Celebrity Product Endorsements: Building Brands and Generating Sales, Assignments of Business

The concept of celebrity product endorsements, their impact on business advertisement, and why they work. It includes real-life examples of successful endorsements by Blackpink's Lisa, Kylie Jenner, Selena Gomez, Tran Thanh, and Taylor Swift. The document also discusses the advantages and disadvantages of celebrity endorsements.

Typology: Assignments

2020/2021

Uploaded on 03/18/2021

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ENDORSEMENT
I. Definition of product endorsement
A product endorsement involves a celebrity, a relevant professional or a
business giving its approval for the virtue of a product and recommending it to the
customers as a good and safe product. Endorsements can be effected by means of a
statement to the public or by the endorsing party using it for all to see. It is common
to find handwritten endorsements from celebrities citing how a certain product
changed or made their lives better.
In today’s modern advertisement, these celeb testimonials are found as excerpts
which are printed directly on a product’s packaging. The use of photographs to form a
visual connection between the product and the endorser is also a way of product
endorsement. Authoritative and prominent figures endorsing products constitutes a key
element in business advertisement and the overall marketing campaign. Product
endorsement goes a long way in generating a brand’s awareness and drumming up
the sales revenues.
Product endorsement works on the idea that consumers will get drawn in and
fascinated by the idea of using the same products as a prominent, wealthy or
influential person who is trusted or idolized. Consumers feel that they become
affiliated with the said prominent figure if they use the advertised product.
It is important to note that product endorsement doesn’t guarantee that a product
is good unless the endorsement is given by a trusted quality regulating organization
or company.
II. Why do celebrity endorsements work?
1. Have you ever purchased a product because you knew a celebrity was also a user
of the item? Maybe you bought a brand of lipstick because your favorite
actress expressed in a commercial that it made her lips plumper? Or did you
buy a pair of sneakers because you thought it would make you jump as high as
the pro athlete pictured in the magazine ad?
When we turn on the TV or flip through a magazine, surf the Internet or
scroll through Facebook, Instagram, Twitter, it is impossible to consume
media without seeing a celebrity plugging, promoting or pushing a product.
This is not new. Celebrity endorsements have been around for a long time.
It has been practiced since the 18th century, as Josiah Wedgwood, the
founder of Wedgwood, used royal endorsement to create a heightened value for
his products. Thanks to this strategy they increasingly take much more their
customers and profits than other competitors in that year.
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ENDORSEMENT

I. Definition of product endorsement

A product endorsement involves a celebrity, a relevant professional or a business giving its approval for the virtue of a product and recommending it to the customers as a good and safe product. Endorsements can be effected by means of a statement to the public or by the endorsing party using it for all to see. It is common to find handwritten endorsements from celebrities citing how a certain product changed or made their lives better. In today’s modern advertisement, these celeb testimonials are found as excerpts which are printed directly on a product’s packaging. The use of photographs to form a visual connection between the product and the endorser is also a way of product endorsement. Authoritative and prominent figures endorsing products constitutes a key element in business advertisement and the overall marketing campaign. Product endorsement goes a long way in generating a brand’s awarenes s and drumming up the sales revenues. Product endorsement works on the idea that consumers will get drawn in and fascinated by the idea of using the same products as a prominent, wealthy or influential person who is trusted or idolized. Consumers feel that they become affiliated with the said prominent figure if they use the advertised product. It is important to note that product endorsement doesn’t guarantee that a product is good unless the endorsement is given by a trusted quality regulating organization or company.

II. Why do celebrity endorsements work?

  1. Have you ever purchased a product because you knew a celebrity was also a user of the item? Maybe you bought a brand of lipstick because your favorite actress expressed in a commercial that it made her lips plumper? Or did you buy a pair of sneakers because you thought it would make you jump as high as the pro athlete pictured in the magazine ad? When we turn on the TV or flip through a magazine, surf the Internet or scroll through Facebook, Instagram, Twitter, … it is impossible to consume media without seeing a celebrity plugging, promoting or pushing a product. This is not new. Celebrity endorsements have been around for a long time. It has been practiced since the 18th century , as Josiah Wedgwood, the founder of Wedgwood, used royal endorsement to create a heightened value for his products. Thanks to this strategy they increasingly take much more their customers and profits than other competitors in that year.
  1. Therefore why do companies decide to link their products to celebrities? Brands look for celebrities who share qualities, values, ideas in order to create a potential synergy between the company and/or its products and the celebrity. Besides, a large follower-base is a key criterion for a brand, as it enables it to reach a wider audience thanks to published pictures, clicks, shares and tweets.
  2. According to Strategic Content Marketing, we respond to celebrity endorsements for five primary reasons:
  3. We like to see a familiar face on a product — it catches your attention, making the ad stand out.
  4. Subconsciously, we want to be like the celebrities.
  5. Celebrities can open up new demographic audiences — different ages and backgrounds for the product.
  6. Celebrities create the impression you’re getting a high-quality product.
  7. We’re more likely to recall an ad with a celebrity.

III. EXAMPLE

1. MAC COSMETICS X BLACKPINK’S LISA

In December 2020, MAC cosmetics announced that Blackpink’s Lisa will become their New Global Brand Ambassador and also become the newest face of MAC’s Frosted Firework Holiday campaign. The campain lauched on October 15 and immediately sold out in 3 hours. That was one of their best campain ever and they were right when they pick Lisa become their face of campain because they know how famous Blackpink was and how obsessed are global K-POP fan with Lisa.

2. SUGAR BEAR HAIR x KYLIE JENNER :

quite a pretty penny from endorsements. It’s been reported that she gets paid around $550,000 for every sponsored post on her Instagram.

4. KAROFI X TRAN THANH Karofi - currently the No. 1 market share brand in the water purification industry, has officially announced artist Tran Thanh to become the brand ambassador in 2021. As a brand that specializes in water purification, Karofi now has a strong foothold in the minds of consumers. The evidence is that according to a report by Techsci - a market research organization in the world, Karofi currently ranks No. 1 in the water purification industry in Vietnam and also according to this report, Karofi is also a brand that is popular with consumers. Favorite users with 77% votes. Currently, Karofi's products have covered 7200 points of sale nationwide and are present in more than 1 million Vietnamese households, and have been exported to 37 countries around the world. Tran Thanh, the leading famous artist in the Vietnamese entertainment industry, is loved and supported by a large number of audiences in many art fields. He is known as a multi-talented artist, becoming a very familiar face and has a great influence on all media channels.

5. BEATS MUSIC X TAYLOR SWIFT

With the intention of launching a new digital music service called Beats Music, Apple has spent money to invite many famous singers to act as exclusive image representatives for the company. The person whose money is on this list is Taylor Swift - a famous country music singer. Online music services are becoming a rapidly growing market. In 2014, according to the Recording Association of America, profits from music streaming services, online radio and advertising on music sites reached 1.88 billion USD, up 29%. In particular, the profit obtained from the number of subscribers to listen to music online reached nearly 800 million USD, far exceeding the sales of discs in the year. Taylor Alison Swift is a Vietnamese singer and songwriter. Her songs often narrate her personal experiences, attracting the attention of the public and the media. She has a large fan base, so inviting her to be a representative to spread the work is a decision. quite successful Apple

brand of Prada were seriously affected, reducing the company’s stock and making a bad impression on customers in the Chinese potential market.

8. GO LEAN x CAT TUONG Today, many artists use their popularity to promote poor quality products. Specifically, actor Cat Tuong has advertised for weight gain/ loss products that contain substances that are harmful to health. This seriously afftects those who believe in celebrities when choosing a product.

IV. SUMMARIZE

It can be seen in the examples above that celebrity endorsement comes with multiple advantages to the company or brand. Some include:

  • It helps to build brand equity. There exist many companies that went multibillion- dollar once they embraced celebrity product endorsement.
  • A product endorsement creates a constant and ever-present advertisement in that whenever customers see the endorsing person, they remember his/her advertisement and the products.
  • Also, product endorsement helps companies that use them to stand out from those who don’t. Nevertheless, product endorsements come with varied disadvantages, most of which are tied to the high-end life led by the endorsing parties. 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 is undesirable as at this point the product is not the prime focus of the customers but the celebrity is.
  • Overexposure – this refers to a negative effect that occurs when a celebrity endorses many similar products. The endorser’s credibility may suffer as users question his motives.
  • Companies may also get caught in the crossfire when their endorsing person gets involved in a scandal. The negative image created may spill onto the advertised brand.