Presentation on theme: "Sports & Entertainment Marketing Mrs. Wilson"— Presentation transcript:
1 Sports & Entertainment Marketing Mrs. Wilson LicensingSports & Entertainment MarketingMrs. Wilson
2 LICENSING: What DOES it mean? An agreement that give a company the right to use another’s brand name, patent, or other intellectual property for a royalty or a feeLicensorIs the company or individual granting the license for a fee in this legally binding contractLicenseeIs the company or individual paying for the rights to sue the licensor’s name or property
3 Licensed ProductsIn sports marketing, a company may pay a fee to use a league’s, team’s or individual’s name, image, or logo on a product or on its packagingSports figures on a box of cereal or T-shirt, you know that a company is paying a fee to that sports figure or team (licensor)Ex: NHL web site will show the types of licensing deals
5 The ProductsLicensing agreements can apply to just about any product imaginable.Apparel, key chains, toys, sports equipment, food products, credit cards, video games, and household items
6 Merchandising Licensed Goods It is available through many channels of distributionDepartment stores, chain stores, league-sponsored retail outlets, InternetSome own their own retail storesSweepstakes and contests are run by a sponsor, with the prize being tickets to the sporting event
7 Merchandising Licensed Goods Sponsors provide promotional supportSome licensed products are used as promo incentives for buying a productSports Illustrated:You may receive a free video of that year’s most celebrated athlete.The video is the licensed product.
8 Two Forms of Licensing: Sponsorships & Endorsements What is the world’s most recognized logo?
10 Companies Pay Top $$$They pay for the right to be identified as one of the sponsorsAgreements are made called sponsorships or endorsements
11 SponsorshipsPromotional vehicles that financially support sports eventsAll major sports organizations use sponsorships
12 Importance of Sponsorships Exposure & Free PublicityOlympics—exposure is internationalResearch is done to measure the impact of sponsorship programsCan you name a product or service that you associate with a sports figure?
13 Sponsorship Types Can be flexible Can sponsor a team for a length of time or just an eventJust portions of an event—halftime sponsorSignage--signs at a stadiumHoods / Uniforms--NASCARVirtual BoardsFloorboardsScoreboards
14 Premium SponsorshipTwo examples are entitlements and product exclusivityEntitlement: Occurs when there is one major sponsor for an eventEx: NASCAR signed a 10-year contract with Nextel (replacing who?? And why?)Ex: PGA grants entitlement sponsorships for almost all of its schedule of its tour events (Buick Invitational, Sony Open, AT&T National Pro-Am)Product Exclusivity: Only one product in a product category is granted sponsorship.Ex: Coca-Cola sponsors the Olympics, therefore only Coke can be sold at the Games.
15 Evaluating Sponsorship Effectiveness Why sponsorship worksaffinity marketingDefine affinity—An attraction to or liking for somethingRelationship/KinshipWhy it sometimes doesn’t workambush marketingDefine ambush—To attack
17 Examples of Ambush Marketing 1984 Olympics: Kodak sponsors TV broadcasts of the games as well as the US track team despite Fuji being the official sponsor. Fuji returns the favor in kind during the Seoul 1988 games of which Kodak is the official sponsor.At the 1992 Barcelona Olympics Nike sponsors press conferences with the US basketball team despite Reebok being the games’ official sponsor.In the greatest ambush marketing feat of all time Nike’s man Michael Jordan, Air Sponsorship himself, accepts the gold medal for basketball and covers up the Reebok logo on his kit.
18 Nike’s AmbushThe 1996 Atlanta Olympics is still seen as the ambush of all ambushes.Saving the US$ 50 million that an official sponsorship would have cost, Nike plastered the city in billboards, handed out swoosh banners to wave at the competitions and erected an enormous Nike center overlooking the stadium.The tactics devastated the International Olympic Committee’s credibility and spooked other organizations such as FIFA into adopting more assertive anti-ambushing strategies.
19 EndorsementsThis is a statement of approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiserUsually involve celebrity figures or a public figure
20 EntitlementsOccurs when there is one major sponsor for an event. NASCAR signed a 10-year contract with Nextel to be its sponsor. Benefit is exposure to the 75 million fans in over 100 countries.Also facility entitlements through which a company purchased the promotional rights to an entire stadium.
21 Product ExclusivityAnother premium sponsorship whereby only one product in a product category is granted sponsorship.No other competitor’s products can be sold or promoted. “Pouring rights” at our school is an example.
22 Assignment (if time permits) Name two forms of licensing and briefly describe them.How do sponsorships benefit the sports organization and the sponsor?