The Power of the Brand SEM

Brands Name a few brands that are important to your everyday life 1. 2. 3. 4. 5.

Why are brands so important to companies?

What is a brand? Brand: is all of the impressions and experiences consumers associate with a company, a product, or a service. Brands relate to customers on an emotional and rational level. A brand is a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

Name that logo

What is Company Image? A corporate image is the perception that the general public holds about a particular business. Many companies invest a great deal of time and other resources in an effort to influence the opinion that consumers hold about the products offered by the business, as well as the business itself.

Corporate Image Continued…. One of the most basic ways of shaping a corporate image is establishing and maintaining positive relationships with the general public. This effort usually begins by offering products that successfully meet the needs of customers, thus generating goodwill.

Why is Company Image so important? Companies with strong corporate images, such as Sony and Nike have an advantage in the market place because their names adds value to their products and reduces uncertainty in the eyes of distributors, retailers and consumers.

Brand awareness Brand Awareness: how recognizable is the brand? Brand awareness is recognition

What does Branding do for your business??? Branding aims to establish a significant and differentiated presence in the market Branding attracts and retains customer loyalty Branding will encourage customers to pay a higher price for goods and services Branding simplifies the ability to distinguish products from a wide range of competing products Branding allows transfer of the brand to new products including licensed products

Factors that influence a brand Price Low, middle or high Quality Value Performance Win, lose, tradition

factors that contribute to the impact of brand equity of a sport/event Team-related Star athletes Popular and successful coaches Performance – short or long term Organization-related Tradition, reputation & strength of schedule Scandals – recent or past Public Relations – responsiveness & type Market-related over time Population & economic changes – up or down Fan loyalty due to athletes, coaches and/or performance

Factors that create brand loyalty Whether we are speaking about sports or entertainment these factors are always considered by fans: Entertainment value Authenticity Fan bonding History Tradition Performance Athletes, coaches, owners, celebraties

Licensing, Licensor & Licensee is the permission to copy the name, logo, or trademark of a league, athlete, sports team, entertainer, film, television show, or character for a fee, also called a royalty Licensor is the rights-holder of the name, logo, or trademark NASCAR, Eagles Licensee is the company paying for the permission to use the name, logo, or trademark. Nike and Adidas

What is a sports license Is a contractual agreement by which a sports team, athlete or organization gives a company a license to use its name, logo or trademark on the company’s products. The company gaining the rights is known as the licensee and the sports body is the licensor Licensing a sports product gives an opportunity to reach a market of sports fans that could be local, national or global, depending on the sports body.

Sponsorships Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event Usually in return for advertising for the event Business, individuals or organizations can sponsor events Name some that exist today???

Endorsement Athletes/celebrities go into contracts with companies to promote their product by “tying” their name to it Name some that exist today???

Endorsements American Businesses pay more than $1 billion dollars to athletes and celebrities for endorsements Top 5 Endorsement deals: #6 Lebron James- Nike- #93 Million #5 Tiger Woods- Nike- $105 million- http://www.askmen.com/top_10/sports/top-5- sponsorships-in-sports_5.html #4 George Forman- Salton INC- $137.5 million http://www.askmen.com/top_10/sports/top-5-sponsorships-in-sports_4.html #3 David Beckham- Adidas- $160 million http://www.askmen.com/top_10/sports/top-5- sponsorships-in-sports_3.html #2 Derek Rose- Adidas- $260 million http://www.askmen.com/top_10/sports/top-5- sponsorships-in-sports_2.html # 1Rory McIlroy- Nike- $250 million http://www.askmen.com/top_10/sports/top-5- sponsorships-in-sports_1.html

Advantages Studies have shown that consumers will buy products endorsed by celebrities more often than products that are not Viewers, listeners, and fans are less likely to turn off a commercial featuring a fictitious character Consumers tend to believe celebrities, especially those who are chosen for their good public image

Disadvantages Very expensive The risk of negative publicity due to an endorser committing a crime or a serious social blunder

What businesses seek in an endorser Someone with a positive public image A celebrity most consumers know A celebrity whose career is in the process not retired Someone who presents few risks Someone who has a believable relationship with the product Speaking ability, personal appearance, and educational background also factor

Endorsements The FTC has several guidelines/rules that must be met by the endorser and the sponsoring company Truthful opinions and beliefs Endorser must have real experience with the product The endorsement may not mislead or deceive Endorser must use and believe in the product for as long as the endorser is featured in advertisements