2. What is a new product
3. Why new product
4. The process for new product introduction
5. Pros and Cons associated with new products
6. Reasons why new products and services fail
7. Conditions when frequent new products are necessary
Celebrity endorsers are a waste of money. Before delving into the topic lets look at the two examples which portrait the two sides of the coins of the topic: Nike, a global brand, getting sports celebrity Michael Jordan to endorse its products. So successful was the collaboration that Nike and Jordan launched a new brand variant called the Air Jordan line of sport shoes. Nike pulled off a very similar coup in the sports industry when it joined forces with the ace golfer Tiger Woods to enter the golf category with its apparel, equipment and accessories. Nike chose to associate with the best golfer in the world and have him endorse the brand. As is known today, Nike has emerged highly successful in golf.
Let’s look at the other side of the coin.
During the 1992 summer Olympics, Reebok spent $25 million on an ad campaign featuring the two track and field stars. Dan vs. Dave commercials ran almost non-stop, asking which would be the world's best athlete and saying that the debate would be settled in Barcelona. The fact that Dan failed did not win a single medal in '92 when he failed to score in the pole vault and Dave only captured bronze on a broken foot made the spots downright laughable. INTRODUCTION
Businesses have long sought to distract and attract the attention of potential customers that live in a world of ever-increasing commercial bombardment. Everyday consumers are exposed to thousands of voices and images in magazines, newspapers, and on billboards, websites, radio and television. Every brand attempts to steal at least a fraction of an unsuspecting person's time to inform him or her of the amazing and different attributes of the product at hand. Because of the constant media saturation that most people experience daily, they eventually become numb to the standard marketing techniques. The challenge of the marketer is to find a hook that will hold the subject's attention. Also from a marketing communications perspective, it is vital that firms design strategies that help to underpin competitive differential advantage for the firm's product or services. In helping to achieve this, use of celebrity endorsers is a widely used marketing communication strategy. Celebrity Endorsement
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, stature in the society or expertise in the field to the brand. McCracken's (1989) definition of a celebrity endorser is, "any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement is useful, because when celebrities are depicted in marketing communications, they bring their own culturally related meanings, thereto, irrespective of the required promotional role." Friedman and Friedman (1979) found empirical evidence that, in the promotion of products high in psychological and/or social risk, use of celebrity endorser would lead to greater believability, a more favorable evaluation of the product and advertisement, and a significantly more positive purchase intention In a market with a very high proliferation of local, regional and international brands, celebrity endorsement was thought to provide a distinct differentiation. But over the years, there have been many a reason why celebrities are endorsing a product or even a brand. History
The use of testimonials by advertisers dates back to the 19th century when medicines were patented. Firms have been juxtaposing their brands and themselves with celebrity endorsers (e.g., athletes,...