branding licensing 2 section 7.1 – branding – objectives explain the concepts of branding and...

BrandingBranding

LicensingLicensing

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Section 7.1 – Branding – Section 7.1 – Branding – ObjectivesObjectives

Explain the concepts of branding and brand equityDiscuss the types of brandsDescribe how to develop an effective brand name

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Section 7.1 – Branding – The Section 7.1 – Branding – The Importance of BrandingImportance of Branding

Sports organizations and companies strive to develop strong brands to differentiate themselves from one another A Brand is a name, word or words, symbol, or design that identifies an organization and its products

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What’s in a Name?What’s in a Name?A Brand Name is a word or words, letters, or numbers representing a brand that can be spoken– Ex. Gatorade or Los Angles Lakers

A Trade Name is the legal name of a company– Ex. Reebok

Exclusive rights to a brand or trade name can be obtained by registering that name with the U.S. Patent and Trademark Office– Name becomes a Trademark when it is registered– A trademark is a device that legally identifies ownership of a

registered brand or trade name5


What’s in a Name?What’s in a Name? – cont.– cont.Branding is important for building customer loyaltyCustomers come to expect the same quality from the brands they buy or the teams they watch– Will become repeat customers once satisfied with product

Branding helps a company to introduce new products in a line of products– Customers familiar with the original brand are more likely to

trust a new product with the same brandCreates an image for the product

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Brand PersonalityBrand PersonalityAttaching human traits to a brand name

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Brand EquityBrand EquityThe value a brand has beyond its actual functional benefitsBrand value becomes a competitive advantage because customers will equate brand with quality

Establishing the brand nameEstablishing the brand name::1. Develop the brand in the customer’s mind as part of a class of

products2. Link the product’s brand name to its function and make some

type of emotional connection3. Help consumers think and feel the way you want them to

regarding your product

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Brand EquityBrand Equity – cont. – cont.Brand equity also have financial value through licensingLicensing is allowing another company to use brand name, patent, or any other item for a fee or royalty– Ex. NFL or NBA my allow a clothing manufacturer to use its

name or logo to produce and sell sports apparelLogos, or distinctive symbols, immediately identify a company or organization


Section 7.1 – Branding – Types Section 7.1 – Branding – Types of Brands and Strategiesof Brands and Strategies

Manufacturer BrandsManufacturer BrandsOwned by the producer of the productUse multi-product branding, multi-branding, and co-branding

Multi-Product BrandingMulti-Product Branding– When a manufacturer uses one name for all its products– Strong promotional campaign can be developed to create an

image for all products• Ex. All Nike products carry the Nike name

– Brand extension is another strategy which uses an existing brand name for an improved or new product in the product line

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Manufacturer BrandsManufacturer Brands – cont. – cont. Multi-BrandingMulti-Branding– Each product in a product line has a distinctive name– Used for products that target different customers– Advantages:

• Each product has its own distinctive image• If product fails, its failure does note effect other products

made by manufacturer– Disadvantages:

• Cost of creating separate promotional plans for each product can be expensive

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Manufacturer BrandsManufacturer Brands – cont. – cont. Co-BrandingCo-Branding– Combines one or more brands to

increase customer loyalty and sales for each product

– Two different manufacturers may partner to produce one product

– Works well when products compliment each other• Ex. NASCAR Sprint Cup &

Nationwide Series– Co-branding reinforces both of the

products in the eyes of consumers


Intermediary BrandsIntermediary BrandsCarries a name developed by the wholesaler, retailer, or catalog houseIntermediaries contract with manufacturer to make products that are sold under their own private labels

Generic BrandsGeneric BrandsRepresents a general product category and does not carry a company or brand nameNot likely to find generic brands of apparel or equipment in sports industry

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Section 7.1 – Branding – Section 7.1 – Branding – Developing Brand NamesDeveloping Brand Names

Choosing and developing a good brand name requires thought and planningBrand names should:

– Offer a benefit– Be simple– Be different and positive– Reflect an image– Be previously unregistered– Make it last

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Offer a BenefitOffer a BenefitGood brand names will offer the customer value

– Ex. University of Florida football players played better as a result of the sport drink developed for them (Gatorade)

Be SimpleBe SimpleSimple sports names are more memorable

– Ex. Nike, Reebok, Adidas

Be Different and PositiveBe Different and PositiveBrand names should project a positive image that is distinctive for the consumers

– Ex. Puma, Eagles, Phillies15


Reflect an ImageReflect an ImageBranding should say something about your product

– Ex. Wheaties being the “Breakfast of Champions”Positive association with sports industry helps to create a distinctive image

Be Previously UnregisteredBe Previously UnregisteredBrand names cannot be previously registered with the U.S. Patent and Trademark OfficePatent and Trademark Office may prevent names that are too similar to one already used or one that misleads a consumer

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Make it LastMake it LastNames, symbols, devices, or slogans helps to communicate the type of business and products to customersEffective branding comes from understanding the product and organization and understanding how to get the message across to consumers


Section 7.2 – Licensing – Section 7.2 – Licensing – ObjectivesObjectives

Discuss product licensing and how licensed goods are merchandisedExplain the importance of sports sponsorships and endorsementsDiscuss how companies choose sports endorsers for their products

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Sports teams and athletes may have licensing agreements with product manufacturer

– Licensing is an agreement that gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty or fee

The licensor is the company or individual granting the licenseThe licensee is the company or individual paying for the rights to use the licensor’s name or propertyLicensed merchandise can bear the name, logo, or other characteristics of the licensor

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Section 7.2 – Licensing – Section 7.2 – Licensing – Licensing and MerchandisingLicensing and Merchandising

Licensed ProductsLicensed ProductsA company may pay a fee to use a league’s, team’s, or individual’s name, image, or logo on a product or on the product’s packagingCollege sports teams also have licensing agreements with product manufacturingAdvantages for sports organizations and companies:

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The ProductsThe ProductsLicensing agreements can apply to just about any product imaginable

– Ex. Apparel, key chains, toys, sports equipment, etc.Licensor must be careful to select products that reflect the image its brand name has in the public eye

– If licensing agreement is with a company that produces poor-quality merchandise, the licensor’s image may be damaged

– Ex. Licensed products carrying the Olympic logo are viewed positively– Ex. Franchises that are successful will generate more sales than

unsuccessful franchises

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Merchandising Licensed GoodsMerchandising Licensed GoodsMost licensed merchandise in the past were only available the event venueMany channels are used today to distribute products now:– Department stores– Chain stores– League-sponsored retail

outlets– Internet– Organization owned Web sites

and retail stores

Retail stores promote the fact that they carry licensed goodsSpecial promotional deals create partnerships between licensor and licensee to help boost store traffic and retail sales of licensed products

– Ex. Sweepstakes and contests

Some licensed products are used as promotional incentives for customers to buy a product

– Magazines give away for subscription22

Two forms of licensing:– Sponsorships

• Ex. Olympics– Endorsements

• Ex. NASCAR

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Section 7.2 – Licensing – Section 7.2 – Licensing – Sponsorships and EndorsementsSponsorships and Endorsements


SponsorshipsSponsorshipsSports events generate income from broadcast rights, ticket sales, merchandising, and sponsorshipsSponsorships are the promotional vehicles that financially support sports eventsAll major sports organizations use sponsorships to help finance their operationsPromotional packages for sponsors may include:

– Licensing rights, stadium promotions, products, free tickets, etc.

Additional benefits may include exposure to sponsor’s products through use by the athletes or the organization

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Importance of SponsorshipsImportance of SponsorshipsSports organizations need the money generated from corporate sponsors to help pay their significant costs and expensesSponsorship benefits corporations by:

– Exposure of their products through their promotional efforts and free publicity– Sports events can be used to target consumers and promote products– Corporate image can be enhanced and sales revenue can increase through

association with event

Sponsorship can be seen in promotional activities– Ex. Kodak creating a special camera to sell during Olympics and run contests and

sweepstakes surrounding events

Coordinated promotional efforts help generate store traffic and sales of products

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Types of SponsorshipTypes of SponsorshipCan be flexible

– Sponsor a team for length of time

– Sponsor just an event– Sponsor just a portion of an

event (Halftime show, Pre-game show)Strategies integrate the company name into the game itself, providing a form of direct advertising

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Types of SponsorshipTypes of SponsorshipSignageSignage

Sponsor names that appear on scoreboards, floorboards, rafters, etc. in a stadium or arenaPurchased by sponsors, provides direct advertising for sponsors without paying for airtime

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Premium SponsorsPremium SponsorsCompanies pay more to be the official or title sponsorReceives more options and opportunitiesExamples:

– Entitlements – There is only one major sponsor for an event• NASCAR Sprint Cup Series• PGA entitlement sponsorship for almost all of it’s tour events

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Premium SponsorsPremium SponsorsExamples – cont.:

– Facility Entitlements – company purchases the promotional rights to an entire stadium

• Stadiums/Arenas are renamed to publicize their sponsorships• The sponsor receives exposure in all the events that are held at the

stadium during the season and off-season

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Premium SponsorsPremium SponsorsExamples – cont.:

– Product Exclusivity– only one product in a product category is granted sponsorship

• Prevents competitors from selling or promoting their products during the sponsored events

• On-site merchandising that excludes the competition results in increased profits, as well as exposure of sponsored products

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EndorsementsEndorsementsA statement of approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiserInvolves using a celebrity or public figure to represent and promote a company and that company’s productsSports figures image is used in print, broadcast media, product packaging, billboards, and collectiblesMay require a set number of public appearances at various events sponsored by the companySports figure lends familiarity and credibility to the product


EndorsementsEndorsementsAssociationAssociation

– Endorsement that involves an association with the product– No direct relationship between product and athlete, but association will help

sell product– Successful athletes who project a positive image will be used

Demographic MatchDemographic Match– Company choose sports figure who matches the demographic profile of its

customer baseSuccessful CareersSuccessful Careers

– Top sports endorsers come from all sports and all have successful careers or look to have promising careers

– Some sports celebrities are so outstanding that companies create product lines using their name


EndorsementsEndorsements – cont. – cont.ImageImageProducts sell when the endorser has a positive image and is popularSports celebrities who endorse products of major companies must be role models in the public eyeMost endorsement contracts have clauses in them that will release the company from the contract if that celebrity’s image is tainted due to problems with the law or athletic performanceCompanies do not want its products associated with a person who is not seen as a positive role model

Companies associate their products will well-known sports organizations to reach new customers and strengthen their relationship with their existing customersThrough licensing, sponsorships, or endorsements, companies can generate positive publicity and achieve their marketing goals of increasing brand awareness and sales.

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Section 7.2 – Licensing – Section 7.2 – Licensing – Sports AppealSports Appeal

branding licensing 2 section 7.1 – branding – objectives explain the concepts of branding and...

Documents

product branding

products brand

importance of branding

branding licensing

registered brand

concepts of branding

branding objectives

original brand