3What is a BRAND?All the combined impressions and experiences associated with a particular person, company organization, or product.
4Define the terms Brand Awareness & Brand Image Recognition among the publicExtent to which a brand is correctly associated with a particular product.Expressed usually as a percentage of target marketThe primary goal of advertising in the early months or years of a product's introduction.Brand imageConsumer’s beliefs about the company and/or products.Quality, price, and value may affect a brand’s image.
5Define the terms Brand Equity & Brand Loyalty Positive feelings toward a brand that accumulate over time when customer’s expectations are consistently metA highly recognizable brand has a high level of brand equity.Brand equity is an intangible perception or memory.Brand loyaltyThe extent of the faithfulness of consumers to a particular brandexpressed through their repeat purchases, regardless of the marketing pressure generated by the competing brands.
6Brand 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: ?????????? = Recognition to the public!
7Brand awareness, equity, loyalty OR Image?? Performance, coaches and star athletes are team-related factors that affect: ?????????? BRAND EQUITY
8Describe the purposes of branding in sport/event marketing. Branding aims to establish a significant and differentiated presence in the marketBranding attracts and retains customer loyaltyBranding will encourage customers to pay a higher price for goods and services
9Describe the purposes of branding in sport/event marketing. Branding simplifies the ability to distinguish products from a wide range of competing productsBranding allows transfer of the brand to new products including licensed products
10Explain the Branding process 1. Analysis of your current assets (SWOT analysis)InternalExternalStrengthsWeaknessesOpportunitiesThreats
11Explain the Branding process 2. How do consumers perceive your product?This will provide a picture for the brand image required3. Determine your brand awareness with consumers4. Implement a Marketing Mix plan for your product
12Discuss factors that influence a sport’s/event’s brand image. PriceLow, middle or highQualityValuePerformanceWin, lose, tradition
13Organization-related Describe categories of factors that contribute impact brand equity of a sport/eventTeam-relatedStar athletesPopular and successful coachesPerformance – short or long termOrganization-relatedTradition, reputation & strength of scheduleScandals – recent or pastPublic Relations – responsiveness & typeMarket-related over timePopulation & economic changes – up or downFan loyalty due to athletes, coaches and/or performance
14Explain how sport/event marketers can use product extensions/merchandise to build brand equity Variety of productsImportance to consumers
15Explain the consequences of establishing positive brand equity for a sports/event Attendance increasesIncreased sales and consumer loyalty
16Discuss factors that create BRAND LOYALTY Entertainment valueAuthenticityFan bondingHistoryTraditionPerformanceAthletes, coaches, owners
17Explain the use of LICENSING in sport/event marketing
18Trademarked Property Foundation for the licensing process All teams and sports events MUST copyright their names, logos, slogans and graphics to LEAGALLY PROTECT themNot doing so would allow other companies to use a name and logo without permission.Without a trademark- a company CANNOT make money from licensing
19Explain 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 OfficeAny entity wishing to protect their trademarks must register the trademark and post the designated symbol next to the item they wish to protectIt is these trademarks that licensees wish to use
20Define the terms Licensing, Licensor & Licensee. 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 royaltyLicensoris the rights-holder of the name, logo, or trademarkNASCAR, PanthersLicenseeis the company paying for the permission to use the name, logo, or trademark.Nike and Reebok
21Define 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 licensorLicensing 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 licensing could be the factor between success or failure
22Sports LicensingOne of the top four revenue producers in the licensing worldIn the U.S., the business is dominated by the five major sports leaguesNFL, MLB, NBA, NASCAR and NHLOther significant licensing campaigns:NCAAOver 300 colleges/universities in the U.S. are involved in collegiate licensing, marketing their rights primarily to the apparel market
26Types of Sports License Agreements Brand licensingProcess 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)SponsorshipSupporting an event, activity or organization by providing money or other resources that is of value to the sponsored eventUsually in return for advertising for the eventBusiness, individuals or organizations can sponsor eventsEndorsementAthletes go into contracts with companies to promote their product by “tying” their name to it.
27Arrangement to license a brand requires a Licensing vs. BrandingLicensing AgreementBrandingLicensing agreement authorizes a company (licensee) which markets a product to lease or rent a brand from a brand owner (licensor) who operates a licensing programLicensing enables companies whose brands have brand loyalty to unlock a brand's value and satisfy existing demandThe brand or its legal term, trademark, affixed to the product helps the consumer understand where it was manufactured or producedTrademark simply states “I made this”From the brand owner's perspective, it distinguishes the products or services from those of its competitorsArrangement to license a brand requires alicensing agreement
28License vs. Sponsorship Trademark LicenseSponsorshipUnderpins all merchandisingDefines 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 trademarkCompanies 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 eventThis offers them massive exposure as the millions of fans and viewers who tune into sports events across the globe see the brands in question many hundreds of times
29License vs. Endorsements Trademark LicenseEndorsementUnderpins all merchandisingDefines 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 trademarkOne constant in the advertising world is companies hiring athletes and sports celebrities to endorse/promote their productsThe reason is simple – nothing sells a product like a sports celebrity endorsementAthletes 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 GiletteCam Newton and Under ArmourBlake Griffin and Subway
30Explain the use of LICENSING in sport/event marketing Continued…
31Recall…..What is a license?What is a licensor?What is a licensee?
32Licensor’s Compensation Licensed products are manufactured by licensees governed by a contractual agreement (license) with a licensorLicensee must gain approval from licensor for any products producedAdditionally, they may also agree on payment with product, advertising, etc. as specified by the contract agreementRoyalties:Percentage of actual salesOnce the guarantee is paid off- LICENSORS start receiving royaltiesTypically between 5% and 15% of sales
33Licensor Benefits Enhanced brand image and publicity Increased profit from royaltiesIncreased brand awareness or recognitionIncreased opportunity for penetrating new markets (especially international) or enhancing existing marketsIncreased revenues from sales as a result of brand awareness and expansion of new markets or enhancement of existing marketsLimited manufacturing costs or risks
35Licensor RisksPotential for poor quality of a licensee’s manufactured productsDirectly affects BRAND IMAGEPartial giving-up of control over the marketing mix of the brand
36Licensee Benefits Existing brand awareness or recognition Lower advertising and promotional costsIncreased possibility of success and profitabilityConnection with an athlete, sports team, entertainer, or corporationGreater chance of major retailers accepting distribution of your productsInternational success is probable because sports are universally appealing
37Licensee RisksAthlete, 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 with licensing fees and royalties and negatively impact market share
38International Licensing Sports Marketers have an advantage over other types of licensors in the International Marketplace because…..UNIVERSAL APPEAL of sportsGrowth of international participation and spectators of sports in general makes international licensing in SEM NECESSARY.
40EndorsementsEndorsement is an action made by a celebrity or well-known person as follows:Testimonial (statement or advertisement), by a user of the product proclaiming the product’s benefitsAppearance (association), is an action whereby the endorser appears at an event. The celebrity does not have to do or say anything but consumers believe they like the product
41EndorsementsEndorsements are advantageous to a company in the same manner as licensing but also have the same disadvantagesEndorsements are legal and binding contracts and the company and celebrity must adhere to the details
42Ways Celebrities can Endorse Products Product endorsement campaignsUse the product publicly when possibleAllow their name to be used on productsWritten or verbal testimonialsAllow use of their photo with or on the product in advertising and packaging
43When Celebrity Endorsements can be BENEFICIAL to a Brand Nothing sells a product like a celebrity endorsementAthletes and celebrities appeal to all advertising demographicsEspecially to the key younger demographics.INCREASE your company’s brand image, awareness, equity and loyalty
44When Celebrity Endorsements can be HARMFUL to a brand When the celebrity:Loses popularity with the target audienceGets into troubleTiger WoodsMichael VickMay be injured and/or retire BEFORE the endorsement contract term is over
45So Why do Businesses use Celebrity Endorsements? Nothing sells a product like a celebrity endorsementAthletes and celebrities appeal to all advertising demographicsEspecially to the key younger demographics.INCREASE your company’s brand image, awareness, equity and loyalty
46Legal 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 endorsementsAdvice on when financial ties between advertisers and celebrities must be disclosed Must reflect the honest opinion or experience of the endorser and remain the sameIf the audience would reasonably expect that a financial connection exists, disclosure is unnecessary
47Legal 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 dealNow 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 disclosure
49Define 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:Sport teams/owners – venue owners – corporations
50Buyer/sponsor/corporation: Explain advantages/disadvantages for teams/events selling corporations naming rights.Buyer/sponsor/corporation:Exclusivity at a marketing venueMaximize promotion of products and servicesPromote customer retention and or increase market shareCan be a good public relations plan for communityThis can be very expensive and may not be your target marketTeam may have losing season or lose popularity
51Explain advantages/disadvantages for teams/events selling corporations naming rights. Seller/venue:Increases revenue and public awareness of venueA means to pay for construction or maintenance costs at the venueGood public relations in gaining corporation support within a communityMost naming right deals involve suite purchase tooVenue must be protective of it’s target market and sign with correct corporationCorporate entity could go bankrupt, engage in fraudulent activities or be purchased