SPMA 2P27- Midterm 2 Questions with Correct Solutions| Latest Update Graded A+
Leveraging Suggests the importance of... - Activation
- We need to spend 1-3 x the money to activate the sponsorship
Reebok Sponsorships - Sponsored Dan and Dave
- They competed against each other for the title of the worlds greatest athlete in the Olympics
in Barcelona
- Dan never qualified for the Olympics due to injury
- What we see from this sponsorship is marketing myopia (not being able to predict for the long
term)
Licensing (What is it?) Related to leasing rights that are legally protected for a particular
purpose and time within a given area that is negotiated according to a payment
Key Terms (Licensing) Licensor: Owner of the rights (own the brand)
Licensee: Renter of the rights (could be trying to use the logo for money- Adidas and NHL)
Sport Licensing: Key considerations Five important areas:
- Royalty/Payment
- Guarantees
- Investments
- Volume/Distribution
- Counterfeits
Royalty/Payment - Basic components in licensing
- Represents the financial payment on the part of the licensee to the licensor:
-Takes form in the percentage of sales
- For the licensee...Royalty represents another expense source
, - For the licensor...Royalty represents another revenue source.
Guarantees - The minimum fee paid to the licensor to the licensee:
-Not to be confused with royalties or profits
- Contractual obligation
Investments Financial capital spent by the licensor for costs related to..
- Research and development
- Machinery/equipment
- Marketing
- Legal
Volume/Distribution Two parts:
- How much can be sold by the licensee
- How the licensee can distribute licensed products (e.g. Merchandise)
Counterfeits The single biggest issue facing major sports leagues is the sale and distribution
of counterfeit merchandise. Anti-counterfeiting initiatives have three major objectives:
-Licensors want to prevent infringement
-Licensors want to monitor the marketplace to act quickly upon discovery of fakes
-Licensors must take action against counterfeiters that harm their trademark
Broadcasting Rights Sports organizations sell their rights in one of two ways:
Selling rights through the league itself:
-Comprised of a national broadcasting contract
-The ratio of games included in the contract varies by league
Selling rights through the team itself:
Leveraging Suggests the importance of... - Activation
- We need to spend 1-3 x the money to activate the sponsorship
Reebok Sponsorships - Sponsored Dan and Dave
- They competed against each other for the title of the worlds greatest athlete in the Olympics
in Barcelona
- Dan never qualified for the Olympics due to injury
- What we see from this sponsorship is marketing myopia (not being able to predict for the long
term)
Licensing (What is it?) Related to leasing rights that are legally protected for a particular
purpose and time within a given area that is negotiated according to a payment
Key Terms (Licensing) Licensor: Owner of the rights (own the brand)
Licensee: Renter of the rights (could be trying to use the logo for money- Adidas and NHL)
Sport Licensing: Key considerations Five important areas:
- Royalty/Payment
- Guarantees
- Investments
- Volume/Distribution
- Counterfeits
Royalty/Payment - Basic components in licensing
- Represents the financial payment on the part of the licensee to the licensor:
-Takes form in the percentage of sales
- For the licensee...Royalty represents another expense source
, - For the licensor...Royalty represents another revenue source.
Guarantees - The minimum fee paid to the licensor to the licensee:
-Not to be confused with royalties or profits
- Contractual obligation
Investments Financial capital spent by the licensor for costs related to..
- Research and development
- Machinery/equipment
- Marketing
- Legal
Volume/Distribution Two parts:
- How much can be sold by the licensee
- How the licensee can distribute licensed products (e.g. Merchandise)
Counterfeits The single biggest issue facing major sports leagues is the sale and distribution
of counterfeit merchandise. Anti-counterfeiting initiatives have three major objectives:
-Licensors want to prevent infringement
-Licensors want to monitor the marketplace to act quickly upon discovery of fakes
-Licensors must take action against counterfeiters that harm their trademark
Broadcasting Rights Sports organizations sell their rights in one of two ways:
Selling rights through the league itself:
-Comprised of a national broadcasting contract
-The ratio of games included in the contract varies by league
Selling rights through the team itself:
