What is celebrity endorsement?

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What is celebrity endorsement? Celebrity endorsement is an use of celebrities in order to
increase the sales and or recall the value of particular brand is called celebrity endorsement.
Objective :
Objective To know the impact of celebrity endorsement on brand. To know whether celebrity
endorsement increase the sales of the company. To study and understand whether celebrity
endorsement work in India.
From umphrey !o"art and #auren !acall advertisin" $obert !urns Ci"arillos and !etty %avis
sellin" #ustre Cream &hampoo to !ill Cosby and 'ello (uddin") companies have lon" loved
usin" celebrities to endorse their brands. *nd who can for"et !rooke &hields+ famous line) ,-ou
wanna know what comes between me and my Calvins?.
It+s true/ Celebrity endorsements can reap hu"e rewards for a brand. -et they have numerous
pitfalls that companies should consider before developin" an endorsement pro"ram.
The Benefits of Celebrity Endorsements
Build brand equity. (rior to 0ichael 'ordan) 1ike primarily sponsored tennis and track
athletes. 1ike wanted e2pand into new markets. Who better to si"n than one the most
electrifyin" youn" athletes in sports? The 1ike3'ordan partnership has blossomed into its
own multibillion dollar subsidiary company) *ir 'ordan.
Hel eole remember ads.Celebrity endorsements can improve ad recall) accordin" to
researchers 'a"dish *"rawal and Wa"ner 4amakura. When people would see or hear
%ennis aysbert on the show ,56). they associate his voice with *llstate.
!a"e eole believe the roduct contributes to suerstar status. 0obile One uses
1*&C*$ superstar Tony &tewart to endorse its brand) which leads consumers to believe
that 0otor One oil contributes "reatly to the performance of his car7and his success.
#tand out. $esearch from Charles *tkin and 0artin !lock su""ests that ,celebrities may
help advertisin" stand out from the surroundin" clutter.. (eople like watchin" 8eor"e
Clooney or 1atalie (ortman more than local dentists and attorneys.
1ote/ It takes time and repetition for association to occur. Celebrity endorsements are not short3
term tactics.
#electin$ a Celebrity for a Brand
!rands are important company assets. *dvertisers need to select celebrities who represent the
ima"e and promise of their brands. 9For more information on brand promises) read Fro"%o"+s
article series on brandin".: 1ot all celebrities fit with all brands.
For e2ample) at the hei"ht of ,&e2 and the City). &arah 'essica (arker si"ned on as a face of
8ap. owever) (arker was so closely associated with her show+s haute couture style that the
association didn+t resonate with consumers. In 5;;<) 8ap replaced her with 'oss &tone and 4eith
=rban) who are more likely to wear 8ap3style clothin" in the public eye. &ince then) 8ap has
continued to use celebrities who ali"n better with their brand) such as the *vett !rothers and
4aki 4in".
The %is"s of Celebrity Endorsement
-et even if a celebrity is a "ood fit for the brand) usin" one for endorsements has its own set of
possible risks/
&ma$es chan$e. Celebrities make mistakes. *nd when they do) they can affect the brands
they endorse. In 5;;>) Ti"er Woods+ public ima"e crumbled after his infidelity with a
number of women) includin" porno"raphy actresses) hit the news. 8eneral 0otors)
8illette) *ccenture) and 8atorade dropped Ti"er to avoid ne"ative perception. 1ike stuck
around and lost customers. *nd the "olf industry as a whole saw a major revenue slow3
down with no Ti"er on the course.
Celebrities become overe'osed. *t the hei"ht of Ti"er Woods+ popularity) he endorsed
over ten companies at once. When a celebrity works with so many companies) the
celebrity+s credibility may suffer. (eople may feel that the celebrity will endorse anythin"
to make a buck.
Celebrities can overshado( brands. Consumers may focus on the celebrity) not the
product. This is a particular dan"er when celebrities endorse multiple products at a time.
%avid !eckham endorses a number of companies) which feature him prominently in print
advertisin". owever) his ima"e as the focal point of advertisin" devalues many
products. %o you remember the brand or do you remember %avid !eckham?
The e2tent of the faithfulness of consumers to a particular brand) e2pressed throu"h their repeat
purchases) irrespective of the marketin" pressure "enerated by the competin" brands.
$ead more/ http/??www.businessdictionary.com?definition?brand3loyalty.html@i2AA5y26BCsDE
Just as the name suggests, brand loyalty is the preference a customer develops for a particular
brand of product, above other brands in the same or similar category. The importance of brand
loyalty in marketing pertains to the ability of a company to encourage and sustain the loyalty of
consumers to its brand of products through effective marketing. Brand loyalty in marketing is a
process that requires careful study of consumer trends by a company or manufacturer with a
view to apply the knowledge gained to the sale of its products.
Studying some of the buying habits of the consumer will show if he or she is loyal to a brand. An
eample is if the consumer would rather buy a particular brand of product out of a variety of
choices from the same category of products. !or instance, a consumer would rather buy AB"
glass cleaner out of a pool of about #$ other similar products. Another sign is if the consumer is
willing to pay a little etra or put in a little more effort in order to get the desired brand. %f a store
does not have AB" glass cleaner and the consumer is willing to go to another store to look for
the brand, then that shows the consumer is loyal to that brand of glass cleaner.
A company can use marketing tools like advertising, promotions and other types of strategy to
encourage consumers to develop loyalty to its brand of product. &hile advertising the product,
the company will emphasi'e its good qualities and why it has an edge over similar competing
products. (ffective marketing also includes the use of promotional tools, such as rewards for
using the product, discounts, coupons and the buy)one)get)one)free strategy.
The effect of brand loyalty in marketing with regards to a company includes increased sales,
consistent sales through the development of a reliable consumer base, and an overall growth of
the company. (ven though developing brand loyalty is important, it can be difficult to sustain
due to a variety of reasons. "onsumer trends change arbitrarily, and the company must adapt to
the changes in trends in order to satisfy, retain and even add more consumers to its loyalty
base. %n a competitive market, companies also have to deal with the competition trying to grow
their loyal consumer base. Just the same, other companies that sell similar products will eplore
the effect of brand loyalty in marketing in order to increase their profits and outsell the
competition.
To help ensure your customers will remember your brand) we+ve outlined si' )*+ stes to build
brand loyalty/
C: Establish brand storytellin$ F Create stories that communicate the personality) values and
e2periences of your brand. 8enone 0urrary) Course %irector in Internet 0arketin" at &ail
=niversity) ar"ues that companies should base these stories by analyAin" and understandin" the
personality) values and e2periences of your customers. Create a brand story that connects with
your product?service and tar"et demo"raphics. %on+t eGuate your brand story with a list of
products) services or prices. !uild your brand story by determinin" what sets your company
apart from your competitors and what establishes a uniGue identity for you 9uniGue sellin"
proposition F =&(:. Create brand storytellin" and e2periences both in3person and online.
5: Connect (ith your customers F !e present at touch points which matter most to your
customers and provide an emotional connection. *s brands are battlin" for hi"her affinity)
connect and en"a"e with your customers on a re"ular basis. Increase awareness amon"st your
customers. (rovide your customers with value and motivation and create a community that
builds buAA around your brand.
B: ,nticiate their needs F %on+t start sellin" to your customers) listen to their needs and
focus on what your customers want. -our customers are lookin" for the ne2t e2perience) so offer
them additional value or incentives 9i.e. loyalty cards or pro"rams:) as these customers are
typically more profitable and will most likely reciprocate by stayin" loyal to your brand.
6: -eliver on romise F 0ake it a habit to deliver happiness every step of the way. &how
your customers that you truly care by surpassin" their e2pectations. Offer somethin" new or
e2citin" and stay true to your brand mission and promise.
<: Be consistent F Consistently deliverin" the same messa"e and performance throu"h all lines
of business is reassurin" and helps keep your brand top3of3mind. !ein" consistent helps re3
affirm your customers+ trust and credibility in your brand) and helps provide clarity of distinction
from competitors.
D: -eliver ersonali.ed e'eriences F %i"ital marketin" enables us to connect with customers
in different ways. %rive a strate"y of conversational marketin" that orchestrates one3to3one
seamless messa"in" across all channels. (rofile) se"ment and analyAe your customer base and
past buyin" patterns and create personaliAed) two3way interactions with your customers that are
relevant and customiAed. %on+t "roup your customers as stats. 4eep your focus on buildin"
customer relationships.
To establish brand loyalty you must live by your company+s core principles and "o above and
beyond customer e2pectations. 8o the e2tra mile to set your brand apart from anyone else.
%etermine your company+s inside advanta"e. Find somethin" uncommon about your offerin")
and find a way to become well3known to your core customer base by offerin" a differentiation.
4evin $oberts from &aatchi H &aatchi describes the "oal of marketin" as the creation of ,loyalty
beyond reason.. 0arketers should focus on creatin" more brand loyalists and ,brands that create
an intimate emotional connection that you simply can+t do without. Ever. -our e2istin"
customers are the most valuable to your business) so start to create an emotional connection and
reward them.
*s a marketer) how much effort should you invest in "rowin" brand loyalty? %o you believe
that if you attain brand loyalty) everythin" else will naturally follow?
Click here to find out more on how Couch H *ssociates brand loyalty marketin" initiatives can
help keep your brand top3of3mind with your e2istin" customers.