In the same way, brand architecture defines how a brand appeals to consumers and offers hints on what the brand is made of internally. Expensive However, past research shows that next to the advantages of the celebrity endorser, such as increased brand attention (Atkin and Block, 1983) or increased positive attitudes towards the brand (Kamins et al., 1989), some major disadvantages also have to be taken into account. Advantages and disadvantages of branding. 17. Advantages And Disadvantages Of Brand Ambassadors 1789 Words | 8 Pages. This saves money versus creating and promoting a new brand image for each new product. 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. For starters, celebrities are a part of your business that you can’t control. First of all you need to establish what type of celebrity or public figure accurately matches your branding. Nonetheless, celebrity endorsement can be good or bad depending on the situation. Celebrity endorser criteria. Using celebrities help advertisers to stand out from the crowd and attract attention (Kaikati, 1987). Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Your endorser can easily package the information in his or her own language which many people have already been accustomed to. Brand equity will be improved due to celebrity endorsement (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001). Disadvantages Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. 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. … The very fact that their use has continued for so long is proof enough of its immense advantages, but they have several disadvantages … The Pros and Cons of Celebrity Endorsements admin | January 2, 2018. Both of these endorsements have advantages and disadvantages. There are a number of disadvantages to relying on celebrities to promote your products. Finally, it is also important that the celebrity endorsing your brand maintains their fame in order to maintain the integrity of the endorsed product. Since celebrities are adored and idolized by their fans, they are being tapped to influence the fans towards their endorsed brand. |   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. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. As a matter of fact, It has been practiced since the invention of motion picture. This continuous need for exposure costs a lot. However, celebrity endorsement will not be effective if they endorse more than one brand … Popularity © 2021 EzineArticlesAll Rights Reserved Worldwide, [Digital Marketing Tips] Kick-Start Your Small Business, Cool and Useful Appreciation Gifts To Give During The Pandemic. There are many ways to promote a brand, and one of the most common among them is through celebrity endorsements. Consumers’ skepticism; consumers might not believe that the endorsers really consume the product that they endorse (Hsu and McDonald, 2002). Probably, they have strong reasons to do so. Branding is the process of communicating the value of your company and its products to a target market. Another advantage is the higher degree of recall or the extent in which a consumer can remember the brand (Boorstin, 2005). Small businesses may not have the capital available to start multiple brands. Advantages. Create a distinct personality to the endorsed brand (McCracken, 1989). This failure can negatively impact the parent brand and affect loyalty, trust and business. 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. List of Product Endorsement Advantages 1. 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. The branding process involves huge development costs on the part of the business. It’s difficult to identify what exactly a brand should do when it’s mixed up in a celebrity scandal. Helps You Tap the New Markets. This can be a difficult and challenging step as there are plenty of celebrities out there who are continually offered endorsement packages. The benefits and importance of social media marketing cannot be denied and should not be overlooked. All this expenditure influences the price of goods and services offered by the brand. * The celebrity’s values may help define and refresh the brand image. An endorser brand can work as assurance of quality for the product brand, it can increase consumer’s perception and confidence ... As you can see, every type of brand architecture has its advantages and disadvantages. Consumers give less credibility to celebrities who endorse many products (Tripp et al., 1994). You have to remain in the mind of people for a long time, and for that, you will have to continuously run advertisements. 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. 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 This failure can negatively impact the parent brand and affect loyalty, trust and business. For Lego and Coca Cola, you recognize the brand architecture in the way the parent brand name is linked to the new brand name. Celebrity Endorsements: Advantages & Disadvantages Advantages. Since the year 1996, Tiger Woods has been the NIKE […] It’s like thinking of Nike whenever you think of Michael Jordan. There is no ideal or general recommended choice. Advantages of a Branded House or a House of Brands. Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Previous Article Cat Scans Pros and Cons List. Product endorsement can be used as part of your brand management strategy. A disadvantage of this is the brand has no control over what message or image the celebrity associated with the brand is portraying. One major disadvantage of branding is the expense. The reputation of a company may be destroyed as a result of celebrity scandals. Celebrities are plastered all over TV, social media, magazines, and any other place you’d find an ad. Some include: Product eclipsing – this occurs when the endorser overshadows the product he/she is endorsing by consuming more space and time than the product. This paper will discuss the concept of celebrity endorsement by analyzing the Beckham case study. 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. An organization must research the product categories in which the established brand name will work. Even a product that has never been heard of can become an instant celebrity, too. Maria E Chambi  |   That’s a great advantage to having a sub-brand. However, the advantage and disadvantage of the match and mismatch between brand and the endorser’s nationality remains ambiguous. Smaller businesses may have less chance of competing in this aspect. 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. Read More. However, branding is an expensive process and is difficult to undo if the company's direction changes. Designing a brand involves significant research, naming development, graphic design and brand identity integration, which aren't cheap. You have to analyze your portfolio and choose the type that fits you best. Build and protect brand equity. Share On. 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. 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. Product endorsements come with varied disadvantages, most of which are tied to the high-end life led by the endorsing parties. "Studies show that using celebrities can increase consumers' awareness of the ad, capture their attention and make ads more memorable" (L. Martinez, 2001). 1. 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. 4. Next Article Ceramic Brake Pads Pros and Cons List. They also are being perceived as more entertaining and trustworthy (Atkin and Block, 1983). A product endorsement gives you a chance to differentiate your company and brand message from what your competitors are doing. 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. The use of celebrities in order to increase the sales and/or the recall value of a brand is called celebrity endorsement. Power – The cult of celebrity is a cultural phenomenon dating back millennia. However, only big companies can afford to invest in this marketing strategy. 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. When you draw up a contract between yourself and your chosen public figure, all of these matters will be negotiated and agreed upon. It Helps You Reach a Relevant Audience. Therefore, understanding the role of the endorser’s nationality in advertising a Korean smartphone among young Taiwanese consumers is necessary. Below, we’ll look at some of the advantages and disadvantages of influencer marketing vs. celebrity endorsements to help determine appropriate use cases. Large corporations tend to experience the most advantages as multiple brands work together to generate multiple revenue streams. On the other hand, consumers might get confused by using multiple celebrity endorsement (Hsu and McDonald, 2002). Introducing any brand to a new marketplace entails risk. Small businesses may not have the capital available to start multiple brands. Product endorsements help your brand be able to stand out. https://EzineArticles.com/expert/Maria_E_Chambi/2077760, Business: Branding Submitted On March 17, 2015. Sometimes, sub-brands can be unsuccessful. athletes, actors) in the hope that celebrities may boost effectiveness of their marketing for at least a century. Disadvantages from using Celebrity Endorsements. 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. You have that flexibility. acting, music, athletics, etc., celebrities are individuals who have ascended to the upper echelon of society. The image of the company may be ruined if the celebrity’s image is. Your endorser can easily package the information in his or her own language which many people have already been accustomed to. 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. 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. However, it requires looking at your business and brand from a very different point of view. Pros of Celebrity Marketing . Still, modern technology has not been able to make this strategy obsolete as many companies continue to resort to celebrity endorsements. They need to incur huge costs on advertising and publicity programs for maintaining their brand image. 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. The house of brands and branded house strategies are at each end of the brand portfolio strategy spectrum. 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. Ex - Honda Civic. He has been the celebrity marketer for sports and Shoe Company known as NIKE. 8 Ways Media specialises in providing services that focus on creativity as well as the latest parallax designs and technological trends. 3. 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. 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. Introducing any brand to a new marketplace entails risk. By: Tom Dougherty. Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. 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. Celebrity Endorsement – Definition, Meaning, Determinants, Advantages and Disadvantages . So only work with endorsers who are reliable and professional. Prior to Michael Jordan,Nike primarily sponsored tennis and track athletes. You need to carefully choose influencers who are relevant to your niche and industry. the endorser and the charity. Product Endorsement: Is it Worth your While? Certainly, the celebrity endorser could reinforce a company’s marketing communications, positioning and represent its brand (Erdogan, 1999). Why Is Good Website Content Important For Your Brand? BUILDING BRAND VISION:Seek senior management’s input, Determine the financial contribution gap ; BUILDING BRAND VISION:Collect industry data and create a brand vision starter, BRAND PICTURE, BRAND PICTURE:Brand Value Pyramid, Importance of being at pinnacle, From pinnacle to bottom Celebrities are public figure. Nike wanted expand into new markets. The Success of Beckham as an Endorser When a popular celebrity endorses a particular brand, people can easily recall the brand name every time they see or even think of that celebrity. You will have to keep aside a large amount of money for image building exercise. This strategy is not something new. The two primary strategies when discussing brand architecture are the Branded House and the House of Brands. The Advantages and Disadvantages of Endorsement. Controversy 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. List of Cons of Celebrity Endorsements. It will also highlight the advantages and disadvantages of using celebrity endorsement in marketing. 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. Advertisers and clients hope such approval, or endorsement by a celebrity, will influence buyers favourably. Marketers use celebrity endorsers in hopes that the positive image of the celebrity endorser will be passed on to the product's or brand's image. 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. 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. Disadvantages of Celebrity Endorsement The Image of the Company may be Ruined if the Celebrity’s Image is. Consumers are often confused in in product selection on account of the methods … The reputation of a company may be destroyed as a result of celebrity scandals. Advantages and Disadvantages List. We will never sell or rent your email address. If you’re interested in learning more about the many social media marketing advantages, stick around. Blog Post By: Kali Kraft, Baer Performance Marketing Intern. Tweet. On the one hand, single endorser for one product might be seen as boredom. Visit http://www.8ways.ch/news to learn more. Colin Finkle . Microsoft uses multiple brand architectures, but very deliberately. Today, we are in the information age. The advantages and disadvantages of individual branding apply to all businesses. 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. Celebrity endorsement will give companies a competitive advantage over similar brands. While this usually means bringing in some of their fan base as customers, it can lead to disaster if a scandal occurs. You could even have the flexibility to turn it on it’s head a little bit and say, “We’re really struggling. 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. This is normally done through various marketing and communication approaches, including advertising and public relations. 0. 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