celebrity endorsement advantages

Below are the pros and cons of using a celebrity as an endorsement to the company’s products. 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? Many retail companies use celebrities to promote their products with the main reason being to earn trust and credibility of products and services. However, Parker was so closely associated with her show’s haute couture style that the association didn’t resonate with consumers. 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. acting, music, athletics, etc., celebrities are individuals who have ascended to the upper echelon of society. Celebrity endorsement is when a famous person uses their notoriety to help sell a product or service. If they use your product, it shows their fans that it is a product worth using and builds trust in your brand. Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. 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. Associations with popular names can boost sales, especially when customers believe the endorser actually uses that particular product. Not a bad idea. Image courtesy of Savatore Vuono/ FreeDigitalPhotos.net. These include; The reputation of a company may be destroyed as a result of celebrity scandals. 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. For a product to sell there must be some positive regard to the product by the consumers. The purpose of this paper is to analyze the effectiveness of celebrity endorsement effect in an aspiring new celebrity.,Four studies … He has been the celebrity marketer for sports and Shoe Company known as NIKE. An example of this is Nike, prior to Michael Jordan … Popularity The major reason why many companies use this strategy is to ride on the popularity of their celebrity … However, by the use of a celebrity to promote its products a company can get back on its feet once again. 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. Tweet; There are a lot of obvious pros and cons of having a celebrity endorse your product or service. For this reason, advertisers aim to select the celebrity who most reflects what the advertising is …show more content… Culture road block can be manipulated by using celebrity with worldwide reputation (Kaikati, 1987). 5535 Memorial Drive, Suite F #804 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. That is why the companies are so much eager to hire them to promote their goods and services. Nike wanted expand into new markets. 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. Oprah Winfrey has openly struggled with her weight for years, so her longtime pairing with Weight Watchers feels uniquely authentic. 1. Advertisement is the only major way a company can promote its products or services. Companies enjoy enhanced credibility by choosing and endorsing the right celebrities and celebrity endorsement for their products. Brands are important company assets. Through such instances the use of a celebrity becomes a disadvantage to the company and the consequences pose a great threat to the company. 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. Need help with branding for your company? When you decide to work on celebrity marketing, the attributes of the celebrity automatically get transferred to the brand. 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. 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. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. If the celebrity endorsing a brand is well-known then people – especially diehard fans – are more likely to pay attention. We do not spam. Call FrogDog today! How this information is conveyed to the public determines if message has been delivered or not. 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. But over the years, many aspiring brands in Asia have jumped on to this celebrity endorsement bandwa… FrogDog focuses on building measurable strategies in partnership with client-company leadership that help achieve business goals effectively and efficiently. This signifies that the message was received by the customers. It’s crucial to understand those differences to develop effective PR or social media marketing campaigns. Celebrity endorsements can build brand equity. Advantages Power – The cult of celebrity is a cultural phenomenon dating back millennia. Save my name, email, and website in this browser for the next time I comment. Advertisers need to select celebrities who represent the image and promise of their brands. The benefits of using a celebrity for advertising are the ability to: 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, … 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. Advantages. However there are entrepreneurs who've managed to … There are additional ways to stand out with this advantage as well, including better advertisement recall in the future, staying at the t… 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. Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. 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. 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. The most sincere celebrity endorsements happen when the celebrity actually uses the product. 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. Houston, Texas 77007, The Advantages and Disadvantages of Celebrity Endorsements. Through this loss of information about the product’s name and its use leads to poor performance in the market. Advantages 1. 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). Celebrity endorsements and sponsored influencer content have similarities and may overlap at times, but the two strategies entail different advantages and disadvantages. Companies spend millions on celebrity endorsements. Prior to Michael Jordan,Nike primarily sponsored tennis and track athletes. 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. Celebrity endorsements are not short-term tactics. Celebrity endorsement is a phenomenon widely used by companies and studied by researchers. 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). Through the use of an idolized celebrity in advertisement of the product high chances are the audience will take interest on the product. 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 and Disadvantages of Celebrity Endorsement in Marketing, Current Medicaid Modernization in New Mexico. In several occasions a company may lose its credibility in the market due to various company flaws. 19-29. One of the advantages in celebrity endorsements is an instant establishment of credibility. 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). 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. 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. Big … Note: It takes time and repetition for association to occur. 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). The belief of getting high quality product. Celebrities Promotion Advantages & Disadvantages for Promoting Products. Builds credibility; People are attached to their favorite celebrity, and they are generally well-trusted by their fans. 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. But you might want to think twice—it’s a possible minefield. In a market with a very high proliferation of local, regional and international brands, celebrity endorsement was traditionally thought to provide a distinct differentiation. Advantages of Celebrity Endorsement Can Build Brand Equity Celebrity endorsement can make it easier for a brand taps into new markets. 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. Benefits of Celebrity Endorsement. To help you figure it out, here are the lists of its pros and cons: List of Pros of Celebrity Endorsements. Here is how a celebrity endorsement could increase your brand recognition, ensuring your product or service successfully stands out from the crowd. As an added bonus, Oprah sits on the board of the corporation, and invested heavily in the company. 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Be examined before signing up for celebrity endorsement bandwa… celebrity endorsements can be manipulated by using celebrity worldwide! Board of the advantages in celebrity endorsements can be manipulated by using celebrity with worldwide reputation ( Kaikati, )... Represent the image and promise of their brands Winfrey has openly struggled with weight! Endorsement bandwa… celebrity endorsements comes between me and my Calvins? ” by the endorsing party it!
celebrity endorsement advantages 2021