Agenda Session 4

1
Agenda Session 4

• In the News
• Discussion - Course Kit articles
• Industry Speaker Series Prof. Markus Giesler,
  Schulich School of Business (Entertainment and
  Sports What Sport Marketers need to know about
  Entertainment Culture and Marketing to
  effectively market sport products and products
  through sport)
• Administration (Assignment 1)
• Managing Sport Brands (Chapter 8)
• Branded segment
• Licensed and Branded Merchandise (Chapter 9)
• Industry Speaker Series Massimo Dente, Managing
  Director Inaria International

2

• Managing
• Sport Brands

3
Objectives

• To understand and discuss the full scope and
  importance of brand management and branding in
  the sport setting
• To demonstrate an understanding of how brand
  equity is developed in a variety of sport
  settings
• To identify and discuss the sources of brand
  associations for teams, athletes, agencies, and
  other sport entities

4
Brands and Branding

• Name, logo, and symbols associated with the sport
  organisation.
• e.g. Manchester United (name), Nike (logo),
  Dallas Cowboys star (symbol)
• Elements provide point of differentiation from
  other sport products.
• Brand name, logos, marks, and colours are
  starting point in the brand management process.
• Branding is about what a customer thinks and
  feels when he/she sees the marks of a brand
• Thoughts and feelings are developed based on
  experiences consumers have when consuming sport
• Sport organisations have an advantage over other
  productswhy?
• Goal of branding to create a strong impression
  in the consumers minds so that when they sense a
  brand element they experience intense positive
  feelings

5
Brand Equity
Set of assets and liabilities linked to a brand,
its name and symbol, that add to or subtract from
the value provided by a product or service to a
firm and/or that firms customers Strong brand
image brand equity Ultimate goal generate a
wealth of assets tied to brand long-term
revenue generation Which organisations have
strong/weak brand equity? Assess the Toronto
Maple Leafs brand equity
6
Benefits of Brand Equity

• Increases in revenue, larger viewing audiences
  and higher broadcast rights fees from greater
  brand loyalty
• e.g. New York Yankees
• Less drastic revenue declines when the team loses
  
• e.g. Chicago Cubs, Los Angeles Lakers
• Ability to charge price premiums
• e.g. New York Yankees new Yankee Stadium
• More corporate interest
• e.g. FIFA World Cup
• Licensing and merchandising opportunities (i.e.
  brand extensions)
• e.g. NBA NBA Store, NBA City, NBA TV, WNBA, NBA
  DL

7
How to develop brand equity?

• Generate awareness about the brand
• the ability of a consumer to name the brands
  existence when its product category is mentioned
  (e.g. name recall surveys)
• major vs. minor pro organisations
• sponsorship and sponsorship measurement
• Create a brand image
• Cumulative impact of all the associations with a
  particular brand
• Goal develop unique, strong and favourable
  brand associations
• Advantage of sport, challenge for sport marketers

8
Sources of Brand Association with Teams

• Tradition/past success (e.g. Montreal Canadiens)
• Logo, marks, nickname, and mascot (e.g. Notre
  Dame leprechaun logo, the Irish, leprechaun
  mascot)
• Owner (e.g. Jerry Jones Dallas Cowboys)
• Players (e.g. Tom Brady New England Patriots)
• Head coaches (e.g. Sir Alex Ferguson Man.
  United)
• Rivalries (e.g. Lakers vs. Celtics, Leafs vs.
  Canadiens)
• Entertainment package surrounding the game or
  event (e.g. Toronto Raptors, Toronto FC)
• Logo, nickname, and associated extensions (e.g.
  ESPN)
• Stadium or arena traditional and new (e.g.
  Estadio AztecaMexico City Wembley
  Stadium-London)

9
Associations Formed Based on the Benefits of
Consumption

• Nostalgia
• What are your most memorable sports moments?
• Social
• Who did/do you enjoy games with?
• Identification with a team
• What team do you support?
• Identification with a city
• With what city do you identify?

10
Brand Association Formation for Sponsors

• One motivation for companies to sponsor sporting
  events, programs or individuals is to either
  enhance or reinforce the brand associations with
  their company.
• Premise the image of a sport entity can help
  create strong, unique, and favourable
  associations for the sport brand.
• e.g. Nike-CBF (Brasilian soccer federation)
• Key for sponsorship decision-makers image of
  the sport entity should have potential to
  reinforce or positively alter brand associations
  for sponsor
• Concept of branded entertainment
• Fusion of brand promotion and entertainment

11
Brand Association Formation for Athletes

• Strong unique and favourable associations are
  important since pro athletes can make money from
  corporate endorsements
• Athletes can create strong positive or negative
  associations
• On the playing court or field
• e.g. Kobe Bryant
• Off the playing court or field
• e.g. Steve Nash

12
Brand Association Formation for Agencies

• While visible behind the scenes, agencies are not
  visible to the sport consumer.
• Associations are created through
• the clients they represent
• people who work for them
• area of specialization