1.06
POSITION PRODUCT/SERVICES TO
ACQUIRE DESIRED BUSINESS IMAGE
BRAND AWARENESS
• Brand is defined as all the combined
impressions and experiences associated with a
particular person, company, organization,
good, or service.
• A team name, mascot, and logo are some of
the physical images that create brand
awareness or recognition among the public.
BRAND AWARENESS
LICENSED SPORTSWEAR
• The distribution of licensed sports apparel is an effective
way to create team and brand awareness. Sports
marketing involves planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and
services related to sports or athletes to achieve individual
or organizational goals.
• For example, golfer Tiger Woods wears Nike apparel and
does television commercials for various Nike products.
Woods reinforces potential Nike brand recognition each
time he wears a Nike logo shirt or hat during a televised
golf tournament.
LICENSED SPORTSWEAR
• A sports team that permits a clothing company to
print the team logo on sweatshirts and then sells the
sweatshirts to consumers is an example of distributing
licensed sports apparel. Consumers who purchase and
wear the clothing are promoting a specific team which
creates brand awareness.
• Corporations sponsoring sporting events use their
name to increase brand recognition, NOT to decrease
it. High-profile athletes who endorse particular
products tend to increase product recognition.
LICENSED SPORTSWEAR
BRAND EQUITY
Brand equity is the positive feelings of goodwill toward a brand
that accumulates over time when customers' expectations are
consistently met.
Fan loyalty to star athletes, popular coaches, and winning records
(performance) tend to stabilize brand equity for a team over time.
Tradition, reputation, and strength of schedule are organizationrelated factors that affect brand equity.
• UNC legend Dean Smith was held in high respect by college
basketball lovers. Coach K has had the chance to coach teams for
the Olympics. Seeing them so much on TV gives a fan the sense
he/she actually knows them.
LEGENDS
LICENSING – TRADEMARKED
PROPERTY
• Trademarked property is the foundation for the
licensing process. All teams and sports events
must copyright their names, logos, slogans, and
graphics in order to legally protect them.
• Neglecting to do so means other companies
could use the name and logo without permission.
Without a copyright, a company cannot make
money from licensing.
LICENSING – TRADEMARKED
PROPERTY
• NASCAR is a licensor to a licensee who produces
earrings using the NASCAR name and logo.
• Converse shoes are branded products (not
licensed products – no license involved).
Wheaties cereal box is an example of
endorsement (use of celebrities), and the Wells
Fargo golf tournament is an example of
sponsorship.
PROMOTION
Licensed Product
Testimonial
Sponsorship
Branded Product
ROYALTIES
• Royalties are a % of actual sales. Once the guarantee is paid off,
licensors start receiving royalties, usually anywhere from five to
fifteen %.
• To qualify as a potential NFL licensee, you must be a manufacturer
and not a distributor/middleman. You must also demonstrate the
ability to pay the minimum royalty guarantee of about $100,000 a
year and the ability to generate enough sales to meet the annual
minimum guarantee on a long-term basis.
• Auburn University more than doubled its royalties from licensed
merchandise sales after winning a national football championship.
• Merchandise royalties at Auburn surged to $5.3 million for 2010-11
from $2.5 million a year earlier.
NATIONAL CHAMPIONSHIP
UNIVERSAL APPEAL OF SPORTS
• The universal appeal of sports is the main
advantage sports licensors have over other types
of licensors in the international marketplace.
• Soccer is the most popular sport in the world, but
it isn't the main cause for successful international
sports licensing. Just because a foreign country is
wealthy does not mean that the money goes to
buying licensed sports products.
UNIVERSAL APPEAL OF SPORTS
• Success in the U.S. does not necessarily mean
an advantage for licensing overseas. The U.S.
market has become more and more saturated,
making international licensing more of a
necessity to make money.
ENDORSEMENTS
• Some endorsements involve paying celebrities to use their
pictures on a product or label or to appear at an event.
This is a way of endorsing a product or event simply by
being associated with it. The celebrity doesn't say the
product or event is great, but that is what consumers
usually think.
• An example is a celebrity attending a grand opening to
attract customers. Endorsing an event simply by being
associated with it does NOT involve appearing in a print
ad, saying a tournament is great, or cheering for a
football team. Cereal boxes are used as endorsements by
athletes.
ENDORSEMENTS
TESTIMONIAL
• A testimonial is a statement by an identified user of a
product proclaiming the benefits received from the use
of the product. A celebrity who is paid to use a product
and discuss its effectiveness during a lengthy TV
commercial, or infomercial, is actually giving a
testimonial for the product.
• During the infomercial, the celebrity explains why the
product is good and why consumers should buy it.
During an infomercial, the celebrity usually follows a
script rather than making a personal observation.
TESTIMONIAL
CROSS-PROMOTION
• Cross-promotion occurs when a celebrity endorses more than one
product, or products for another company. Then, all the companies
gain from the increased awareness because consumers associate
the celebrity with all the products.
• An example of cross-promotion is a celebrity appearing in a
commercial for a soft drink while wearing a certain brand of
clothing and holding a certain brand of tennis racquet. All
products benefit, although the commercial is actually for the soft
drink.
• Another example, mobile phone network may work together
with a popular music artist and package some of their songs as
exclusive ringtones - promoting these ringtones can benefit both
the network and the artist.
CROSS-PROMOTION
• What cross-promotion is not: Public relations is a function
of business designed to establish good relations between
the business and the public.
• Team-building is the use of cooperative efforts among
employees and management to accomplish company goals
and objectives.
• Personal selling is the form of promotion that determines
client needs and wants and responds through planned,
personalized communication that influences purchase
decisions and enhances future business opportunities.
CROSS-PROMOTION
MJ is paid to promote Gatorade – but the Bulls
benefit as well, as he has on a Bulls’ jersey
PROFESSIONALS PROMOTING SPORTS
PRODUCTS
Celebrity endorsers are often considered to be
particularly effective promoting products related to their
sport. Their endorsement has a certain amount of
authority because they know a lot about those products.
Consumers assume they know about the products
because they are prominent in that particular sport.
Athletes usually are not necessarily effective in
promoting products simply because of their background,
education, or lifestyle. In fact, their background and
lifestyle may be controversial and have a negative effect
on endorsements. (Lance Armstrong)
Phelps Promotes Swimming – James
Promotes Basketball
NAMING RIGHTS
• Purchasing the naming rights to a facility/event is
very expensive. Because it often provides an
exclusive association with the sport/event
organization, the purchaser receives high
amounts of exposure.
• In addition, an exclusive relationship is more
likely to reduce media clutter and increase name
recognition. An organization purchasing naming
rights generally makes the investment to create
or maintain a certain image.
NAMING RIGHTS
• However, the purchase does NOT guarantee
fan-base loyalty will increase. Fan-base loyalty
is driven by many factors including team
performance. Purchasing naming rights to a
facility does NOT reduce the need to pursue
other promotional activities.
MERCEDES-BENZ SUPERDOME
NAMING RIGHTS - SPONSOR
• A sponsor is a business that pays to associate its
name/products with a sporting event. To
encourage businesses to sponsor events, sports
organizations sometimes offer a business the right
to include its name with the name of the event.
• For example, McDonald's sponsors several golf events, and
its name is part of the title, such as the McDonald's LPGA
Championship. In return for the naming rights, the
business pays a significant amount of money that helps to
support the event.
SPONSORS
• Sponsors DO NOT receive a % of the profits. In
fact, their financial contribution often is
needed to make the event POSSIBLE. Sponsors
ARE NOT partial owners. They can decide at
any time to withdraw financial support, which
means the event needs to find another
sponsor.
NAMING RIGHTS - COLLEGE
It is very expensive for colleges to build new sport facilities.
Selling naming rights is one way for to offset the
construction expenses. By allowing an individual or
business to buy the right, the college may not need to
increase ticket prices/college tuition to pay for the
construction. Naming rights often sell for millions of
dollars.
Although it is possible an individual or business would
purchase the rights for a sport facility to honor a former
student-athlete, it is more likely a business would buy the
rights for promotional purposes, such as media exposure.
NAMING RIGHTS - COLLEGE
• Selling naming rights might create buzz and
publicity for the college or university for a
short period of time, but short-term publicity
won't cover the costs of building a multimillion dollar facility. Fans attend sporting
events because they support their school and
team, NOT BECAUSE they like the name of the
building.
NAMING RIGHTS - COLLEGE
UNC Kenan Stadium, Chapel Hill, NC
Wells Fargo Arena, Arizona State,
Tempe, Arizona
REVIEW
58. The team name, mascot, and logo are
important elements that a sport/event
organization uses to create & maintain:
•
•
•
•
A.
B.
C.
D.
financial accountability.
Brand awareness
image extension.
market segmentation.
58. The team name, mascot, and logo are
important elements that a sport/event
organization uses to create & maintain:
•
•
•
•
A.
B.
C.
D.
financial accountability.
Brand awareness
image extension.
market segmentation.
59. Which of the following statements is true
regarding sports marketing?
• A. Corporations sponsor sporting events to
decrease their brand recognition.
• B. The distribution of licensed sports apparel is
an effective way to create team and brand
awareness.
• C. The use of high-profile athletes to endorse
products does not increase brand recognition.
• D. Sports marketing encompasses only the radio
and television media.
59. Which of the following statements is true
regarding sports marketing?
• A. Corporations sponsor sporting events to
decrease their brand recognition.
• B. The distribution of licensed sports apparel is
an effective way to create team and brand
awareness.
• C. The use of high-profile athletes to endorse
products does not increase brand recognition.
• D. Sports marketing encompasses only the radio
and television media.
60. Team related factors that affect brand
equity include:
•
•
•
•
A.
B.
C.
D.
schedule, coaches, and reputation.
tradition, performance, and star athletes.
performance, coaches, and star athletes.
star athletes, schedule, and tradition
60. Team related factors that affect brand
equity include:
•
•
•
•
A.
B.
C.
D.
schedule, coaches, and reputation.
tradition, performance, and star athletes.
performance, coaches, and star athletes.
star athletes, schedule, and tradition
61. The basis for the licensing process is:
•
•
•
•
A.
B.
C.
D.
the fans.
Manufacturing.
trademarked property.
sponsorship.
61. The basis for the licensing process is:
•
•
•
•
A.
B.
C.
D.
the fans.
manufacturing
trademarked property.
sponsorship.
62. Which of the following is an example of a
licensed product:
•
•
•
•
A.
B.
C.
D.
NASCAR earrings
Buick Invitational golf tournament
Converse shoes
Wheaties cereal box featuring an
athlete
62. Which of the following is an example of a
licensed product:
•
•
•
•
A.
B.
C.
D.
NASCAR earrings
Buick Invitational golf tournament
Converse shoes
Wheaties cereal box featuring an
athlete
63. What are royalties?
•
•
•
•
A.
B.
C.
D.
A % of expected sales
A % of actual sales
A % of union dues
A % of taxes
63. What are royalties?
•
•
•
•
A.
B.
C.
D.
A % of expected sales
A % of actual sales
A % of union dues
A % of taxes
64. Sports marketers have an advantage over
all other types of licensors in the international
marketplace because:
•
•
•
•
A.
B.
C.
D.
soccer is so popular
sports are universally appealing
foreign countries are usually wealthy
they already make so much money in the
U.S. market
64. Sports marketers have an advantage over
all other types of licensors in the international
marketplace because:
•
•
•
•
A.
B.
C.
D.
soccer is so popular
sports are universally appealing
foreign countries are usually wealthy
they already make so much money in the
U.S. market
65. Which of the following is an example of a
celebrity endorsing an event simply by being
associated with
•
•
•
•
A.
B.
C.
D.
Saying a tournament is great
Attending a grand opening
Appearing in a print ad
Cheering for a football team
65. Which of the following is an example of a
celebrity endorsing an event simply by being
associated with
•
•
•
•
A.
B.
C.
D.
Saying a tournament is great
Attending a grand opening
Appearing in a print ad
Cheering for a football team
66. A celebrity who is paid to use a product
and discuss its effectiveness during a lengthy TV
commercial is giving a(n):
•
•
•
•
A.
B.
C.
D.
personal observation
testimonial
interview
Sales promotion
66. A celebrity who is paid to use a product
and discuss its effectiveness during a lengthy TV
commercial is giving a(n):
•
•
•
•
A.
B.
C.
D.
personal observation
testimonial
interview
Sales promotion
67. A celebrity’s appearance in a commercial
for a soft drink while wearing a certain brand of
clothing and holding a certain brand of tennis
racquet is an example of:
•
•
•
•
A.
B.
C.
D.
Cross-promotion
Public relations
Team-building
Personal selling
67. A celebrity’s appearance in a commercial
for a soft drink while wearing a certain brand of
clothing and holding a certain brand of tennis
racquet is an example of:
•
•
•
•
A.
B.
C.
D.
Cross-promotion
Public relations
Team-building
Personal selling
68. Athletes are often considered to be
particularly effective promoting products related
to their:
A.
• B.
• C.
• D.
•
Education
Background
Sport
Lifestyle
68. Athletes are often considered to be
particularly effective promoting products related
to their:
A.
• B.
• C.
• D.
•
Education
Background
Sport
Lifestyle
69. A primary reason large businesses
purchase the naming rights to a new
sport/event facility is because it:
• A. Usually increases spectator fan-base loyalty
levels
• B. Is the least expensive way to create name
recognition
• C. Reduces the need to engage in other
promotional activities
• D. Provides exclusivity and has potential to
maximize exposure
69. A primary reason large businesses
purchase the naming rights to a new
sport/event facility is because it:
• A. Usually increases spectator fan-base loyalty
levels
• B. Is the least expensive way to create name
recognition
• C. Reduces the need to engage in other
promotional activities
• D. Provides exclusivity and has potential to
maximize exposure
70. What might a sports organization offer a
business to encourage that business to sponsor
an event?
•
•
•
•
A.
B.
C.
D.
Naming rights
Percent of profits
Partial ownership
Free advertisement
70. What might a sports organization offer a
business to encourage that business to sponsor
an event?
•
•
•
•
A.
B.
C.
D.
Naming rights
Percent of profits
Partial ownership
Free advertisement
71. A primary reason many colleges sell the
naming rights for their new football stadiums or
basketball arenas is to:
• A. Help pay for construction costs
• B. Honor a former student-athlete
• C. Create publicity for the new facility
• D. Encourage fans to attend sports events
71. A primary reason many colleges sell the
naming rights for their new football stadiums or
basketball arenas is to:
•
•
•
•
A.
B.
C.
D.
Help pay for construction costs
Honor a former student-athlete
Create publicity for the new facility
Encourage fans to attend sports events