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

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When a brand name or trade name is registered, it also becomes a trademark.

brand name

trademark

The Importance of Branding

Customers are generally willing to pay a higher price for products with brand equity.

brand equity

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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.

.2.

.3.

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Types of Brands and Strategies

The three basic types of brands are:

manufacturer brand

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Manufacturer brands– Co-branding

co-branding

Intermediary brandsintermediary brand

Generic brands generic brands

Developing Brand Names

For a brand to be successful, it should:

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Offer a benefit..Be different and positive..Be previously unregistered.

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

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 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:SignageEntitlementsFacility entitlementsProduct 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:AssociationDemographic matchSuccessful careersImage

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

Reinforceimage

Build teamspirit

Profit

Build presencethroughmerchandise

Reach a newaudience

Mutual Advantages

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.

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.

5.6.

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.

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Critical Thinking

8.

Checking Concepts7.

8.