The advantages and disadvantages of individual branding apply to all businesses. 1. High cost. Whether adored for physical attributes, wealth, or skills in a particular discipline i.e. Prior to Michael Jordan,Nike primarily sponsored tennis and track athletes. A disadvantage of this is the brand has no control over what message or image the celebrity associated with the brand is portraying. Previous Article Cat Scans Pros and Cons List. By: Tom Dougherty. Build brand equity. Since celebrities are adored and idolized by their fans, they are being tapped to influence the fans towards their endorsed brand. When a well-known face endorses your brand, it automatically attracts new target audience – the diehard fans of the celebrity. Product Endorsement: Is it Worth your While? For Lego and Coca Cola, you recognize the brand architecture in the way the parent brand name is linked to the new brand name. Controversy Maria E Chambi. Endorser Brand Architecture. There is a risk that the new product may generate implications that damage the image of the core/original brand. (Answer with special reference to Beckham’s popularity in the Far East) David Beckham was one of the most successful endorsers in the late 1990s and the early twenty-first century for the following reasons: A) David … * The celebrity may potentially add a new dimension to the brand image instant credibility. Product endorsement is a traditional and highly effective marketing strategy which has the potential to amplify brand awareness and generate notable sales channels overnight - that is, of course, if done correctly. When you sign on a celebrity to endorse your brand, you sign on to everything that comes with them. techfeatured. The reputation of a company may be destroyed as a result of celebrity scandals. Branding is the process of creating a name, design or symbol that identifies and differentiates a company from its competitors. 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. An endorser brand architecture is made up of individual and distinct product brands, which are linked together by an endorsing parent brand. 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. Nike wanted expand into new markets. There are many ways to promote a brand, and one of the most common among them is through celebrity endorsements. Consists of a master brand and a subbrand. One major disadvantage of branding is the expense. They need to incur huge costs on advertising and publicity programs for maintaining their brand image. On the one hand, single endorser for one product might be seen as boredom. Visit http://www.8ways.ch/news to learn more. Power – The cult of celebrity has been influential since the days of the Pharaohs, who were celebrities in their own right. McCracken has defined a celebrity endorser as a person who enjoys public recognition and who uses this recognition on behalf of a brand to endorse the brand. 1. Why Is Good Website Content Important For Your Brand? Sometimes, sub-brands can be unsuccessful. 17. 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. The Pros and Cons of Celebrity Endorsements admin | January 2, 2018. Business owners may feel pressured to increase the price of their products to compensate for the increased expense, which could cause customers to switch products. athletes, actors) in the hope that celebrities may boost effectiveness of their marketing for at least a century. Create Confusion. First of all you need to establish what type of celebrity or public figure accurately matches your branding. Large corporations tend to experience the most advantages as multiple brands work together to generate multiple revenue streams. Introducing any brand to a new marketplace entails risk. Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Small businesses may not have the capital available to start multiple brands. Although the potential benefits of using celebrity advertising to promote brand images and products are significant, so are the costs and risk (Ho, et al. Your endorser can easily package the information in his or her own language which many people have already been accustomed to. Branded House. The benefits and importance of social media marketing cannot be denied and should not be overlooked. Consumers give less credibility to celebrities who endorse many products (Tripp et al., 1994). Mar 20, 2018. What were reasons for the success as an endorser? 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. Consists of a master brand and a descriptor. On the other hand, consumers might get confused by using multiple celebrity endorsement (Hsu and McDonald, 2002). You have that flexibility. 3. However, celebrity endorsement will not be effective if they endorse more than one brand … Using celebrities help advertisers to stand out from the crowd and attract attention (Kaikati, 1987). Disadvantages of branding in Marketing Management Expensive. The branding process involves huge development costs on the part of the 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. Create a distinct personality to the endorsed brand (McCracken, 1989). behalf of distributors and sold under the distributor’s own name or trademark through the distributor’s own outlet Helps You Tap the New Markets. Disadvantages of product endorsement. Still, modern technology has not been able to make this strategy obsolete as many companies continue to resort to celebrity endorsements. Let’s take a closer look at the advantages influencer marketing can provide. A product endorsement gives you a chance to differentiate your company and brand message from what your competitors are doing. Advantages of a Branded House or a House of Brands. Article Source: While this usually means bringing in some of their fan base as customers, it can lead to disaster if a scandal occurs. Advantages. The factor of Brand Character is such that a consumer can relate to it creating an emotional connection with its values, fundamentals, and the unique selling points. Probably, they have strong reasons to do so. To help you figure it out, here are the lists of its pros and cons: 1. 6 Disadvantages of Corporate Branding 1. Helps You Tap the New Markets. Blog Post By: Kali Kraft, Baer Performance Marketing Intern. * The celebrity’s values may help define and refresh the brand image. 1. 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. Recent Posts. We will never sell or rent your email address. It also allows companies to roll out new products without a new brand strategy; instead they can rely on the existing corporate brand when time is of the essence. new Galaxy S5 smartphone in Taiwan (Table 1). And in so… The use of celebrities in order to increase the sales and/or the recall value of a brand is called celebrity endorsement. You could even have the flexibility to turn it on it’s head a little bit and say, “We’re really struggling. Expensive Subbrands. Advantages & Disadvantages of Branding. Submitted On March 17, 2015. Disadvantages from using Celebrity Endorsements. Build and protect brand equity. Celebrity Endorsements: Advantages & Disadvantages Advantages. Therefore, understanding the role of the endorser’s nationality in advertising a Korean smartphone among young Taiwanese consumers is necessary. However, only big companies can afford to invest in this marketing strategy. Since the year 1996, Tiger Woods has been the NIKE […] consumers’ eyes, and what a brand stands for is vitally important for the success of its business. Today, we are in the information age. 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. All this expenditure influences the price of goods and services offered by the brand. You have to analyze your portfolio and choose the type that fits you best. Consumers’ skepticism; consumers might not believe that the endorsers really consume the product that they endorse (Hsu and McDonald, 2002). Celebrity endorser criteria. 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 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. However, the advantage and disadvantage of the match and mismatch between brand and the endorser’s nationality remains ambiguous. © 2021 EzineArticlesAll Rights Reserved Worldwide, [Digital Marketing Tips] Kick-Start Your Small Business, Cool and Useful Appreciation Gifts To Give During The Pandemic. The Success of Beckham as an Endorser Creating a strong brand image usually takes a long time and continuous effort. 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. https://EzineArticles.com/expert/Maria_E_Chambi/2077760, Business: Branding Product endorsement can be used as part of your brand management strategy. Even a product that has never been heard of can become an instant celebrity, too. Cons of sub-branding: Some disadvantages to sub-branding include the costs to market, promote and maintain the new brand. Endorsements by celebrities have started since a long time. Who is your primary and secondary target market? Sometimes, sub-brands can be unsuccessful. A prominent example of this was Tiger Woods in 2009, when rumors of his infidelity surfaced and brands began to drop him as a sponsor to avoid the backlash from consumers. Large corporations tend to experience the most advantages as multiple brands work together to generate multiple revenue streams. Nonetheless, celebrity endorsement can be good or bad depending on the situation. 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. Successful composite co-branding is dependent upon the favorability of the brands serving as ingredients as well as also upon the extent of complementarities between the two. The very fact that their use has continued for so long is proof enough of its immense advantages, but they have several disadvantages … This strategy is not something new. Disadvantages Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. 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. Both of these endorsements have advantages and disadvantages. The upshot of all of the benefits above is the ultimate competitive advantage for any company: brand equity. Kofi Annan: Importance of Youth Leadership, Youth Leadership in Community Development, Taking Youth Leadership to the Next Level, How We Are Helping Chinese Disabled Youth, Front Loading Washing Machines Pros and Cons List, Flat Organisational Structure Pros and Cons List, 22 Good Songs for 18th Birthday Slideshow, 35 Good Songs For 50th Birthday Slideshow, 57 Good Parents Entrance Songs for Wedding Reception, 23 Bible Verses About Death Of a Grandmother, 42 Good Songs for 70th Birthday Slideshow. 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. … As a matter of fact, It has been practiced since the invention of motion picture. 0. Corporate branding spreads out the cost of developing a brand image over an extended period of time. Consumers are often confused in in product selection on account of the methods … Read More. Whether a controversy involving your celebrity endorser is true or not, your brand will somehow get dragged by it. We will discuss what social media marketing is, how it can benefit your company and what some of the drawbacks are. Expensive The major concern of many companies in getting a celebrity endorser is that it is very expensive. 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. Consists of an endorsed brand and the endorser. So only work with endorsers who are reliable and professional. 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. 2.1 Celebrity Endorsement. Brand equity will be improved due to celebrity endorsement (Farrell, Karels, Monfort and McClatchey, 2000; Erdogan et al., 2001). 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. These include; 1. Your endorser can easily package the information in his or her own language which many people have already been accustomed to. Their physical beauty, mental dexterity, and other skills have transported these people to the highest ends of the social structure. The endorsing parent brand plays a supportive and linking role, and, in many respects, an endorser brand architecture can be seen as an inversion of a sub-brand brand architecture. Power – The cult of celebrity is a cultural phenomenon dating back millennia. It has sub-brands like Microsoft Windows and Microsoft Surface. This is normally done through various marketing and communication approaches, including advertising and public relations. 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. The reputation of a company may be destroyed as a result of celebrity scandals. the endorser and the charity. Brand architecture gives a parent brand the power of diversification by highlighting the unique strengths of its distinct sub-brands. Advantages and disadvantages of celebrity endorsement of celebrity in marketing Name Course Lecturer Date Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. That’s a great advantage to having a sub-brand. Name Recall The above points are advantages of using a celebrity in promoting products, but on the other hand several disadvantages come with the use of celebrities in product marketing. When a well-known face endorses your brand, it automatically attracts new target audience – the diehard fans of the celebrity. 26 Articles, By A good brand reflects the benefits of a product or service and builds recognition and loyalty in customers. A lot is involved in an endorsement agreement so it's always advised to gain the help of a marketing agency that can help you to appropriately endorse your company. Creates Confusion The house of brands and branded house strategies are at each end of the brand portfolio strategy spectrum. Product endorsements come with varied disadvantages, most of which are tied to the high-end life led by the endorsing parties. 1. Colin Finkle . 4. Celebrity endorsements: advantages & disadvantages. 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. This continuous need for exposure costs a lot. The more famous or celebrated the endorser, the more expensive can it be to use that personality for a product. Advantages and disadvantages of branding. The Advantages and Disadvantages of Endorsement. It’s like thinking of Nike whenever you think of Michael Jordan. He has been the celebrity marketer for sports and Shoe Company known as NIKE. The next step is to find a celebrity who is willing to endorse your brand! 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. If you’re interested in learning more about the many social media marketing advantages, stick around. You can do that. An organization must research the product categories in which the established brand name will work. | Whether a controversy involving your celebrity endorser is true or not, your brand will somehow get dragged by it. You have to remain in the mind of people for a long time, and for that, you will have to continuously run advertisements. Power – The cult of celebrity is a cultural phenomenon dating back millennia. He has been the celebrity marketer for sports and Shoe Company known as NIKE. This paper will discuss the concept of celebrity endorsement by analyzing the Beckham case study.