Chapter 11 Endorsements McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. 11-1 Celebrity 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 11-2 Matching Process • Celebrity (Personality) Needs to Fit: – The Target Market – The Product – The Brand 11-3 Types of Personalities Used • Entertainer (Bon Jovi & Duracell Batteries) • Politician (Bob Dole & Pepsi-Cola) • Dignitary (Sarah Ferguson & Weight Watchers) • Athlete (LeBron James & Bubblicious) 11-4 Endorsement Applications • “I Use It, So Should You” • Drop in Figure 11.1 Here 11-5 Endorsement Applications • “I Am an Expert, and I Think that You Would Be Smart to Use this Product” • Drop in Figure 11.2 Here 11-6 Endorsement Applications • “I Think Its Cool, So You Should Use It” • Drop in Figure 11.3 Here 11-7 Athletes as Endorsers • Prominent Roles in Society • Recent Concerns Regarding Legal and Moral Transgressions • Longevity Concerns – Injury & Retirement 11-8 Let’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 11-9 Factors Favoring Use of 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 11-10 Top 10 Athlete Endorsers in the United States • Drop in Table 11.1 Here 11-11 Factors Impacting Endorsement 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 11-12 High Achiever • Winners Have Greater Impact on Consumers • Winners Are More Expensive – David Beckham, Michael Jordan, Serena Williams, Tiger Woods, Lorena Ochoa, Roger Federer 11-13 Believability/Credibility • Trust What They Say - Sincerity • Accept Their Endorsement as Informed – PGA’s Arnold Palmer 11-14 Known • 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 11-15 Likable/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 11-16 Recognizable • 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 11-17 Provides 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 11-18 Is Congruent with Target Market • Similar Demographic Profile • Similar Lifestyle – Regardless of Demographics • Allen Iverson’s “Street Cred” 11-19 Is Physically Attractive • Consumers Rate Ads Featuring Attractive Endorser Higher • They Also Rate Product Higher • Maria Sharapova 11-20 Continuity Prospects • Like Traditional Sponsorship, Impact is Maximized Over Long Term • Risk Involved for Both Parties • NBA’s Kobe Bryant 11-21 Selection 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 11-22 Selection 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 11-23 Selection 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 11-24 Selection 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 11-25 Selection 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 11-26 Selection Process – Assessment • Drop in Table 11.3 Here 11-27 Problems with Celebrity Endorsers • The Criminal • The Prima Donna • The Fading Star • The Lightning Rod • The Tongue-Tied 11-28 Other Potential Problems Involving Celebrity Endorsements • • • • • • • • Ambush Marketing Costs Misrepresentation of Use Endorsement Conflicts Conflicts with Sport Regulatory Bodies (Impact on) Amateur Status Unwholesome Nonsports Products Overexposure 11-29 Closing 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) 11-30 Closing 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 11-31