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.

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The Importance of

Branding

Sports organizations and companies strive to develop strong brands to differentiate themselves from one another.

brand a name, word or

words, symbol, or

design that identifies an

organization and its

products

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When a brand name or

trade name is registered, it

also becomes a trademark.

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

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

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Brand equity has financial

value through licensing.

The Importance of

Branding

The three steps of developing brand equity are:

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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.

Types of Brands and

Strategies

The three basic types of

brands are:

manufacturer brand a

brand owned by the

producer of the product

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Manufacturer brands

– Co-branding

co-branding a branding

strategy that combines one

or more brands to increase

customer loyalty and sales

for each product

Intermediary brandsintermediary brand a brand

that carries a name

developed by the wholesaler,

retailer, or catalog house

Generic brands generic brands a brand that

represents a general product

category and does not carry

a company or brand name

Developing Brand Names

For a brand to be successful, it should:

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Offer a benefit.

Be simple.

Be different and positive.

Reflect an image.

Be previously unregistered.

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Your Online Sports Arena

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interactive polls, statistics, streaming broadcasts, and

merchandise. The Web’s ability to integrate these different

forms of media and commerce makes it perfect for satisfying

a sports enthusiast's every need.

For more information on sports and entertainment marketing,

go to marketingseries.glencoe.com.

Major sports organizations such as

NASCAR offer sophisticated sites that

provide not only news and information

about your sports figures, but also

links to tickets, TV schedules,

What are the three steps involved in

developing brand equity?

Name and provide an example of the three

types of brands.

What rules should be followed when

developing a good brand name?

1.

2.

3.

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Licensing and

Merchandising

Sports teams and athletes

may have licensing

agreements with product

manufacturers.

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licensing an agreement

which gives a company

the right to use another’s

brand name, patent, or

other intellectual property

for a royalty or feeThe 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 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.

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Sponsorships and

Endorsements

Sponsorships are the promotional vehicles that

financially support sports events.

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Types of sponsorships include:

Signage

Entitlements

Facility entitlements

Product exclusivity

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.

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Some important considerations are:

Association

Demographic match

Successful careers

Image

Sports Appeal

Through licensing, sponsorships, or endorsements,

companies can generate positive publicity and

achieve their marketing goals of increasing brand

awareness and sales.

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Benefits of Licensing

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Sports

Organizations

Companies

Reinforce

image

Build team

spirit

Profit

Build presence

through

merchandise

Reach a new

audience

Publicity

Revenue

Brand

awareness

Mutual Advantages

Name two forms of licensing.

How do sponsorships benefit the sports organization and the sponsor?

What do companies consider when selecting a sports celebrity for endorsement of a product?

1.

2.

3.

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Define brand and brand

name.

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Explain the concept of

branding and its

components.

A brand is a name,

word or words,

symbol, or design

that identifies an

organization and its

products. A brand

name is a word or

words, letters, or

numbers

representing a

brand that can be

spoken.

1. Branding involves

any name, symbol,

or device an

organization uses

to identify itself and

its products.

2.

Explain how brand equity

is developed.

Brand equity, the

value a brand has

beyond its actual

functional benefits,

is developed in the

consumer’s mind

when the brand is

identified as part of

a class of products.

3.

Checking Concepts

1.

2.

3.

continued

Differentiate between

the three basic types of

brands.

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Define co-branding.

Manufacturer

brands are owned

by the producer of

the product;

intermediary

brands carry a

name developed by

the wholesaler, the

retailer, or catalog

house; generic

brands carry no

branding.

4.

Explain product licensing.

Co-branding is a

branding strategy

that combines one

or more brands to

increase customer

loyalty and sales

for each product.

5. Licensing is a contract

agreement which gives

a company the right to

use another brand

name, patent, or other

intellectual property for

a royalty or fee.

Licensed goods are

available in retail

department stores,

chain stores, league-

sponsored retail

outlets, and on the

Internet.

6.

Checking Concepts

4.

5.

6.

continued

Explain why sponsorships

and endorsements are

important to sports

organizations and

sponsors.

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.

7.

Discuss the importance

of an athlete's image to a

company that is choosing

and endorser.20

Critical Thinking

Endorsers must

match target

markets, have

successful careers,

and have positive

public images.

8.

Checking Concepts

7.

8.

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