MGMC30H3 Lecture Notes - Lecture 4: Magic Johnson, Target Market, Ambush Marketing

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Published on 23 Apr 2016
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Ambush Marketing - defined as attempts by competitors to exploit the event
I. You don’t always get what you paid for
oSponsorship is a big business & sponsor fees go into hundrerds of millions of dollars
wherein each global sponsor acquires exclusive rights to the use of the event, its images and
logos
oTorino, Beijing - Sponsorship fees generated $886 million ; 11 multinational partners
paid $ 72 million each
Additional fees for the advertising itself
Visa spent $886 alone on its sponsorship of the 2008 games
Activation or promotions, competitions, tv ads, and corp. hospitality can
multiple a budge 2-3X over
In sponsorship, its not abt what the company has, its about what they can do
with it.
When a firm invests millions of dollars in sponsorship and marketing, they
embark on a promotional journey to establish themselves as a #1 brand in its category
RISK: exposure to an array of counter-attacks by competitors who chose not be
a sponsor or didn’t have resources
Despite efforts by govt & event organizers to protect sponsors, competitors
reaction is inevitable & shouldn’t be ignored
I. Ambush Marketing
Purposeful & false association by a company not sponsoring the event toward the end of
deriving benefits similar to those afforded to official sponsors
Attempt my companies to capitalize on the goodwill, reputation & popularity of a particular
event by creating an assocciation w/out authorization & consent of necc. Parties
EXAMPLES:
o1994 Lillehammer - Founder of Wendys appeared in winter sports ad, McD official sp
onsor
o1992 Barcelona - AMEX did a lot of adveritsing on major networks, VISA official sponsor
o1996 Atlanta - Nike plastered city w. billboards, handed out swoosh banners among
other antics, Reebok official sponsor
Why does ambush marketing work?
Understand the mind of the consumer
Ppl can be ambivalent - experience + & - emotions at the same time
Overzealous enforcement by sponsor/organizer can lead to the negative attitude
overwelcoming the positive
oEX: 2006 World Cup, Bavaria gave out stuff, Budweiser was the official sponsor, ppl had
to take them off when they went in , negative attitude towards Budweiser
Salient detection is a key attention mechanism, salient events are those that are unexpected &
hard to over look
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Ambush marketing relies on this mechaism
A Beijing Olympics : A simple sponsorship study:
Sponsorship Identification:
Sponsorship worked really well for beer & credit card companies,
oPpl correctly identified Tsingtao & Visa as official sponsors & the others as not
Sponsorship worked okay for the airline, very well for identifying non-sponsorship
For the footwear, majority of respondents said Adidas was sponsor, but they were evenly split
w. Nike & Li Ning
oMost respondents incorrectly thought Li Ning was a sponsor , higher % than those who
identified Adidas as sponsor
oCalled the Li Ning effect
oIt occurs when a brand ambushes a sponsoring competitor & receives higher
sponsorhip recognition than the actual sponsor
oImpacts consumer behaviour
Brand Attitude:
Sponsorship had a positive impact on the attitude for the beers, credit card & airlines - the same
brands where they were able to correctly identity sponsors from non sponsors
Brand atittudes for sponsors were significantly higher than for non sponsors
EXCEPT for footwear, Adidas' sponsorship did not result in a significant brant attitude advantage
over Nike
Recommendation Likelihood :
Same effects replicated as the other aspects
EXCEPT for footwear, there was no significant diff. in reccomendation propensity b/w Adidas &
Nike,
oLi Ning had a significantly higher reco. Liklihood than the official sponsor, Adidas
oThis was attributed to the Li Ning effect
Summary:
For the most part, results indicated that beers, airlines & credit cards sponsorship was correctly
identified, led to positive brand attitude & recommendation liklihood
Except for footwear, Adidas was recognized as the official sponsor, but Li Ning was also thought
to be a sponsor & this led to a significantly higher liklihood to recommend Li Ning over Adidas
oNike also enjoyed a similarly favourable attitude and recco. propensity to Adidas
Lessons from Li Ning Affair:
1.If ambush were obvious, it wouldn’t be ambush:
oSponsors are not aware ahead of time what the ambush strategies would be ,
unforseeable
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Document Summary

Ambush marketing - defined as attempts by competitors to exploit the event: you don"t always get what you paid for o. Sponsorship is a big business & sponsor fees go into hundrerds of millions of dollars wherein each global sponsor acquires exclusive rights to the use of the event, its images and logos o. Torino, beijing - sponsorship fees generated million ; 11 multinational partners paid $ 72 million each. Visa spent alone on its sponsorship of the 2008 games. Activation or promotions, competitions, tv ads, and corp. hospitality can multiple a budge 2-3x over. In sponsorship, its not abt what the company has, its about what they can do with it. When a firm invests millions of dollars in sponsorship and marketing, they embark on a promotional journey to establish themselves as a #1 brand in its category. Risk: exposure to an array of counter-attacks by competitors who chose not be a sponsor or didn"t have resources.

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