Branding and Licensing Chapter 7

Brands Why are Brands important? Do you buy brand names? If so name some. Do you buy non-brand names? If not why.

Branding Defined Brand- is defined as a name, word or words, a symbol, or design that identifies an organization and it’s products. How many brands are we wearing today? Brand name- is defined as a part that can be spoken such as Adidas, Nike, or Los Angeles Lakers.

Branding When a brand name or trade name is registered, it also becomes a trademark. A Trademark is a device that legally identifies ownership of a registered brand or trade name.

Importance of Branding Branding is important for building customer loyalty. Expect the same quality from the brands they buy. Trust new products with the same brand. Branding also creates an image

Brand Personality Attaching human traits to a brand name Nike – have professional athletes endorse their products Phillies – brand personality as a winning team

3-Steps to Establishing Brands Develop – put the brand in the customer’s mind as a part of a class of products – Gatorade is a sports drink Link – brand name to a function and make an emotional connection – Gatorade helps athletes perform better Help – consumers feel the way you want them to – Gatorade is the best product for successful athletes

Branding Brand equity- is the value a brand has beyond its actual functional benefits. When a brand becomes popular, its value becomes a competitive advantage because most consumers equate the brand with quality. Customers will pay higher prices for products with brand equity

Branding Brand equity is developed over a period of time.

Sports Teams Steps Develop – Phillies are a professional baseball team. Link – Phillies fans think positively about the club and players. Help – Phillies fans stick with their team through the good and the bad seasons because of the bond they have.

Manufacturer Brands Multi-Product Branding – manufacturer uses one name for all products Nike – brand on all products Multi-Branding – each product has a different name. Proctor & Gamble – Secret, Old Spice, Sure Co-Branding – combines brands to increase customer loyalty – products should complement each other General Motors and PGA co-sponsored MasterCard

Types of Brands Manufacturer – owned by the producer of the product. Intermediary – carries a name of the wholesaler or retailer or catalogue house. Contracted with manufacturer. Generic – represents a general product category.

Intermediary Brands Carries a name developed by the wholesaler or retailer. Product is made by a manufacturer. Gander Mountain and Cabela’s

Generic Brands Represents a general product category – does not carry a company or brand name. Not usually used in the sporting goods industry. Possibly with fishing supplies; such as, worms

Developing Brand Names Offer a benefit Be simple Be different and positive Reflect an image Be previously unregistered

Offer a Benefit Offer customer value. Gatorade – helped the Univ. of Florida football team, the Gators, play better when it was hot. Known as the “second-half” team because of their stamina in the second half. “Ade” sounds like “Aid” so the drink helped them play better – thus “Gator – Aid”.

Be Simple Simple is more memorable: Nike Adidas Reebok Puma Fila Converse

Be Different and Positive Puma – positive – fast animal Usually distinctive Yankees White Sox Red Sox Giants

Reflect an Image Should say something about the product Wheaties has used athletes on box since 1930s Known as “The Breakfast of Champions”

Previously Unregistered www.uspto.gov Regulates wording than can or cannot be used Powerade and Sport Powerance Can also restrict the use of certain words. Such as, using heart with food items implies that the product is good for your heart.

Make it Last Choosing the right brand is critical Communicates the type of business and products Should last over time Nike swoosh was created in 1971 for $35 by a student of founder Phil Knight Based on the wing of the goddess Nike