Obtain endorsements for sports/events. Endorsement is an action made by a celebrity or well-known person as follows: Testimonial (statement or advertisement),

Obtain endorsements for sports/events

SEM II-2.07

Endorsements

• Endorsement is an action made by a celebrity or well-known person as follows:

Testimonial (statement or advertisement), by a user of the product proclaiming the product’s benefitsAppearance (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

When Celebrity Endorsements can be BENEFICIAL to an event

• Nothing sells a product/event like a celebrity endorsement

• Athletes and celebrities appeal to all advertising demographics• Especially to the key younger

demographics.• INCREASE your event’s

brand image, awareness, equity and loyalty

Considerations in Obtaining Endorsements

Must be positive, charismatic, trustworthyMust be someone consumers knowMust be Directly linked to the company’s imageSomeone who presents few risks

Develop a licensing program

SEM II-2.07

Vocabulary

• Trademark is a word, phrase, symbol, logo or design that identifies and distinguishes the company from others.

A trademark has legal protection through the United States Patent and Trademark OfficeAny entity wishing to protect their trademarks must register the trademark and post the designated symbol next to the item they wish to protectIt is these trademarks that licensees wish to use

Vocabulary

• Service Mark is a word, name, symbol, or device used to identify and distinguish a company’s services, including a unique service, from those of another service provider.

Signifies services rather than goodsProfessional sports organizations are considered Service Marks because of the entertainment value of sports.

Vocabulary

• Trade Dress is a a particular type of trademark that protects the distinctiveness of the appearance and image of a good or service

Protects a product’s packagingProtects distinctive décor and atmosphere

Vocabulary

• Collective Mark a trademark or service mark used by members of a cooperative, association, or other group or organization.

Vocabulary

• Mark is a shorthand reference to any type of mark, including trademarks, service marks, and collective marks

• Registered Mark is registered in the United States Patent and Trademark Office

© TM ® SMA trademark search of conflicting/similar marks

be should be done by sports organizations before registering.

VocabularyTrademarked Property are owned by the entity (licensor) that registers them and no other entity may use them or the likeness without permission from the licensor.

Licensing

• 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

CAPS (Coalition to Advance the

Protection of Sports Logos)

“Logo cops”Addresses trademark protection and enforcement concerns for all the major sport leagues and college athletic departments

Licensing License agreement is a contractual agreement by which a sports team or

organization gives a company a license to use its name, logo or trademark on the company’s products

Basic components of license agreementsLicense grant

Specifies which rights and properties are being licensedSpecifies what types of merchandise will be producedDescribes the exclusivity of the category

Term Specifies the begin and end dates of the contractDescribes the processes for contract renewal

CompensationContains all details regarding paymentsWays licensor is paid:

Guarantee—up-front fee based on expected salesRoyalties—5 to 15 percent of profits after the guarantee

Includes a detailed payment schedule

https://www.youtube.com/watch?v=v79Rw5RglZI

https://www.youtube.com/watch?v=4unDXE9K4QE

Exclusive or Non-ExclusiveAn exclusive category is one in which only one licensee can manufacture merchandise.

Nike—only business authorized to produce uniforms for the NFL

A nonexclusive category is one in which more than one licensee can manufacture merchandise.

Trading cards

Internal versus External Administration

A licensing program should determine whether it is more cost-effective to administer the program internally with university employees, or externally by contracting with an outside agent.