Presentation on theme: "1.06 Position product/services to acquire desired business image."— Presentation transcript:
1.06 Position product/services to acquire desired business image
Explain the nature of sport/event BRANDING
What is a BRAND? All the combined impressions and experiences associated with a particular person, company organization, or product.
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 Consumers beliefs about the company and/or products. Quality, price, and value may affect a brands image.
Define the terms Brand Equity & Brand Loyalty Brand equity – Positive feelings toward a brand that accumulate over time when customers 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 marketing pressure generated by the competing brands.
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 = Recognition to the public!
Brand awareness, equity, loyalty OR Image?? Performance, coaches and star athletes are team-related factors that affect: ?????????? BRAND EQUITY
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 price for goods and services
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 products including licensed products
Explain the Branding process 1. Analysis of your current assets (SWOT analysis) Internal External StrengthsWeaknesses OpportunitiesThreats
Explain the Branding process 2. How do consumers perceive your product? This will provide a picture for the brand image required 3. Determine your brand awareness with consumers 4. Implement a Marketing Mix plan for your product
Discuss factors that influence a sports/events brand image. Price – Low, middle or high Quality – Low, middle or high Value – Low, middle or high Performance – Win, lose, tradition
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 – Fan loyalty due to athletes, coaches and/or performance
Explain how sport/event marketers can use product extensions/merchandise to build brand equity Variety of products Importance to consumers
Explain the consequences of establishing positive brand equity for a sports/event Attendance increases Increased sales and consumer loyalty
Discuss factors that create BRAND LOYALTY Entertainment value Authenticity Fan bonding History Tradition Performance Athletes, coaches, owners
Explain the use of LICENSING in sport/event marketing
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 make money from licensing
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 It is these trademarks that licensees wish to use
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. Nike and Reebok
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 companys 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 licensing could be the factor between success or failure
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 collegiate licensing, marketing their rights primarily to the apparel market
Process of Licensing
Explain the use of LICENSING in SEM Continued…
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 their product by tying their name to it.
Licensing vs. Branding Licensing AgreementBranding Licensing agreement authorizes a company (licensee) which markets a product to lease or rent a brand from a brand owner (licensor) who operates a licensing program 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 Arrangement to license a brand requires a licensing agreement
License vs. Sponsorship Trademark LicenseSponsorship 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 reputations 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 This 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
License vs. Endorsements Trademark LicenseEndorsement 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 reputations 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 companys prestige and as a means for branding your company as a very successful one. Derek Jeter and Gilette Cam Newton and Under Armour Blake Griffin and Subway
Explain the use of LICENSING in sport/event marketing Continued…
Recall….. What is a license? What is a licensor? What is a licensee?
Licensors 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 – Once the guarantee is paid off- LICENSORS start receiving royalties – Typically between 5% and 15% of 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 Limited manufacturing costs or risks
Licensor Risks Potential for poor quality of a licensees manufactured products – Directly affects BRAND IMAGE Partial giving-up of control over the marketing mix of the brand
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 universally appealing
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 with licensing fees and royalties and negatively impact market share
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 spectators of sports in general makes international licensing in SEM NECESSARY.
Explain the role of ENDORSEMENTS in SEM
Endorsements Endorsement 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 products benefits Appearance (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
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 company and celebrity must adhere to the details
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 companys brand image, awareness, equity and loyalty
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 endorsement contract term is over
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 companys brand image, awareness, equity and loyalty
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, disclosure is unnecessary
Legal Considerations Example A tennis star appears in ads for a line of polo shirts. – Its 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 doesnt 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
Explain the use of NAMING RIGHTS in SEM
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: – Sport teams/owners – venue owners – corporations
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 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 its target market and sign with correct corporation Corporate entity could go bankrupt, engage in fraudulent activities or be purchased