are the disadvantages of ambush marketing?

2. Learning Outcomes
• Define corporate sponsorship.
• Explain the corporate benefits of event sponsorship.
• Discuss the stages in developing the event sponsorship strategy.
• Explain why some companies carried out ambush marketing.
• Explain what are the disadvantages of ambush marketing?

3. Corporate sponsorship?
• Corporate sponsorship support is a payment by a business to a
nonprofit to further the nonprofit's mission, that is generally
recognized by the nonprofit with an acknowledgment that the
business has supported the nonprofit's activities, programs, or
special event.
• Businesses typically sponsor entities and causes that align neatly
with their own product or service so that their presence is relevant
to their marketing goals.
• Corporate sponsorship is common for programs at museums and
festivals, but is also seen in the commercial sphere, like the many
athletic facilities and sporting events that bear a company's name.

4. Corporate sponsorship?
• Corporate sponsorship is a marketing tactic that involves a business providing
financial contributions to help fund an event, institution or other project.
(win-win situation)
• In return for the funding, the business earns a public association with the
program and an opportunity to reach the program's audience.
• Corporate sponsorship is a form of advertising in which companies pay to be
associated with certain events.
• When the sponsorship of a nonprofit or charitable event is involved,
the sponsorship activity is often referred to as event marketing or cause
marketing.

5. Corporate sponsorship?
Corporate sponsorships are a tool used to form brand
identity and brand image via increased visibility. While
supporting a popular and socially conscious cause may be
mutually beneficial to both parties, a corporate sponsorship is
not a donation; it is a business deal. Corporate sponsors often
characterize their sponsorship activities and their benefits as
"doing well by doing good."

6. What Is Brand Identity?
 Brand identity is the visible elements of a brand, such as color, design, and logo,
that identify and distinguish the brand in consumers' minds. Brand identity is
distinct from brand image.
 The brand image relates to the intent behind the branding and the way a
company does the following—all to cultivate a certain image in consumers' minds:
• Chooses its name
• Designs its logo
• Uses colors, shapes, and other visual elements in its products and promotions
• Crafts the language in its advertisements
• Trains employees to interact with customers
 Brand image is the actual result of these efforts, successful or
unsuccessful.

7. Corporate benefits of event sponsorship
• Media exposure
• Direct media coverage
• Media mention
• Signage
• Hospitality opportunities
• Product sampling
• Name association/lifestyle identification
• Enhancement of market’s awareness/perception of product

8. Corporate benefits of event sponsorship
• Merchandising opportunities (product sales)
• Affiliation with other sponsors
• Community pride/involvement.

9. Stages in developing the event sponsorship strategy
• Developing an event sponsorship strategy is a distinct task.
• It will have an interactive relationship with the event’s marketing
strategy.
• The sponsor’s identification needs to be integrated.
• Establishing the objectives of the event sponsorship and ways to
achieve them.
• So, event managers need to think about event consumers and the fit
they might have with corporate brand.
• Also thinking about values and the attributes of the event and
companies that might share those values; ensure to enhance the fit
between sponsor and sponsee (the event property).

10. Sponsorship strategy development (Allen et
al.(2011).
• The first step is to consider the target market of the event –
profiling the event audience – demographics (ciri-ciri
audience), socioeconomic status (income), psychographics
(lifestyle).
• The second step is establishing what the event can offer
potential sponsors – what benefits that the property can
offer the sponsor.
• The third step is building the event sponsorship list.
• The fourth step is matching event benefits with potential
sponsors

11. Sponsorship strategy development
• The fifth step is determine the marketing or management
person who will be the sponsorship decision maker within
the targeted company. This refer to the sponsorship pitch.
• The sixth step is preparing and presenting sponsorship
proposals.
• Final step is negotiating谈判 event sponsorship contracts.

12. Ambush Marketing 伏击营销
• Ambush marketing or ambush advertising is a marketing strategy in
which an advertiser "ambushes" an event to compete for exposure
against other advertisers. The term was coined by marketing
strategist Jerry Welsh, while he was working as the manager of global
marketing efforts for American Express in the 1980s.
• AM - the practice by which a rival company attempts to associate its
products with an event that already has official sponsors.
• For example, Adidas may sponsor a football player participating in the
football cup sponsored by Nike

13. Ambush Marketing
• Schmitz (2005) defines ambush marketing as the direct efforts of one
party to weaken or attack a competitor’s official association with a sports
organization acquired through the payment of sponsorship fees.
• The phenomenon as referring to a company’s attempt to
capitalize/exploit on the goodwill, reputation, and popularity of a
particular event by creating an association without the authorization or
consent of the necessary parties (Schmitz, 2005).
• AM is the unauthorized association by businesses with events,
organisations, products, services or athletes through a range of marketing
activities (Townley et al., 1998).

14. Ambush Marketing
• Ambush marketing is a strategy where brands that aren't official
sponsors infiltrate an event to market themselves. It's, uh, pretty
tactical. And, now pretty illegal. And, Nike are the unofficial masters
of it. It's also smart marketing because it's a lucrative way to
capitalise on big sporting events.
• Direct ambush marketing is an approach where a brand works
aggressively to associate itself with an event or property, when that
brand has not purchased rights as the official sponsor.

15. Ambush Marketing
• A marketing technique in which advertisers work to connect their
product with a particular event in the minds of potential customers,
without having to pay sponsorship expenses for the event. An
example of ambush marketing might involve selling music
merchandise just outside the grounds of a concert without the
consent or awareness of the concert promoters, relying on
association with the concert to drive sales.
Read more: http://www.businessdictionary.com/definition/ambush-
marketing.html

16. Is ambush marketing illegal?
• The legality of ambush marketing is a complex issue. ... However, as a
rule of thumb, ambush marketing is illegal in the instance it directly
attempts to trick consumers into thinking that the ambush marketer
has received authorization and is officially associated with an entity or
event.
• Is ambush marketing ethical?
• Ambush marketing is not a discrete activity; it involves a broad range
of activities, bounded by legal and illegal and ethical and unethical
parameters. Perceptions of ambush marketing change over time;
many former perceived transgressions are now seen as legitimate
sponsorship opportunities.

17. What Are the Disadvantages of Ambush Marketing?
• Ambush Marketing Can Be Very Expensive
• Calculating the ROI of Ambush Marketing Is Very Difficult
• Time and Space Are Factors in Ambush Marketing
• It’s a Trap!

18. Guerrilla marketing
• In 1984, marketer Jay Conrad Levinson introduced the formal term in
his book called, “Guerrilla Marketing.”
• Guerrilla marketing is an advertisement strategy in which a company
uses surprise and/or unconventional interactions in order to promote a
product or service. It is a type of publicity.
• It focuses on low-cost unconventional marketing tactics that yield
maximum results.
• Relates to the small tactic strategies used by armed civilians. Many of
these tactics includes ambushes, sabotage, raids and elements of
surprise.

19. Types of Ambush Marketing
• Four Types of Ambush Marketing
1. Predatory Ambushing
2. Coattail Ambushing
3. Property or Trademark Infringement
4. Self-Ambushing

20. Predatory Ambushing 掠夺性伏击
• Predatory ambushing refers to marketing that attacks a competitor's
sponsorship of an event, athlete, or organization, while simultaneously
confusing consumers over which company is the official sponsor. The
campaign employed by AMEX against VISA during the 1994 winter
games is an example of predatory ambushing. Official sponsor VISA was
outraged when AMEX aired a commercial with the tagline, "So if you're
traveling to Norway, you'll need a passport, but you don't need a Visa."

21. Coattail Ambushing 燕尾服伏击
• Coattail ambushing involves gaining exposure through sponsoring an
individual or related event without being an official sponsor of the
larger event. Despite Reebok being an official sponsor of the Atlanta
Olympic Games, a rival competitor ended up snatching headlines for
the event. Athlete Lindford Christie wore a pair of contact lenses to a
press conference that contained the iconic Puma logo in the pupil. The
brand was well covered in the news the following day.

22. Property or Trademark Infringement
• Property or trademark infringement intentionally misuses or violates the
trademark of an advertiser for the purpose of diluting the marketing space
or confusing consumers. The organizers of the London Olympic Games
employed hundreds of officers devoted to policing the games' brand
throughout the city. Local businesses could be fined for including words like
"gold," "bronze," or "summer" in their advertising, as the London Olympics
believed this was an infringement on the trademark of its brand.

23. Self-Ambushing
• Self-ambushing is the practice of breaching the limits of a company's
sponsorship parameters in a way that infringes on another sponsor's
marketing or advertising. For example, in 2008 the official sponsor of the
UEFA European Championships, Carlsberg, gave out headbands and t-
shirts with the Carlsberg logo at the tournament. These forms of
advertising were not included in its sponsorship agreement, and violated
the sponsorship of another company that was permitted to hand out
these items.