Importance of Branding Helps identify the companies and goods and services Builds customer loyalty More likely to trust new products Will pay higher price for brand name products Financial value through licensing
Licensing Allowing another company to use a brand- name, patent, or any other item for a fee or royalty Licensor – the company or individual granting the license for a fee in this legally binding contract Licensee – the company or individual paying for the rights to use the licensor’s name or property Licensed merchandise/products – can legally bear the name, logo, or other characteristics of
Licensing agreements can apply tojust about any product Clothing Accessories Toys Sports equipment Food Credit cards Video games Household items Souveniers Amusement park rides
In the past, Most licensed goods could be purchased only at the event venue.
Today, Licensed merchandise is made available through many channels of distribution
The licensor must be careful: To select products that reflect the image its brand name has in the public eye
The licensee must be careful to: Select the right events, leagues, teams and/or individuals for their products – for example: Olympic games – prestigous/high profile globally Winning teams and players Award winning entertainers Blockbuster movie stars Celebrities with a positive image