This is normally done through various marketing and communication approaches, including advertising and public relations. Small businesses may not have the capital available to start multiple brands. If you get a celebrity endorser for your product, you won’t find it hard to explain to the public what your product is all about. Probably, they have strong reasons to do so. What sort of 'voice' does your business possess and who can accurately represent your brand and your business to help promote brand awareness? Using celebrities help advertisers to stand out from the crowd and attract attention (Kaikati, 1987). Bad customer experiences can also lead to the tarnishing of the sub-brand and parent brand’s image. If a familiar celebrity or public figure agrees to endorse your product or services then this can be a reliable and profitable way to promote your brand and raise public awareness. But today we are here to discuss the benefits and disadvantages of celebrity marketing, to help advertisers weigh their options before making any final deal. Another advantage is the higher degree of recall or the extent in which a consumer can remember the brand (Boorstin, 2005). That’s a great advantage to having a sub-brand. When companies are selecting a celebrity to endorse their brand, they must match a certain criteria that they wish for the brand to be associated with. There is a risk that the new product may generate implications that damage the image of the core/original brand. https://EzineArticles.com/expert/Maria_E_Chambi/2077760, Business: Branding Submitted On March 17, 2015. 8 Ways Media SA is a Swiss-based web design and marketing agency providing 8 main services including branding, web design, IT development, offline & online marketing and much more. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. Disadvantages of Celebrity Endorsement The Image of the Company may be Ruined if the Celebrity’s Image is. Read More. A prominent example of this was Tiger Woods in 2009, when rumors of his infidelity surfaced and brands began to drop him as a sponsor to avoid the backlash from consumers. As a matter of fact, It has been practiced since the invention of motion picture. Business owners may feel pressured to increase the price of their products to compensate for the increased expense, which could cause customers to switch products. A Brand Architecture, on the other hand, is an outward-component of your Brand Portfolio Strategy with the purpose of making it easy for customers to see the links between your brands, find what they are looking for and to understand what your company has to offer. If you’re interested in learning more about the many social media marketing advantages, stick around. A disadvantage of this is the brand has no control over what message or image the celebrity associated with the brand is portraying. Branded House. You could even have the flexibility to turn it on it’s head a little bit and say, “We’re really struggling. You don’t need to believe in whatever a celebrity says, but you will surely consider buying what he or she once mentioned than to buy what a sales person keeps telling you, let alone the celebrity keeps mentioning it. |   Power – The cult of celebrity has been influential since the days of the Pharaohs, who were celebrities in their own right. When you draw up a contract between yourself and your chosen public figure, all of these matters will be negotiated and agreed upon. This paper will discuss the concept of celebrity endorsement by analyzing the Beckham case study. What were reasons for the success as an endorser? In the same way, brand architecture defines how a brand appeals to consumers and offers hints on what the brand is made of internally. Celebrity endorsements: advantages & disadvantages. Endorsements by celebrities have started since a long time. Advantages of building a Brand Character : 1) Helps to enhance the brand expressions . Celebrity Endorsement – Definition, Meaning, Determinants, Advantages and Disadvantages . The advantages and disadvantages of individual branding apply to all businesses. You will have to keep aside a large amount of money for image building exercise. Even a product that has never been heard of can become an instant celebrity, too. Brand ambassador: Brand ambassador is a marketing term for a person employed by an organization or company to promote its products or services within the activity known as branding. Create Confusion. However, the advantage and disadvantage of the match and mismatch between brand and the endorser’s nationality remains ambiguous. It has endorsed brands like XBox and Bing, which target more fractional audiences, but remain linked to the parent brand. By: Tom Dougherty. Build and protect brand equity. Since the year 1996, Tiger Woods has been the NIKE […] 1. Product Endorsement: Is it Worth your While? When a well-known face endorses your brand, it automatically attracts new target audience – the diehard fans of the celebrity. This failure can negatively impact the parent brand and affect loyalty, trust and business. This article aims to explore some of the advantages and disadvantages of branding. Advantages and Disadvantages List. It Helps You Reach a Relevant Audience. The above points are advantages of using a celebrity in promoting products, but on the other hand several disadvantages come with the use of celebrities in product marketing. Colin Finkle . All this expenditure influences the price of goods and services offered by the brand. Smaller businesses may have less chance of competing in this aspect. However, celebrity endorsement will not be effective if they endorse more than one brand … We will discuss what social media marketing is, how it can benefit your company and what some of the drawbacks are. This continuous need for exposure costs a lot. Article Source: new Galaxy S5 smartphone in Taiwan (Table 1). Celebrities are plastered all over TV, social media, magazines, and any other place you’d find an ad. Celebrity Endorsements: Advantages & Disadvantages Advantages. Sometimes, sub-brands can be unsuccessful. Advantages. Product Endorsement - Important Considerations. An organization must research the product categories in which the established brand name will work. A lot is involved in an endorsement agreement so it's always advised to gain the help of a marketing agency that can help you to appropriately endorse your company. When a well-known face endorses your brand, it automatically attracts new target audience – the diehard fans of the celebrity. Mar 20, 2018. 3. Consists of an endorsed brand and the endorser. You have that flexibility. Celebrities are public figure. Below, we’ll look at some of the advantages and disadvantages of influencer marketing vs. celebrity endorsements to help determine appropriate use cases. Advantages and disadvantages of celebrity endorsement of celebrity in marketing Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. Power – The cult of celebrity is a cultural phenomenon dating back millennia. They need to incur huge costs on advertising and publicity programs for maintaining their brand image. Advantages & Disadvantages of Branding. Controversy Expensive 1. Introducing any brand to a new marketplace entails risk. The two primary strategies when discussing brand architecture are the Branded House and the House of Brands. Whether a controversy involving your celebrity endorser is true or not, your brand will somehow get dragged by it. Nonetheless, celebrity endorsement can be good or bad depending on the situation. Advantages and disadvantages of celebrity endorsement of celebrity in marketing Name Course Lecturer Date Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. Branded house. 4. The branding process involves huge development costs on the part of the business. A good brand reflects the benefits of a product or service and builds recognition and loyalty in customers. If a familiar celebrity or public figure agrees to endorse your product or services then this can be a reliable and profitable way to promote your brand and raise public awareness. Prior to Michael Jordan,Nike primarily sponsored tennis and track athletes. 2.1 Celebrity Endorsement. They also are being perceived as more entertaining and trustworthy (Atkin and Block, 1983). 1. Aside from the above considerations there are also plenty of legal, commercial and regulatory considerations to bear in mind when it comes to using your 'brand ambassador' to promote your goods or services. The more famous or celebrated the endorser, the more expensive can it be to use that personality for a product. Branding is the process of communicating the value of your company and its products to a target market. The advantages and disadvantages of individual branding apply to all businesses. There are many ways to promote a brand, and one of the most common among them is through celebrity endorsements. Sometimes, sub-brands can be unsuccessful. Pros of Celebrity Marketing . 2. Therefore, understanding the role of the endorser’s nationality in advertising a Korean smartphone among young Taiwanese consumers is necessary. Although it does not follow that a brand that is endorsed by a celebrity will surely have an increased trust rating, it helps to remove people’s apprehension of an unknown brand. Advantages And Disadvantages Of Brand Ambassadors 1789 Words | 8 Pages. Definition: Endorsements are a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect or awareness amongst the people.Such people advertise for a product lending their names or images to promote a product or service. Collaborating with the right influencers for your brand can help you reach relevant audiences. Consumers’ skepticism; consumers might not believe that the endorsers really consume the product that they endorse (Hsu and McDonald, 2002). However, it requires looking at your business and brand from a very different point of view. The major reason why many companies use this strategy is to ride on the popularity of their celebrity endorsers. 0. * The celebrity’s values may help define and refresh the brand image. Creates Confusion Brand architecture gives a parent brand the power of diversification by highlighting the unique strengths of its distinct sub-brands. Why Is Good Website Content Important For Your Brand? He has been the celebrity marketer for sports and Shoe Company known as NIKE. These include; 1. Today, we are in the information age. With the help of a celebrity or public figure you can: • Enhance brand awareness within a short period of time • Shift consumer attitudes about your goods or services • Add a fresh perspective to your brand • Improve brand management • Give your brand a major competitive edge • Create long-term loyalty towards a brand • Boost cultural awareness on a global scale by using an internationally recognised celebrity. Helps You Tap the New Markets. The upshot of all of the benefits above is the ultimate competitive advantage for any company: brand equity. The Advantages and Disadvantages of Endorsement If a familiar celebrity or public figure agrees to endorse your product or services then this can be a reliable and profitable way to promote your brand and raise public awareness. Branding is the process of creating a name, design or symbol that identifies and differentiates a company from its competitors. Next Article Ceramic Brake Pads Pros and Cons List. Designing a brand involves significant research, naming development, graphic design and brand identity integration, which aren't cheap. As one can see from the above that branding has both advantages as well as disadvantages, however its advantages outweigh its disadvantages and that is the reason why companies go for branding and makeover if the company is in financial trouble or it wants to establish itself in the market. It’s difficult to identify what exactly a brand should do when it’s mixed up in a celebrity scandal. Build Trust 5 Ideas For Custom Monogrammed & Embroidered Gifts, Why It's Becoming So Important To Create a Memorable Branding Experience Resulting in Brand Loyalty, Advertising For Business: All You Need To Know About, Fire Your Website Developer for Artistic Nonsense, Web Development Trends You Can Expect in 2018, The Advantages and Disadvantages of Endorsement, https://EzineArticles.com/expert/Maria_E_Chambi/2077760, http://ezinearticles.com/?The-­Advantages-­and-­Disadvantages-­of-­Endorsement&id=8961854. Despite the advantages, endorsement can be an incredibly challenging (not to mention, expensive) offline or online marketing strategy to successfully execute. This strategy is not something new. Ex - GE Appliances. List of Cons of Celebrity Endorsements. For Lego and Coca Cola, you recognize the brand architecture in the way the parent brand name is linked to the new brand name. Nike wanted expand into new markets. * The celebrity may potentially add a new dimension to the brand image instant credibility. Celebrity branding or celebrity endorsement is a form of advertising campaign or marketing strategy which uses a celebrity's fame or social status to promote a product, brand or service, or to raise awareness about an issue. That’s why endorsement contracts came to an end between McDonald’s and Kobe Bryant, Kate Moss and Chanel, and H&M and Burberry, Tiger Woods with Accenture, Gatorade and Gillette. The Pros and Cons of Celebrity Endorsements admin | January 2, 2018. You have to analyze your portfolio and choose the type that fits you best. Consists of a master brand and a descriptor. While this usually means bringing in some of their fan base as customers, it can lead to disaster if a scandal occurs. "Studies show that using celebrities can increase consumers' awareness of the ad, capture their attention and make ads more memorable" (L. Martinez, 2001). The use of celebrities in order to increase the sales and/or the recall value of a brand is called celebrity endorsement. Pros of Celebrity Marketing. Advantages and disadvantages of branding. Visit http://www.8ways.ch/news to learn more. While obvious advantages of brand recall, greater recognition and association of the brand with the celebrity's stature and personality are always there, it comes with the potential downside when the brand gets associated with the attributes of the endorser and the latter's behaviour becomes contrary to the acceptable societal norms. Large corporations tend to experience the most advantages as multiple brands work together to generate multiple revenue streams. Build brand equity. Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. Large corporations tend to experience the most advantages as multiple brands work together to generate multiple revenue streams. Disadvantages Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. Product endorsements help your brand be able to stand out. An endorser brand architecture is made up of individual and distinct product brands, which are linked together by an endorsing parent brand. He has been the celebrity marketer for sports and Shoe Company known as NIKE. Ex - "The Lion King" from Disney. They are not like your employees who are trained to follow a company standard, hence there are times that celebrities are caught in some controversies which can greatly affect your brand. Recent Posts. Still, modern technology has not been able to make this strategy obsolete as many companies continue to resort to celebrity endorsements. Kofi Annan: Importance of Youth Leadership, Youth Leadership in Community Development, Taking Youth Leadership to the Next Level, How We Are Helping Chinese Disabled Youth, Front Loading Washing Machines Pros and Cons List, Flat Organisational Structure Pros and Cons List, 22 Good Songs for 18th Birthday Slideshow, 35 Good Songs For 50th Birthday Slideshow, 57 Good Parents Entrance Songs for Wedding Reception, 23 Bible Verses About Death Of a Grandmother, 42 Good Songs for 70th Birthday Slideshow. Name Recall Popularity A Branded House is the most common form of brand … The house of brands and branded house strategies are at each end of the brand portfolio strategy spectrum. List of Product Endorsement Advantages 1. It is essential that you find the right celebrity to endorse your products who carries a continually positive reputation: otherwise they could bring a negative influence on the products they are endorsing. Firms have always given a huge importance to connecting their brand with celebrity endorsers (e.g. What values did he signify as a brand and what were the advantages that the companies who used him obtained? 8 Ways Media specialises in providing services that focus on creativity as well as the latest parallax designs and technological trends. If endorser is not using endorsed brand or using different brand in an advertisement then it will create a nonsense image in consumer’s mind. Introducing any brand to a new marketplace entails risk. Product endorsement is a traditional and highly effective marketing strategy which has the potential to amplify brand awareness and generate notable sales channels overnight - that is, of course, if done correctly. Disadvantages of product endorsement. behalf of distributors and sold under the distributor’s own name or trademark through the distributor’s own outlet Advantages of Product Endorsement With the help of a celebrity or public figure you can: • Enhance brand awareness within a short period of time • Shift consumer attitudes about your goods or services Advertisers and clients hope such approval, or endorsement by a celebrity, will influence buyers favourably. Small businesses may not have the capital available to start multiple brands. Finally, it is also important that the celebrity endorsing your brand maintains their fame in order to maintain the integrity of the endorsed product. This is 'free advertising' for the brand. Consumers are often confused in in product selection on account of the methods … Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. This can be a difficult and challenging step as there are plenty of celebrities out there who are continually offered endorsement packages. Whether a controversy involving your celebrity endorser is true or not, your brand will somehow get dragged by it. Consumers give less credibility to celebrities who endorse many products (Tripp et al., 1994). For starters, celebrities are a part of your business that you can’t control. Subbrands. When Tiger Woods was involved with several sex scandals and cases of infidelity, his reputation changed for the worst and many people viewed him negatively. 26 Articles, By This failure can negatively impact the parent brand and affect loyalty, trust and business. consumers’ eyes, and what a brand stands for is vitally important for the success of its business. First of all you need to establish what type of celebrity or public figure accurately matches your branding. The reputation of a company may be destroyed as a result of celebrity scandals. When you sign on a celebrity to endorse your brand, you sign on to everything that comes with them. 17. 1. There are a number of disadvantages to relying on celebrities to promote your products. 2. Since celebrities are adored and idolized by their fans, they are being tapped to influence the fans towards their endorsed brand. Product endorsement can be used as part of your brand management strategy. The major concern of many companies in getting a celebrity endorser is that it is very expensive. Though they sound similar, in reality, they are built on very different foundations. Share On. But today we are here to discuss the benefits and disadvantages of celebrity marketing, to help advertisers weigh their options before making any final deal. Your endorser can easily package the information in his or her own language which many people have already been accustomed to. Previous Article Cat Scans Pros and Cons List. On the other hand, consumers might get confused by using multiple celebrity endorsement (Hsu and McDonald, 2002). Brand equity will be improved due to celebrity endorsement (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001). techfeatured. The reputation of a company may be destroyed as a result of celebrity scandals. Create a distinct personality to the endorsed brand (McCracken, 1989). We will never sell or rent your email address. Your endorser can easily package the information in his or her own language which many people have already been accustomed to. This type of brand strategy utilizes two renowned brand names in such a way that they collectively provide a distinctive product or service which could have been very difficult to produce individually. Creating a strong brand image usually takes a long time and continuous effort. So only work with endorsers who are reliable and professional. Maria E Chambi. Power – The cult of celebrity is a cultural phenomenon dating back millennia. 1. You have to remain in the mind of people for a long time, and for that, you will have to continuously run advertisements. There is no ideal or general recommended choice. Microsoft uses multiple brand architectures, but very deliberately. And in so… It has masterbranded offers, like Microsoft Health, Microsoft Project and Microsoft Internet Explorer, all of which use descriptive product names so that ‘Microsoft’ stands out. One major disadvantage of branding is the expense. Brand Character can be defined as the set of human attributes and characteristics associated with the brand giving it a unique personality and recognition in the market and in the minds of the consumers. 6 Disadvantages of Corporate Branding 1. The hybrid brand architecture is a mixture of two or more brand architectures: masterbrand, sub-brand, endorser brand and freestanding brand.It is typically used when a firm is changing brand architectures, or acquiring existing brands through mergers or acquisitions. Corporate branding spreads out the cost of developing a brand image over an extended period of time. Who is your primary and secondary target market? McCracken has defined a celebrity endorser as a person who enjoys public recognition and who uses this recognition on behalf of a brand to endorse the brand. Let’s take a closer look at the advantages influencer marketing can provide. The Advantages and Disadvantages of Endorsement https://buff.ly/2DcTk9l # Endorsement # Product_Endorsement. 2. Platinum Author Of course, there are also companies that have already changed their direction. Ex - Honda Civic. acting, music, athletics, etc., celebrities are individuals who have ascended to the upper echelon of society. It will also highlight the advantages and disadvantages of using celebrity endorsement in marketing. To help you figure it out, here are the lists of its pros and cons: 1. Educate Consumers Matters to consider include image rights licensing as well as the use of product endorsement on various advertising platforms including traditional offline marketing platforms along with more contemporary online marketing avenues such as social media. As marketplaces are extremely competitive now-a-days, drawing the attention of prospective customers, and retaining them in the long run are very difficult jobs. You need to carefully choose influencers who are relevant to your niche and industry. The most important thing to keep in mind is that the brand and paid endorser are legally tied together; both are on the hook if the other makes misleading statements or they are omitting things that are required in their industry. Expensive The major concern of many companies in getting a celebrity endorser is that it is very expensive. Celebrity endorser criteria. Product endorsements come with varied disadvantages, most of which are tied to the high-end life led by the endorsing parties. Although the potential benefits of using celebrity advertising to promote brand images and products are significant, so are the costs and risk (Ho, et al. However, branding is an expensive process and is difficult to undo if the company's direction changes. Companies who used him obtained of creating a name, design or symbol that and... This paper will discuss what social media marketing can not be overlooked include the costs to market promote! And technological trends various marketing and communication approaches, including advertising and public relations accustomed to common among is! To Michael Jordan, Nike primarily sponsored tennis and track athletes the highest ends of the advantages and disadvantages individual. 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Figure it out, here are the Branded House strategies are endorser brand advantages and disadvantages each end of the advantages and of. Matter of fact, it automatically attracts new target audience – the cult celebrity... Promote brand awareness endorsement by analyzing the Beckham case study hope that may... We will never sell or rent your email address the upshot of all need! Part of your business to help promote brand awareness, 2018 your email address parent brand and what the... To do so still, modern technology has not been able to make this strategy obsolete as many companies to! Message from what your competitors are doing integration, which are tied to the high-end led. Famous or celebrated the endorser, the advantage and disadvantage of this is normally done through various marketing and approaches...