11-1 Chapter 11 Endorsements Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-2 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

11-3 Matching Process Celebrity (Personality) Needs to Fit: –The Target Market –The Product –The Brand

11-4 Types of Personalities Used Entertainer (Bon Jovi & Duracell Batteries) Politician (Bob Dole & Pepsi-Cola) Dignitary (Sarah Ferguson & Weight Watchers) Athlete (LeBron James & Bubblicious)

11-5 Endorsement Applications “I Use It, So Should You” Drop in Figure 11.1 Here

11-6 Endorsement Applications “I Am an Expert, and I Think that You Would Be Smart to Use this Product” Drop in Figure 11.2 Here

11-7 Endorsement Applications “I Think Its Cool, So You Should Use It” Drop in Figure 11.3 Here

11-8 Athletes as Endorsers Prominent Roles in Society Recent Concerns Regarding Legal and Moral Transgressions Longevity Concerns – Injury & Retirement

11-9 Let’s Sell Some Wheaties The Wheaties Brand Has A Long History of Using An Endorsement Strategy to Influence the Demand for Its Cereal

11-10 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

11-11 Top 10 Athlete Endorsers in the United States Drop in Table 11.1 Here

11-12 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

11-13 High Achiever Winners Have Greater Impact on Consumers Winners Are More Expensive –David Beckham, Michael Jordan, Serena Williams, Tiger Woods, Lorena Ochoa, Roger Federer

11-14Believability/Credibility Trust What They Say - Sincerity Accept Their Endorsement as Informed –PGA’s Arnold Palmer

11-15Known 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

11-16Likable/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

11-17Recognizable 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

11-18 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

11-19 Is Congruent with Target Market Similar Demographic Profile Similar Lifestyle – Regardless of Demographics Allen Iverson’s “Street Cred”

11-20 Is Physically Attractive Consumers Rate Ads Featuring Attractive Endorser Higher They Also Rate Product Higher Maria Sharapova

11-21 Continuity Prospects Like Traditional Sponsorship, Impact is Maximized Over Long Term Risk Involved for Both Parties NBA’s Kobe Bryant

11-22 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

11-23 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

11-24 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

11-25 Selection Process – Q Scores Examples of Recent Q Scores (Typically Range between 0 and 60) –Tiger Woods45-52 –Michael Jordan45-52 –Serena Williams25-31 –Jennie Finch25-31

11-26 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

11-27 Selection Process – Assessment Drop in Table 11.3 Here

11-28 Problems with Celebrity Endorsers The Criminal The Prima Donna The Fading Star The Lightning Rod The Tongue-Tied

11-29 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

11-30 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)

11-31 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