Royalties paid for character licensing is not a direct cost to business - it is a marketing cost to increase sales, help build brands and, more importantly, profit margins.
Image credit: Jonathan Kemper on Unsplash.
Buyers often see character licensing as a short-term sales tool and a direct “cost to business”. But character brand licensing should be used within a companies’ strategic marketing strategy to increase sales and margins.
This is the accepted model for measuring the value of a product to its target market:
The value of a product or service to a buyer = Performance⁄Price
Increase the “performance” or “lower the price of a product” and the value to the customer/buyer increases.
And makes it more attractive to purchasers, than a competitors’ product.
We are in the age of parity products and as a result, it is very difficult to gain a market advantage and add customer value by increasing “performance” or decreasing “price”.
This is where character licensing plays a vital role. The answer to giving a product or service an advantage in the marketplace is to change the value equation to add the vital element that is key to a brand or product.
The value of a product or service to a buyer = Performance + Emotion⁄Price
Adding a high-existing emotional link between a much-loved character and the customer to increase the value of a product or service to the customer is the job character licensing does and makes the product of more value to the customer – and more likely to be purchased.
In marking the 60th anniversary of one of the world's best-known toys, the Barbie doll, scholars and journalists have a wealth of angles to explore. One story that's much less known is that of Ruth Handler, the creator of Barbie...
If a character you are considered for a licensing strategy does not have a substantial existing emotive link with your target market (and there are thousands out there) you may end up tempted to purchase a cute character “design” with little emotive links to your customers.
This will not offer the added value you are looking for within a licensing strategy.
So, where did we start? Royalties paid for character licensing is not a direct cost to a business to be directly written off – it is a marketing cost to add value to a product, service or store to increase the emotional link between your product and your customer. To increase sales, margins and profits. And a well-planned, long-term character strategy will certainly make this happen.
Blockchain has the potential to grow into a key capability, helping companies in the entertainment and media industry to keep track of content assets, avoid contractual disputes and establish the certainty and accountability that will foster trust with business partners and customers...
Next time let’s look at character licensing and the benefit it adds to impulse purchasing. Many people fall victim to the last-minute impulse purchase. In fact, 90% of shoppers buy items not on their shopping list, indicating that the impulse buy is alive and well – according to a new survey.
Generating revenue from Entertainment Brands. Representing Global Entertainment companies/studios like Warner Bros and Turner Cartoon Network. Batman, Transformers, Superman, Ben 10 and many many more.
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.