1.06 Positioning

Terms Brand: name/words/symbol that identifies an organization and its products Brand awareness: making target market recognize and remember brand name Brand image: consumers’ set of beliefs about a brand, which shapes their attitudes Brand equity: value a brand has beyond its actual functional benefits Brand loyalty: a consistent preference of one brand over all others in a product category

Purposes of Branding Allows an organization to distinguish and differentiate itself from others Affects consumer behavior

Branding Process Brand Awareness Brand Image Brand Equity Brand Loyalty

Factors That Influence Brand Awareness Team Name Mascot Logo The distribution of licensed sports apparel is an effective way to create team and brand awareness

Factors That Influence Brand Image Product features Product quality Price Brand name Customer service Packaging Advertising/Promotion

Categories of Factors That Impact Brand Equity Team-related Success/Performance Head Coach Star Player

Categories of Factors That Impact Brand Equity Organization-related Reputation & tradition League/Conference schedule Entertainment package/product delivery

Categories of Factors That Impact Brand Equity Market-related Media coverage Geographic location Competitive forces

Factors That Create Brand Loyalty Entertainment value Authenticity Fan bonding History/tradition

Terms Licensing: Permission to copy trademarked property for a percentage of actual sales, also called royalties Licensor: the rights-holder of the name, logo, or trademark Licensee: company paying for permission to use the name, logo, or trademark Note: sports marketers have an advantage in licensing because of sports’ universal appeal

Trademarks & Licensing Word, phrase, symbol, or design that identifies and distinguishes the company from others Has legal protection through the U.S. Patent and Trademark Office

Licensing & Endorsements Licensing: passive association with a licensee, “sign & collect” Endorsements: active association with a licensee--”Try this product!”

License Agreements Licensor Licensee Consumer

How Licensors Benefit Enhanced company image and publicity Increased profit from royalties. Increased brand awareness or recognition Increased opportunity for penetrating new markets

How Licensors Are Compensated Companies typically pay between 5 and 10 percent of wholesale sales in the form of royalties

Licensor Risks Potential for poor quality of a licensee’s manufactured products Partial relinquishment of control over the marketing mix of the brand

Licensee Benefits Existing brand awareness or recognition Lower advertising and promotional costs Increased possibility of success and profitability Connection with an athlete, sports team, entertainer, or corporation

Licensee Risks Athlete, entertainer, or corporation may lose popularity. Sports teams may suffer losing seasons Change in styles, trends, and consumer preferences Royalties and licensing fees can be expensive Manufacturing costs and risks Competition can drive up costs associated with fees and royalties

Endorsements & Testimonials Endorsement: using a celebrity’s presence to imply that the celebrity is associated with the organization Grand openings Autograph sessions Clinics/concerts Testimonial: using a celebrity in an advertisement testifying to the effectiveness of a product

Cross-Promotion Appearing in an advertisement for one brand while wearing/using another brand

Benefits of Celebrity Endorsements Reach another market Match brand with celebrity's image Effectiveness of promoting brands related to their sport/vocation

Bad Celebrity Endorsements Yikes! Cost Believability/Fit Negative Publicity

Celebrity Endorsements and the Law Statements must reflect honest opinion Statements must be substantiated Disclosure of financial ties

Naming Rights Key Players  Team  Corporations  Advertising Agencies  Television/Radio Rights Holders

Naming Rights Reasons to Sell Naming Rights –Revenue –Opportunity for new market Reasons to Buy Naming Rights –Provides exclusivity –Maximize exposure

Naming Rights Advantages  Promote goods/services  Promote customer retention  Increase market share Disadvantages  Cost  Long-term commitment  Association with losing team

Naming Rights Businesses to Avoid – Gambling – “Adult” Entertainment – Controversial companies

Naming Rights Strategies – Increase sales – Increase market share – Raise awareness