Brand Reputation: What’s the Difference? But you might want to think twice—it’s a possible minefield. Media Relations, Press Releases, News Items: What Do I Need? When potential buyers of a product see a certain celebrity using a specific product, they believe that the product is of high quality and when they use it they perceive to be as important as the celebrity if they idolize him or her. Infographic: 5 Pricing Strategies for Special Products and Services, Infographic: Five Essential KPIs for Recruitment Marketing, Why You Should Outsource Your Ongoing Marketing to Professionals, Three Ways Businesses Can Use Reddit For Marketing, Infographic: Tips for Successful Holiday B2B Direct Marketing Efforts, Infographic: 8 Ways to Turn Your Business into a Thought Leader, Why You Should Optimize Your Site for User Experience, Align Your Marketing Story with Your Brand Promise. As an added bonus, Oprah sits on the board of the corporation, and invested heavily in the company. Nike wanted expand into new markets. As a company it is recommended that certain aspects should be examined before signing up for celebrity endorsement of products. When NIKE uses tennis champion Vanessa Williams to advertise their rackets and sportswear the audience gets attracted to the product and they want to try it out. Analysis of US Cost of Recent Wars: Is... How to Motivate Retired Workers Returning to Work. A true celebrity can help expand reach, but they might goof up and do something stupid, which could ultimately hurt your brand. A celebrity endorsement gives you the opportunity to reach out to a different set of demographics and new markets with the products that you offer. One classic example of this benefit is Nike. Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. However there are entrepreneurs who've managed to … “You wanna know what comes between me and my Calvins?”. Now of course as a consumer myself, in not only the fashion but also the beauty industry, I can see both the pros and cons of celebrity endoresements on a company’s profile. Pros and Cons of Celebrity Endorsements. How a Strong Brand Strategy Helps Define Corporate Culture, Infographic: 5 Tips Executives Should Have Handy When a Reporter Calls, Five Essential KPIs for Recruitment Marketing. For example, several sports companies sell and produce the same products NIKE does and this causes high competition between NIKE and other companies. Nonetheless, celebrity endorsement can be good or bad depending on the situation. acting, music, athletics, etc., celebrities are individuals who have ascended to the upper echelon of society. Finally it is able to attract its customers back and attract more. Celebrity Culture Social media stardom is on the rise; many celebrities have strongly established themselves as a valuable brand, just through the simple use of platforms such as Snapchat or Instagram. Call FrogDog today! An entrepreneur may lack the ideas to add quality to his or her product but through advertisement and celebrity endorsement, the product gains credibility in the market. Advantages of Celebrity Endorsement Can Build Brand Equity Celebrity endorsement can make it easier for a brand taps into new markets. Many retail companies use celebrities to promote their products with the main reason being to earn trust and credibility of products and services. To help you figure it out, here are the lists of its pros and cons: List of Pros of Celebrity Endorsements. Celebrity endorsements can build brand equity. There are additional ways to stand out with this advantage as well, including better advertisement recall in the future, staying at the t… And you can unsubscribe when you want. From Humphrey Bogart and Lauren Bacall advertising Robert Burns Cigarillos and Betty Davis selling Lustre Cream Shampoo to Bill Cosby and Jello Pudding, companies have long loved using celebrities to endorse their brands. In a market with a very high proliferation of local, regional and international brands, celebrity endorsement was traditionally thought to provide a distinct differentiation. If the market for a certain product believes in a certain celebrity the highest probability is that they will trust in the product the celebrity is endorsing. We realised the difference between needs and wants: Tata Consumer Products' Richa Arora Since then, Gap has continued to use celebrities who align better with their brand, such as the Avett Brothers and Kaki King. There are specific potential advantages of celebrity endorsement, the advertisement in which celebrities are endorsed get more attention as compared to non-celebrity ones, celebrity endorsement helps the company in re-positioning its product/brand and finally entitle the company when it penetrates new in the market or plans to move in international market. If the celebrity endorsing a brand is well-known then people – especially diehard fans – are more likely to pay attention. For example, several sports companies sell and produce the same products NIKE does and this … This signifies that the message was received by the customers. When a company starts producing a new product, the use of a celebrity to promote those products helps build trust between the company and the customers. However, through the use of sports celebrities such as Tiger Woods and Michael Jordan the company has managed to outstand in the market share; their products are mostly used because the customers identify the company with these celebrities (Smart, 2005). Please try again. Image courtesy of Savatore Vuono/ FreeDigitalPhotos.net. He has been the celebrity marketer for sports and Shoe Company known as NIKE. However, despite having minimal disadvantages they still have a great impact on the product or service. Prior to Michael Jordan,Nike primarily sponsored tennis and track athletes. Currently companies such as EA sports and Rolex are seeking for contracts with him so as to market their products. Your subscription could not be saved. Culture road block can be manipulated by using celebrity with worldwide reputation (Kaikati, 1987). By Cheryl Ball. “An examination on multiple celebrity endorsers in advertising”, Journal of Product & Brand management, Vol. Not all celebrities fit with all brands. Definition A product endorsement involves a celebrity, a relevant professional or a business giving its approval for the virtue of a product and recommending it to the customers as a good and safe product. FrogDog focuses on building measurable strategies in partnership with client-company leadership that help achieve business goals effectively and efficiently. Through this loss of information about the product’s name and its use leads to poor performance in the market. However, by the use of a celebrity to promote its products a company can get back on its feet once again. When NIKE signed a contract with Tiger Woods to promote their sportswear, the company’s product which includes caps, T-shirts, bands, shoes, and track suits; the products earned the trust of many athletes from different categories of sports including tennis, athletics, and basket-ball (Koekemoer, 2004). Celebrity advertisements are very effective in creating this perception of quality in the eyes of the consumer. When a company decides to involve a celebrity in its advertisements and in product or service marketing, there is a greater advantage to it than disadvantage. If they use your product, it shows their fans that it is a product worth using and builds trust in your brand. The belief of getting high quality product. Some celebrities will endorse products for a fee, but that can be a costly way to promote your wares. Endorsement is a channel of brand communication in which a celebrity acts as the brand’s spokesperson and certifies the brand’s claim and position by extending his/her personality, popularity, status in society or expertise in the field to the brand. Celebrity endorsement is a phenomenon widely used by companies and studied by researchers. Here are some advantages and repercussions of celebrity spokespeople on the brand in which they’re promoting. This therefore raises concern within the business marketing sector, is it advantageous for the company or disadvantageous to have a celebrity market their products or services? Celebrity endorsements communicate to consumers that the celebrity uses the product or service that they are endorsing, and that they prefer it above other products of its kind. Celebrities Promotion Advantages & Disadvantages for Promoting Products. And who can forget Brooke Shields’ famous line, “You wanna know what comes between me and my Calvins?”. Celebrity endorsements are not short-term tactics. When a business utilizes the services of a celebrity to promote products or services, then this advertising option becomes a way to differentiate their brand from their competition. The company’s manager states that the company is humbled and thrilled to still be in partnership with Tiger Woods, who has been the company’s product promoter for years, through a contract that was signed recently. Brands are important company assets. Celebrity endorsements don’t just take the form of adverts – celebs are often paid to tweet about products, with companies generously supplying them with goodies. An example of this is Nike, prior to Michael Jordan … Through the use of an idolized celebrity in advertisement of the product high chances are the audience will take interest on the product. Our monthly marketing packages are designed to help businesses who need to quickly add a marketing department or expand the capabilities of their current department. For a product to sell there must be some positive regard to the product by the consumers. Not a bad idea. Turning to celebrities to promote your products is a natural way to build brand awareness and credibility. For example, at the height of “Sex and the City,” Sarah Jessica Parker signed on as a face of Gap. Celebrity endorsements and sponsored influencer content have similarities and may overlap at times, but the two strategies entail different advantages and disadvantages. For example, a company may be involved in legal issues or bankruptcy which may lead to loss of customers and their faith in the company; with the use of a celebrity to promote the product the company is able to build its rapport. These include; The reputation of a company may be destroyed as a result of celebrity scandals. But when that celebrity becomes engulfed in scandal, companies face the challenges of managing the situation and determining whether to cut ties with their celebrity partners. Celebrity endorsement is used by companies to enjoy media exposure. The public may see this as just a way for the celebrity to make money and the credibility of the product may suffer due to this; customers may doubt the quality of the product and this would be bad for business. Advertisers need to select celebrities who represent the image and promise of their brands. People who are ‘fans,’ who may have never heard or considered your brand would instantly become curious about trying it. Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. We do not spam. One of the advantages in celebrity endorsements is an instant establishment of credibility. Despite the generally positive aspects of endorsement on the evaluation of products, in some cases, celebrities cannot substantially help promote products. The main objective of any business is to make a profit and this is only achieved through the maximum sale of products and attracting of customers (Egan, 2008). However, Parker was so closely associated with her show’s haute couture style that the association didn’t resonate with consumers. If the consumers can perceive the product as being of a superior quality to other similar products by differing companies in the market, the consumers are more likely to purchase the alleged quality product. For example, when Tiger Woods takes part in the advertisement of NIKE’s products, General Motors, Rolex, and Gillette; the audience gets lost and forgets what products are being promoted and focus on the celebrity only because that is the only constant feature (McDonald, 2002). This allusion of quality as a result of the products being used by the celebrities springs from the fact that th… That is why the companies are so much eager to hire them to promote their goods and services. Advertisement is the only major way a company can promote its products or services. Celebrity endorsement will give companies a competitive advantage over similar brands. Benefits of Celebrity Endorsement. Companies enjoy enhanced credibility by choosing and endorsing the right celebrities and celebrity endorsement for their products. Through such instances the use of a celebrity becomes a disadvantage to the company and the consequences pose a great threat to the company. Other companies such as General Motors and Gillette withdrew from him but NIKE stuck with him. Advantages Power – The cult of celebrity is a cultural phenomenon dating back millennia. It will help build product credibility When a company starts producing a new product, the use of a celebrity to promote those products helps build trust between the company and the customers. 1. It’s true: Celebrity endorsements can reap huge rewards for a brand. An entrepreneur may lack the ideas to add quality to his or her product but through advertisement and celebrity endorsement, the product gains credibility in the market. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. The purpose of this paper is to analyze the effectiveness of celebrity endorsement effect in an aspiring new celebrity.,Four studies … According to research by Harvard Business School professor Anita Elberse and Barclays Capital analyst Jeroen Verleun, a celebrity endorsement increases a company’s sales an average of 4% relative to its competition, and also increases a company’s stock value by 0.25%. While obvious advantages of brand recall, greater recognition and association of the brand with the celebrity's stature and personality are always there, it comes with the potential downside when the brand gets associated with the attributes of the endorser and the latter's behaviour becomes contrary to the acceptable societal norms. Yet they have numerous pitfalls that companies should consider before developing an endorsement program. Associations with popular names can boost sales, especially when customers believe the endorser actually uses that particular product. When a celebrity features in several advertisements involving different products, the audience may get carried away and forget the main thing, which is the product, and focus only on the celebrity. The customers will buy the products in order to see whether what they have learnt about the product is true. The above points are advantages of using a celebrity in promoting products, but on the other hand several disadvantages come with the use of celebrities in product marketing. Power – The cult of celebrity has been influential since the days of the Pharaohs, who were celebrities in their own right. Pros. Advantages 1. … When you decide to work on celebrity marketing, the attributes of the celebrity automatically get transferred to the brand. This activity involves letting the audience know the name of the product, what it is, what it is used for and also gives information on the benefits of using that product. 5535 Memorial Drive, Suite F #804 (Boorstin, 2005) Celebrity endorsements carry a lot of benefits for the company of the product they are endorsing. In 2005, Gap replaced her with Joss Stone and Keith Urban, who are more likely to wear Gap-style clothing in the public eye. Popularity The major reason why many companies use this strategy is to ride on the popularity of their celebrity … When Tiger Woods was involved with several sex scandals and cases of infidelity, his reputation changed for the worst and many people viewed him negatively. It Will Help Build Product Credibility; When a company starts producing a new product, the use of a celebrity to promote those products helps build trust between the company and the customers. PROS of Celebrity Endorsements CELEBRITIES ALLOW YOU TO TAP INTO NEW MARKETS The first pro and probably one of the more beneficial ones of the lot is that stars allow you to reach new markets. For this reason, advertisers aim to select the celebrity who most reflects what the advertising is …show more content… Tweet; There are a lot of obvious pros and cons of having a celebrity endorse your product or service. Note: It takes time and repetition for association to occur. How this information is conveyed to the public determines if message has been delivered or not. Brand Image vs. Before they partnered with Michael Jordan, the sportswear brand was primarily a track and tennis brand. Helps Personify Your Brand. At the height of his popularity and fame due to golf, Tiger Woods had signed up for several product endorsements for many companies (McDonald, 2002). Landing celebrity endorsements can be a huge victory for corporations. Yet even if a celebrity is a good fit for the brand, using one for endorsements has its own set of possible risks: Thinking about using a celebrity for endorsement? Houston, Texas 77007, The Advantages and Disadvantages of Celebrity Endorsements. In several occasions a company may lose its credibility in the market due to various company flaws. Who align better with their brand, such as EA sports and company... 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