Disadvantages of Celebrity Endorsement The Image of the Company may be Ruined if the Celebrity’s Image is. Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Advantages And Disadvantages Of Brand Ambassadors 1789 Words | 8 Pages. Power – The cult of celebrity is a cultural phenomenon dating back millennia. Celebrity Endorsements: Advantages & Disadvantages Advantages. With the help of a celebrity or public figure you can:
• Enhance brand awareness within a short period of time
• Shift consumer attitudes about your goods or services
• Add a fresh perspective to your brand
• Improve brand management
• Give your brand a major competitive edge
• Create long-term loyalty towards a brand
• Boost cultural awareness on a global scale by using an internationally recognised celebrity. Firms have always given a huge importance to connecting their brand with celebrity endorsers (e.g. If a familiar celebrity or public figure agrees to endorse your product or services then this can be a reliable and profitable way to promote your brand and raise public awareness. 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. Definition: Endorsements are a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect or awareness amongst the people.Such people advertise for a product lending their names or images to promote a product or service. 1. Using celebrities help advertisers to stand out from the crowd and attract attention (Kaikati, 1987). 2. All this expenditure influences the price of goods and services offered by the brand. 1. Designing a brand involves significant research, naming development, graphic design and brand identity integration, which aren't cheap. Product endorsements come with varied disadvantages, most of which are tied to the high-end life led by the endorsing parties. You have to analyze your portfolio and choose the type that fits you best. Business owners may feel pressured to increase the price of their products to compensate for the increased expense, which could cause customers to switch products. The Advantages and Disadvantages of Endorsement https://buff.ly/2DcTk9l # Endorsement # Product_Endorsement. Successful composite co-branding is dependent upon the favorability of the brands serving as ingredients as well as also upon the extent of complementarities between the two. Probably, they have strong reasons to do so. behalf of distributors and sold under the distributor’s own name or trademark through the distributor’s own outlet List of Product Endorsement Advantages 1. Who is your primary and secondary target market? A prominent example of this was Tiger Woods in 2009, when rumors of his infidelity surfaced and brands began to drop him as a sponsor to avoid the backlash from consumers. But today we are here to discuss the benefits and disadvantages of celebrity marketing, to help advertisers weigh their options before making any final deal. Branding is the process of communicating the value of your company and its products to a target market. Ex - GE Appliances. If a familiar celebrity or public figure agrees to endorse your product or services then this can be a reliable and profitable way to promote your brand and raise public awareness. An endorser brand architecture is made up of individual and distinct product brands, which are linked together by an endorsing parent brand. He has been the celebrity marketer for sports and Shoe Company known as NIKE. The endorsing parent brand plays a supportive and linking role, and, in many respects, an endorser brand architecture can be seen as an inversion of a sub-brand brand architecture. Therefore, understanding the role of the endorser’s nationality in advertising a Korean smartphone among young Taiwanese consumers is necessary. Some include: Product eclipsing – this occurs when the endorser overshadows the product he/she is endorsing by consuming more space and time than the product. Recent Posts. Microsoft uses multiple brand architectures, but very deliberately. List of Cons of Celebrity Endorsements. Share On. (Answer with special reference to Beckham’s popularity in the Far East) David Beckham was one of the most successful endorsers in the late 1990s and the early twenty-first century for the following reasons: A) David … 1. The factor of Brand Character is such that a consumer can relate to it creating an emotional connection with its values, fundamentals, and the unique selling points. Brand ambassador: Brand ambassador is a marketing term for a person employed by an organization or company to promote its products or services within the activity known as branding. Build Trust However, branding is an expensive process and is difficult to undo if the company's direction changes. For starters, celebrities are a part of your business that you can’t control. When you draw up a contract between yourself and your chosen public figure, all of these matters will be negotiated and agreed upon. Advantages and disadvantages of celebrity endorsement of celebrity in marketing Name Course Lecturer Date Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. One major disadvantage of branding is the expense. This article aims to explore some of the advantages and disadvantages of branding. The Pros and Cons of Celebrity Endorsements admin | January 2, 2018. Power – The cult of celebrity is a cultural phenomenon dating back millennia. It has endorsed brands like XBox and Bing, which target more fractional audiences, but remain linked to the parent brand. Build brand equity. The most important thing to keep in mind is that the brand and paid endorser are legally tied together; both are on the hook if the other makes misleading statements or they are omitting things that are required in their industry. 8 Ways Media SA is a Swiss-based web design and marketing agency providing 8 main services including branding, web design, IT development, offline & online marketing and much more. Today, we are in the information age. The major reason why many companies use this strategy is to ride on the popularity of their celebrity endorsers. McCracken has defined a celebrity endorser as a person who enjoys public recognition and who uses this recognition on behalf of a brand to endorse the brand. Below, we’ll look at some of the advantages and disadvantages of influencer marketing vs. celebrity endorsements to help determine appropriate use cases. Despite the advantages, endorsement can be an incredibly challenging (not to mention, expensive) offline or online marketing strategy to successfully execute. Product Endorsement - Important Considerations. These include; 1. Pros of Celebrity Marketing . The branding process involves huge development costs on the part of the business. Educate Consumers Advantages and Disadvantages List. * The celebrity may potentially add a new dimension to the brand image instant credibility. | Helps You Tap the New Markets. You have to remain in the mind of people for a long time, and for that, you will have to continuously run advertisements. As marketplaces are extremely competitive now-a-days, drawing the attention of prospective customers, and retaining them in the long run are very difficult jobs. An endorser brand can work as assurance of quality for the product brand, it can increase consumer’s perception and confidence ... As you can see, every type of brand architecture has its advantages and disadvantages. 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. Consists of a master brand and a subbrand. This paper will discuss the concept of celebrity endorsement by analyzing the Beckham case study. Collaborating with the right influencers for your brand can help you reach relevant audiences. Disadvantages of product endorsement. athletes, actors) in the hope that celebrities may boost effectiveness of their marketing for at least a century. Branded house. "Studies show that using celebrities can increase consumers' awareness of the ad, capture their attention and make ads more memorable" (L. Martinez, 2001). The image of the company may be ruined if the celebrity’s image is. The two primary strategies when discussing brand architecture are the Branded House and the House of Brands. the endorser and the charity. Advantages of a Branded House or a House of Brands. Small businesses may not have the capital available to start multiple brands. This is normally done through various marketing and communication approaches, including advertising and public relations. 2. This can be a difficult and challenging step as there are plenty of celebrities out there who are continually offered endorsement packages. Consists of a master brand and a descriptor. Celebrities are plastered all over TV, social media, magazines, and any other place you’d find an ad. You need to carefully choose influencers who are relevant to your niche and industry. When a well-known face endorses your brand, it automatically attracts new target audience – the diehard fans of the celebrity. new Galaxy S5 smartphone in Taiwan (Table 1). The benefits and importance of social media marketing cannot be denied and should not be overlooked. High cost. Nonetheless, celebrity endorsement can be good or bad depending on the situation. While this usually means bringing in some of their fan base as customers, it can lead to disaster if a scandal occurs. Ex - "The Lion King" from Disney. Although it does not follow that a brand that is endorsed by a celebrity will surely have an increased trust rating, it helps to remove people’s apprehension of an unknown brand. The reputation of a company may be destroyed as a result of celebrity scandals. Celebrity Endorsements: Advantages & Disadvantages Advantages. Since the year 1996, Tiger Woods has been the NIKE […] For Lego and Coca Cola, you recognize the brand architecture in the way the parent brand name is linked to the new brand name. Celebrities are public figure. There are a number of disadvantages to relying on celebrities to promote your products. Consumers’ skepticism; consumers might not believe that the endorsers really consume the product that they endorse (Hsu and McDonald, 2002). Brand architecture gives a parent brand the power of diversification by highlighting the unique strengths of its distinct sub-brands. Matters to consider include image rights licensing as well as the use of product endorsement on various advertising platforms including traditional offline marketing platforms along with more contemporary online marketing avenues such as social media. Brand equity will be improved due to celebrity endorsement (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001). Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Certainly, the celebrity endorser could reinforce a company’s marketing communications, positioning and represent its brand (Erdogan, 1999). Since celebrities are adored and idolized by their fans, they are being tapped to influence the fans towards their endorsed brand. However, past research shows that next to the advantages of the celebrity endorser, such as increased brand attention (Atkin and Block, 1983) or increased positive attitudes towards the brand (Kamins et al., 1989), some major disadvantages also have to be taken into account. However, only big companies can afford to invest in this marketing strategy. Introducing any brand to a new marketplace entails risk. Branded House. Product Endorsement: Is it Worth your While? Your endorser can easily package the information in his or her own language which many people have already been accustomed to. 3. Visit http://www.8ways.ch/news to learn more. 2. Sometimes, sub-brands can be unsuccessful. 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