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Branding Licensing 2. Branding Licensing 2 Section 7.1 – Branding – Objectives Explain the concepts of branding and brand equity Discuss the types.

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Presentation on theme: "Branding Licensing 2. Branding Licensing 2 Section 7.1 – Branding – Objectives Explain the concepts of branding and brand equity Discuss the types."— Presentation transcript:

1

2 Branding Licensing 2

3 Section 7.1 – Branding – Objectives
Explain the concepts of branding and brand equity Discuss the types of brands Describe how to develop an effective brand name 3

4 Section 7.1 – Branding – The Importance 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 4

5 Section 7.1 – Branding – The Importance of Branding
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 name 5

6 Section 7.1 – Branding – The Importance of Branding
What’s in a Name? – cont. Branding is important for building customer loyalty Customers 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 brand Creates an image for the product 6

7 Section 7.1 – Branding – The Importance of Branding
Brand Personality Attaching human traits to a brand name 7

8 Section 7.1 – Branding – The Importance of Branding
Brand Equity The value a brand has beyond its actual functional benefits Brand value becomes a competitive advantage because customers will equate brand with quality Establishing the brand name: Develop the brand in the customer’s mind as part of a class of products Link the product’s brand name to its function and make some type of emotional connection Help consumers think and feel the way you want them to regarding your product 8

9 Section 7.1 – Branding – The Importance of Branding
Brand Equity – cont. Brand equity also have financial value through licensing Licensing 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 apparel Logos, or distinctive symbols, immediately identify a company or organization

10 Section 7.1 – Branding – Types of Brands and Strategies
Manufacturer Brands Owned by the producer of the product Use multi-product branding, multi-branding, and co-branding Multi-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 10

11 Section 7.1 – Branding – Types of Brands and Strategies
Manufacturer Brands – cont. Multi-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 11

12 Section 7.1 – Branding – Types of Brands and Strategies
Manufacturer Brands – cont. Co-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 12

13 Section 7.1 – Branding – Types of Brands and Strategies
Intermediary Brands Carries a name developed by the wholesaler, retailer, or catalog house Intermediaries contract with manufacturer to make products that are sold under their own private labels Generic Brands Represents a general product category and does not carry a company or brand name Not likely to find generic brands of apparel or equipment in sports industry 13

14 Section 7.1 – Branding – Developing Brand Names
Choosing and developing a good brand name requires thought and planning Brand names should: Offer a benefit Be simple Be different and positive Reflect an image Be previously unregistered Make it last Top 5 Athletic Shoe Brands Rank Brand Retail Dollar Share 1 Nike 34% 2 Reebok 13% 3 Adidas 6% 4 New Balance 5% 5 Easy Spirit 2% 14

15 Section 7.1 – Branding – Developing Brand Names
Offer a Benefit Good 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 Simple Simple sports names are more memorable Ex. Nike, Reebok, Adidas Be Different and Positive Brand names should project a positive image that is distinctive for the consumers Ex. Puma, Eagles, Phillies 15

16 Section 7.1 – Branding – Developing Brand Names
Reflect an Image Branding 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 Unregistered Brand names cannot be previously registered with the U.S. Patent and Trademark Office Patent and Trademark Office may prevent names that are too similar to one already used or one that misleads a consumer 16

17 Section 7.1 – Branding – Developing Brand Names
Make it Last Names, symbols, devices, or slogans helps to communicate the type of business and products to customers Effective branding comes from understanding the product and organization and understanding how to get the message across to consumers

18 Section 7.2 – Licensing – Objectives
Discuss product licensing and how licensed goods are merchandised Explain the importance of sports sponsorships and endorsements Discuss how companies choose sports endorsers for their products 18

19 Section 7.2 – Licensing – Licensing and Merchandising
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 license The licensee is the company or individual paying for the rights to use the licensor’s name or property Licensed merchandise can bear the name, logo, or other characteristics of the licensor 19

20 Section 7.2 – Licensing – Licensing and Merchandising
Licensed Products A 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 packaging College sports teams also have licensing agreements with product manufacturing Advantages for sports organizations and companies: 20

21 Section 7.2 – Licensing – Licensing and Merchandising
The Products Licensing 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 21

22 Section 7.2 – Licensing – Licensing and Merchandising
Merchandising Licensed Goods Most licensed merchandise in the past were only available the event venue Many 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 goods Special 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 subscription 22

23 Section 7.2 – Licensing – Sponsorships and Endorsements
Two forms of licensing: Sponsorships Ex. Olympics Endorsements Ex. NASCAR 23

24 Section 7.2 – Licensing – Sponsorships and Endorsements
Sports events generate income from broadcast rights, ticket sales, merchandising, and sponsorships Sponsorships are the promotional vehicles that financially support sports events All major sports organizations use sponsorships to help finance their operations Promotional 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 24

25 Section 7.2 – Licensing – Sponsorships and Endorsements
Importance of Sponsorships Sports organizations need the money generated from corporate sponsors to help pay their significant costs and expenses Sponsorship 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 25

26 Section 7.2 – Licensing – Sponsorships and Endorsements
Types of Sponsorship Can 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 26

27 Section 7.2 – Licensing – Sponsorships and Endorsements
Types of Sponsorship Signage Sponsor names that appear on scoreboards, floorboards, rafters, etc. in a stadium or arena Purchased by sponsors, provides direct advertising for sponsors without paying for airtime 27

28 Section 7.2 – Licensing – Sponsorships and Endorsements
Premium Sponsors Companies pay more to be the official or title sponsor Receives more options and opportunities Examples: 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 28

29 Section 7.2 – Licensing – Sponsorships and Endorsements
Premium Sponsors Examples – 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 29

30 Section 7.2 – Licensing – Sponsorships and Endorsements
Premium Sponsors Examples – 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 30

31 Section 7.2 – Licensing – Sponsorships and Endorsements
A statement of approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiser Involves using a celebrity or public figure to represent and promote a company and that company’s products Sports figures image is used in print, broadcast media, product packaging, billboards, and collectibles May require a set number of public appearances at various events sponsored by the company Sports figure lends familiarity and credibility to the product

32 Section 7.2 – Licensing – Sponsorships and Endorsements
Association 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 Match Company choose sports figure who matches the demographic profile of its customer base Successful 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

33 Section 7.2 – Licensing – Sponsorships and Endorsements
Endorsements – cont. Image Products sell when the endorser has a positive image and is popular Sports celebrities who endorse products of major companies must be role models in the public eye Most 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 performance Companies do not want its products associated with a person who is not seen as a positive role model

34 Section 7.2 – Licensing – Sports Appeal
Companies associate their products will well-known sports organizations to reach new customers and strengthen their relationship with their existing customers Through licensing, sponsorships, or endorsements, companies can generate positive publicity and achieve their marketing goals of increasing brand awareness and sales. 34


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