What is a brand? • Brand: is all of the impressions and experiences consumers associate with a company, a product, or a service. Brands relate to customers on an emotional and rational level. • A brand is a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
What is Company Image? • A corporate image is the perception that the general public holds about a particular business. Many companies invest a great deal of time and other resources in an effort to influence the opinion that consumers hold about the products offered by the business, as well as the business itself.
Corporate Image Continued…. • One of the most basic ways of shaping a corporate image is establishing and maintaining positive relationships with the general public. This effort usually begins by offering products that successfully meet the needs of customers, thus generating goodwill.
Why is Company Image so important? Companies with strong corporate images, such as Sony and Nike have an advantage in the market place because their names adds value to their products and reduces uncertainty in the eyes of distributors, retailers and consumers.
Brand awareness • Brand Awareness: how recognizable is the brand? • Brand awareness is recognition
What does Branding do for your business??? • Branding aims to establish a significant and differentiated presence in the market • Branding attracts and retains customer loyalty • Branding will encourage customers to pay a higher price for goods and services • Branding simplifies the ability to distinguish products from a wide range of competing products • Branding allows transfer of the brand to new products including licensed products
SWOT Analysis • Each and every company does an analysis of their current assets. • The red boxes we will deem internal and the white boxes we will deem external. Companies can control anything in red, where they cannot control the white.
Factors that influence a brand • Price • Low, middle or high • Quality • Low, middle or high • Value • Low, middle or high • Performance • Win, lose, tradition
factors that contribute to the impact of brand equity of a sport/event • Team-related • Star athletes • Popular and successful coaches • Performance – short or long term • Organization-related • Tradition, reputation & strength of schedule • Scandals – recent or past • Public Relations – responsiveness & type • Market-related over time • Population & economic changes – up or down • Fan loyalty due to athletes, coaches and/or performance
Factors that create brand loyalty • Whether we are speaking about sports or entertainment these factors are always considered by fans: • Entertainment value • Authenticity • Fan bonding • History • Tradition • Performance • Athletes, coaches, owners, celebraties
Licensing, Licensor & Licensee • Licensing • is the permission to copy the name, logo, or trademark of a league, athlete, sports team, entertainer, film, television show, or character for a fee, also called a royalty • Licensor • is the rights-holder of the name, logo, or trademark • NASCAR, Eagles • Licensee • is the company paying for the permission to use the name, logo, or trademark. • Nike and Adidas
What is a sports license • Is a contractual agreement by which a sports team, athlete or organization gives a company a license to use its name, logo or trademark on the company’s products. • The company gaining the rights is known as the licensee and the sports body is the licensor • Licensing a sports product gives an opportunity to reach a market of sports fans that could be local, national or global, depending on the sports body.
Licensing your product • What are some benefits of licensing your product out??? • What are some risks???
Sponsorships • Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event • Usually in return for advertising for the event • Business, individuals or organizations can sponsor events • Name some that exist today???
Endorsement • Athletes/celebrities go into contracts with companies to promote their product by “tying” their name to it • Name some that exist today???
Endorsements • American Businesses pay more than $1 billion dollars to athletes and celebrities for endorsements • Top 5 Endorsement deals: • #6 Lebron James- Nike- #93 Million • #5 Tiger Woods- Nike- $105 million- http://www.askmen.com/top_10/sports/top-5-sponsorships-in-sports_5.html • #4 George Forman- Salton INC- $137.5 million http://www.askmen.com/top_10/sports/top-5-sponsorships-in-sports_4.html • #3 David Beckham- Adidas- $160 million http://www.askmen.com/top_10/sports/top-5-sponsorships-in-sports_3.html • #2 Derek Rose- Adidas- $260 million http://www.askmen.com/top_10/sports/top-5-sponsorships-in-sports_2.html • # 1Rory McIlroy- Nike- $250 million http://www.askmen.com/top_10/sports/top-5-sponsorships-in-sports_1.html
Advantages • Studies have shown that consumers will buy products endorsed by celebrities more often than products that are not • Viewers, listeners, and fans are less likely to turn off a commercial featuring a fictitious character • Consumers tend to believe celebrities, especially those who are chosen for their good public image
Disadvantages • Very expensive • The risk of negative publicity due to an endorser committing a crime or a serious social blunder
What businesses seek in an endorser • Someone with a positive public image • A celebrity most consumers know • A celebrity whose career is in the process not retired • Someone who presents few risks • Someone who has a believable relationship with the product • Speaking ability, personal appearance, and educational background also factor
Endorsements • The FTC has several guidelines/rules that must be met by the endorser and the sponsoring company • Truthful opinions and beliefs • Endorser must have real experience with the product • The endorsement may not mislead or deceive • Endorser must use and believe in the product for as long as the endorser is featured in advertisements