Introduction to Brand Licensing | Brand | Brand Licensing Companies

1. an introduction to Brand Licensing PETE CANALICHIO Licensing means nothing more than the renting or leasing of an intangible asset. An example of intangible assets includes a song (Somewhere Over The Rainbow), a character (Donald Duck), a name (Michael Jordan) or a brand (The Ritz-Carlton). An arrangement to license a brand requires a licensing agreement. A licensing agreement authorizes a company which markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor). WHAT IS A BRAND? According to Philip Kotler and Gary Armstrong a brand is defined as “a name, term, sign symbol or combination of these, that identifies the maker or seller of the product” or service. 1. The brand or its legal term, trademark, affixed to the product helps the consumer understand where it was manufactured or produced; in essence, a trademark simply states “I made this”. 2. From the brand owner’s perspective, it distinguishes the products or services from those of its competitors. 3. Consumers can be assured the product they are purchasing is exactly what they want. Based on its reputation, a brand will convey a level of quality, reliability and durability. WHY DO COMPANIES BRAND THEIR PRODUCTS? The primary reason companies choose to brand their products is to differentiate them from their competitors’ products. 1. By giving their products a brand, a company or brand owner can begin to communicate with their consumers regarding the attributes of their products. Over time, a consumer can rely on the brand to connote not only a product’s value but also its reputation. 2. If a consumer likes what a brand represents and they have purchased it before, there is a higher likelihood they will choose the brand of their preference over a competitor. Consumers will often purchase a brand for the first time if it has a strong reputation or if it is used by friends or celebrities. Brands also lead consumers to develop certain expectations of products. 1.The longer they experience predictable, consistent quality and performance, the more they will expect any new products sold under the same brand to have the same. 2. The brand adds value to products; for example, customers expect new products sold under the BMW brand to be of the same quality as an existing BMW. 3. Consumers will associate a brand with a certain price level and standard of performance; comparing the watch brands Rolex and Timex, one is associated with a high price and high performance and the other with value through a low price and durability. WHAT IS BRAND LOYALTY? 1. Many companies as well as consumers look to UPS for their shipping needs because of its reputation of understanding its customers’ needs and its consistent reliability. 2. When consumers and businesses get into the habit of buying certain brands, they automatically buy them again. 3. This reduces the amount of time and promotion needed to make future sales, and it results in brand loyalty. According to Philip Kotler, brand loyalty, in marketing, consists of a “consumer’s commitment to repurchase or otherwise continue using the brand” and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy. Brands usually pass through successive stages of brand loyalty, which is the customers’ allegiance to a particular brand. The stronger the brand loyalty, the higher the value of the brand and the greater revenue it will drive for its owner. Grab V aluable Resources from Brand Licensing Experts for 100% Free Today Are you interested in extending your brand’s influence, strengthening consumer relationships, and generating unlimited revenue from guaranteed royalty payments? Get Your FREE Membership Today PeteCanalichio.com/fast-track PETE CANALICHIO