Question

What are some benefits and drawbacks of using celebrity testimonials in advertising? Identify an ad that uses a celebrity's endorsement effectively, and explain why.

Answer 1

Answer: Part 1 :

In this era of cut throat competition there are number of products that are endorse by celebrities and gets lots of attention. Weather it is a small company or a big company there are number of Advantages and Disadvantages of using Celebrity testimonials in an advertisement. These are as follows :

1.Consumer Purchase Increase: With the celebrity endorsement the purchase of the product may get increased as it affects the customers Psychologically which triggers the mind and makes them think that it is good because they are using it.

2.It Creates Brand Awareness: The celebrity associated with the brand increases the Brand Awareness because he/ She is famous and it creates an effect called brand recall whenever the consumer sees the product.

3.Brand Positioning: With the celebrity endorsement it creates a brand positioning in the competitive market and differentiates the product from the rest.

4. Attracts New Users: Suppose a product is using a local celebrity for endorsing a product of a local brand. So when a person sees the products it triggers the mind of the customer to try the product and this increases the users of the new product and it will open up a new market.

Where there are advantages there are disadvantages. The disadvantages of using a celebrity testimonials in an advertisement are as follows.

1. Celebrity endorsement are Expensive: Celebrity endorsement are expensive as it may overshadow the P&L statement of the company and it might not work all the time for a small company.

2. Degredation of the Image of the celebrity : Suppose a celebrity was endorsed to a product for advertisement when she/he was on the pick of the career and it brought good amount of goodwill to the company, but as it came down the image of the product,brand , company associated also came down.

Answer to Part 2:

To understand it better lets take an example of Beyonce Knowles-Pepsi, $50 Million deal

She is one of the most powerful entertainer in the entertainment industry and in the year of 2012 the major breverage company entered a deal with Beyonce with whooping $50 million deal for an endorsement period of 12 years.

Ther are number of reasons that are in favour of the company that used Beyonce Knowles as Celebrety endorsement:

1. She is the favourate popstar of all time

2 She has a huge Fan followers.

3.It creates brand goodwill

4. it is positioning the brand image to a greater level.

So Brand Endorsing is a marketing tool which is often used by companies to market the product.

Thank You ..

Please do hit the ThumpsUp Button #GoPepsi