These two terms often get mixed up.
As a proprietor of a famous brand you can sign merchandising deals and through those protect your trademark in as many categories as possible. You may at the same time generate some additional income.
Will it help you advance your brand? That is unlikely.
Take, for example, the recent deals, Ford signed according to the Licensing Magazine:
The latest signings include:
A T-shirt collection to be sold exclusively at Old Navy.
A radio-controlled wall climber, featuring the new Ford Mustang.
Ford Mustang-branded energy shots.
Hot sauce available now at Ford dealers and other related automotive specialty stores.
A book, called “Mustang: An American Classic,” available now at booksellers nationwide.
A Mustang book makes sense.
Everything else on that list is a gimmick at best. And hot sauce, sold at car dealerships?
It is common knowledge within the industry, that car salesmen are unwilling to sell accessories. Manufacturers have a long history of NOT selling ties, key chains, wallets and other accessories. Why?
Because car salesmen have a tough time selling a $50 item on top of a $20,000+ car. The customer expects the accessory as a gift. Can someone imagine the Ford salespeople now selling hot sauce?