SEM1 1.06

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SEM1 1.06

• PI Explain the role of endorsements in
  sport/event marketing

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Endorsements

• Endorsement is an action made by a celebrity,
  athlete, or well-known person to promote,
  advertise, and create publicity for a Company or
  Product.
• Testimonial (statement or advertisement), by a
  user of the product proclaiming the products
  benefits
• Appearance (association), is an action whereby
  the endorser appears at an event. The celebrity
  does not have to do or say anything but consumers
  believe they like the product

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Endorsements

• Endorsements should help the product or company
  reach their target market.
• Ex Michael Jordan and Basketball Shoes
• Endorsements dont always make sense, but
  celebrities can help sell any product.
• Ex The George Foreman Grill

https//www.youtube.com/watch?vSGmAszP2SE0
https//www.youtube.com/watch?vFs0dz4EdUWE
http//www.youtube.com/watch?vdi2vY0uz2Ng
https//www.youtube.com/watch?vcSuHQZjzJYY
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Endorsements

• Advantages to the Athlete/Celebrity
• Large supplement to income
• Free merchandise
• Ex Jordan made 60 million in 2010. He retired
  in 2003!
• http//www.cbssports.com/mcc/blogs/entry/22748484/
  32215986
• Endorsements are legal and binding contracts and
  the company and celebrity must adhere to the
  details

Click Link for details Ronaldinho loses
Coca-Cola deal after drinking Pepsi in public
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Endorsements

• Advantages to the Company or Product through
  affiliation with athlete or celebrity
• Enhanced company image
• Increased Brand Awareness
• Increased Sales
• Penetration into new Markets

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Endorsements

• Disadvantages to the Company or Product through
  affiliation with Athlete or Celebrity
• Loss of sales and reputation if endorser becomes
  involved in a scandal
• Loss of sales due to poor performance of endorser

Nike drops Lance Armstrong
Tiger and Rory, play poorly, Miss Cut
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Methods that celebrities can endorse products

• Product endorsement campaigns
• (combination of advertising and appearances)
• Allow their name to be used on products
• Written or verbal testimonials
• https//www.youtube.com/watch?v9pCy1FE89KI
• Allow use of their photo with or on the product
  in advertising and packaging
• Consumers are more likely to try and use a
  product that a celebrity endorses