Celebrity Endorsement

Topics: Brand management, Advertising, Brand Pages: 9 (3165 words) Published: October 1, 2007
Celebrity Endorsements

The importance of Celebrity Endorsements?
The most important aspect of celebrity endorsement has been finding the right synergy between celebrity and product. It's about selecting a spokesperson whose characteristics are congruent with the brand image. It is insufficient simply to add a well known face to a food label and trust that there will be enough devotees of that celebrity to generate sales. The consumer does not buy premium priced products more than once on that basis, and so unacceptable quality cannot be masked by a celebrity presentation. There's one fact that advertisers need to keep in mind when using celebrity endorsements—never let the celebrity become your brand. If so, you'll run the risk of killing the brand no sooner has the hype and hoopla around the celebrity faded. It's also important to be clear about why a brand should use a celebrity. Is it to boost sales or to boost image? Or is it just to keep the brand alive? If it's to increase sales, the celebrity should be used for short-term promotions and brand activities. If it's to boost image, the celebrity can be used for a longer period of time, so that the brand can derive the benefit of the celebrity's image on its own. Lastly, one must not rely too heavily on the fame of the celebrity. One must look more for the genre of consumer that he/she represents, as eventually all celebrities are what they are because of a set of consumers thinks they are that way. One must also build the brand not on a transient celebrity but an enduring one. ( Strategic Brand Management 2003).

Why do companies use celebrity endorsements?
It can increase consumers' awareness of the ad, capture their attention and make ads more memorable. Respondents indicated that the biggest challenge in marcoms nowadays is how to stand out—break through ever increasing media clutter. As can be seen in Table-2, consistent with the academic literature, managers considered that celebrity endorsers enable messages to overcome this challenge due to their fame and high profile. Table-2 Managers' reasons for utilizing celebrity endorsers

Standing out or shorthand
Awareness or attention getting
Celebrity values define, and refresh the brand image
Celebrity add new dimensions to the brand image
Instant credibility or aspiration
PR coverage
Desperate for ideas
Convincing clients
An agency CEO stated that every time advertisements appear in television or press, they interrupt a program or an article. Therefore, they are an intrusion and very few people positively welcome advertisements though many do not reject them. People see advertisements as a part of their normal life. But, as an advertiser you have got to stand out from the crowd and celebrities can potentially achieve this. It was disclosed that the recent campaign for Ford Puma involving Steve McQueen generated instant awareness. Actually, the same spot won the best famous person usage award in the 1998 Creative Circle Honours (Campaign 1998). Ten out of twelve managers indicated that celebrities could build, refresh and add new dimensions to brands by transferring their values. They argued that what celebrities stand for enhances brands. Many managers cited the Bob Hoskins and BT relationship as a great example of celebrity values transferring to the brand. A planning director claimed that Bob Hoskins brought his charisma, gentleness, and warmth to BT which had had none of these qualities. Another relationship which was mentioned frequently was between Jack Dee and John Smiths Bitter. Managers argued that the company has transferred Jack Dee's smart, cool, laid back, no non-sense characteristics to the brand. Although most academics have argued that celebrity endorsements work because celebrities are credible and attractive, only 50 percent of the respondents mentioned these qualities as reasons. A possible explanation for this discrepancy between scholars and practitioners could be that most...

References: Agrawal, J & Kamakura, W.A. (1995). The economic work of celebrity endorsers: an event study analysis. Journal of Marketing, 59(3), 56-63.
Campaign (1998). "Creative Circle Honours", Retrieved February 03, 2004 http://www.
Erdogan, B. Zafer & Baker, Michael J (1999). Celebrity Endorsement: Advertising Agency Managers ' Perspective, Retrieved February 03, 2004. http://www.ausport.gov.au/fulltext/1999/cjsm/v3n3/erdogan&baker33.htm
Ketcham, Steve (2001). The Old Times, "Celebrity endorsements are a thing of the past (and present)". Retrieved February 12, 2004. http://www.theoldtimes.com/past/0201_2html
Lane, R. (1996 December). Nice guys finish first, Forbes. Retrieved February 03, 2004. http://www
Massey University (2003). Massey News, "Celebrity endorsements researched". Retrieved February 10, 2004 http://www.Masseynew.masseyac.nz/2003/masseynews/nov/nov03/stories/05~19~03.html
Miciak, A.R. & Shanklin W.L. (1994). Choosing celebrity endorsers. Marketing Management.
Strategic Brand Management (2003). "Turn Your Brands into Celebrities- Are you Ready For It?" Retrieved February 12, 2004. http://www.etstrategicmarketing.com/smNov~dec1/stra_brand_turn.htm
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