When consumers buy products online or in a retail store, they generally assume that the products are the ideas of their manufacturers or distributors. Often this is not the case. Instead, manufacturers license inventors’ products and market them in their established target markets. Product licenses benefit manufacturers in a number of ways, including reducing research and development costs, utilizing excess manufacturing capacity and staff capacity, and being able to introduce more new products over a period of time. shorter. Licensed products are all around us; Here are some examples of product licenses you may have come across recently.
Toys
Licensing is very popular in the toy industry as it allows toy manufacturers to introduce many new toys each year. Even toys based on popular movies and TV shows are licensed by their inventors. You can see licensed toys from Batman Begins, Star Wars, Harry Potter, Spongebob Squarepants, and Shrek at your favorite department store or toy store.
Table games
Board games from popular companies like Hasbro are often licensed by their creators. This has several advantages for table game companies. They can bring new games to market faster than their competitors, and they can also reduce research and development costs, since board game creators often do their own testing and prototyping. Board game creators benefit from licenses because they are not required to deal with the marketing and distribution of the games they have created. This leaves more time to create and test new games that may be licensed to other manufacturers in the future. Chances are many of the board games in your home or local rec center are licensed.
Action figures
Action figures are usually based on characters from movies and television. Good examples are Superman, Spiderman, Batman, He-Man and GI Joe. Most of these action figures are licensed and distributed by manufacturing companies with a wide market reach and excellent manufacturing capabilities. This gives product creators the time to create new products instead of spending time figuring out how to market and distribute products they’ve already created. Product licensing also benefits action figure manufacturers. These manufacturers can capitalize on the popularity of movies and TV shows to increase sales. Licensing also makes it possible for manufacturers to introduce these action figures without spending a lot of money testing and developing the products in-house.
Videogames
Video game manufacturers also take advantage of licensing when creating video games for the children’s and adult gaming markets. It’s much easier to sell video games when they contain recognizable characters from movies, TV shows, comic books, and cartoons, so video game makers often license popular characters and use them in new video game offerings. This gives the manufacturer an advantage in marketing and selling its new video games for both children and adults. Licensed products surround us in the market and provide excellent forms of education and entertainment. The best part of these licensed products is that everyone involved wins. Creators are compensated for their products, manufacturers can reduce costs and remain competitive, and end users can continue to purchase new products for educational and entertainment purposes.
