Retailing Chapter 2 - Quia
Transcript of Retailing Chapter 2 - Quia
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
Sports organizations and companies strive to develop strong brands to differentiate themselves from one another.
brand a name, word or
words, symbol, or
design that identifies an
organization and its
products
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When a brand name or
trade name is registered, it
also becomes a trademark.
brand name a word or
words, letters, or numbers
representing a brand that
can be spoken
trademark a device that
legally identifies
ownership of a registered
brand or trade name
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
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Brand equity has financial
value through licensing.
The Importance of
Branding
The three steps of developing brand equity are:
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1. Develop the brand in the customer’s mind as
part of a class of products.
2. Link the product’s 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.
Types of Brands and
Strategies
The three basic types of
brands are:
manufacturer brand a
brand owned by the
producer of the product
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Manufacturer brands
– Co-branding
co-branding a branding
strategy that combines one
or more brands to increase
customer loyalty and sales
for each product
Intermediary brands intermediary brand a brand
that carries a name
developed by the wholesaler,
retailer, or catalog house
Generic brands generic brands a brand that
represents a general product
category and does not carry
a company or brand name
Developing Brand Names
For a brand to be successful, it should:
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Offer a benefit.
Be simple.
Be different and positive.
Reflect an image.
Be previously unregistered.
Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.
Your Online Sports Arena
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interactive polls, statistics, streaming broadcasts, and
merchandise. The Web’s 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.
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,
SECTION 7.1 REVIEW
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.
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licensing an agreement
which gives a company
the right to use another’s
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 licensor’s
name or property.
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.
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Types of sponsorships include:
Signage
Entitlements
Facility entitlements
Product exclusivity
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.
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Some important considerations are:
Association
Demographic match
Successful careers
Image
FTC – Legal Restrictions
Guidelines to meet:
Reflect an honest opinion.
Endorser must have real experience
May not contain any deceptive or misleading
statements.
Endorser must use and continue to use product
If product changes, company must inform
endorser
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
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Sports
Organizations
Companies
Reinforce
image
Build team
spirit
Profit
Build presence
through
merchandise
Reach a new
audience
Publicity
Revenue
Brand
awareness
Mutual Advantages
SECTION 7.2 REVIEW
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?
1.
2.
3.
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Define brand and brand
name.
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Explain the concept of
branding and its
components.
A brand is a name,
word or words,
symbol, or design
that identifies an
organization and its
products. A brand
name is a word or
words, letters, or
numbers
representing a
brand that can be
spoken.
1. Branding involves
any name, symbol,
or device an
organization uses
to identify itself and
its products.
2.
Explain how brand equity
is developed.
Brand equity, the
value a brand has
beyond its actual
functional benefits,
is developed in the
consumer’s mind
when the brand is
identified as part of
a class of products.
3.
Checking Concepts
1.
2.
3.
continued
Differentiate between
the three basic types of
brands.
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Define co-branding.
Manufacturer
brands are owned
by the producer of
the product;
intermediary
brands carry a
name developed by
the wholesaler, the
retailer, or catalog
house; generic
brands carry no
branding.
4.
Explain product licensing.
Co-branding is a
branding strategy
that combines one
or more brands to
increase customer
loyalty and sales
for each product.
5. Licensing is a contract
agreement which gives
a company the right to
use another brand
name, patent, or other
intellectual property for
a royalty or fee.
Licensed goods are
available in retail
department stores,
chain stores, league-
sponsored retail
outlets, and on the
Internet.
6.
Checking Concepts
4.
5.
6.
continued
Explain why sponsorships
and endorsements are
important to sports
organizations and
sponsors.
All major sports
organizations use
sponsorships to help
finance their operations;
sponsors get exposure of
their products and free
publicity. Endorsements
involve using a celebrity
or public figure to
represent and promote a
company and its products;
the celebrity lends
credibility to the product
while he/she is
handsomely paid.
7.
Discuss the importance
of an athlete's image to a
company that is choosing
and endorser. 22
Critical Thinking
Endorsers must
match target
markets, have
successful careers,
and have positive
public images.
8.
Checking Concepts
7.
8.
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