Celebrity Endorsement

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I. What is celebrity endorsement?

Defining a 'Celebrity'

Celebrities are people who enjoy public recognition by a large share of a certain group of people. Whereas attributes like attractiveness, extraordinary lifestyle or special skills are just examples and specific common characteristics cannot be observed, it can be said that within a corresponding social group, celebrities generally differ from the social norm and enjoy a high degree of public awareness.

Celebrity endorsement is a form of brand or advertising campaign that involves a well known person using their fame to help promote a product or service. Manufacturers of perfumes and clothing are some of the most common business users of classic celebrity endorsement techniques, such as television ads and launch event appearances, in the marketing of their products.

Nowadays, it is very common to see popular people in TV commercials. Although it is an expensive way of promoting a brand, it is one of the most effective strategies in the market. In fact, there are many businesses that have been very successful with its use.

II. Impact of celebrity endorsements

1. Why use celebrity endorsements?
• Instant Brand awareness and recall
• Celebrity values define, and refresh the brand image • Celebrities add new dimensions to the brand image
• Instant credibility or aspiration PR coverage
• Lack of ideas
• Convincing clients

2. Company needs to consider:
• Celebrity’s fit with the brand image
• Celebrity—Target audience match
• Celebrity associated values
• Costs of acquiring the celebrity
• Celebrity—Product match
• Celebrity controversy risk
• Celebrity popularity
• Celebrity availability
• Celebrity physical attractiveness
• Celebrity credibility
• Celebrity prior endorsements
• Whether celebrity is a brand user
• Celebrity profession

3. Advantages of a celebrity endorsing a Brand
• Establishment of Credibility: Many people hold certain celebrities in high regard, so an endorsement of a product instantly increases the amount of trust the consumer has in the brand. • Ensured Attention: Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the ad and the brand more noticeable. • Company’s image recovery: There are many instances where a certain commodity in an industry would lose its share of customers in the market due to controversial issues. However, by using a famous person in advertising, a brand with a tarnished record has the chance to re-establish its status. • Higher degree of recall: There are a huge number of products being marketed to consumers all the time, so it’s essential for a brand to find a way to stand out in the crowd and be remembered. If a customer sees an advertisement involving his or her favorite celebrity endorsing a particular product, then his or her chances of remembering that product are greatly increased. • Associative Benefit: A celebrity’s preference for a brand gives out a persuasive message - because the celebrity is benefiting from the brand, the consumer will also benefit. • Psychographic Connect: Celebrities are loved and adored by their fans and advertisers use stars to capitalize on these feelings to sway the fans towards their brand. • Demographic Connect: Different stars appeal differently to various demographic segments (age, gender, class, geography etc.). • Mass Appeal: Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. • Attracting new customers: If, for example, a product has traditionally been marketed to elderly people, then people in other age brackets may be reluctant to try it. A brand can try to rectify this problem by using a celebrity who is associated with a particular age group or demographic. • Celebrity endorsement...
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