Evidently, businesses and products having a celebrity endorsement increase their marketability. Such products can introduce new clients and loyal customers hence the growth of their company. Celebrity endorsement is certainly one of the best strategies that companies should adopt when targeting the new clients. Celebrity endorsement can apply to both small businesses and large multinational companies (MNCs). However, the type of stars may differ. Multinational institutions have to use a well-known international celebrity, may it be a musician, artist, actor, news anchor or any other globally recognized celebrity who will categorically increase their sales and improve the business. On the other hand, local companies can get a well-known local celebrity depending on the target market and audience, which will see it improve the sales of the company (Hung, 2014).
On the choice of a celebrity, companies need to choose a credible celebrity who is conversant with the product and has the skills, knowledge, and trust. He/she must be of good moral of conduct and one who will not be of questionable character. That will prevent the company from being in a situation of bad reputation or bad publicity which is not good for the business. Companies also need to seek attractive celebrities who are handsome /beautiful in the eyes of the society (Escalas & Bettman, 2015). Such individuals represent the face of the brand and are used to attract all types of generations into buying the product, as well as, also into creating new market segments. The celebrity need to have the power of influencing customers to make them feel like part of the product. The subjects, therefore, have to demand some influence in the country or internationally so as to have a positive effect on the growth of the brand (Chan, et al., 2013). Celebrities that are endorsed by the companies ought to have the Power to persuade and change consumers’ minds about the advertised product in the attempt of influencings them to purchase what is getting offered.
There are many different types of endorsements that celebrities can offer to a company. The first type of approval is where a celebrity speaks on behalf of a company when advertising a brand or a product. That influences a vast number of target customers since they can relate to the product and hence increased purchases and loyalty from both new and existing clients. By doing so, they increase product’s awareness in the market, develop positive feeling and connection toward the product, and they are also perceived as entertaining (Erdogan, 2000).
The second type of endorsement is where celebrities are seen using the products from a certain brand. That may happen in the daily operations where a star uses, for example, a phone, and as a result commands a huge following of the people he/she influences. People will use brands such as phones, attires or bags simply because a celebrity they liked or they admire used it (Chan, et al., 2013). That is a common type of endorsement in the recent times. A company may also seek a celebrity primarily a musician or an artist to use their brand in their new video or movie as a way of endorsing it (Mikuláš & Světlík, 2016). Phones, alcohol brands and clothing companies often use this as a way of ensuring that they influence customers’ decisions on purchasing their product.
There is a huge advantage on having a celebrity to endorse a brand. Celebrities build the brand of a company with examples of Michael Jordan and the Nike Company (Mocarski & Billings, 2014). More people associate with a company after having an influential celebrity as its face. Celebrities also have an advantage of ensuring that people remember the ads over time and hence when in the marketplace, stalls or mall decide to select on the company’s product. That also helps in having a superstar status. Companies that get endorsed by celebrities stand out in the market. Despite the fact that celebrities have an advantage to the enterprise, there may be possible risks that may get associated with their endorsement. In some cases, celebrities make mistakes which may affect the brands they have endorsed. That is seen in the case of Tiger Woods who had a massive scandal yet had recommended many companies including General Motors, and as a result, this had an adverse impact on the products (Knittel & Stango, 2013).
In some cases, Celebrities may get overexposed and endorse very many companies. As a result, the individual loose his credibility especially with the target customers. That is a disadvantage to the company that has used him/her. Celebrities may overshadow brands, and as a result, consumers fail to focus on the brand and instead concentrate on the celebrity. That mostly happens when celebrities endorse multiple products at the same time. That may be at a huge disadvantage to the company (Mocarski & Billings, 2014). Therefore, companies need to have a strategic plan in their selection of a celebrity so as to improve the brand name and as a result, experience growth of the company.
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Knittel, C. & Stango, V., 2013. Celebrity endorsements, firm value, and reputation risk: Evidence from the Tiger Woods scandal. Management Science, pp. 60(1), pp.21-37.
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