Brand Image vs. (Boorstin, 2005) Celebrity endorsements carry a lot of benefits for the company of the product they are endorsing. 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. Associations with popular names can boost sales, especially when customers believe the endorser actually uses that particular product. People who are ‘fans,’ who may have never heard or considered your brand would instantly become curious about trying it. Image courtesy of Savatore Vuono/ FreeDigitalPhotos.net. Advantages 1. However, despite having minimal disadvantages they still have a great impact on the product or service. “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. As an added bonus, Oprah sits on the board of the corporation, and invested heavily in the company. Celebrity endorsements can build brand equity. McDonald, D., (2002). Not all celebrities fit with all brands. Companies spend millions on celebrity endorsements. Tweet; There are a lot of obvious pros and cons of having a celebrity endorse your product or service. acting, music, athletics, etc., celebrities are individuals who have ascended to the upper echelon of society. 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. 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. This signifies that the message was received by the customers. Advantages. Some celebrities will endorse products for a fee, but that can be a costly way to promote your wares. 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. Save my name, email, and website in this browser for the next time I comment. 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. “An examination on multiple celebrity endorsers in advertising”, Journal of Product & Brand management, Vol. FrogDog focuses on building measurable strategies in partnership with client-company leadership that help achieve business goals effectively and efficiently. 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. However, by the use of a celebrity to promote its products a company can get back on its feet once again. 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). Benefits of Celebrity Endorsement. Popularity The major reason why many companies use this strategy is to ride on the popularity of their celebrity … If the celebrity endorsing a brand is well-known then people – especially diehard fans – are more likely to pay attention. Build brand equity. 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. It’s crucial to understand those differences to develop effective PR or social media marketing campaigns. We realised the difference between needs and wants: Tata Consumer Products' Richa Arora For example, several sports companies sell and produce the same products NIKE does and this … In 2005, Gap replaced her with Joss Stone and Keith Urban, who are more likely to wear Gap-style clothing in the public eye. The customers will buy the products in order to see whether what they have learnt about the product is true. Analysis of US Cost of Recent Wars: Is... How to Motivate Retired Workers Returning to Work. An example of this is Nike, prior to Michael Jordan … Call FrogDog today! Companies enjoy enhanced credibility by choosing and endorsing the right celebrities and celebrity endorsement for their products. Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. Research: Understanding the Independent Pharmacy Market, Research: Shifting Responsibilities in the Health Care Industry, Research: New Developments in the Payer Landscape. Advantages Power – The cult of celebrity is a cultural phenomenon dating back millennia. By Cheryl Ball. Through this loss of information about the product’s name and its use leads to poor performance in the market. Nonetheless, celebrity endorsement can be good or bad depending on the situation. 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). Advertisement is the only major way a company can promote its products or services. He has been the celebrity marketer for sports and Shoe Company known as NIKE. Here are some advantages and repercussions of celebrity spokespeople on the brand in which they’re promoting. It is common to find handwritten endorsements from celebrities … As a company it is recommended that certain aspects should be examined before signing up for celebrity endorsement of products. Brand Reputation: What’s the Difference? These include; The reputation of a company may be destroyed as a result of celebrity scandals. They faced consequences because customers withdrew from buying their products and the public viewed them negatively. And you can unsubscribe when you want. 19-29. To help you figure it out, here are the lists of its pros and cons: List of Pros of Celebrity Endorsements. But you might want to think twice—it’s a possible minefield. 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. Advertisers need to select celebrities who represent the image and promise of their brands. Celebrity endorsement is a phenomenon widely used by companies and studied by researchers. The benefits of using a celebrity for advertising are the ability to: Below are the pros and cons of using a celebrity as an endorsement to the company’s products. 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? One classic example of this benefit is Nike. Builds credibility; People are attached to their favorite celebrity, and they are generally well-trusted by their fans. For this reason, advertisers aim to select the celebrity who most reflects what the advertising is …show more content… How this information is conveyed to the public determines if message has been delivered or not. Big … Celebrity endorsement is when a famous person uses their notoriety to help sell a product or service. 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. Turning to celebrities to promote your products is a natural way to build brand awareness and credibility. Celebrities Promotion Advantages & Disadvantages for Promoting Products. 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. Pros and Cons of Celebrity Endorsements. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. 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 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. 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. This allusion of quality as a result of the products being used by the celebrities springs from the fact that th… 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. It’s true: Celebrity endorsements can reap huge rewards for a brand. 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. Through the use of an idolized celebrity in advertisement of the product high chances are the audience will take interest on the product. Before they partnered with Michael Jordan, the sportswear brand was primarily a track and tennis brand. However there are entrepreneurs who've managed to … Below are the advantages and disadvantages of using a celebrity as an endorsement to the company’s products. Helps Personify Your Brand. When you decide to work on celebrity marketing, the attributes of the celebrity automatically get transferred to the 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. Since then, Gap has continued to use celebrities who align better with their brand, such as the Avett Brothers and Kaki King. 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. Advantages and Disadvantages of Celebrity Endorsement in Marketing, Current Medicaid Modernization in New Mexico. Finally it is able to attract its customers back and attract more. 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