What D3 team would not want him? I think you underestimate a sponsor's
desire for media hits (mentions in the press).
I understand the value of media hits but the belief that any mention, even
negative, is a good thing is an urban legend. There is a niche for some
aggressive companies targeting customers who define themselves as
nonconformist to use the outlaw image but companies with high brand
recognition who market to a varied group of consumers are usually very
protective of their brand.
I hear Tom Delay is going to sponsor a team.
Ask Phonak owner if he agrees with this statement. He said exactly the
opposite in a recent interview.
The only bad press is no press at all.
I have had the opportunity to execute many sponsorship deals for major
companies. I have done deals with the NFL, PBS, Microsoft, Pebble Beach,
McDonalds, and many other premium brands, and can assure you that the
concept of "The only bad press is no press at all" is totally false.
Microsoft spends over $100 million a year trying on corporate branding and
most of it is directed at combating negative press.
The first thing that any major company does to evaluate the potential of any
sponsorship deal is to do a risk assessment. If the potential is high for
negative publicity the deal is a non starter. If the deal does get done
there will be section in the contract that allows the company an out if the
other party does something to generate negative publicity. A quick example
of this clause is what Liberty Seguros did this spring. If you look you
will find many,many other examples of companies terminating relationship
because of negative publicity.
Do you think that Microsoft agrees with the "only bad press is no press"
philosophy? They have spent 100's of millions of dollars in the past few
years trying to counter negative press.
I found a statement from Andy Rihs, team owner of Phonak, that I found
interesting:
http://www.statesman.com/sports/content/sports/stories/other/07/29phonak.html
"But Phonak, a Swiss hearing-aid company, is on its way out as the team's
primary sponsor. The team owner, Andy Rihs, a Swiss businessman and avid fan
of cycling, announced last month that Phonak was dropping its sponsorship of
the team after this season and that the new title sponsor would be iShares,
a division of Barclays Global Investors based in San Francisco.
Earlier this week, Rihs told The Times of London that he had warned his new
partners about the possible negative effects of associating their brand with
cycling."
When you have not been in the situation of building a brand and allocating
marketing dollars it is easy to use clichés like "The only bad press is no
press at all."
So did Festina.
Interesting. Phonak gets publicity if Landis wins and doesn't get
caught, but they also get publicity if Landis *does* get caught. Win-win
situation for them if they spike his drink. Now we've established a
motive... conspiracy theories, anyone?
(the above was written with tongue in cheek)
--
Dave
dvt at psu dot edu
Everyone confesses that exertion which brings out all the powers of body
and mind is the best thing for us; but most people do all they can to
get rid of it, and as a general rule nobody does much more than
circumstances drive them to do. -Harriet Beecher Stowe, abolitionist and
novelist (1811-1896)
What he said is called spin.
Well, I agree with most of what you say, Frank, save in the case of someone
like iShares whose name isn't exactly a household word. If you have no
visibility AND if the notoriety can't be attached to your product, there may
even be some good to come out of such stuff.
How many people know who Phonak was in the USA 5 years ago? How many now? Of
course we have seen that some people only know about their hearing aids but
still brand recognician is an important achievement.
What else do they make? Cell Phones? Where can I buy one?
>
Okay, now you've gone too far with the pithiness.
R