SEM1 1.06_PP Assignments ByersT[1].pptx

1.06

What is a

BRAND

?

All the combined impressions and experiences

associated with a particular person, company

Define the terms

Brand Awareness & Brand Image

•

Brand awareness

• _{Recognition among the public}

• _{Extent to which a brand is correctly associated with a particular}

product.

• Expressed usually as a percentage of target market

• The primary goal of advertising in the early months or years of a

product's introduction.

•

Brand image

• _{Consumer’s beliefs about the company and/or products.}

Define the terms

Brand Equity & Brand Loyalty

•

Brand equity

– _{Positive feelings toward a brand that accumulate over}

time when customer’s expectations are consistently met

• A highly recognizable brand has a high level of brand equity.

• Brand equity is an intangible perception or memory.

•

Brand loyalty

– _{The extent of the faithfulness of consumers to a particular}

brand

• _{expressed through their repeat purchases, regardless of the}

Brand awareness, equity, loyalty

OR Image??

The team name, mascot and logo are important

elements that a SEM organization uses to

CREATE and MAINTAIN:??????????????

BRAND AWARENESS

The distribution of licensed sports apparel is an

effective way to create team: ??????????

BRAND AWARENESS

Brand awareness, equity, loyalty

OR Image??

Performance, coaches and star athletes are

team-related factors that affect: ??????????

Describe the purposes of branding in

sport/event marketing.

•

Branding aims to establish a significant and

differentiated presence

in the market

•

Branding attracts and retains

customer loyalty

•

Branding will encourage customers to

pay a higher

Describe the purposes of branding in

sport/event marketing.

•

Branding simplifies the ability to

distinguish products

from a wide range of competing products

•

Branding allows

transfer

of the brand to new

Explain the Branding process

1. Analysis of your current assets

(SWOT analysis)

Internal

External

Strengths Weaknesses

Explain the Branding process

2. How do consumers

perceive your product

?

• This will provide a picture for the brand image required

Discuss factors that influence a

sport’s/event’s brand image.

•

Price

–

Low, middle or high

•

Quality

–

Low, middle or high

•

Value

–

Low, middle or high

•

Performance

Describe categories of factors that contribute

impact brand equity of a sport/event

•

Team-related

– _{Star athletes}

– _{Popular and successful coaches} – _{Performance – short or long term}

•

Organization-related

– _{Tradition, reputation & strength of schedule} – _{Scandals – recent or past}

– _{Public Relations – responsiveness & type}

•

Market-related over time

– _{Population & economic changes – up or down}

Explain how sport/event marketers can use product

extensions/merchandise to build brand equity

•

Variety of products

Explain the consequences of establishing

positive brand equity for a sports/event

•

Attendance increases

Discuss factors that create

BRAND LOYALTY

•

Entertainment value

•

Authenticity

•

Fan bonding

•

History

•

Tradition

•

Performance

“We Do”

Here is a list of some sports and events. We will

identify as many ways as possible that each

establishes positive brand EQUITY and brand

LOYALTY.

“You Do”

With your group- you will create a list of at least

5 potential brand extension/merchandise that

could be used to build brand equity for an

ACHS event.

Trademarked Property

-

Foundation for the licensing process

-

All teams and sports events MUST copyright

their names, logos, slogans and graphics to

LEAGALLY PROTECT them

-

Not doing so would allow other companies to

use a name and logo without permission.

-

Without a trademark- a company CANNOT

Explain the relationship between trademarks

and licensing.

•

Trademark

is a word, phrase, symbol, logo or

design that identifies and distinguishes the company

from others.

• _{A trademark has legal protection through the United} States Patent and Trademark Office

• _{Any entity wishing to protect their trademarks must} register the trademark and post the designated symbol next to the item they wish to protect

Define the terms Licensing, Licensor & Licensee.

•

Licensing

• _{is the permission to copy the name, logo, or}

trademark of a league, athlete, sports team,

entertainer, film, television show, or character for a fee, also called a royalty

•

Licensor

• _{is the rights-holder of the name, logo, or trademark} • _{NASCAR, Panthers}

•

Licensee

• _{is the company paying for the permission to use the}

name, logo, or trademark.

Define Sports Licensing

•

Sports licensing

– _{is a contractual agreement by which a sports team, athlete}

or organization gives a company a license to use its name, logo or trademark on the company’s products.

• The company gaining the rights is known as the licensee and the sports body is the licensor

– _{Licensing a sports product gives an opportunity to reach a}

market of sports fans that could be local, national or global, depending on the sports body.

• With global retail sales of sports merchandise estimated at $17.51 billion in 2009, according to EPM Communications, sports

Sports Licensing

•

One of the top four revenue producers in the

licensing world

•

In the U.S., the business is dominated by the five

major sports leagues

– _{NFL, MLB, NBA, NASCAR and NHL}

•

Other significant licensing campaigns:

– _NCAA

– _{Over 300 colleges/universities in the U.S. are involved in}

Estimated Licensing Revenues (2007)

Property Type Est. Licensing Revenue (in millions)

Art $175

Character (Entertainment, TV, Movie) $2,710

Collegiate $201

Fashion $810

Music $125

Non-profit (Museum, Charities) $43

Sports (Leagues, Individuals) $815

Trademarks/Brands $1,060

Publishing $41

“You Do”

Your group will:

1. Read one of the three articles

2. Create a 3-4 slide PPT on the important points in your chosen article

3. Present PPT to the class

Three Articles on: -Branding

Explain the use of LICENSING in

SEM

Types of Sports License Agreements

1. Brand licensing

• _{Process of creating and managing contracts between the}

owner of a brand/ licensor (Carolina Panthers) and a company or individual who wants to use the brand in association with a product/ licensee (NIKE)

2. Sponsorship

• _{Supporting an event, activity or organization by providing}

money or other resources that is of value to the sponsored event

• _{Usually in return for advertising for the event}

• _{Business, individuals or organizations can sponsor events}

3. Endorsement

• _{Athletes go into contracts with companies to promote}

Licensing vs. Branding

Licensing Agreement Branding

•Licensing agreement authorizes a company which markets a product (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor)

•Licensing enables companies whose brands have brand loyalty to unlock a brand's value and satisfy existing demand

•The brand or its legal term, trademark,

affixed to the product helps the consumer understand where it was manufactured or produced

•Trademark simply states “I made this”

•From the brand owner's perspective, it distinguishes the products or services from those of its competitors

License vs. Sponsorship

Trademark License Sponsorship

•Underpins all merchandising

•Defines the relationship between the owner of a trademark (licensor) and the producer of the goods or services to which the mark is to be affixed (the licensee)

•Licensors are not involved in the

manufacturing of the products, for their reputation’s sake they must ensure that licensees maintain the quality of the product bearing their trademark

•Companies seeking to promote their brand, build their brand awareness and brand image often team up with a

sporting organization or associate

themselves closely with a sporting event

License vs. Endorsements

Trademark License Endorsement

•Underpins all merchandising

•Defines the relationship between the owner of a trademark (licensor) and the producer of the goods or services to which the mark is to be affixed (the licensee)

•Licensors are not involved in the

manufacturing of the products, for their reputation’s sake they must ensure that licensees maintain the quality of the product bearing their trademark

•One constant in the advertising world is

companies hiring athletes and sports celebrities to endorse/promote their products

•The reason is simple – nothing sells a

product like a sports celebrity endorsement

•Athletes and sports celebrities appeal to all advertising demographics, and especially to the key younger demographics.

•Boost your company’s prestige and as a means for branding your company as a very successful one.

• Derek Jeter and Gilette

“You Do”

Explain the use of LICENSING in

sport/event marketing

Recall…..

•

What is a license?

•

What is a licensor?

Licensor’s Compensation

• _{Licensed products are manufactured by licensees governed by a}

contractual agreement (license) with a licensor

• _{Licensee must gain approval from licensor for any products}

produced

• _{Additionally, they may also agree on payment with product,}

advertising, etc. as specified by the contract agreement

•

Royalties:

– _{Percentage of actual sales}

Licensor Benefits

• _{Enhanced brand image and publicity} • _{Increased profit from royalties}

• _{Increased brand awareness or recognition}

• _{Increased opportunity for penetrating new markets}

(especially international) or enhancing existing markets

• _{Increased revenues from sales as a result of brand awareness}

and expansion of new markets or enhancement of existing markets

Licensor Risks

•

Potential for

poor quality

of a licensee’s

manufactured products

–

Directly affects

BRAND IMAGE

•

Partial giving-up of

control

over the marketing

Licensee Benefits

• _{Existing brand awareness or recognition}

• _{Lower advertising and promotional costs}

• _{Increased possibility of success and profitability}

• _{Connection with an athlete, sports team, entertainer, or}

corporation

• _{Greater chance of major retailers accepting distribution of}

your products

• _{International success is probable because sports are}

Licensee Risks

• _{Athlete, entertainer, or corporation may become involved}

in a scandal or lose popularity.

• _{Sports teams may suffer losing season(s).}

• _{Change in styles, trends, and consumer preferences.} • _{Royalties and licensing fees can be expensive.}

• _{Manufacturing costs and risks.}

• _{Competition (un-licensed) can drive up costs associated}

International Licensing

•

Sports Marketers have an advantage over

other types of licensors in the International

Marketplace because…..

–

UNIVERSAL APPEAL

of sports

–

Growth of international participation and

“You Do”

Explain the role of

Endorsements

•

Endorsement

• _{Testimonial (statement or advertisement), by a user of the}

product proclaiming the product’s benefits

• _{Appearance (association), is an action whereby the}

Endorsements

• _{Endorsements are advantageous to a company in the same}

manner as licensing but also have the same disadvantages

• _{Endorsements are legal and binding contracts and the}

Ways Celebrities can Endorse Products

• _{Product endorsement campaigns}

• _{Use the product publicly when possible} • _{Allow their name to be used on products} • _{Written or verbal testimonials}

• _{Allow use of their photo with or on the product in advertising}

and packaging

When Celebrity Endorsements can be

BENEFICIAL to a Brand

•

Nothing sells a product like a celebrity

endorsement

•

Athletes and celebrities appeal to all

advertising demographics

•

Especially to the key younger demographics.

•

INCREASE your company’s brand image,

When Celebrity Endorsements can be

HARMFUL to a brand

•

When the celebrity:

–

Loses popularity with the target audience

–

Gets into trouble

• _{Tiger Woods} • _{Michael Vick}

–

May be injured and/or retire BEFORE the

So Why do Businesses use Celebrity

Endorsements?

•

Nothing sells a product like a celebrity

endorsement

•

Athletes and celebrities appeal to all

advertising demographics

•

Especially to the key younger demographics.

•

INCREASE your company’s brand image,

Legal Considerations for Celebrity

Endorsements

• _{2009: The Federal Trade Commission(FTC) revised and}

approved what is often referred to as “The Guides”

– _{Practical tips to advertisers and the talent they hire on the lawful use of}

celebrity endorsements

– _{Advice on when financial ties between advertisers and celebrities must be}

disclosed

– Must reflect the honest opinion or experience of the endorser and remain the

same

– _{If the audience would reasonably expect that a financial connection exists,}

Legal Considerations Example

• _{A tennis star appears in ads for a line of polo shirts.}

– It’s unlikely that the terms of their endorsement contract would have to be disclosed because most people would expect they were paid for that kind of deal

• _{Now they are a guest on a morning talk show.}

– When asked about recent victories, they credit them to a laser vision correction procedure at a certain clinic.

– _{The athlete doesn’t disclose their contractual deal with the clinic that}

requires her to speak publicly about her surgery.

– _{Viewers might not realize that a celebrity discussing a medical}

procedure in a TV interview had been paid to tout the clinic.

– _{The endorsement is likely deceptive without a clear and conspicuous}

“You Do”

1. Select an athlete or other celebrity to

determine whose product’s the person

endorses.

2. Compile a listing of those products.

3. Beside each product, write a rationale for

why the person would have been selected to

endorse the product.

Explain the use of

Define the term naming rights.

•

Naming rights

-

are a financial transaction and

form of advertising (sponsorship) whereby a

corporation or other entity purchases the right to

name a facility or event, typically for a defined period

of time.

•

For properties like a multi-purpose arena, performing

arts venue or an athletic field, the term ranges from

three to 20 years.

•

Longer terms are more common for higher profile

venues such as a professional sports facility.

•

Key players in a naming rights sponsorship are:

•

Buyer/sponsor/corporation:

–

Exclusivity at a marketing venue

–

Maximize promotion of products and services

–

Promote customer retention and or increase

market share

–

Can be a good public relations plan for community

–

This can be very expensive and may not be your

target market

–

Team may have losing season or lose popularity

Explain advantages/disadvantages for

Explain advantages/disadvantages for teams/events selling corporations naming rights.

•

Seller/venue:

•

Increases revenue and public awareness of venue

•

A means to pay for construction or maintenance

costs at the venue

•

Good public relations in gaining corporation support

within a community

•

Most naming right deals involve suite purchase too

•

Venue must be protective of it’s target market and

sign with correct corporation

•

Corporate entity could go bankrupt, engage in