Download - 12-1 Chapter 12 Endorsements McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved
12-1
Chapter 12Chapter 12
EndorsementsEndorsements
McGraw-Hill/Irwin ©2007 The McGraw-Hill Companies, All Rights Reserved
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Celebrity SpokespersonCelebrity Spokesperson
• Special Case of Sponsorship
• Referred to as Personality Sponsorship
• Used in Marketing of:– Sports Products – Nike & Michelle Wie– Nonsports Products – Pepsi-Cola & Yao Ming
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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 (Michael Jordan and Hanes)
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Endorsement ApplicationsEndorsement Applications
“I Use It, So Should You”
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Endorsement ApplicationsEndorsement Applications
“I Am an Expert, and I Think that You Would Be Smart to Use this Product”
Please see Figure 12.2 in the Sports Marketing textbook
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Endorsement ApplicationsEndorsement Applications
“I Think Its Cool, So You Should
Use It”
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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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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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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
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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 Ronaldo
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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
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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
• NASCAR’s Dale Earnhardt Jr. and Budweiser
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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
• Anna Kournikova
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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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Best Return on Endorsement Best Return on Endorsement Investments (Global Perspective)Investments (Global Perspective)
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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 Aid 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 50-55– Michael Jordan 40-50– Sarah Hughes 31-36– Barry Bonds 20-30– Brandi Chastain 10-20
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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
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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 Both Sports and Nonsports Products
• 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