Warm-Up –
BRAND JUNKIES
1.06
Position product/services to acquire
desired business image
Explain the nature of sport/event
BRANDING
What is a BRAND?
All the combined impressions and experiences
associated with a particular person, company
organization, or product.
Intro to Brands
http://www.youtube.com/watch?v=JKIAOZZritk&feature=related
http://www.youtube.com/watch?v=B2vyfkbNWWg
http://www.youtube.com/watch?v=eshWKA9VWX0
Vocabulary
• Brand awareness
• 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.
Vocabulary (cont)
• Brand equity
– 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.
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: ??????????
BRAND AWARENESS
= Recognition to the public!
Brand awareness, equity,
loyalty or Image??
Performance, coaches and star athletes are
team-related factors that affect: ??????????
BRAND EQUITY
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
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
Discuss factors that influence a
sport’s/event’s brand image.
• Price
– Low, middle or high
• Quality
– Low, middle or high
• Value
– Low, middle or high
• Performance
– Win, lose, tradition
Describe categories of factors that contribute
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
Explain the consequences of establishing
positive brand equity for a sports/event
• Attendance
increases
• Increased sales
and consumer
loyalty
Discuss factors that create BRAND LOYALTY
•
•
•
•
•
•
•
Entertainment value
Authenticity
Fan bonding
History
Tradition
Performance
Athletes, coaches, owners
20 Clever Logos with
Hidden Symbolism
What is
your
Brand?
Explain the use of LICENSING in
sport/event marketing
Vocabulary
• Trademark is a word, phrase, symbol, logo or
design that identifies and distinguishes the company
from others.
• A trademark has legal protection through the United
States Patent and Trademark Office
• Any entity wishing to protect their trademarks must
register the trademark and post the designated symbol
next to the item they wish to protect
• It is these trademarks that licensees wish to use
Vocabulary (cont)
• Licensing
•
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
Trademarked Property
- All teams and sports events
MUST copyright their names,
logos, slogans and graphics to
LEAGALLY 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
Define Sports Licensing
• 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 the company’s products.
• The company gaining the rights is known as the licensee and the
sports body is the licensor
Sports Licensing
• One of the top four revenue
producers in the licensing world
• In the U.S., the business is
dominated by the five major sports
leagues
– NFL, MLB, NBA, NASCAR and NHL
• Other significant licensing
campaigns:
– NCAA
– Over 300 colleges/universities in the
U.S. are involved in collegiate licensing,
marketing their rights primarily to the
apparel market
Process of Licensing
A Look at the Top 10 Player Jerseys
Top-Selling NFL Jerseys Since Spring 2013
1.Colin Kaepernick • San Francisco 49ers
2.Russell Wilson • Seattle Seahawks
3.Robert Griffin III •Washington Redskins
4.Adrian Peterson • Minnesota Vikings
5.Peyton Manning • Denver Broncos
6.Ryan Tannehill • Miami Dolphins
7.Tom Brady • New England Patriots
8.Ray Lewis • Baltimore Ravens
9.Aaron Rodgers • Green Bay Packers
10.Brian Urlacher • Chicago Bears
Top-Selling NBA Jerseys at the end of
the 2012-13 regular season
1.Carmelo Anthony • New York Knicks
2.LeBron James • Miami Heat
3.Kevin Durant • Oklahoma City Thunder
4.Kobe Bryant • Los Angeles Lakers
5.Derrick Rose • Chicago Bulls
6.Deron Williams • Brooklyn Nets
7.Dwyane Wade • Miami Heat
8.Rajon Rondo • Boston Celtics
9.Chris Paul • Los Angeles Clippers
10.Blake Griffin • Los Angeles Clippers
A Look at the Top 10 Player Jerseys
Top-selling Major League Baseball
Jerseys at the 2013 All-Star Break
1.Buster Posey • San Francisco Giants
2.Mariano Rivera • New York Yankees
3.Yadier Molina • St. Louis Cardinals
4.David Wright • New York Mets
5.Matt Harvey • New York Mets
6.Bryce Harper • Washington Nationals
7.Derek Jeter • New York Yankees
8.Manny Machado • Baltimore Orioles
9.Mike Trout • Los Angeles Angels of Anaheim
10.Yasiel Puig • Los Angeles Dodgers
“You Do”
Licensing Activity
Students work in pairs and
search the internet or through magazines and
provide a PPT/poster
with 8 examples of licensed sports,
entertainment or event products.
Explain the use of LICENSING in
SEM
Continued…
Types of Sports License Agreements
1. Brand licensing
• Process of creating and managing contracts between the
owner of a brand/ licensor (Carolina Panthers) and a
company or individual who wants to use the brand in
association with a product/ licensee (NIKE)
2. 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
3. Endorsement
• Athletes go into contracts with companies to promote
their product by “tying” their name to it.
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
http://www.youtube.com/watch?v=Z8LYrNhfoQ&list=TLO9Q2hWtVPFEHiV1NmygxzqH4P-2368lX
License vs. Sponsorship
Trademark License
•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
Sponsorship
•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
License vs. Endorsements
Trademark License
•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
Endorsement
•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
Recall…..
• What is a license?
• What is a licensor?
• What is a licensee?
Licensor’s Compensation
• Licensed products are manufactured by licensees governed by a
contractual agreement (license) with a licensor
• Licensee must gain approval from licensor for any products
produced
• Additionally, they may also agree on payment with product,
advertising, etc. as specified by the contract agreement
• Royalties:
– Percentage of actual sales
– Once the guarantee is paid off- LICENSORS start receiving royalties
– Typically between 5% and 15% of sales
Licensor Benefits
•
•
•
•
Enhanced brand image and publicity
Increased profit from royalties
Increased brand awareness or recognition
Increased opportunity for penetrating new markets
(especially international) or enhancing existing markets
• Increased revenues from sales as a result of brand awareness
and expansion of new markets or enhancement of existing
markets
• Limited manufacturing costs or risks
Licensor Risks
• Potential for poor quality of a licensee’s
manufactured products
– Directly affects BRAND IMAGE
• Partial giving-up 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
• Greater chance of major retailers accepting distribution of
your products
• International success is probable because sports are
universally appealing
Licensee Risks
•
•
•
•
•
•
Athlete, entertainer, or corporation may become involved
in a scandal or lose popularity.
Sports teams may suffer losing season(s).
Change in styles, trends, and consumer preferences.
Royalties and licensing fees can be expensive.
Manufacturing costs and risks.
Competition (un-licensed) can drive up costs associated
with licensing fees and royalties and negatively impact
market share
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.
Explain the role of
ENDORSEMENTS in SEM
Endorsements
• Endorsement is an action made by a celebrity or wellknown 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
http://www.youtube.com/watch?v=fc81q8SMi
TY
Ways Celebrities can Endorse Products
• Product endorsement campaigns
• Use the product publicly when possible
• Allow their name to be used on products
• Written or verbal testimonials
• Allow use of their photo with or on the product in advertising
and packaging
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
• Especially to the key younger
demographics.
• INCREASE your company’s
brand image, awareness,
equity and loyalty
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
So Why do Businesses use Celebrity Endorsements?
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
“You Do”
1. Select an athlete or other celebrity to
determine whose product’s the person
endorses.
2. Compile a listing of those products.
3. Beside each product, write a rationale for
why the person would have been selected to
endorse the product.
4. Decide whether the choice has been positive
or negative for the company.
Explain the use of
NAMING RIGHTS in SEM
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.
Explain advantages/disadvantages for
teams/events selling corporations naming rights.
• Buyer/sponsor/corporation:
– Exclusivity at a marketing venue
– Maximize promotion of products and
services
– Promote customer retention and or
increase market share
– Can be a good public relations plan for
community
– This can be very expensive and may not
be your target market
– Team may have losing season or lose
popularity
Explain advantages/disadvantages for
teams/events selling corporations naming rights.
• Seller/venue:
• Increases revenue and public
awareness of venue
• A means to pay for construction
or maintenance costs at the
venue
• Venue must be protective of it’s
target market and sign with
correct corporation
• Corporate entity could go
bankrupt, engage in fraudulent
activities or be purchased
NFL Stadium Financing : Naming Rights
Stadium
Year
Opened
Reported
Contract
Naming Rights length
(Millions)
(years)
Source
San Fransicso 49ers
New Santa Clara Stadium
2014
$220
20
http://goo.gl/zUgzLz
.
Dallas Cowboys ¹
AT&T Stadium
2009
$340
N/A
http://goo.gl/naXo0t
.
Cleveland Browns ²
FirstEnergy Stadium
1999
$102
17
http://goo.gl/fqybJj
.
New York Giants
MetLife Stadium
2010
$400
25
http://goo.gl/R9ZMw6
.
New York Jets
MetLife Stadium
2010
$400
25
http://goo.gl/R9ZMw6
.
Indianapolis Colts
Lucas Oil Stadium
2008
$122
20
http://goo.gl/6wZYrq
.
Philadelphia Eagles
Lincoln Financial Field
2003
$140
20
http://goo.gl/hTZIuL
.
Houston Texans
Reliant Stadium
2002
$310
31
http://goo.gl/hTZIuL
.
Seattle Seahawks
CenturyLink Field
2002
$75
15
http://goo.gl/DgNOuB
.
Detroit Lions
Ford Field
2002
$50
25
http://goo.gl/GXAN8l
.
Average
$216
22
.
Source: MPR Research. ¹ Deal announced 2013. ESPN reports deal at least $17 million, but no term disclosed;
estimate assumes 20 years. ² Deal announced 2013
.
Team
.