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.
Define the terms
Brand Awareness & Brand Image
• 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.
Define the terms
Brand Equity & Brand Loyalty
• 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
Explain the Branding process
1. Analysis of your current assets (SWOT analysis)
Strengths
Weaknesses
Opportunities
Threats
Internal
External
Explain the Branding process
2. How do consumers perceive your product?
• This will provide a picture for the brand image required
3. Determine your brand awareness with consumers
4. Implement a Marketing Mix plan for your product
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 how sport/event marketers can use product
extensions/merchandise to build brand equity
• Variety of products
• Importance to consumers
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
“We Do”
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
“You Do”
With your group- you will create a list of at least
5 potential brand extension/merchandise that
could be used to build brand equity for a
MCHS event.
Choose one from your list of five and create it
visually.
Explain the use of LICENSING in
sport/event marketing
Trademarked Property
- Foundation for the licensing process
- 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
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 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
Define the terms Licensing, Licensor &
Licensee.
• 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
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
– 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
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
Estimated Licensing Revenues (2007)
Property Type
Est. Licensing Revenue (in millions)
Art
$175
Character (Entertainment, TV, Movie)
$2,710
Collegiate
Fashion
Music
$201
$810
$125
Non-profit (Museum, Charities)
$43
Sports (Leagues, Individuals)
$815
Trademarks/Brands
Publishing
Other
$1,060
$41
$9
“You Do”
Your group will:
1. Read one of the three articles
2. Create a 3-4 slide PPT on the important points in your chosen
article
3. Present PPT to the class
Three Articles on:
-Branding
-Sponsorship
-Endorsement
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
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
“You Do”
BRANDING and LICENSING PROJECT
Explain the use of LICENSING in
sport/event marketing
Continued…
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
Royalties
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.
“You Do”
BRANDING and LICENSING PROJECT
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
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
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?
• 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
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
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.
• For properties like a multi-purpose arena, performing
arts venue or an athletic field, the term ranges from
three to 20 years.
• Longer terms are more common for higher profile
venues such as a professional sports facility.
• Key players in a naming rights sponsorship are:
– Sport teams/owners – venue owners – corporations
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
• Good public relations in gaining corporation support
within a community
• Most naming right deals involve suite purchase too
• 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
GROUP PROJECT PRESENTATIONS