Retailing Chapter 2

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Branding
Licensing
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Chapter Objectives

• Explain the concepts of branding and brand
  equity.
• Discuss the types of brands.
• Describe how to develop an effective brand name.
• Discuss product licensing and how licensed goods
  are merchandised.
• Explain the importance of sports sponsorships and
  endorsements.
• Discuss how companies choose sports endorsers for
  their products.

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The Importance of Branding
brand a name, word or words, symbol, or design
that identifies an organization and its products

• Sports organizations and companies strive to
  develop strong brands to differentiate themselves
  from one another.

brand name a word or words, letters, or numbers
representing a brand that can be spoken
When a brand name or trade name is registered, it
also becomes a trademark.
trademark a device that legally identifies
ownership of a registered brand or trade name
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The Importance of Branding

• Customers are generally willing to pay a higher
  price for products with brand equity.

brand equity the value a brand has beyond its
actual functional benefits
Brand equity has financial value through
licensing.
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The Importance of Branding

• The three steps of developing brand equity are

1. Develop the brand in the customers mind as part
   of a class of products.
2. Link the products brand name to its function and
   make some type of emotional connection with the
   product.
3. Help consumers think and feel the way you want
   them to regarding your product.

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Types of Brands and Strategies
manufacturer brand a brand owned by the producer
of the product

• The three basic types of brands are

co-branding a branding strategy that combines
one or more brands to increase customer loyalty
and sales for each product

• Manufacturer brands
• Co-branding

intermediary brand a brand that carries a name
developed by the wholesaler, retailer, or catalog
house

• Intermediary brands

• Generic brands

generic brands a brand that represents a general
product category and does not carry a company or
brand name
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Developing Brand Names

• For a brand to be successful, it should

• Offer a benefit.
• Be simple.
• Be different and positive.
• Reflect an image.
• Be previously unregistered.

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Your Online Sports Arena
Major sports organizations such as NASCAR offer
sophisticated sites that provide not only news
and information about your sports figures, but
also links to tickets, TV schedules,

• Operating an e-tail business on an electronic
  channelthe Webcan be costly, due to design,
  delivery, returns, and operating expenses.
• Though Many larger dot-com companies crashed in
  the 1990s, small stores like Harris Cyclery of
  West Newton, Massachusetts, actually increase
  sales using a basic Web site. Today, a third of
  Harriss bicycle business rides in on the Web to
  get hard-to-find parts and personal service.
• Describe an e-businesss home page to your class
  after viewing one through marketingseries.glencoe.
  com.

interactive polls, statistics, streaming
broadcasts, and merchandise. The Webs ability to
integrate these different forms of media and
commerce makes it perfect for satisfying a sports
enthusiast's every need.
For more information on sports and entertainment
marketing, go to marketingseries.glencoe.com.
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• What are the three steps involved in developing
  brand equity?
• Name and provide an example of the three types of
  brands.
• What rules should be followed when developing a
  good brand name?

1.
2.
3.
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Licensing and Merchandising

• Sports teams and athletes may have licensing
  agreements with product manufacturers.

licensing an agreement which gives a company the
right to use anothers brand name, patent, or
other intellectual property for a royalty or fee

• The licensor is the company or individual
  granting the license.
• The licensee is the company or individual paying
  for the rights to use the licensors name or
  property.

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Licensing and Merchandising

• Licensed merchandise is made available through
  many channels of distribution.
• Special promotional deals create partnerships
  between the licensor and the licensee to help
  boost store traffic.
• Sweepstakes and contests are run by the sponsor,
  with the prize being tickets to the sporting
  event.
• Some licensed products are used as promotional
  incentives for customers to buy a product.

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Sponsorships and Endorsements

• Sponsorships are the promotional vehicles that
  financially support sports events.

• Types of sponsorships include
• Signage
• Entitlements
• Facility entitlements
• Product exclusivity

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Sponsorships and Endorsements

• An endorsement is a statement of approval of a
  product, service, or idea made by an individual
  or organization speaking on behalf of the
  advertiser.

• Some important considerations are
• Association
• Demographic match
• Successful careers
• Image

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Sports Appeal

• Through licensing, sponsorships, or endorsements,
  companies can generate positive publicity and
  achieve their marketing goals of increasing brand
  awareness and sales.

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Benefits of Licensing
Sports Organizations
Companies
Mutual Advantages
Publicity Revenue Brandawareness
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1.

• Name two forms of licensing.
• How do sponsorships benefit the sports
  organization and the sponsor?
• What do companies consider when selecting a
  sports celebrity for endorsement of a product?

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3.
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Checking Concepts
1.

• Define brand and brand name.

Explain the concept of branding and its
components.
2.
Explain how brand equity is developed.
3.
continued
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Checking Concepts
4.

• Differentiate between the three basic types of
  brands.

Define co-branding.
5.
Explain product licensing.
6.
continued
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Checking Concepts
7.
Explain why sponsorships and endorsements are
important to sports organizations and sponsors.
Critical Thinking
8.

• Discuss the importance of an athlete's image to
  a company that is choosing and endorser.

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