1.06 positioning. terms brand: name/words/symbol that identifies an organization and its products...

1.06

Positioning

Terms

Brand: name/words/symbol that identifies an organization and its productsBrand awareness: making target market recognize and remember brand nameBrand image: consumers’ set of beliefs about a brand, which shapes their attitudesBrand equity: value a brand has beyond its actual functional benefitsBrand loyalty: a consistent preference of one brand over all others in a product category

Purposes of Branding

Allows an organization to distinguish and differentiate itself from othersAffects consumer behavior

Branding Process

Brand Awareness

Brand Image

Brand Equity

Brand Loyalty

Factors That Influence Brand Awareness

Team NameMascotLogo

The distribution of licensed sports apparel is an effective way to create team and brand awareness

Factors That Influence Brand Image

Product featuresProduct qualityPriceBrand nameCustomer servicePackagingAdvertising/Promotion

Categories of Factors That Impact Brand Equity

Team-relatedSuccess/PerformanceHead CoachStar Player

Categories of Factors That Impact Brand Equity

Organization-relatedReputation & traditionLeague/Conference scheduleEntertainment package/product delivery

Categories of Factors That Impact Brand Equity

Market-relatedMedia coverageGeographic locationCompetitive forces

Factors That Create Brand Loyalty

Entertainment valueAuthenticityFan bondingHistory/tradition

Terms

Licensing: Permission to copy trademarked property for a percentage of actual sales, also called royaltiesLicensor: the rights-holder of the name, logo, or trademarkLicensee: company paying for permission to use the name, logo, or trademark

Note: sports marketers have an advantage in licensing because of sports’ universal appeal

Trademarks & Licensing

Word, phrase, symbol, or design that identifies and distinguishes the company from othersHas legal protection through the U.S. Patent and Trademark Office

Licensing & Endorsements

Licensing: passive association with a licensee, “sign & collect”Endorsements: active association with a licensee--”Try this product!”

License Agreements

Licensor

Licensee

Consumer

How Licensors Benefit

• Enhanced company image and publicity

• Increased profit from royalties.

• Increased brand awareness or recognition

• Increased opportunity for penetrating new markets

How Licensors Are Compensated

Companies typically pay between 5 and 10 percent of wholesale sales in the form of royalties

Licensor Risks

Potential for poor quality of a licensee’s manufactured productsPartial relinquishment of control over the marketing mix of the brand

Licensee Benefits

Existing brand awareness or recognitionLower advertising and promotional costsIncreased possibility of success and profitabilityConnection with an athlete, sports team, entertainer, or corporation

Licensee Risks

Athlete, entertainer, or corporation may lose popularity.Sports teams may suffer losing seasonsChange in styles, trends, and consumer preferencesRoyalties and licensing fees can be expensiveManufacturing costs and risksCompetition can drive up costs associated with fees and royalties

Endorsements & Testimonials

Endorsement: using a celebrity’s presence to imply that the celebrity is associated with the organization Grand openings Autograph sessions Clinics/concerts

Testimonial: using a celebrity in an advertisement testifying to the effectiveness of a product

Cross-Promotion

• Appearing in an advertisement for one brand while wearing/using another brand

Benefits of Celebrity Endorsements

Reach another market Match brand with celebrity's image Effectiveness of promoting brands related to

their sport/vocation

Bad Celebrity Endorsements

Yikes! Cost Believability/Fit Negative Publicity

Celebrity Endorsements and the Law

Statements must reflect honest opinion Statements must be substantiated Disclosure of financial ties

Naming Rights

Key Players Team Corporations Advertising Agencies Television/Radio Rights Holders

Naming Rights

Reasons to Sell Naming Rights

– Revenue– Opportunity for new

market

• Reasons to Buy Naming Rights– Provides exclusivity– Maximize exposure

Naming Rights

Advantages Promote goods/services Promote customer retention Increase market share

Disadvantages Cost Long-term commitment Association with losing team

Naming Rights

Businesses to Avoid

– Gambling

– “Adult” Entertainment

– Controversial companies

Naming Rights

Strategies

– Increase sales

– Increase market share

– Raise awareness