Licensing, Sponsorships & Endorsements

What is licensing [in the context of merchandising]?

• A legal process to protect a company's proprietary technology

• An agreement that allows a company to use another's brand name for a royalty or fee

• A method for a company to sell its products directly to consumers

• A strategy for a company to reduce its tax liabilities

Who is the licensor in a licensing agreement?

• The company or individual paying for the rights to use the brand name

• The company or individual granting the rights to use the brand name

• The manufacturer of the licensed merchandise

• The end consumer of the licensed product

Which of the following is an example of a licensed product?

• A homemade craft item sold at a local market

• A T-shirt with a sports team's logo sold by the team

• A generic baseball cap with no logos

• A credit card issued by a bank without any branding

What must licensors be careful about when selecting products to license?

• Choosing products that are easy to manufacture

• Selecting products that reflect the image its brand name has in the public eye

• Licensing only to companies that are based in the same country

• Focusing on products that have the highest profit margins

Which of the following is NOT typically a licensed product?

• Apparel

• Key chains

• Homemade food items

• Video games

What should sports-affiliated merchandise reinforce?

• The negative aspects of the sport or athlete

• The positive image of the particular sport or athlete

• The competitive nature of the sport

• The personal life of the athlete

How is licensed merchandise made available today?

• Through a single channel of distribution

• Only through department stores

• Through many channels of distribution

• Exclusively at league-sponsored retail outlets

What is a mutual advantage of licensing for both sports organizations and companies?

• Decreasing publicity

• Building team spirit

• Reaching a new audience

• Reducing brand awareness

What are sweepstakes and contests examples of?

• Promotional incentives for customers to purchase a product

• Types of sports logos

• Methods of athlete endorsements

• Types of sports events

Which of the following is NOT listed as a benefit for sponsors in sports events?

• Income from broadcast rights

• Promotional packages for sponsors

• Free tickets and on-site merchandising opportunities

• Guaranteed wins for the team they sponsor