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.
1
The Importance of
Branding
brand
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 name
trademark
2
The Importance of
Branding
Customers are generally
willing to pay a higher price
for products with brand
equity.
brand equity
Brand equity has financial
value through licensing.
3
The Importance of
Branding
The three steps of developing brand equity are:
1.
.
2.
.
3.
.
4
Types of Brands and
Strategies
manufacturer brand
The three basic types of
brands are:
co-branding
Manufacturer brands
– Co-branding
intermediary brand
Intermediary brands
Generic brands
generic brands
5
Developing Brand Names
For a brand to be successful, it should:
Offer a benefit.
.
Be different and positive.
.
Be previously unregistered.
6
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?
7
Licensing and
Merchandising
Sports teams and athletes
may have licensing
agreements with product
manufacturers.
licensing
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.
8
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.
9
Sponsorships and
Endorsements
Sponsorships are the promotional vehicles that
financially support sports events.
Types of sponsorships include:
Signage
Entitlements
Facility entitlements
Product exclusivity
10
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
11
Sports Appeal
Through licensing, sponsorships, or endorsements,
companies can generate positive publicity and
achieve their marketing goals of increasing brand
awareness and sales.
12
Benefits of Licensing
Sports
Organizations
Mutual Advantages
Companies
Profit
Reinforce
image
Build team
spirit
Build presence
through
merchandise
Reach a new
audience
13
Checking Concepts
1.
2.
3.
Define brand and brand name.
Explain the concept of branding and its
components.
Explain how brand equity is developed.
continued
3.
brand is involves
a name,
1. A
2.
Branding
word
or words,
any name,
symbol,
symbol,
oran
design
or device
that
identifies uses
an
organization
organization
andand
its
to identify itself
products.
A brand
its products.
name is a word or
words, letters, or
numbers
representing a
brand that can be
spoken.
14
Checking Concepts
4.
Differentiate between the three basic types
of brands.
5.
Define co-branding.
6.
Explain product licensing.
continued
4. Manufacturer
5.
Co-branding is a
6.
brands
branding
are
strategy
owned
by
thatthe
combines
producerone
of
the
or more
product;
brands to
intermediary
increase customer
brands
loyalty and
carrysales
a
name
for each
developed
product. by
the wholesaler, the
retailer, or catalog
house; generic
brands carry no
branding.
15
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.
7.
8.
All major sports
organizations use
sponsorships to help
finance their operations;
sponsors get exposure of
their products and free
publicity. Endorsements
involve using 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.
16