1. Position product/services to acquire desired business image
1.06
Position product/services to acquire desired business image

2. Explain the nature of sport/event BRANDING

3. What is a BRAND?
All the combined impressions and experiences associated with a particular person, company organization, or product.

4. Brand Awareness & Brand Image
Recognition among the public
Extent to which a brand is correctly associated with a particular product.
Expressed usually as a percentage of target market
The primary goal of advertising in the early months or years of a product's introduction.
Brand image
Consumer’s beliefs about the company and/or products.
Quality, price, and value may affect a brand’s image.

5. Brand Equity & Brand Loyalty
Positive feelings toward a brand that accumulate over time when customer’s expectations are consistently met
A highly recognizable brand has a high level of brand equity.
Brand equity is an intangible perception or memory.
Brand loyalty
The extent of the faithfulness of consumers to a particular brand
expressed through their repeat purchases, regardless of the marketing pressure generated by the competing brands.

6. Brand awareness, equity, loyalty OR Image??
The team name, mascot and logo are important elements that a SEM organization uses to CREATE and MAINTAIN:?????????????? BRAND AWARENESS The distribution of licensed sports apparel is an effective way to create team: ?????????? = Recognition to the public!

7. Brand awareness, equity, loyalty OR Image??
Performance, coaches and star athletes are team-related factors that affect: ??????????
BRAND EQUITY

8. Describe the PURPOSES of branding in sport/event marketing.
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

9. Describe the purposes of branding in sport/event marketing.
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

10. Discuss factors that influence a sport’s/event’s BRAND IMAGE.
Price
Low, middle or high
Quality
Value
Performance
Win, lose, tradition

11. Organization-related
Describe categories of factors that impact 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

12. Importance to consumers
Explain how sport/event marketers can use product extensions/merchandise to build brand equity
Variety of products
Importance to consumers

13.  Attendance increases Increased sales and consumer loyalty
Explain the consequences of establishing positive BRAND EQUITY for a sports/event
Attendance increases
Increased sales and consumer loyalty 

14. Discuss factors that create BRAND LOYALTY
Entertainment value
Authenticity
Fan bonding
History
Tradition
Performance
Athletes, coaches, owners

15. “You Do”
With your group- you will create a list of potential brand extension/merchandise that could be used to build brand equity for MHS.

17. Here is a list of some sports and events
Here is a list of some sports and events. We will identify as many ways as possible that each establishes positive brand EQUITY and brand LOYALTY.
Panthers Game
Beyonce Concert
Jordans
BRAND EQUITY
BRAND LOYALTY

18. Explain the use of LICENSING in sport/event marketing

19. Trademarked Property Foundation for the licensing process
All teams and sports events MUST copyright their names, logos, slogans and graphics to LEGALLY PROTECT them
Not doing so would allow other companies to use a name and logo without permission.
Without a trademark- a company CANNOT make money from LICENSING

20. Explain the relationship between trademarks and licensing.
Trademark is a word, phrase, symbol, logo or design that identifies and distinguishes the company from others.
A REGISTERED trademark has legal protection through the United States Patent and Trademark Office
It is these trademarks that licensees wish to use

21. TRADE CHARACTER: Personified symbol that represents the brand name
For example, Mickey Mouse for Disney, Captain Fear for Tampa Bay Buccaneers, or STORMY for the Carolina Hurricanes

22. 1 examples of each - Cut & Glue™ ℠
TRADE CHARACTER

23. Define the terms 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, Panthers
Licensee
is the company paying for the permission to use the name, logo, or trademark.
Nike and Reebok

26. Define Sports Licensing
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 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.
With global retail sales of sports merchandise estimated at $17.51 billion in 2009, according to EPM Communications, sports licensing could be the factor between success or failure

27. 5 LICENSED PRODUCTS
Identify LICENSOR? & LICENSEE?

28. Types of Sports License Agreements
Brand licensing
Process of creating and managing contracts between the owner of a brand/ licensor (Carolina Panthers) and a company who wants to use the brand with a licensee (NIKE)
Sponsorship
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
Endorsement
Athletes go into contracts with companies to promote their product by “tying” their name to it.

29. Explain the use of LICENSING in SEM Continued…

30. Arrangement to license a brand requires a
Licensing vs. Branding
Licensing Agreement
Branding
Licensing agreement authorizes a company which markets a product (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor)
Licensing enables companies whose brands have brand loyalty to unlock a brand's value and satisfy existing demand
The brand or its legal term, trademark, affixed to the product helps the consumer understand where it was manufactured or produced
Trademark simply states “I made this”
From the brand owner's perspective, it distinguishes the products or services from those of its competitors
Arrangement to license a brand requires a
licensing agreement

31. License vs. Sponsorship
Trademark License
Sponsorship
Underpins all merchandising
Defines the relationship between the owner of a trademark (licensor) and the producer of the goods or services to which the mark is to be affixed (the licensee)
Licensors are not involved in the manufacturing of the products, for their reputation’s sake they must ensure that licensees maintain the quality of the product bearing their trademark
Companies seeking to promote their brand, build their brand awareness and brand image often team up with a sporting organization or associate themselves closely with a sporting event
This offers them massive exposure as the millions of fans and viewers who tune into sports events across the globe see the brands in question many hundreds of times

32. License vs. Endorsements
Trademark License
Endorsement
Underpins all merchandising
Defines the relationship between the owner of a trademark (licensor) and the producer of the goods or services to which the mark is to be affixed (the licensee)
Licensors are not involved in the manufacturing of the products, for their reputation’s sake they must ensure that licensees maintain the quality of the product bearing their trademark
One constant in the advertising world is companies hiring athletes and sports celebrities to endorse/promote their products
The reason is simple – nothing sells a product like a sports celebrity endorsement
Athletes and sports celebrities appeal to all advertising demographics, and especially to the key younger demographics.
Boost your company’s prestige and as a means for branding your company as a very successful one.
Derek Jeter and Gilette
Cam Newton and Under Armour
Blake Griffin and Subway

33. BRANDING
LICENSING
SPONSORSHIPS
ENDORSEMENTS

34. Explain the use of LICENSING in sport/event marketing Continued…

35. PROCESS OF LICENSING 1. Licensor PICKS the product categories
2. Licensor finds and negotiates a license with BEST licensees
4. LICENSOR APPROVES licensed products for sale
3. Licensees develop samples and submit for approval
5. Licensees sell licensed products in authorized channels

36. Licensor’s COMPENSATION
GUARANTEE: Fee paid up front
ROYALTIES:
Percentage of actual sales
Once the guarantee is paid off- LICENSORS start receiving royalties
Typically between 5% and 15% of sales

37. Recall…..
What is a license?
What is a licensor?
What is a licensee?

38. Royalties

39. LICENSOR Benefits WHAT’S GOOD?!!! Profits—guarantees and royalties
Low risk
Free advertising
Brand building
Market expansion
Trademark control

40. Licensor RISKS Loss of control over marketing process
Inability to guarantee quality
Inability to control where merchandise appears
Inability to control prices
The LICENSOR is trusting someone to make a product with their name/logo!

41. LICENSEE Benefits Profits Retail opportunities Brand building
Positive publicity

42. Licensee RISKS The nature of the licensing agreement Fashion trends
Inability to control on-field success
Athletes or teams in fan disfavor

43. International Licensing
Sports Marketers have an advantage over other types of licensors in the International Marketplace because…..
UNIVERSAL APPEAL of sports
Growth of international participation and spectators of sports in general makes international licensing in SEM NECESSARY.

45. Explain the role of ENDORSEMENTS in SEM

46. ENDORSEMENTS
Endorsement is an action made by a celebrity or well-known person as follows:
Testimonial (statement or advertisement), by a user of the product proclaiming the product’s benefits
Appearance (association), is an action whereby the endorser appears at an event. The celebrity does not have to do or say anything but consumers believe they like the product

47. Endorsements
Endorsements are advantageous to a company in the same manner as licensing but also have the same disadvantages
Endorsements are legal and binding contracts and the company and celebrity must adhere to the details

48. WAYS CELEBRITIES CAN ENDORSE PRODUCTS
Product endorsement campaigns
Use the product publicly when possible
Allow their name on products
Written or verbal testimonials
Allow use of their photo with or on the product in advertising and packaging

49. When Celebrity Endorsements can be BENEFICIAL to a Brand
Nothing sells a product like a celebrity endorsement
Athletes and celebrities appeal to all advertising demographics (age, gender, occupation, etc.)
Especially to the key younger demographics.
INCREASE your company’s brand image, awareness, equity and loyalty

50. When Celebrity Endorsements can be HARMFUL to a brand
When the celebrity:
Loses popularity with the target audience
Gets into trouble
Tiger Woods
Michael Vick
May be injured and/or retire BEFORE the endorsement contract term is over

51. So WHY do Businesses use Celebrity Endorsements?
Nothing sells a product like a celebrity endorsement
Athletes and celebrities appeal to all advertising demographics
Especially to the key younger demographics.
INCREASE your company’s brand image, awareness, equity and loyalty

52. CELEBRITY ENDORSEMENTS
WHY?
BENEFICIAL
HARMFUL

53. Legal Considerations for Celebrity Endorsements
2009: The Federal Trade Commission(FTC) revised and approved what is often referred to as  “The  Guides”
Practical tips to advertisers and the talent they hire on the lawful use of celebrity endorsements
Advice on when financial ties between advertisers and celebrities must be disclosed 
Must reflect the honest opinion or experience of the endorser and remain the same
If the audience would reasonably expect that a financial connection exists, disclosure is unnecessary

54. Legal Considerations Example
A tennis star appears in ads for a line of polo shirts. 
It’s unlikely that the terms of their endorsement contract would have to be disclosed because most people would expect they were paid for that kind of deal
Now they are a guest on a morning talk show. 
When asked about recent victories, they credit them to a laser vision correction procedure at a certain clinic. 
The athlete doesn’t disclose their contractual deal with the clinic that requires her to speak publicly about her surgery. 
Viewers might not realize that a celebrity discussing a medical procedure in a TV interview had been paid to tout the clinic. 
The endorsement is likely deceptive without a clear and conspicuous disclosure

55. “You Do”
Select an athlete or other celebrity to determine whose product’s the person endorses.
Compile a listing of those products.
Beside each product, write a rationale for why the person would have been selected to endorse the product.
Decide whether the choice has been positive or negative for the company.

56. Explain the use of NAMING RIGHTS in SEM

57. WHO ARE YOU?
I AM _________ and I’ve been (was) a ________ for ______ years.
Family bio?
MY estimated NET WORTH is:
I ENDORSE(d)… (name products)
From my endorsement contracts, I made ______________.

58. Define the term NAMING RIGHTS.
Naming rights - are a financial transaction and form of advertising (sponsorship) whereby a corporation or other entity purchases the right to name a facility or event, typically for a defined period of time.
For properties like a multi-purpose arena-- the term ranges from three to 20 years.
Key players in a naming rights sponsorship are:
Sport teams/owners – venue owners – corporations

59. Buyer/sponsor/corporation:
Explain advantages/disadvantages for teams/events selling corporations naming rights.
Buyer/sponsor/corporation:
ADVANTAGES
DISADVANTAGES
Exclusivity
Very expensive
Maximize promotion
Not target market
Promote customer retention
Losing season
Good PR
Lose popularity

60. Explain advantages/disadvantages for teams/events selling corporations naming rights.
Seller/venue:
ADVANTAGES
DISADVANTAGES
Increases revenue
If doesn’t sign with correct corporation (target market)
Public awareness
Bankrupt, fraudulent activities
Pay for construction costs
Bought-out
Good PR