Branding
Licensing
2
Chapter Objectives
Explain the concepts of branding and brand equity.
Discuss the types of brands.
Describe how to develop an effective brand name.
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.
3
The Importance of
Branding
Sports organizations and
companies strive to
develop strong brands to
differentiate themselves
from one another.
When a brand name or
trade name is registered, it
also becomes a trademark.
brand a name, word or
words, symbol, or
design that identifies an
organization and its
products
brand name a word or
words, letters, or numbers
representing a brand that
can be spoken
trademark a device that
legally identifies
ownership of a registered
brand or trade name
4
The Importance of
Branding
Customers are generally
willing to pay a higher price
for products with brand
equity.
brand equity the value
a brand has beyond its
actual functional benefits
Brand equity has financial
value through licensing.
5
The Importance of
Branding
The three steps of developing brand equity are:
1. Develop the brand in the customer’s mind as
part of a class of products.
2. Link the product’s brand name to its function
and make some type of emotional connection
with the product.
3. Help consumers think and feel the way you want
them to regarding your product.
6
Types of Brands and
Strategies
The three basic types of
brands are:
Manufacturer brands
– Co-branding
Intermediary brands
Generic brands
manufacturer brand a
brand owned by the
producer of the product
co-branding a branding
strategy that combines one
or more brands to increase
customer loyalty and sales
for each product
intermediary brand a brand
that carries a name
developed by the wholesaler,
retailer, or catalog house
generic brands a brand that
represents a general product
category and does not carry
a company or brand name 7
Developing Brand Names
For a brand to be successful, it should:
Offer a benefit.
Be simple.
Be different and positive.
Reflect an image.
Be previously unregistered.
8
Your Online Sports Arena
Major sports organizations such as
Operating an e-tail business on an electronic channel—the
offer sophisticated
sitesand
that
Web—can be costly,NASCAR
due to design,
delivery, returns,
operating expenses.provide not only news and information
about your sports figures, but also
to tickets,
TV schedules,
Though Many largerlinks
dot-com
companies
crashed in the
1990’s, small
like Harris
Cyclery
of West and
Newton,
interactive
polls,stores
statistics,
streaming
broadcasts,
Massachusetts,
increase
sales using
a basic
Web
merchandise.
The actually
Web’s ability
to integrate
these
different
site. of
Today,
thirdcommerce
of Harris’s makes
bicycleitbusiness
rides
in on
forms
mediaa and
perfect for
satisfying
the Web
to get hard-to-find
parts and personal service.
a sports
enthusiast's
every need.
Describe
an e-business’s
home
page
to your class
after
For
more information
on sports
and
entertainment
marketing,
one through marketingseries.glencoe.com.
goviewing
to marketingseries.glencoe.com.
9
1.
What are the three steps involved in
developing brand equity?
2.
Name and provide an example of the three
types of brands.
3.
What rules should be followed when
developing a good brand name?
10
Licensing and
Merchandising
Sports teams and athletes
may have licensing
agreements with product
manufacturers.
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.
licensing an agreement
which gives a company
the right to use another’s
brand name, patent, or
other intellectual property
for a royalty or fee
11
Licensing and
Merchandising
Licensed merchandise is made available through
many channels of distribution.
Special promotional deals create partnerships
between the licensor and the licensee to help
boost store traffic.
Sweepstakes and contests are run by the
sponsor, with the prize being tickets to the
sporting event.
Some licensed products are used as promotional
incentives for customers to buy a product.
12
Sponsorships and
Endorsements
Sponsorships are the promotional vehicles that
financially support sports events.
Types of sponsorships include:
Signage
Entitlements
Facility entitlements
Product exclusivity
13
Sponsorships and
Endorsements
An endorsement is a statement of approval of a
product, service, or idea made by an individual or
organization speaking on behalf of the advertiser.
Some important considerations are:
Association
Demographic match
Successful careers
Image
14
Sports Appeal
Through licensing, sponsorships, or endorsements,
companies can generate positive publicity and
achieve their marketing goals of increasing brand
awareness and sales.
15
Benefits of Licensing
Sports
Organizations
Mutual Advantages
Companies
Profit
Reinforce
image
Build team
spirit
Publicity
Revenue
Brand
awareness
Build presence
through
merchandise
Reach a new
audience
16
1.
Name two forms of licensing.
2.
How do sponsorships benefit the sports
organization and the sponsor?
3.
What do companies consider when selecting
a sports celebrity for endorsement of a
product?
17
Checking Concepts
1. Define brand and brand
name.
2. Explain the concept of
branding and its
components.
3. Explain how brand equity
is developed.
continued
A brandequity,
is involves
a name,
1. Branding
2.
3.
Brand
the
word
or
value
any name,
a words,
brand
symbol,
has
symbol,
or
design
beyond
or device
itsan
actual
that
identifies
an
functional
organization
benefits,
uses
organization
and
its
is
to developed
identify itself
in and
the
products.
A brand
consumer’s
its products.
mind
name
word oris
when is
thea brand
words,
letters,
or of
identified
as part
numbers
a class of products.
representing a
brand that can be
spoken.
18
Checking Concepts
4. Differentiate between
the three basic types of
brands.
5. Define co-branding.
6. Explain product licensing.
continued
is a contract
4. Licensing
5.
Manufacturer
Co-branding
is a
6.
agreement
which
gives
brands
branding
are
strategy
owned
a company the right to
by
thatthe
combines
producerone
of
use another brand
the
or more
product;
brands
to
name,
patent,
or other
intermediary
increase customer
intellectual
property for
a
royaltyand
or fee.
brands
loyalty
carry
sales
a
Licensed
goods
are by
name
for each
developed
product.
available in retail
the wholesaler, the
department stores,
retailer,
or catalog
chain
stores,
leaguehouse; generic
sponsored
retail
outlets,
on the
brandsand
carry
no
Internet.
branding.
19
Checking Concepts
7. Explain why sponsorships
and endorsements are
important to sports
organizations and
sponsors.
Critical Thinking
8. Discuss the importance
of an athlete's image to a
company that is choosing
and endorser.
major sportsmust
7. All
8.
Endorsers
organizations use
match target
sponsorships
to help
markets,
finance
their have
operations;
sponsors
get exposure
of
successful
careers,
their products and free
and have
positive
publicity.
Endorsements
publicusing
images.
involve
a celebrity
or public figure to
represent and promote a
company and its products;
the celebrity lends
credibility to the product
while he/she is
handsomely paid.
20
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End of