11-1 chapter 11 endorsements copyright © 2010 by the mcgraw-hill companies, inc. all rights...

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Chapter 11Chapter 11

EndorsementsEndorsements

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

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Celebrity SpokespersonCelebrity Spokesperson

• Second Special Case of Sponsorship

• Referred to as Personality Sponsorship

• Used in Marketing of:– Sports Products – Nike & Tiger Woods– Nonsports Products – Sony & Peyton Manning

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Matching ProcessMatching Process

• Celebrity (Personality) Needs to Fit:

– The Target Market

– The Product

– The Brand

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Types of Personalities UsedTypes of Personalities Used

• Entertainer (Bon Jovi & Duracell Batteries)

• Politician (Bob Dole & Pepsi-Cola)

• Dignitary (Sarah Ferguson & Weight Watchers)

• Athlete (LeBron James & Bubblicious)

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Endorsement ApplicationsEndorsement Applications

• “I Use It, So Should You”

• Drop in Figure 11.1 Here

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Endorsement ApplicationsEndorsement Applications

• “I Am an Expert, and I Think that You Would Be Smart to Use this Product”

• Drop in Figure 11.2 Here

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Endorsement ApplicationsEndorsement Applications

• “I Think Its Cool, So You Should Use It”

• Drop in Figure 11.3 Here

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Athletes as EndorsersAthletes as Endorsers

• Prominent Roles in Society

• Recent Concerns Regarding Legal and Moral Transgressions

• Longevity Concerns – Injury & Retirement

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Let’s Sell Some WheatiesLet’s Sell Some Wheaties

• The Wheaties Brand Has A Long History of Using An Endorsement Strategy to Influence the Demand for Its Cereal

www.wheaties.com/history/champions_list.aspx

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Factors Favoring UseFactors Favoring Useof Athletes as Endorsersof Athletes as Endorsers

• More Effective with Sport-Specific Products (i.e. Tiger Woods & Nike Golf)

• Recognition Can Help Cut through Clutter

• Meaningful Recognition Rates for Association between Athlete and Brand

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Top 10 Athlete Endorsers Top 10 Athlete Endorsers in the United Statesin the United States

• Drop in Table 11.1 Here

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Factors ImpactingFactors ImpactingEndorsement EffectivenessEndorsement Effectiveness

• Endorser:– Is a High Achiever– Has Believability/Credibility– Is Known– Is Likable/Popular/Admired– Is Recognizable– Provides Ease of Recall– Is Congruent with Target Market– Is Physically Attractive– (Provides Prospect for) Continuity

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High AchieverHigh Achiever

• Winners Have Greater Impact on Consumers

• Winners Are More Expensive– David Beckham, Michael Jordan, Serena

Williams, Tiger Woods, Lorena Ochoa, Roger Federer

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Believability/CredibilityBelievability/Credibility

• Trust What They Say - Sincerity

• Accept Their Endorsement as Informed– PGA’s Arnold Palmer

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KnownKnown

• Target Market Familiarity with Endorser

• Know the Name Even if the Face Is Not Quickly Placed by Consumer

• Athletes Who Compete in Popular Sports– Soccer’s Ronaldinho; Tennis’ Roger Federer

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Likable/Popular/AdmiredLikable/Popular/Admired

• Use of Athletes Not in this Category Might Have Negative Impact on Sales & Image

• Regional Implications – One Country versus Another; One City versus Another– NHL’s Wayne Gretzky Has Broad Popularity– NBA’s Bruce Bowen Has Regional Popularity

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RecognizableRecognizable

• Not Only the Name, but also the Face

• Athletes in Some Sports Have Advantage– Absence of Protective Equipment– Close Proximity to Fans at Event (and On TV)

• NBA’s LeBron James

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Provides Ease of RecallProvides Ease of Recall

• Recall of the Product by the Consumer

• In Retail Store, Consumer Will Remember the Relationship between an Athlete and the Endorsed Product

• Michael Jordan & Hanes Underwear

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Is Congruent with Target MarketIs Congruent with Target Market

• Similar Demographic Profile

• Similar Lifestyle – Regardless of Demographics

• Allen Iverson’s “Street Cred”

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Is Physically AttractiveIs Physically Attractive

• Consumers Rate Ads Featuring Attractive Endorser Higher

• They Also Rate Product Higher

• Maria Sharapova

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Continuity ProspectsContinuity Prospects

• Like Traditional Sponsorship, Impact is Maximized Over Long Term

• Risk Involved for Both Parties

• NBA’s Kobe Bryant

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Selection ProcessSelection Process

• Like Traditional Sponsorships, an Endorsement – AKA a Personality Sponsorship – Should Be Evaluated Prior to Making Any Substantial Investment

• Reduce the Risk of Making an Inappropriate Selection for the Spokesperson for Your Product

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Selection ProcessSelection Process

• Set Budget for Personality Sponsorships

• Identify Potential Spokespersons that Match the Values Characteristic of the Marketer

• Evaluate Each Potential Spokesperson Using an Objective Measurement Tool

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Selection Process – Q ScoresSelection Process – Q Scores

• Some Marketers Use Independent Consulting Services such as Q Scores from Marketing Evaluations, Inc. for Information to Assist in this Process

www.qscores.com

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Selection Process – Q ScoresSelection Process – Q Scores

• Examples of Recent Q Scores (Typically Range between 0 and 60)

– Tiger Woods 45-52– Michael Jordan 45-52– Serena Williams 25-31– Jennie Finch 25-31

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Selection Process – AssessmentSelection Process – Assessment

• Select Relevant Endorser Criteria

• Assign Weight to Each Criterion

• Assign Rating to Each Criterion Using an Appropriate Rating Scale

• Determine Overall Assessment for Each

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Selection Process – AssessmentSelection Process – Assessment

• Drop in Table 11.3 Here

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Problems with Celebrity EndorsersProblems with Celebrity Endorsers

• The Criminal

• The Prima Donna

• The Fading Star

• The Lightning Rod

• The Tongue-Tied

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Other Potential Problems Involving Other Potential Problems Involving Celebrity EndorsementsCelebrity Endorsements

• Ambush Marketing• Costs• Misrepresentation of Use• Endorsement Conflicts• Conflicts with Sport Regulatory Bodies• (Impact on) Amateur Status• Unwholesome Nonsports Products• Overexposure

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Closing CapsuleClosing Capsule

• Endorsements Represent a Special Case of Sponsorship – Personality Sponsorship

• May be Used for Marketing of Both Sports and Nonsports Products

• Primary Emphasis in this Chapter Was on Nonsports Products (Domain-Focused Strategies)

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Closing CapsuleClosing Capsule

• Personalities Employed May be Local, Regional, National, International or Global

• May be Athletes, Entertainers, Politicians, Dignitaries, Recognized Personalities

• Help Cut through Advertising Clutter

• Not Devoid of Risk