DECA Sports and Entertainment Marketing Practice Exam

What is a licensed brand?

1. A brand name developed by regulatory bodies

2. A well-known name sold for promotion by another company

3. A brand that exclusively promotes its own products

4. A brand that is registered with multiple franchises

The correct answer is: A well-known name sold for promotion by another company

A licensed brand refers to a well-known name that a company allows another company to use for promotional purposes, usually in exchange for a fee or a percentage of the profits. Licensing allows businesses to leverage the reputation and recognition of an existing brand to enhance their products or services. This is commonly seen in scenarios where popular brands are used to promote items such as clothing, merchandise, or events. The focus on promotion through a well-established name allows companies that lack brand equity to benefit from the association with a recognized brand. This strategy can significantly boost visibility, desirability, and sales for the products bearing the licensed brand's name.