Transcript SEM1 1.06 Endorsements

SEM1 1.06
• PI – Explain the role of endorsements
in sport/event marketing
Endorsements
• Endorsement is an action made by a celebrity, athlete, or
well-known person to promote, advertise, and create publicity
for a Company or Product.
• Testimonial (statement or advertisement), by a user of the
product proclaiming the product’s benefits
• Appearance (association), is an action whereby the
endorser appears at an event. The celebrity does not have
to do or say anything but consumers believe they like the
product
Endorsements
• Endorsements should help the product or
company reach their target market.
Ex: Michael Jordan and Basketball Shoes
https://www.youtube.com/watch?v=SGmAszP2SE0
• Endorsements don’t always make sense, but
celebrities can help sell any product.
Ex: The George Foreman Grill
https://www.youtube.com/watch?v=Fs0dz4EdUWE
http://www.youtube.com/watch?v=di2vY0uz2Ng
https://www.youtube.com/watch?v=cSuHQZjzJYY
Endorsements
• Advantages to the Athlete/Celebrity:
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Large supplement to income
Free merchandise
Ex: Jordan made $60 million in 2010. He retired in 2003!
http://www.cbssports.com/mcc/blogs/entry/22748484/32215986
• Endorsements are legal and binding contracts and the
company and celebrity must adhere to the details
Click Link for details:
Ronaldinho loses Coca-Cola deal after
drinking Pepsi in public
Endorsements
• Advantages to the Company or Product
through affiliation with athlete or celebrity :
– Enhanced company image
– Increased Brand Awareness
– Increased Sales
– Penetration into new Markets
Endorsements
• Disadvantages to the Company or Product
through affiliation with Athlete or Celebrity:
– Loss of sales and reputation if endorser becomes
involved in a scandal
– Loss of sales due to poor performance of endorser
Nike drops Lance Armstrong
Tiger and Rory, play poorly, Miss Cut
Methods that celebrities can endorse products
1. Product endorsement campaigns
(combination of advertising and appearances)
2. Allow their name to be used on products
3. Written or verbal testimonials
https://www.youtube.com/watch?v=9pCy1FE89KI
4. Allow use of their photo with or on the product in advertising
and packaging
• Consumers are more likely to try and use a product that a
celebrity endorses