Branding and Licensing

Chapter 7

Brands

Why are Brands important? Do you buy brand names? If so

name some. Do you buy non-brand names? If

not why.

Branding Defined Brand- is defined as a name, word or

words, a symbol, or design that identifies an organization and it’s products.

How many brands are we wearing today?

Brand name- is defined as a part that can be spoken such as Adidas, Nike, or Los Angeles Lakers.

Branding

When a brand name or trade name is registered, it also becomes a trademark.

A Trademark is a device that legally identifies ownership of a registered brand or trade name.

Importance of Branding

Branding is important for building customer loyalty.

Expect the same quality from the brands they buy.

Trust new products with the same brand.

Branding also creates an image

Brand Personality

Attaching human traits to a brand name

Nike – have professional athletes endorse their products

Phillies – brand personality as a winning team

3-Steps to Establishing Brands Develop – put the brand in the

customer’s mind as a part of a class of products – Gatorade is a sports drink

Link – brand name to a function and make an emotional connection – Gatorade helps athletes perform better

Help – consumers feel the way you want them to – Gatorade is the best product for successful athletes

Branding

Brand equity- is the value a brand has beyond its actual functional benefits. When a brand becomes popular, its value becomes a competitive advantage because most consumers equate the brand with quality.

Customers will pay higher prices for products with brand equity

Branding

Brand equity is developed over a period of time.

Sports Teams Steps

Develop – Phillies are a professional baseball team.

Link – Phillies fans think positively about the club and players.

Help – Phillies fans stick with their team through the good and the bad seasons because of the bond they have.

Manufacturer Brands

Multi-Product Branding – manufacturer uses one name for all products Nike – brand on all products

Multi-Branding – each product has a different name. Proctor & Gamble – Secret, Old Spice, Sure

Co-Branding – combines brands to increase customer loyalty – products should complement each other General Motors and PGA co-sponsored

MasterCard

Types of Brands

Manufacturer – owned by the producer of the product.

Intermediary – carries a name of the wholesaler or retailer or catalogue house. Contracted with manufacturer.

Generic – represents a general product category.

Intermediary Brands

Carries a name developed by the wholesaler or retailer.

Product is made by a manufacturer.

Gander Mountain and Cabela’s

Generic Brands

Represents a general product category – does not carry a company or brand name.

Not usually used in the sporting goods industry.

Possibly with fishing supplies; such as, worms

Developing Brand Names

Offer a benefit Be simple Be different and positive Reflect an image Be previously unregistered

Offer a Benefit

Offer customer value. Gatorade – helped the Univ. of Florida

football team, the Gators, play better when it was hot.

Known as the “second-half” team because of their stamina in the second half.

“Ade” sounds like “Aid” so the drink helped them play better – thus “Gator – Aid”.

Be Simple

Simple is more memorable: Nike Adidas Reebok Puma Fila Converse

Be Different and Positive

Puma – positive – fast animal Usually distinctive Yankees White Sox Red Sox Giants

Reflect an Image

Should say something about the product

Wheaties has used athletes on box since 1930s

Known as “The Breakfast of Champions”

Previously Unregistered

www.uspto.gov Regulates wording than can or

cannot be used Powerade and Sport Powerance

Can also restrict the use of certain words. Such as, using heart with food items implies that the product is good for your heart.

Make it Last

Choosing the right brand is critical Communicates the type of business

and products Should last over time

Nike swoosh was created in 1971 for $35 by a student of founder Phil Knight

Based on the wing of the goddess Nike