BRANDING & LICENSING

Section 7.1Branding

BRANDINGBrand Name – word or words, letters, or numbers representing a brand that can be spokenEX: Gatorade, Houston Rockets

Branding is the most important part of marketing. Brands create reputation and quality

Brand Personality – attaching human traits to a brand name. (Pro athlete endorsements)

BRANDINGBrand Equity – value a brand has beyond its actual functional benefits.

THREE STEPS OF ESTABLISHING A BRAND NAME:1. Develop – create a class of products2. Link – Emotional connection with product3. Help – influence customer feelings

BRANDINGTypes of Brands & Strategies

Manufacturer Brand – owned by the producer of the product

Intermediary Brand – developed by a whole- saler, retailer, or catalog.

Generic Brand – does not carry a company or brand name.

BRANDINGDeveloping a Brand Name:

Offer a benefitBe SimpleBe different and positiveReflect an ImageBe previously unregistered

Branding must last – Nike swoosh developed for $35. Most recognized brand in the world.

LICENSINGLicensing – agreement that gives a company the right to use another’s brand name, patent, or intellectual property for a royalty or fee.

In Sports Marketing a company may pay for use of a league’s, team’s, or player’s name

EX: Madden Football, T-Shirts,

LICENSINGLicensed Goods

Only licensed goods are legal in the USA

Each licensed good will have a licensing authentication

Non-Licensed goods are sold, but illegal and carry heavy fines

LICENSINGSponsorships – promotional vehicles that financially support sports events

Licensing rightsStadium Naming rightsProduct SamplingBillboardsFree TicketsReceptions with Athletes

LICENSINGEndorsements – statement of approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiser.Sports figures often paid more through endorsements than actual playing contract

Could require athlete to always be seen with the product. Set a number of promotional appearances.