The Importance of Branding brands Sports organizations and companies strive to develop strong brands to differentiate themselves from one another. (Ex. Nike, Under Armour) -A trade name is the legal name of a company such as Panasonic. brand a name, word or words, symbol, or design that identifies an organization and its products 1 All brands are registered in the U.S. Patent and Trademark Office in Arlington, VA (J. Manziel- Johnny Football) brand name trademark When a brand name or trade name is registered, it also becomes a trademark. (Gatorade, Los Angeles Lakers) -Branding builds customer loyalty. Customers expect the same quality every time. -Brand Personality-Human traits Ex. Jordan’s =Winner brand name a word or words, letters, or numbers representing a brand that can be spoken trademark a device that legally identifies ownership of a registered brand or trade name

The Importance of Branding brand equity Customers are generally willing to pay a higher price for products with brand equity. brand equity the value a brand has beyond its actual functional benefits -Popular brands = Quality 2 Brand equity has financial value through licensing. Developed over years of promoting a brand-name product to consumers.

The Importance of Branding The three steps of developing brand equity are: 3 1.Develop the brand in the customer’s mind as part of a class of products. 2.Link the product’s brand name to its function and make some type of emotional connection with the product. 3.Help consumers think and feel the way you want them to regarding your product.

Types of Brands and Strategies The three basic types of brands are: manufacturer brand a brand owned by the producer of the product 4 1. Manufacturer brands Multi-product Branding - When a company uses one name for all its products such as NIKE Multi-Branding Proctor & Gamble – Old Spice, Secret; Coca-Cola-Sprite, Dasani Co-branding Delta/Disney, NFL/VISA, Olympics/McDonalds co-branding a branding strategy that combines one or more brands to increase customer loyalty and sales for each product intermediary brand a brand that carries a name developed by the wholesaler, retailer, or catalog house 2.Intermediary brands Ex. Rite Aide, Target Ex. Rite Aide, Target 3.Generic brands Ex. Plain can with the word “corn” on it. Ex. Plain can with the word “corn” on it. generic brands a brand that represents a general product category and does not carry a company or brand name

Developing Brand Names For a brand to be successful, it should: 5 Offer a benefit. (Provides customer value, helps them…Gatorade) Be simple. (More memorable…Nike, Under Armour, Adidas) Be different and positive. (provides a positive image…Puma) Reflect an image. (Should say something about the product such as Wheaties…associated with athletes) Be previously unregistered. (Must not be previously registered by the USPTO in Arlington, VA) ( **Choosing a brand name is critical to success. A good one will last over time.

Licensing and Merchandising licensing Sports teams and athletes may have licensing agreements with product manufacturers. 6 licensing an agreement which 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 license (NFL) The licensee is the company or individual paying for the rights to use the licensor’s name or property (Nike) ** Licensing agreements can apply to almost any product imaginable….key chains, food products, credit cards, household items, toys, apparel etc. **The relationship should make sense for both.

Licensing and Merchandising Licensed items used to only be purchased at the event venue Licensed merchandise is made available through many channels of distribution. (Retail stores, Websites) Special promotional deals create partnerships between the licensor and the licensee to help boost store traffic. Sweepstakes and contests are run by the sponsor, with the prize being tickets to the sporting event. Some licensed products are used as promotional incentives for customers to buy a product. (Subscribe to Sports Illustrated and receive a shirt with your favorite basketball team) 7

Two Forms of Licensing Sponsorships and Endorsements Sponsorships are the promotional vehicles that financially support sporting events in return for exposure. 8 Types of sponsorships include: Signage- Any type of sign that is visible to fans Premium Sponsors – Must pay to be the title sponsor Entitlements-One main company like Sprint for NASCAR -College Bowl games Facility entitlements- name arena after company Product exclusivity- Where only one product in a product category is granted sponsorship. Ex. Gatorade/NFL, Camden Yards/Coca-Cola

Sponsorships and Endorsements An endorsement is a statement of approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiser. Ex. LeBron James/Nike 9 Some important considerations are: Association-involve an association with the product (Jordan/Haynes, product is unrelated) Demographic match- choose a figure who matches the profile of its customer base. (Serena Williams/Tennis equipment for women) Successful careers- all successful major endorsers had successful careers. Preferably currently playing. Image- it all works when the endorser has a positive image and stays out of trouble

Sports Appeal Through licensing, sponsorships, or endorsements, companies can generate positive publicity and achieve their marketing goals of increasing brand awareness and sales. -Helps to reach new customers and strengthen relationships with existing customers. 10