This signifies that the message was received by the customers. Celebrity endorsements can build brand equity. Advantages. Below are the advantages and disadvantages of using a celebrity as an endorsement to the company’s products. 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. 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. 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. 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. It is common to find handwritten endorsements from celebrities … Endorsements can be effected by means of a statement to the public or by the endorsing party using it for all to see. Effect of The Economic Climate on The HR... U.S. Aerospace Manufacturing Industry Economic Crisis, Shouldice Hospital Strategic Management Analysis, Issues of HR Management Department’s Visibility in Motivating Employees. 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? Media Relations, Press Releases, News Items: What Do I Need? The most sincere celebrity endorsements happen when the celebrity actually uses the product. 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. McDonald, D., (2002). Celebrity endorsements and sponsored influencer content have similarities and may overlap at times, but the two strategies entail different advantages and disadvantages. 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. That is why the companies are so much eager to hire them to promote their goods and services. However, Parker was so closely associated with her show’s haute couture style that the association didn’t resonate with consumers. How this information is conveyed to the public determines if message has been delivered or not. 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%. 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). Through this, the use of a celebrity may have a negative impact on the product market as it may lead to customers refraining from the use of the product. However there are entrepreneurs who've managed to … (Boorstin, 2005) Celebrity endorsements carry a lot of benefits for the company of the product they are endorsing. When you decide to work on celebrity marketing, the attributes of the celebrity automatically get transferred to the brand. Celebrity endorsements are not short-term tactics. 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. Celebrity endorsement will give companies a competitive advantage over similar brands. But you might want to think twice—it’s a possible minefield. Note: It takes time and repetition for association to occur. The benefits of using a celebrity for advertising are the ability to: Your subscription could not be saved. Since then, Gap has continued to use celebrities who align better with their brand, such as the Avett Brothers and Kaki King. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. Currently companies such as EA sports and Rolex are seeking for contracts with him so as to market their products. Celebrity endorsement is used by companies to enjoy media exposure. This allusion of quality as a result of the products being used by the celebrities springs from the fact that th… 11, No.1, pp. Build brand equity. Analysis of US Cost of Recent Wars: Is it Worth it or is it an Economic Burden? 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). And who can forget Brooke Shields’ famous line, “You wanna know what comes between me and my Calvins?”. Since the year 1996, Tiger Woods has been the NIKE celebrity endorser and year by year he has still been able to maintain that position (Egan, 2008). Despite the generally positive aspects of endorsement on the evaluation of products, in some cases, celebrities cannot substantially help promote products. 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. People who are ‘fans,’ who may have never heard or considered your brand would instantly become curious about trying it. In 2005, Gap replaced her with Joss Stone and Keith Urban, who are more likely to wear Gap-style clothing in the public eye. Finally it is able to attract its customers back and attract more. 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. acting, music, athletics, etc., celebrities are individuals who have ascended to the upper echelon of society. 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. 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. For instance: if you’ll hire an actor, your brand’s image will automatically turn into something glamorous and exciting, if … However, despite having minimal disadvantages they still have a great impact on the product or service. Some celebrities will endorse products for a fee, but that can be a costly way to promote your wares. Prior to Michael Jordan,Nike primarily sponsored tennis and track athletes. Please try again. 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. 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. Pros and Cons of Celebrity Endorsements. If they use your product, it shows their fans that it is a product worth using and builds trust in your brand. Tweet; There are a lot of obvious pros and cons of having a celebrity endorse your product or service. 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. Call FrogDog today! Celebrity endorsement is a phenomenon widely used by companies and studied by researchers. Celebrity advertisements are very effective in creating this perception of quality in the eyes of the consumer. 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. Celebrities Promotion Advantages & Disadvantages for Promoting Products. Oprah Winfrey has openly struggled with her weight for years, so her longtime pairing with Weight Watchers feels uniquely authentic. We realised the difference between needs and wants: Tata Consumer Products' Richa Arora One of the advantages in celebrity endorsements is an instant establishment of credibility. It’s true: Celebrity endorsements can reap huge rewards for a brand. 1. 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. 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. Builds credibility; People are attached to their favorite celebrity, and they are generally well-trusted by their fans. Companies enjoy enhanced credibility by choosing and endorsing the right celebrities and celebrity endorsement for their products. The purpose of this paper is to analyze the effectiveness of celebrity endorsement effect in an aspiring new celebrity.,Four studies … 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? An example of this is Nike, prior to Michael Jordan … Helps Personify Your Brand. 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). Pros. Brand Reputation: What’s the Difference? One classic example of this benefit is Nike. Advantages 1. 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. The customers will buy the products in order to see whether what they have learnt about the product is true. He has been the celebrity marketer for sports and Shoe Company known as NIKE. 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 celebrity endorsing a brand is well-known then people – especially diehard fans – are more likely to pay attention. Here are some advantages and repercussions of celebrity spokespeople on the brand in which they’re promoting. There are additional ways to stand out with this advantage as well, including better advertisement recall in the future, staying at the t… FrogDog focuses on building measurable strategies in partnership with client-company leadership that help achieve business goals effectively and efficiently. 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. Through the use of an idolized celebrity in advertisement of the product high chances are the audience will take interest on the product. 19-29. Benefits of Celebrity Endorsement. Associations with popular names can boost sales, especially when customers believe the endorser actually uses that particular product. Analysis of Carbon Price Mechanism in Australia. (For more information on brand promises, read FrogDog’s article series on branding.) Through such instances the use of a celebrity becomes a disadvantage to the company and the consequences pose a great threat to the company. For this reason, advertisers aim to select the celebrity who most reflects what the advertising is …show more content… Landing celebrity endorsements can be a huge victory for corporations. Advantages and Disadvantages of Celebrity Endorsement in Marketing, Current Medicaid Modernization in New Mexico. Advantages Power – The cult of celebrity is a cultural phenomenon dating back millennia. Houston, Texas 77007, The Advantages and Disadvantages of Celebrity Endorsements. 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. Analysis of US Cost of Recent Wars: Is... How to Motivate Retired Workers Returning to Work. Not all celebrities fit with all brands. In several occasions a company may lose its credibility in the market due to various company flaws. However, by the use of a celebrity to promote its products a company can get back on its feet once again. Celebrity endorsement is when a famous person uses their notoriety to help sell a product or service. Nike wanted expand into new markets. Before they partnered with Michael Jordan, the sportswear brand was primarily a track and tennis brand. 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. Around that period many companies distanced themselves from Woods but experts had predicted that his reputation would go back to normal with time. 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. 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. Nonetheless, celebrity endorsement can be good or bad depending on the situation. And you can unsubscribe when you want. It’s crucial to understand those differences to develop effective PR or social media marketing campaigns. 5535 Memorial Drive, Suite F #804 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. We do not spam. Need help with branding for your company? Brand equity will be improved due to celebrity endorsement (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001). Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. … “An examination on multiple celebrity endorsers in advertising”, Journal of Product & Brand management, Vol. Popularity The major reason why many companies use this strategy is to ride on the popularity of their celebrity … Through this loss of information about the product’s name and its use leads to poor performance in the market. Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. 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. Power – The cult of celebrity has been influential since the days of the Pharaohs, who were celebrities in their own right. For example, several sports companies sell and produce the same products NIKE does and this causes high competition between NIKE and other companies. Advantages of Celebrity Endorsement Can Build Brand Equity Celebrity endorsement can make it easier for a brand taps into new markets. For example, at the height of “Sex and the City,” Sarah Jessica Parker signed on as a face of Gap. But over the years, many aspiring brands in Asia have jumped on to this celebrity endorsement bandwa… Below are the pros and cons of using a celebrity as an endorsement to the company’s products. 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. Not a bad idea. Research: Understanding the Independent Pharmacy Market, Research: Shifting Responsibilities in the Health Care Industry, Research: New Developments in the Payer Landscape. Despite his marriage issues that went public in the year 2009, NIKE stood by him and as long as he kept winning on the course, his portfolio regained its stature with time. Culture road block can be manipulated by using celebrity with worldwide reputation (Kaikati, 1987). 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. 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). These include; The reputation of a company may be destroyed as a result of celebrity scandals. 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. Big … “You wanna know what comes between me and my Calvins?”. To help you figure it out, here are the lists of its pros and cons: List of Pros of Celebrity Endorsements. Save my name, email, and website in this browser for the next time I comment. Here is how a celebrity endorsement could increase your brand recognition, ensuring your product or service successfully stands out from the crowd. They faced consequences because customers withdrew from buying their products and the public viewed them negatively. Brand Image vs. Brands are important company assets. celebrity endorsement have their specialized niche which ranges from music and film, fitness, fashion, sports, etc. For example, several sports companies sell and produce the same products NIKE does and this … As an added bonus, Oprah sits on the board of the corporation, and invested heavily in the company. 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. Advertisement is the only major way a company can promote its products or services. Celebrity endorsements: advantages & disadvantages. Other companies such as General Motors and Gillette withdrew from him but NIKE stuck with him. 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). Companies spend millions on celebrity endorsements. Advertisers need to select celebrities who represent the image and promise of their brands. By Cheryl Ball. The belief of getting high quality product. Image courtesy of Savatore Vuono/ FreeDigitalPhotos.net. Yet they have numerous pitfalls that companies should consider before developing an endorsement program. 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. 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. For a product to sell there must be some positive regard to the product by the consumers. As a company it is recommended that certain aspects should be examined before signing up for celebrity endorsement of products. Turning to celebrities to promote your products is a natural way to build brand awareness and credibility. 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. 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. Many retail companies use celebrities to promote their products with the main reason being to earn trust and credibility of products and services. A true celebrity can help expand reach, but they might goof up and do something stupid, which could ultimately hurt your brand. Effect of Celebrity Endorsement on Brand Image Learning from the example of Nike; the brand is well known in almost all parts of the world, especially being ranked the 16 th most valuable brand by the annual Forbes ranking of The World’s Most Valuable Brands, … researchers Jagdish Agrawal and Wagner Kamakura. 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