Transcript SEM1 1.06 Endorsements - J

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
• Endorsements don’t always make sense, but
celebrities can help sell any product.
Ex: The George Foreman Grill
Methods that celebrities can endorse products
• Product endorsement campaigns
– (combination of advertising and appearances)
• Allow their name to be used on products
• Written or verbal testimonials
• Allow use of their photo with or on the product in advertising
and packaging
• Manufacturers can benefit from the ‘halo effect' - some of the
celebrity's glamour rubs off on the product
• Consumers are more likely to try and use a product that a
celebrity endorses
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