celebrity endorsement advantages

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

You Got What You Wanted Quotes, Jenny Marrs Facebook, Commercial Beverage Cooler Repair, Devdas Meaning In Nepali, Ano Ang Kahulugan Ng Oras Oras, Thai Instant Noodles Calories, Wyler's Beef Bouillon Cubes Nutrition, Le Moyne College Princeton Review,

Schreibe einen Kommentar

Deine E-Mail-Adresse wird nicht veröffentlicht. Erforderliche Felder sind mit * markiert.