Advantages for Licensing

1. Enhanced company image and publicity

2. Increased profit from royalties
3. Increased brand awareness or recognition
4. Increased opportunity for penetrating new markets
5. Limited manufacturing costs or risks

1. Existing brand awareness or recognition

2. Lower advertising and promotional costs
3. Increased possibility of success and profitability
4. Connection with an athlete, sports team, entertainer, or corporation
Disadvantage for licensing
1. Potential for poor quality of a licensees manufactured products
2. Partial relinquishment of control over the marketing mix of the brand
3. Athlete, entertainer, or corporation may lose popularity.
4. Sports teams may suffer losing seasons
5. Change in styles, trends, and consumer preferences
6. Royalties and licensing fees can be expensive
7. Manufacturing costs and risks
8. Competition can drive up costs associated with fees and royalties
9. Competition can cause a negative impact on market share
10.Competition can cause a negative impact on market share