The Licensing Deal – Supporting the Marketing Strategy

As a partnership, licensing agreements should align key marketing objectives.  Creating alignment with marketing objectives can be reflected in the performance clauses to achieve measurable results.  Some examples of these types of performance objectives: Brand positioning criteria might include product-related elements such as features and benefits, differentiation or price premium;  Customer or end user criteria could include various demographic and lifestyle elements as well as customer support, satisfaction and loyalty; Distribution criteria could establish product mix, geographic territories or retail channels; Advertising and promotion criteria might include media spending, type, frequency and promotional activity such as tie-ins, cross promotions and price discounting.  Keep in mind that markets are constantly changing, and as a partnership, these performance clauses may need to be revised to reflect the current market environment.

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