Sports and Entertainment Marketing- FINALS Review MASTER SET

The best source of specific information on a product's construction and materials is

manufacturer's publications

A car salesperson said, "This model has a driver's side air bag." The salesperson has identified a product

feature

The most commonly used type of endorsement involves paying a celebrity to

Advertise a product. The most commonly used type of endorsement involves paying celebrities to appear in ads and say what the company wants them to say. It simply involves having the person appear in a print or broadcast advertisement and talk about how great the product is. Other types of endorsements include paying celebrities to use a brand of equipment, wear a certain brand of clothing, or appear at an event. However, theseare not the most commonly used types of endorsements.

What are royalties?

A percentage of actual sales. Royalties are a percentage of actual sales. Once the guarantee is paid off, licensors start receiving royalties, usually anywhere from five to fifteen percent.

Which of the following is an example of a company using a celebrity as an expert to endorse a product:

A professional bowler endorsing a brand of bowling balls. If companies use celebrities as experts to endorse products, the Federal Trade Commission requires that the celebrity have the necessary qualifications to be an expert. For example, it is all right for a professional bowler to endorse a particular brand of bowling balls if the bowler has tried various brands and selected one as the most effective. The professional bowler is considered an expert in that area. An actor is probably not qualified to be an expert endorser of a brand of breakfast cereal or a brand of tennis racquets. A professional golfer is probably not qualified to endorse a brand of pain medication

Which of the following is an example of a celebrity promoting a service:

A professional golfer endorsing a credit card. Sometimes, marketers use celebrities to promote services such as credit cards and health services. Although celebrities are most often used to endorse tangible items on the retail level, they are sometimes used to endorse services. Advertising gas grills, recommending exercise equipment, and wearing a brand of athletic shoes are examples of promoting tangible items.

Which of the following is an example of a celebrity endorser:

A well-known person promoting a product. A celebrity endorser is a well-known person who approves, promotes, or supports a good or service, usually for pay. Many well-known athletes and entertainers are paid to endorse a wide variety of sport-related products and events. A publicist writing advertising copy, a college student posing for a print ad, and a business owner appearing in a commercial are not examples of celebrity endorsers.

An effort that builds up, drops back and then build up again. This could be a good schedule if you have two very different selling seasons, say one at Christmas time, another in spring

Alternating Staggered

If an endorsement features a celebrity wearing a watch, then the celebrity must be

An actual user. If an advertisement indicates that the endorser uses the product, then the endorser must be an actual user. If the endorser stops being a user, then the Federal Trade Commission requires that the company stop running the advertisement. For example, if an ad features a celebrity wearing a watch, then the celebrity must really be a user and continue to be a user. Celebrities usually are paid to appear in ads, but that is not a requirement. Most celebrities are not qualified experts unless they are endorsing products related to their field,

An advertiser spent $106,700 for 12 television spots with a total of 235 GRPs (gross rating points). What was the cost per GRP?

An advertiser spent $106,700 for 12 television spots with a total of 235 GRPs (gross rating points). What was the cost per GRP?

One of the benefits of using celebrities to endorse products is that the celebrities

Attract attention. One of the main benefits of using celebrities to endorse products is that the celebrities attract attention. Celebrities have a lot of appeal because of their fame and because the public is curious about them. As a result, people are more likely to read an ad, watch a commercial, or attend a special event featuring a celebrity rather than an ordinary, unknown person. Most celebrities expect to be paid to endorse products. Celebrities are not necessarily well informed about the products they endorse. Celebrities often have busy schedules which limit their availability.

The team name, mascot, and logo are important elements that a sport/event organization uses to create and maintain (1.06)

Brand awareness. Brand is defined as all the combined impressions and experiences associated with a particular person, company, organization, good, or service. A team name, mascot, and logo are some of the physical images that create brand awareness or recognition among the public. Market segmentation is the division of a total market into smaller, more specific groups. Financial accountability refers to the level of responsibility a business exhibits in terms of money. Image extension is not a widely used term to describe the nature of branding in the sport/event industry

Which of the following is an advantage for both licensors and licensees

Brand building. For licensors, the sale of their products serves to reinforce the team's image and brand to the public. For licensees, putting a professional sport team's logo on a product provides instant brand recognition. Low risk and trademark control are advantages unique to licensors, while retail opportunities are the concern of licensees

Determine which of the following is a true statement:

Brand ideas may come from many sources, including company employees and customers

The overall impression consumers get from a sport/event product's unique name, design, or symbol is the product's

Brand. The overall impression consumers get from a product's unique name, design, or symbol is the product's brand. Quality is a different product characteristic that evaluates dimensions such as performance or reliability. The dimension of performance refers to the product's ability to do what it is supposed to do. The dimension of reliability refers to the product's consistency.

College athletic departments use their licensing income to

Build up scholarship funds. College athletes aren't paid salaries. Professional players' unions use some licensing income to support charities, and organizations such as the U.S. Olympic Committee use it for training programs and uniforms. However, most colleges and universities put licensing funds toward scholarships.

When a business places print advertisements in a magazine that has a specific readership reach, it is basing its buying decisions on the publication's

Circulation. Circulation is defined as the number of people reached by a media vehicle. A company with a well-known brand might want to reach as many people as possible. As a result, it places ads in nationally distributed publications instead of local publications. Motivation is an influence or reason that causes someone to take action. Reputation often refers to the image or status of an entity. Businesses often consider a publication's reputation when buying advertising; however, a business's reputation does not always indicate details regarding the publication's readership or reach. For example, it is possible for a magazine to have a good reputation and small reach. It is also possible for a publishing company to have some negative aspects in terms of overall reputation and still maintain a sizable reach. Participation is the ability or willingness to take part or share something. A publication's participation in a variety of activities does not necessarily reflect its circulation in terms of size and demographics.

What is the most appropriate media-scheduling strategy for advertising food and other frequently purchased items?

Continuous. Food is a product bought on a regular basis; thus, it needs a continuous scheduling strategy which provides steady, regular advertising. A flighting strategy would be inappropriate since buying food is not a seasonal activity. Although a pulsing strategy offers regular advertising, it is not steady, but intermittent. Intermittent could apply to pulsing or flighting.

A radio station sells a 30-second spot for $500. If the number of listeners is 100,000, calculate the cost per thousand (CPM).

Cost per thousand measures the cost efficiency of a media vehicle based on the cost of exposing 1,000 people to a promotional message. To calculate cost per thousand, multiply the cost of the ad by 1,000, then divide by the number of listeners in the audience. $500 x 1,000 = 500,000/100,000 = $5.00 per thousand

A radio station sells a 30-second spot for $700. If the number of listeners is 80,000, calculate the cost per thousand (CPM).

Cost per thousand measures the cost efficiency of a media vehicle based on the cost of exposing 1,000 people to a promotional message. To calculate cost per thousand, multiply the cost of the ad by 1,000, then divide by the number of listeners in the audience. $700 x 1,000 = 700,000/80,000 = $8.75 per thousand

A celebrity's appearing in a commercial for a soft drink while wearing a certain brand of clothing and holding a certain brand of tennis racquet is an example of

Cross-promotion. Cross-promotion occurs when a celebrity endorses more than one product, or products for another company. Then, all the companies gain from the increased awareness because consumers associate the celebrity with all the products. An example of cross-promotion is a celebrity appearing in a commercial for a soft drink while wearing a certain brand of clothing and holding a certain brand of tennis racquet. All three products benefit even though the commercial is for the soft drink. Public relations is a function of business designed to establish good relations between the business and the public. Team-building is the use of cooperative efforts among employees and management to accomplish company goals and objectives. Personal selling is the form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities.

Why do businesses want customers to demonstrate brand insistence for them?

Customers will bypass other brands because they are brand loyal and will buy only the desired brand.

In which of the following situations might a celebrity endorser have a negative effect on a product:

Does something inappropriate or illegal. Celebrity endorsers can sometimes have a negative effect on a product, particularly if the celebrity develops an image problem. If celebrities do something inappropriate or illegal, they might transfer their reputation to a product. Companies often worry that they'll somehow be damaged simply because of guilt by association. Many retired athletes and entertainment figures are effective endorsers. Celebrity endorsers do not have a negative effect on a product when they appear in ads for other types of products or lose major tournaments.

Chloe decided to buy a certain brand of swimwear because she knew it would last for several summers before wearing out. Which dimension of product quality was she most interested in?

Durability. Durability asks the question, "How long will this product last?" Chloe wants to wear her swimsuit for several summers, so she is looking for one with durability. Performance asks, "How well does this product do what it's supposed to do?" Chloe would be looking at performance if she was most concerned about how well the swimsuit would shed water. Serviceability asks, "Will this product be easy to fix if something goes wrong?" Features are a product's facts or characteristics

Rayovac Batteries pays a fee to Michael Jordan to appear in its television commercials. This is an example of

Endorsement. In an endorsement agreement, a company pays an athlete or team to promote its products by wearing or using them and by appearing in the company's advertisements. Rayovac pays Michael Jordan to appear in its television commercials. Licensing is incorrect because Rayovac isn't paying Michael Jordan to use his name or logo on its products. Sponsorship is incorrect because Rayovac isn't paying to promote itself at a Michael Jordan-related sport event. Branding is incorrect also. Although the batteries are Rayovac branded merchandise, that fact is irrelevant to the Michael Jordan commercials

Why must businesses that use celebrity endorsers follow the rules and guidelines established by the Federal Trade Commission?

Endorsements are a form of advertising. Businesses that use celebrity endorsers must follow the Federal Trade Commission's rules and guidelines regarding advertising because endorsements are a form of advertising. Celebrities do not limit competition. The Federal Communications Commission regulates television stations. Businesses do not need permission from the Federal Trade Commission to use celebrities.

One reason companies seriously consider the benefits before hiring a celebrity endorser is because the use of celebrities can be

Extremely expensive. Hiring celebrities to endorse products can be extremely expensive. Some superstars have multimillion-dollar contracts as high as $50 million-$100 million over a period of years for the use of their name. Even less famous celebrities, or celebrities who have retired, often receive millions of dollars to be endorsers. Therefore, companies seriously weigh the benefits of hiring a "name" in relation to the costs involved. Using celebrity endorsers is not necessarily controversial, potentially illegal, or deceptive.

You advertise heavily and constantly for a period, then drop your ads altogether, then get back in again is which scheduling strategy?

Flighting

1.06 For properties like a multi-purpose arena, performing arts venue or an athletic field, the typical term for naming rights ranges from:

For properties like a multi-purpose arena, performing arts venue or an athletic field, the typical term ranges from three to 20 years. Longer terms are more common for higher profile venues such as a professional sports facilityWhich type of sport team sells the most licensed products?

The fee a licensee pays up front to use trademarked property is called a(n)

Guarantee. A guarantee is the fee a licensee pays up front in order to use the trademarked property. It is a figure based on expected sales, but it isn't called an expected sales fee. A royalty is a fee paid after the guarantee has been met; royalties are a percentage of actual sales, but aren't called percentage fees.

1.06 A primary reason that many colleges and universities sell the naming rights for their new football stadiums or basketball arenas is to

Help pay for construction expenses. It is very expensive for colleges and universities to build new sport facilities. Selling naming rights to the facilities is one way for colleges and universities to offset the construction expenses. By allowing an individual or business to buy the right to name the facility, the college or university may not need to increase ticket prices to events, or increase college tuition to pay for the construction expenses. Naming rights often sell for millions of dollars. Although it is possible that an individual or business would purchase the naming rights for a sport facility to honor a former student-athlete, it is more likely that a business would the buy the naming rights for promotional purposes, such as media exposure. Selling naming rights might create buzz and publicity for the college or university for a short period of time, but short-term publicity won't cover the costs of building a multi-million dollar facility. Fans attend sporting events because they support their school and team, not because they like the name of the building

While explaining the price difference between two garden hoses, a salesperson said, "Although they look alike, this one is more durable. It is made of higher quality material which is guaranteed for 20 years." The salesperson has identified a(n)

Hidden benefits are advantages that cannot be seen or understood without the assistance of a salesperson.

What must a celebrity endorsement always reflect?

Honest opinion of the endorser. According to the Federal Trade Commission (FTC), endorsements must always reflect the honest opinions, findings, beliefs, or experience of the endorser. These endorsements may not misrepresent the celebrity's experience with a product or be deceptive in any way. Endorsements usually reflect the findings of the business, but they must go beyond that and also reflect the honest opinion of the endorser. Endorsements do not reflect the experiences of most customers or the beliefs of other advertisers.

When a customer asks how long a product will last, s/he is interested in its

How long a product will last and give dependable service is essential information which you should be prepared to give customers or clients.

Over the years, Wrigley Field has earned a reputation as one of the best places to watch a Major League Baseball game. This is called brand

Image. Brand image is a product's "personality." Wrigley Field's reputation as a great sport/event venue is its image or personality. To achieve brand image, Wrigley Field has already established brand awareness. Although Wrigley Field is a sport/event product with brand loyalty and quality, its reputation is what we call brand image.

Which of the following is a qualitative media factor used in the selection of promotional media

Impact is the impression an advertisement will make on the average consumer in a target market. Impact is created by the credibility, prestige, and editorial environment of a media vehicle. Reach, frequency, and cost per thousand are quantitative factors used in media selection

1.06 In the private sector, naming rights are

In the private sector, naming rights are a financial transaction and form of advertising whereby a corporation or other entity purchases the right to name a facility or event, typically for a defined period of time

To explain a product's quality to customers, a salesperson should stress the product's

Knowing the details of a product's construction and materials helps salespeople show a product's quality.

A company that manufactures products using trademarked property is known as a

Licensee. A company that wants to manufacture and sell products using trademarked property is known as a licensee. Licensors hold the rights to the trademarked property. Retailers sell products but do not manufacture them. Unions are organized groups of employees who may work in manufacturing, or in the context of this LAP, unions are organized groups of professional athletes that act as licensors.

Which of the following is the most appropriate promotional medium for a local hardware store:

Local newspaper. The target market for a local hardware store is adults in the local area. Network television and a national news magazine also target adults, but the national media provide too much wasted coverage for a local business. The local rock station's audience is generally teenagers, not adults

Which of the following is an example of a licensed product:

NASCAR earrings. NASCAR is a licensor to a licensee who produces earrings using the NASCAR name and logo. Converse shoes are branded products. The Wheaties cereal box is an example of endorsement, and the golf tournament is an example of sponsorship

1.06 What might a sports organization offer a business to encourage that business to sponsor an event?

Naming rights. A sponsor is a business that pays to associate its name or products with a sporting event. To encourage businesses to sponsor events, sports organizations sometimes offer a business the right to include its name with the name of the event. For example, McDonald's sponsors several golf events, and its name is part of the title, such as the McDonald's LPGA Championship. In return for the naming rights, the business pays a significant amount of money that helps to support the event. Sponsors do not receive a percentage of the profits. In fact, their financial contribution often is needed to make the event possible. Sponsors are not partial owners. They can decide at any time to withdraw financial support, which means the event needs to find another sponsor. Advertising is not free.

Which of the following is an example of branded merchandise

Nike sweatshirt - Branded items don't use another company's trademarks. They feature only the logo of the manufacturer. A Tiger Woods gold towel and Allen Iverson jersey is licensed merchandise. The Nokia Sugar Bow is an example of sport sponsorship.

Which of the following is a licensee:

Nintendo. Nintendo is a licensee with many sport organizations for electronic video games. Monday Night Football, The Masters Tournament, and Wrigley Field are all licensors.

The cost to a business of radio spots will vary with the

Number of listeners being reached. The costs of radio spots will increase or decrease depending upon the length of the advertisement, the time at which the advertisement is broadcast, the number of listeners, and how often the ad is run. Most production costs are a small part of the actual charges for broadcast time. The size of the business and the type of information being aired do not affect the advertising rate.

A salesperson said, "As you can see, the larger capacity of these washing machines will enable you towash more clothes at one time." The salesperson has identified what type of benefit for the product?

Obvious or apparent benefits are advantages that need little explanation by the salesperson. The customer already knows, or can easily recognize the benefit.

Which of the following sport/event products is a sport event:

Ocean kayaking in Alaska. Ocean kayaking in Alaska is a sport event that you could either participate in or watch. Yankee Stadium is a sport/event venue, but not a sport event itself. The premiere of a play on Broadway is an event, but it is not sport-related. ESPN The Magazine is sport media, not a sport event.

One of the problems of using celebrity endorsers who are very well known is that they often __________ the product.

Overshadow. Some celebrities are so well known that they detract from the product they're endorsing. The celebrities become the focus of the ad or commercial rather than the product. Consequently, some companies choose not to use celebrities or to use less well-known celebrities who will not overshadow the product. Celebrity endorsers who are very well known do not add to the cost of the product or lower the quality of the product. Celebrities tend to reinforce a product, which is a benefit rather than a problem.

A business owner who wants to obtain a reduced rate for a series of local radio commercials might contract for what type of promotion?

Package. Radio stations offer reduced rates to advertisers who agree to purchase a series of commercials over a certain period of time. The package rates cost less than single commercials and provide considerable savings to advertisers. The stations also benefit because they have sold a block of time. Display is a kind of newspaper and magazine advertising which includes several elements such as illustrations, headlines, white space, and type. Transit is a form of out-of-home media found in various modes and locations of mass transportation. Contingent is not a term that is widely used to describe a type of promotion

Why are people more likely to buy products that celebrities endorse?

People want to be associated with celebrities. People are more likely to buy products that celebrities endorse because people want to be associated with famous actors, well-known athletes, and winning teams. That's why people pay to go to fund-raisers that celebrities attend and drink the soft drinks that celebrities endorse. Celebrities endorse all types of products, not necessarily only the best products or the products that everyone needs. People do not buy products to contribute to a celebrity's income because most people believe that celebrities are wealthy.

Team-related factors that affect brand equity include (1.06)

Performance, coaches, and star athletes. Brand equity is the positive feelings of goodwill toward a brand that accumulate over time when customers' expectations are consistently met. Fan loyalty to star athletes, popular coaches, and winning records (performance) tend to stabilize brand equity for a team over time. Tradition, reputation, and strength of schedule are organization-related factors that affect brand equity

Your band is having a concert to raise money for charity. You have 15 tickets left and must sell them before the performance on Thursday night. This is an example of a(n) __________ sport/event product.

Perishable. The concert and its tickets are perishable, rather than imperishable, sport/event products because they cannot be stored. If you don't sell the tickets before the performance on Thursday night, you will never be able to sell them. This concert will only take place one time, and then it will be gone forever. The concert itself may be excellent or poor—it is an inconsistent product. It is also an intangible product rather than a tangible one because it must be experienced instead of detected through the five senses.

Businesses generally pay more for newspaper advertisements when purchasing space at a __________ rate

Preferred-position. When requesting preferred positions, advertisers place their ads in the newspaper location that generates optimal exposure for their target market. For example, an athletic shoe retailer might request placement in the sports section of the newspaper instead of the home and garden section. Because the advertiser is requesting a specific placement location, the advertiser pays a higher rate. Run-of-page rates do not allow advertisers to specify advertisement placement and are generally lower than the preferred-position rate. Contract rates are negotiated rates and are often lower than preferred-position rates. When advertisements are placed more than once, the advertiser often receives a frequency rate. The higher the frequency of ad placement, the lower the rate

The main benefit of being a licensor is

Profits. Public relations, trademark protection, and market expansion are all benefits of being a licensor, but the most obvious reason for a team or league to become a licensor is the enormous income that licensing brings in.

1.06 A primary reason that large businesses purchase the naming rights to a new sport/event facility is because it

Provides exclusivity and has potential to maximize exposure. Purchasing the naming rights to a facility or event is very expensive. Because it often provides an exclusive association with the sport/event organization, the purchaser receives high amounts of exposure. In addition, an exclusive relationship is more likely to reduce media clutter and increase name recognition. An organization purchasing naming rights generally makes the investment to create or maintain a certain image. However, the purchase does not guarantee that fan-base loyalty will increase. Fan-base loyalty is driven by many factors including team performance. Purchasing naming rights to a facility does not reduce the need to pursue other promotional activities

The pattern: a heavy program, followed by a lighter one and then heavy again. Broadcast television is a typical tool to use for this type of scheduling.

Pulsing

Your business wants to sell a shipment of goods by the end of the current work week at the lowest possible advertising cost. Which of the following promotional media would be best

Radio spot commercials. Radio requires a relatively short lead time for placing advertisements, and it is considered an effective medium for local and regional markets. Point-of-purchase displays would reach only those customers who came into the business. A direct-mail campaign must be prepared well in advance and may not be delivered on time. The Sunday paper would not be printed in time to publicize the sale

Businesses that buy broadcast advertising time often ask for information about the __________ before purchasing the time

Ratings for certain shows. Businesses that buy broadcast advertising try to purchase time when a large segment of their target market is watching television. These businesses need information about the ratings for certain shows in order to determine which ones attract a high volume of viewers. The ratings for each show indicate approximately how many households in the viewing area watched the show on a given day. Businesses do not need information about the ownership of the stations, the qualifications of management, or the popularity of newscasters in order to purchase advertising time.

What does one Federal Trade Commission regulation prohibit businesses from doing with celebrity endorsements?

Rewording statements. The Federal Trade Commission states that endorsements may not be presented out of context or reworded to distort the endorser's opinion or experience with a product. This means that a company cannot use only part of what a celebrity says to make it sound like the celebrity believes in a product. To avoid this problem, businesses generally use exact quotations. Businesses are not prohibited from including photographs or reprinting advertisements.

Salespeople often gain firsthand knowledge about the features and benefits of the products they sell from

Salespeople should study and, if possible, use the good or service they sell before attempting to sell it to others. Firsthand knowledge, gained by personal experience, tends to give a salesperson confidence.

Simon was determined to get the new Tiger Woods golf game for his video game collection. The game cost $50 at the mall, but Simon was excited to find it for only $35 on eBay. He didn't mind that it didn't come from the mall. This is an example of

Separability. Separability refers to the close link between a product and its provider. Goods are easily separated from their provider—as long as Simon gets the video game he wants, he doesn't care where it comes from. Consistency refers to the quality of a product from consumption to consumption; the quality of the video game isn't in question in this example. Perishability refers to a product's ability to be stored; the perishability of the video game isn't in question, either. Tangibility refers to the way a product is experienced, either detected through the five senses or not; the tangibility of the video game isn't referred to in this example.

Bo and his friends went to the State Fair. The fair itself was great, but they had trouble finding a place to park, several of the ride attendants were rude, and the bathrooms were really dirty. Overall, Bo and his friends gave the fair a "C" rating. The close link between the fair and all the product elements involved with the fair is known as

Separability. The close link between a product and its related elements is a matter of separability. Consumers combine all these elements in their minds when making a judgment about the product. That's why Bo and his friends weren't too impressed with the State Fair, even though the fair itself was an excellent product. Smoothing is offering consumers a discount for purchasing products that otherwise would go to waste. Consistency refers to the guarantee of a product's quality over a period of time. If the State Fair were excellent one year but poor the next, then it would be an inconsistent product. Perishability refers to a product's ability to be stored. The State Fair is a perishable product, but that characteristic isn't illustrated in this story.

The non-profit organization Sesame Workshop, which produces the Sesame Street television series, often gives permission to manufacturers such as Fisher Price and Build-a-Bear Workshop to use numerous Sesame Street characters on their products for a fee. This arrangement between Sesame Workshop and these companies is known as

Sesame Workshop licenses the use of its Sesame Street characters to manufacturers such as Fisher Price and Build-a-Bear Workshop for a fee. Although these licensees produce and sell the products, they become, in effect, extensions of the core brand, Sesame Street. Co-branding is a brand strategy that involves businesses joining forces as equals for mutual benefit and to increase brand recognition, customer loyalty, and sales for both brands.

Which of the following decreases the costs to a business of using newspaper advertising:

Sliding-scale rates. Sliding-scale rates are discount rate structures offered by newspapers to advertisers willing to purchase a large volume of advertising space over a one-year period. Split-runs are a printing technique that allows publishers of magazines to print different advertisements for the same product in alternating copies of the publication. Preferred position is newspaper or magazine space thought to attract the greatest audience attention. Color requirements in ads increase their cost, as do split-runs and preferred position

Since attendance is usually low after school starts, a water park offers a 25% discount on admissions during the first two weeks of September. This is an example of

Smoothing. Smoothing is offering consumers a discount for purchasing products that otherwise would go to waste. By offering discounted admissions during the first two weeks of September, the water park's owners are recovering at least a portion of their potential losses. Separability refers to the close link between the product and its provider. Consistency refers to the guarantee of a product's quality over a period of time. Branding is making a product stand out from the competition by giving it a unique personality.

A customer interested in buying a stereo was told by the salesperson the stereo's size, weight, number of transistors, and amount of wiring, but the customer left without buying. What did the salesperson do wrong?

Sold product features instead of customer benefits

Sears pays a fee to the WNBA to have some of its players come to the store for an autograph-signing session. This is an example of

Sponsorship. In a sponsorship agreement, a company pays a fee to a team or an event for the right to affiliate itself with that team or event. Sears is paying the WNBA for the right to affiliate its store with WNBA players. Licensing is incorrect because Sears isn't paying the WNBA to use its logo on Sears products. Retailing is incorrect because neither the league nor the players are offering products for sale. Branding is incorrect because there are no branded products involved

Athletes are often considered to be particularly effective promoting products related to their

Sport. Celebrity endorsers are often considered to be particularly effective promoting products related to their sport. Their endorsement has a certain amount of authority because they know a lot about those products. Consumers assume they know about the products because they are prominent in that particular sport. Athletes usually are not necessarily effective in promoting products simply because of their background, education, or lifestyle. In fact, their background and lifestyle may be controversial and have a negative effect on endorsements.

What are the best-selling licensed clothing items?

T-shirts. Clothing accounts for almost sixty percent of all licensed sport merchandise sales, and T-shirts are the best-selling licensed clothing item because they're practical and allow people to make clear statements about which team or athlete they are loyal to.

The most basic distinction between goods and services states that goods are ____________ products

Tangible. Most of the time, we label products as either goods or services. The most basic definition states that goods are tangible, physical products that we can detect through our five senses and that services are intangible, nonphysical products that we must "experience." Goods are also generally consistent, whereas services are generally inconsistent. Goods may be branded products, but so are services; therefore, branding isn't a way to distinguish between the two.

Which of the following products is licensed merchandise:

Taylor Swift concert T-shirt. A concert T-shirt is licensed merchandise because it bears the name and/or likeness of the concert performers. A key chain or a hockey helmet is just a plain product if it does not feature another organization's trademark. A Nike sweatband is not licensed merchandise because it bears only the Nike logo and not the name or logo of a sport team, league, or event.

A celebrity who is paid to use a product and discuss its effectiveness during a lengthy TV commercial is giving a(n)

Testimonial. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use of the product. A celebrity who is paid to use a product and discuss its effectiveness during a lengthy TV commercial, or infomercial, is actually giving a testimonial for the product. During the infomercial, the celebrity explains why the product is good and why consumers should buy it. An interview is a meeting during which information is obtained. During an infomercial, the celebrity usually follows a script rather than making a personal observation. A sales presentation involves a salesperson showing a customer the benefits of the product's features.

Which of the following companies is a licensor (holds the rights to trademarked property):

The New York Yankees. A licensor is an organization or company that holds the rights to trademarked property. The Yankees organization licenses its name and logo for merchandise. Adidas and Upper Deck are licensees, and Champ's Sporting Goods is a retail store

Can any brand name be selected and used by a business?

The business needs to make sure the brand name is not the property of another company since it is illegal to use another company's brand name. Brand names can be registered with the federal government in order to protect them, but this is not necessary in order to use a brand name that is legally available.

Which of the following statements is true regarding sports marketing (1.06)

The distribution of licensed sports apparel is an effective way to create team and brand awareness. Sports marketing involves planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services related to sports or athletes to achieve individual or organizational goals. A sports team that permits a clothing company to print the team logo on sweatshirts and then sells the sweatshirts to consumers is an example of distributing licensed sports apparel. Consumers who purchase and wear the clothing are promoting a specific team which creates brand awareness. Sports marketing does not encompass only radio and television media. Corporations that sponsor sporting events use their name to increase brand recognition, not to decrease it. High-profile athletes who endorse particular products tend to increase product recognition. For example, golfer Tiger Woods wears Nike apparel and does television commercials for various Nike products. Woods reinforces potential Nike brand recognition each time he wears a Nike logo shirt or hat during a televised golf tournament

The actions a business takes with a brand in order to accomplish its goals are referred to as

The effective use of brand strategies helps to make brands more successful. A frequently used brand strategy is brand positioning = the creation of an image or impression of a brand as compared to those of competitors' brands. Market share is an organization's portion of the total industry sales in a specific market. Multinational marketing is the marketing of goods and services in two or more countries

The biggest risk for licensors is loss of control over

The marketing process. The main risk for licensors is loss of control over the marketing process. Teams can't always guarantee the quality of their official licensed merchandise since they aren't manufacturing it themselves. Teams also can't prevent their products from appearing in a discount store or being on the clearance rack. If poor quality merchandise is being sold at a low price, the team's public image could possibly be damaged. Licensors do not risk control over trademarked property; rather, the licensing system helps them to gain more control over it. Licensors do not risk control over sales or fashion trends since they do not control those factors in the first place

Which of the following is the biggest risk for licensees

The nature of the licensing agreement. The biggest risk that licensees take is actually signing the licensing agreement. In doing so, they are agreeing to pay a certain amount of money, the guarantee, no matter how much they make in profits. The minimum guarantee must be paid to the licensor no matter what. If licensees do not sell enough merchandise to cover that cost, they will have to pay it out of pocket. The location of the team and the type of sport are not risks for licensees. The nature of sport fans is a risk of being a licensee; however, the risk associated with the nature of the licensing agreement outweighs it.

Which of the following question should be asked by a firm that is trying to decide whether to brand its products:

The product to be branded should not be too homogeneous, or similar, to others like it. The firm needs to project probable income from the product in order to determine profitability, but it would be impossible to know how much total sales revenue would be.

Why do retailers give the best shelf space in their stores to licensed sport products?

The products are in high demand. Because licensed sport products are in such high demand, retailers often give the best spots in their stores to them. Licensees' products usually enjoy prime shelf space in retail stores, helping them to sell more quickly. Licensing agreements are between licensors and licensees and do not put stipulations on retailers. Licensees do not need to pay for the best shelf space since their products are typically higher priced, giving the retailer enough incentive to place them in prime locations

Why do large fund-raisers and major sporting events often invite celebrities to participate?

To increase attendance. Marketers also use celebrities to promote events, which range from large fundraisers for charities or politicians to local amateur tournaments. The purpose of inviting celebrities to participate is to increase attendance. For example, on opening day of baseball season, most ballparks have a celebrity throw out the first ball. Fans come not only to see the game, but to see the celebrity. Although some celebrities may be asked to entertain at an event, that is not the main reason for inviting them. They are invited to increase attendance rather than make donations or sell concessions.

Why do some businesses pay college and high school sport teams to wear a manufacturer's clothing?

To influence other students. Paying college and high school sport teams to wear a manufacturer's clothing is a variation of the endorsement that involves paying celebrities to wear a certain brand of clothing or use a certain brand of equipment. The athletes on these teams are celebrities on the local level and have an influence on their fellow students. The hope is that other young people will want to buy the clothing because they are influenced by what the athletes are wearing. The student athletes are suggesting their approval rather than making positive statements, giving testimonials, or serving as spokespersons.

When an advertiser wants to reach specific target markets, which type of print medium would be most cost-effective?

To make their products stand out from those of the competition. Marketers use branding to make their products stand out from those of the competition. Giving products positive, memorable names and using logos and trademarks are methods of branding but not reasons for branding. Branding is not a way to distinguish between goods and services because both goods and services are branded products.

Which of the following is a reason that sport/event marketers use branding:

To make their products stand out from those of the competition. Marketers use branding to make their products stand out from those of the competition. Giving products positive, memorable names and using logos and trademarks are methods of branding but not reasons for branding. Branding is not a way to distinguish between goods and services because both goods and services are branded products.

The basis for the licensing process is

Trademarked property. Trademarked property is the foundation for the licensing process. All teams and sport events must copyright their names, logos, slogans, and graphics in order to legally protect them. Neglecting to do so means that other companies could use the name and logo without permission. Without a copyright, a company cannot make money from licensing

Your company's product has an exclusive feature that is not offered by similar products on the market. For consumers, this product provides a(n)

Unique or exclusive benefits are advantages that are available only from your good, service, or business. If your product has one unique or novel feature that can be translated into a benefit desirable to customers, you have a definite selling advantage over your competitors.

A business owner saved money by contracting with the local newspaper to purchase a series of ads over a period of time which entitled the business to a

Volume discount. Newspapers frequently offer volume discounts to advertisers who purchase repeated amounts of space for ads. Offering volume discounts encourages advertisers to purchase more ad space because they receive a better price. Newspapers usually charge flat rates for ads that appear only one time. Advertisers usually pay a higher rate to obtain a preferred position in the newspaper. Newspapers do not provide advertisers with free inserts

Which of the following is a sport/event good made available through a sport/event service:

Water bottle sold at a health club pro shop. Joining a health club is a sport service, but a membership also provides you with many opportunities to consume pure goods, such as buying a water bottle at the pro shop. Workout sessions with a personal trainer, tennis racket repair, and aerobics classes are all sport services

Which of the following must a salesperson know to translate features into benefits for customers:

Where to get necessary information

Which type of sport team sells the most licensed products?

Winning teams. Winning teams invariably sell the most licensed products, making the unpredictability of onfield success a risk for licensees. Teams in the Midwest, college teams, and teams with traditional nicknames or mascots are all licensed product sellers, but winning teams sell the most of any category

If a customer wants to be fashionable, the salesperson should emphasize features and benefits related to the product's

appearance

A salesperson who tells a customer that a particular product will be easy to keep clean has presented a

customer benefit

Salespeople use feature-benefit charts to help them

develop meaningful selling techniques.

To prepare a feature-benefit chart, a salesperson must know

facts about the product

If a customer tells a salesperson that s/he can buy a similar product from another company for a much better price, that salesperson should respond by

pointing out the benefits of his/her company's product.

Names, terms, symbols, or designs that identify products are called

product brands

The three benefit P's of becoming a licensor:

profit, public relations, and protection

Whenever possible, an effective brand name should always be

short and memorable

Your company, a dairy, delivers ice cream to its customers. Other dairies in the area do not offer this service. This is an example of a

unique feature

An important factor in determining rates for outdoor advertising is its

visibility