Transcript Retailing Chapter 2

Images and Merchandising
Licensing and Royalties
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Chapter Objectives
Define the term image.
Describe the role of merchandising in
entertainment marketing.
Discuss how the United States government
controls endorsements.
Describe the role of sponsorship in
entertainment marketing.
Explain the importance of entertainment product
licensing.
Explain aspects of royalties.
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The Impact of Image
The public image of a
celebrity can make the
difference between success
and failure.
image
When a celebrity or a
company is in the public
eye, there is an increase in
the opportunity to make a
profit from merchandising.
merchandising
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Endorsements
The ________________________ (FTC) defines
endorsement as any type of advertising done by a
person who reflects his or her own opinions,
beliefs, findings, and experiences that are
separate from those associated with the product’s
company.
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Controversy of
Endorsements
________must use the products they endorse.
The _______ ________ of celebrities may have
an adverse effect on the endorsement.
The _________ controversies of a celebrity
may have an adverse effect on the way the
public views the endorsed product.
_________ do not want the image of their
product damaged.
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Sponsorship
____________ occurs when a company
supports an ______, _______, or __________.
In return for money, the sponsor is provided
with some type of ____________ at the event.
_____________ is a crucial aspect in sports
and entertainment.
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The Need for Sponsorship
The ________ from concert ticket sales does
not cover the cost of a tour.
Advertisers may ask for advertising space on
the _____, __________, _______, and ______
_________.
Marketers keep track of how many times fans
see the sponsor’s name at an event and the
sales of the products being ___________.
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Why Sponsor?
Companies seek a return
on their sponsorship
dollars.
return
Calculating return for
sponsorships is difficult, but
should be seen as an
increase in sales.
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Sponsorship Risks
__________ want to be associated with a
popular person who has a positive public
image.
__________ _______ dealing with tobacco and
alcohol sponsorship have become stricter.
The ____________ __________ regulates the
practice of wealthy companies that sponsor
events that could be inappropriate for _______
and ______.
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Selling the Image
Create Your Own
Merchandising
Direct
Indirect
Tie-Ins
Endorsements
Sponsorships
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Answer the following ?’s:
1.
What is merchandising?
2.
What is the purpose of the FTC?
3.
Give an example of what a company might
gain in return for sponsoring a musician.
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Overview
Licensing and royalties are
major aspects of both the
sports and entertainment
industry.
licensed products
Entertainment-related
companies utilize
merchandising and sell
licensed products.
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Licensing
___________ is required when the owner of an
original image or a product gives legal permission
for a fee to another company or person to copy,
__________, _____, and ______ ____________
of the original item.
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Licensing Music and
Royalties
Licensing applies to music, software, motion pictures,
and videos/DVDs.
A __________ and publisher of a song may charge a
________ ____ when an artist and label want to
record that song.
_______, _______, and __________ receive _______,
or a percentage of record sales or fees for broadcast
performances.
There can be several agents between the artist and
the record company that ______ ________ from the
artist’s profits.
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Paying for Entertainment
_________ from entertainment products pay for
the expense of producing the products, with
only a portion going to the artists themselves.
When _____, ________, and ________ are
illegally downloaded and distributed from the
Internet or products are _______, many people
are affected.
The user of a ________ product can be
__________.
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Making It “Big”?
Performers can make additional income, based on
their public image, through endorsements and
sponsors.
Your Example:
Companies can earn income through
merchandising, licensing, and royalties.
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Answer the Following ?’s:
1.
What are three types of entertainment
companies that use merchandising?
2.
Explain the meaning of licensing.
3.
Who are at least three participants in a
record who may share royalties?
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Checking Concepts
1. Explain how image
affects the
entertainment business.
2. Describe how
merchandising develops
from a successful image.
1. The
2.
3.
Merchandising
public images
of celebrities
uses
strategies
can
that
make the
involve
packaging,
difference
between success
displaying,
and
and failure.
publicity
of a
successful product,
theme, or
personality.
3. Define sponsorship in
entertainment marketing.
continued
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Checking Concepts
4. Differentiate between
sponsorships and
endorsements.
5. Describe the returns
associated with
sponsorship.
6. Define licensing.
endorsement
4. An
6.
5.
Sponsors’
occurs
when acan
celebrity
advertising
be
lends his or her image
seen by millions of
to give approval of a
viewersinseveral/
product
commercials
many
in the
or
othertimes
advertising.
Sponsorship
occurs
course of the
when
a company
event,
so sponsors
supports, usually
get a definite return
financially, an event,
on theirorinvestment.
activity,
organization
in exchange for
advertising.
continued
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Checking Concepts
7. Explain why illegal
downloading may have
harmed the music
industry.
Critical Thinking
8. Discuss the importance
of licensing in the
entertainment business.
8. Free downloads
7.
ultimately cost the
artists and all
people involved in
producing a CD;
essentially, they
reduce the ability of
many people to
make an
appropriate living.
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