Branding and Licensing
Chapter 7
Brands
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Why are Brands important?
Do you buy brand names? If so name
some.
Do you buy non-brand names? If not
why.
Branding Defined
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Brand- is defined as a name, word or
words, a symbol, or design that
identifies an organization and it’s
products.
How many brands are we wearing
today?
Brand name- is defined as a part
that can be spoken such as Adidas,
Nike, or Los Angeles Lakers.
Branding
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When a brand name or trade name is
registered, it also becomes a
trademark.
A Trademark is a device that
legally identifies ownership of a
registered brand or trade name.
Importance of Branding
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Branding is important for building
customer loyalty.
Expect the same quality from the
brands they buy.
Trust new products with the same
brand.
Branding also creates an image
Brand Personality
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Attaching human traits to a brand name
Nike – have professional athletes
endorse their products
Phillies – brand personality as a winning
team
3-Steps to Establishing Brands
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Develop – put the brand in the customer’s
mind as a part of a class of products –
Gatorade is a sports drink
Link – brand name to a function and make
an emotional connection – Gatorade helps
athletes perform better
Help – consumers feel the way you want
them to – Gatorade is the best product for
successful athletes
Branding
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Brand equity- is the value a brand has
beyond its actual functional benefits.
When a brand becomes popular, its
value becomes a competitive advantage
because most consumers equate the
brand with quality.
Customers will pay higher prices for
products with brand equity
Branding
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Brand equity is developed over a
period of time.
Sports Teams Steps
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Develop – Phillies are a professional
baseball team.
Link – Phillies fans think positively about the
club and players.
Help – Phillies fans stick with their team
through the good and the bad seasons
because of the bond they have.
Manufacturer Brands
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Multi-Product Branding – manufacturer
uses one name for all products
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Multi-Branding – each product has a
different name.
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Nike – brand on all products
Proctor & Gamble – Secret, Old Spice, Sure
Co-Branding – combines brands to
increase customer loyalty – products should
complement each other
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General Motors and PGA co-sponsored
MasterCard
Types of Brands
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Manufacturer – owned by the
producer of the product.
Intermediary – carries a name of the
wholesaler or retailer or catalogue
house. Contracted with manufacturer.
Generic – represents a general
product category.
Intermediary Brands
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Carries a name developed by the
wholesaler or retailer.
Product is made by a manufacturer.
Gander Mountain and Cabela’s
Generic Brands
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Represents a general product category
– does not carry a company or brand
name.
Not usually used in the sporting goods
industry.
Possibly with fishing supplies; such as,
worms
Developing Brand Names
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Offer a benefit
Be simple
Be different and positive
Reflect an image
Be previously unregistered
Offer a Benefit
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Offer customer value.
Gatorade – helped the Univ. of Florida
football team, the Gators, play better when it
was hot.
Known as the “second-half” team because of
their stamina in the second half.
“Ade” sounds like “Aid” so the drink helped
them play better – thus “Gator – Aid”.
Be Simple
Simple is more memorable:
 Nike
 Adidas
 Reebok
 Puma
 Fila
 Converse
Be Different and Positive
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Puma – positive – fast animal
Usually distinctive
Yankees
White Sox
Red Sox
Giants
Reflect an Image
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Should say something about the
product
Wheaties has used athletes on box
since 1930s
Known as “The Breakfast of
Champions”
Previously Unregistered
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www.uspto.gov
Regulates wording than can or cannot
be used
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Powerade and Sport Powerance
Can also restrict the use of certain
words. Such as, using heart with food
items implies that the product is good
for your heart.
Make it Last
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Choosing the right brand is critical
Communicates the type of business and
products
Should last over time
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Nike swoosh was created in 1971 for $35
by a student of founder Phil Knight
Based on the wing of the goddess Nike