In majority of ambush marketing cases, one brand pays a hefty sum to become an exclusive sponsor of an event. This exclusivity creates problems to the other similar brands, which also want to market themselves in such events. Therefore, the brands that are not sponsoring the event adopt ambush marketing techniques.
Ambush marketing has varied consequences. Firstly, the commercial value of the event may reduce since the actual sponsors might get apprehensive about spending so much on the event, when their rivals are reaping benefits even without spending a penny. Secondly, some people, especially the organizers of the event feel that it creates a very unhealthy competitive environment. Finally, from the point of view of the company, every company would want to be an ambusher instead of paying a huge amount for sponsoring.
[The article has been contributed by Deepika Raghavan. She is an MBA in Marketing at FORE School of Management,New Delhi. We wish her the very best for her future. ]