SEM PI – Explain the role of endorsements in sport/event marketing

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 product’s 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

Endorsements Endorsements should help the product or company reach their target market. Ex: Michael Jordan and Basketball Shoes Endorsements don’t always make sense, but celebrities can help sell any product. Ex: The George Foreman Grill

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 Allow use of their photo with or on the product in advertising and packaging Manufacturers can benefit from the ‘halo effect' - some of the celebrity's glamour rubs off on the product Consumers are more likely to try and use a product that a celebrity endorses

Endorsements Advantages to the Athlete/Celebrity: Large supplement to income Free merchandise Ex: Jordan made $60 million in He retired in 2003! 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

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

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 ArmstrongTiger and Rory, play poorly, Miss Cut