SEM1: 1.06 Brands_Licensing

SEM1: 1.06 Creating Product Image

Brands & Endorsements

How many brands do you encounter each day?

• Breakfast cereal

• Car you ride in to get to school

• Pencil or pen you write with

• Jeans you're wearing

• Shoes on your feet

Brands are all around you:

• On your clothes

• On your cars

• On your food

Terms to Know

• Brand: Name/words/symbols that identifies an organization and its products

• Brand Awareness: Making target market recognize and remember brand name

• Brand Image: Consumers' set of beliefs about a brand, which shapes their attitudes

• Brand Equity: Value a brand has beyond its actual functional benefits

• Brand Loyalty: The extent of the faithfulness of consumers to a particular brand

Purposes for Branding

• Allows an organization to distinguish and differentiate itself from its competitors products

• Attracts and retains customer loyalty

• Will encourage customers to pay a higher prices for goods and services

Factors that Influence a Sports/Event's Brand Image

• Price - Low, medium, high

• Quality - Low, medium, high

• Value - Low, medium, high

• Performance - Win, lose, tradition

Benefits of Establishing Positive Brand Equity

• Attendance increases

• Increased sales and consumer loyalty

Multiple Choice

Why should a brand name be distinctive?

• So that it gives the product a generic image

• So that it can be used in multinational marketing

• So that it can easily be changed over time

• So that it sets the product apart from other products

Multiple Choice

Kellogg’s Froot Loops, General Mills’ Chex, and Post Honey Bunches of Oats are all examples of

• product brands.

• trade characters.

• brand marks.

• generic items.

Categories of Factors That Impact Brand Equity

• Team Related:

• Head coach

• Performance, short or long term

• Star athletes

Categories of Factors That Impact Brand Equity

• Market Related:

• Media coverage

• Geographic location

• Competitive forces

Categories of Factors That Impact Brand Equity

• Organization Related:

• Reputation & tradition

• League/Conference schedule

• Entertainment package/product delivery

Factors that Influence Brand Awareness

• Team name

• Mascot

• Logo

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

Factors that Create Brand Loyalty

• Entertainment value

• History

• Tradition

• Fan bonding

• Authenticity

Multiple Choice

A sports or an event organization will use a team name, mascot, and logo as important elements to create and maintain which promotion effort?

• Financial accountability

• Brand awareness

• Image extension

• Market segmentation

Multiple Choice

Team-related factors that affect brand equity include which components?

• Schedule, coaches, and reputation

• Tradition, performance, and star athletes

• Performance, coaches, and star athletes

• Star athletes, schedule, and tradition

Celebrity Endorsement

Celebrity Endorsements

• Paying well-known people to promote a good or service

• A popular sport/event tool

Types of Endorsements

• Paying a celebrity to advertise a product

• Paying a celebrity to wear or use a certain brand

• Paying teams to wear or use certain brands

Name that Endorsement

One type of endorsement is to pay celebrities to appear in an ad and say what the company wants them to say. Paying a celebrity to advertise a product is the most commonly used type of endorsement. 

Multiple Choice

What product was Lebron James endorsing in the video clip?

• Coke

• Sprite

• Orange Juice

• Mountain Dew

Types of Endorsements

• Paying a celebrity to use his/her picture

• Paying a celebrity to give a testimonial

• Paying a celebrity to appear at an event

Star Power

Marketers use celebrities to promote events. Oftentimes, major sporting events invite celebrities to participate to increase attendance.

Endorsements

• Testimonial (lengthy tv commercial), by a user of the product proclaiming the product’s benefits

• Appearance (association), is an action whereby the endorser appears at an event. The celebrity does not have to do or say anything but consumers believe they like the product or support the cause

Endorsement Basics

• Cross-promotions use celebrities to promote more than one product. 

• Example: A sports celebrity promotes Sprite while wearing Nike apparel.

Endorsement Basics

• Athlete endorsements of products related to their sports are effective.

• Athletes also effectively promote unrelated products.

Multiple Choice

A celebrity appearing in a commercial for a soft drink while wearing a certain brand of clothing and holding a certain brand of tennis racquet is an example of which activity?

• Cross-promotion

• Public Relations

• Team-building

• Personal selling

Advantages of Celebrity Endorsements

• Celebrities attract attention

• Nothing sells a product like a celebrity endorsement

• People believe what celebrities say

Multiple Choice

What famous celebrity endorsed Toffee to Go?

• Martha Stewart

• Oprah Winfrey

• Chef Ramsey

• Taylor Swift

Fill in the Blanks

After appearing in a list of Oprah's Favorite Things, Toffee to Go grew by a whooping

percent.

Multiple Choice

What is a celebrity who is paid to use a product and discuss its effectiveness during a lengthy TV commercial giving?

• A personal observation

• A testimony

• An interview

• A sales presentation

Multiple Choice

Which is an example of a celebrity endorsing an event simply by being associated with it?

• Saying a tournament is great

• Attending a grand opening

• Appearing in a print ad

• Cheering for a football team

Endorsement Risks

• Celebrity develops poor image

• Loses popularity with target market

• May be injured or retire before the endorsement contract is over

• Celebrity endorsements are expensive

Federal Trade Commission Guidelines

• Endorsement must be honest

• Endorsements must not be distorted

• Endorsers must be actual users of

  the product. 

• Endorsers must not be called “experts” unless they actually are.

Open Ended

What's one thing you learned that you didn't already know?