Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

Presentation by:Siti Jumaah Osman Pauziah Mohd Nor Arfah Mahani Hj Amran Marini Mohd Said Nur Azima Kamal

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Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

Celebrity Endorsement; the definition any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (McCracken, 1989)

Celebrity Endorsements: The Introduction

a prevailing technique Some users multiple celebrities to promote their brands found to be more effective to get positive response towards advertising and greater purchases than non-celebrity endorser advertising
(Atkins and Block, 1983; Petty and Cacioppo, 1983)

Celebrity Endorsements: The Introduction

CE: common practise for companies to fight cluttered advertising medium Research revealed that CE are more effective than other type of endorsers, i.e. : Professional Expert Company Manager Typical Consumer

(Friedman and Friedman, 1979)

Celebrity Endorsements: Previous Studies

There are several reasons for the extensive use of celebrities in ads: Their high profile Their significant influence in several facet of society They can generate extensive PR leverage for the brand (e.g. Milk Campaign)
(Atkins and Block, 1983)

Celebrity Endorsements: Previous Studies

For the effective messages in CE ads: The product, companys image, the characteristics of the target market and personality of the celebrity must match The determinant of the match between celebrity and brand depends on the degree of perceived fit between brand (brand name, attributes) and celebrity image.
(Misra, 1990)

Celebrity Endorsements: Previous Studies

For the effective messages in CE ads: The consumer must be able to recognize the essential similarity between the message elements and the product in the advertisement.
(Tom et al, 1992)

CE: Theoretical Background

McCrakens model; the process of CE takes place in a series of stages
Creating product personality based on symbolic properties by Celebrities the endorser draws meaning from the endorser to the product Meanings transferred to the consumer who identifies with those symbolic properties

s nart e hT ssec o p r

Celebrity Endorsements: Endorsers Value

High visibility. Well-known individuals Symbolic aspiration for reference group (Solomon and Assael, 1987). Appropriate for high-involvement products (Friedman and Friedman, 1987)

Celebrity Endorsements: Purpose

Awareness Campaign Build brand awareness Product launches Book signings Community events & outreach Expositions Fundraising events Point purchase and packaging

Celebrity Endorsements: Advantages

Establishment of credibility (e.g. Power root & Anuar Zain, Zahid, Linda Onn, Farah) Ensured attention by breaking the ad clutter (e.g. Pepsi World Cup 2002 Ad -Britney, Pink, & Beyonce) PR coverage on public appearance (Jaya Jusco & Siti Nurhaliza) Higher degree of recall (SKii & Fauziah Latiff) Associative Benefit (Kayla Beverly Hills & Ziela Jalil) Mitigating a tarnished image (J. Sainsbury & Jamie Oliver, Mydin & Wardina) Psychographic Connect adored by fans (Mawimania) Demographic Connect (Mi Sedap & Padi)

Celebrity Endorsements: Disadvantages

Reputation of celebrity may deteriorate (Kobe Bryant, Mike Tyson, OJ Simpson) CE just as an aspiring figure with no particular knowledge and/or commitment with the product (J. Sainsbury & Catherine Zeta Jones; Brylcreem & Beckham) Vampire' effects celebrity overshadowing the brand (J. Sainsbury & Jamie Oliver) Multi brand endorsement leads to overexposure (Chef Wan) Mismatch between the celebrity and the image of the brand (Beef Industry Council & Cybill Sepherd on its Real food for real people campaign 1987)

Celebrity Endorsements: Local Scene

1st home grown mobile phone manufacturer and developer in Malaysia Based on JV between Malaysian entrepreneurs & Korean entrepreneurs Fully owned by Bumiputra with investment values of RM 60 million

Celebrity Endorsements: Local Scene

The Vission:

to be among the top 10 mobile phone producers in the world within the next 5 years and be the biggest ICT player in Malaysia for both domestic and export markets

Celebrity Endorsements: Local Scene

The Mission:

To spread the brand name M.Mobile worldwide. To continuously produce a full range of innovative, attractive, reliable and quality mobile phones. To be the consumers first choice

Celebrity Endorsements: Local Scene

Celebrity Endorsements: Local Scene

Marketing positioning Muslim phone Marketing strategy Celebrity endorsement Product USP Azhan feature, Kiblah direction and Hajj Guide Network strategy corporate alliance RSP RM 499 (M10 & M10i), RM 555 (M10m)

Celebrity Endorsements: Local Scene

Based on Mawis humble beginning into stardom Based on strong bonding of Mawis fans and Mawi (i.e. Malaysian dreams) Identify character fit with Muslim phone Mawi as vehicle to introduce M.Mobile to the market (value for money) Mawis fanclub is a huge database of untap market for muslim featured phone

Celebrity Endorsements: Local Scene

Celebrity Endorsements: Local Scene

Pros: Great impact on market awareness of M.Mobile Loud introduction with Launching by PM and Mawi appearance on the event Great way to make sales (out of 20, 000 unit produced, 50% sold to Mawi fans) Close association of Mawi fans with the phone and Mawi

Cons: known as Mawi Mobile Mawi is also representing other products, the schedule arrangement for appearances were hectic Mawi endorsing multiple brands, making M.Mobile become less significant For overseas market, Mawis endorsement doesnt carry weight. less appeal to non-Malays

Celebrity Endorsements: International Scene

The Cola Wars: Pepsi & Coca-Cola learned that the effective way to reach to the youth of America and the rest of the world was to sign sizzling hot recording stars to do television commercials publicizing the cola of their choice

Celebrity Endorsements: International Scene

December 1988: Coca-Cola announced it had signed George Michael to sell its pop to the public

January 25 1989: (after 8 long months of negotiation) Pepsi announced that they have signed Madonna to a year-long endorsement contract for USD 5 Million.

Celebrity Endorsements: International Scene

Why Madonna? Pepsi was undaunted by Madonnas image in the tabloids (i.e. her passion and appeals in her music and her acting) Pepsi believe Madonna will attract people with her style Whats in the pot? Pepsi offering a USD 5 million contract for CE for a year Pepsi offering sponsorship for the singers next concert tour, tentatively later the year Huge publicity for Pepsi

Celebrity Endorsements: International Scene

The Marketing plan for Madonnas CE : Jan 25 :Madonna signs contract with Pepsi Jan 26 :The deal will appear in front pages of the media Feb 22 :Pepsi unveils a commercial on the Grammy Awards telecast announcing the forthcoming March 2 debut of Madonnas Pepsi Commercial Like A Prayer March 2 :Debut for Madonnas Pepsi Commercial Like A Prayer to capture the heart of America March 3 :MTV debuts Madonnas own music version of Like A Prayer, getting a month-long exclusive March 21 :the Like A Prayer video and singles to hit the stores

Celebrity Endorsements: International Scene

The Marketing plan for Madonnas CE : Plan for 2nd Half of the year

Madonna tapes 2nd commercial for Pepsi this time to announce of her upcoming tour Madonna goes on tour, which features Pepsi logos everywhere Everyone makes a fortune

Celebrity Endorsements: International Scene

What happened in reality : Jan 25 :Madonna signs contract with Pepsi Jan 26 :The deal will appear in front pages of the media Feb 22 :Pepsi unveils a commercial on the Grammy Awards telecast announcing the forthcoming March 2 debut of Madonnas Pepsi Commercial Like A Prayer March 2 :Debut for Madonnas Pepsi Commercial Like A Prayer ran on the #1 sitcoms The Cosby Show The Ad worked smoothly with the sitcoms wholesome family image. Elaborately produced, the Ad presented Madonna in a sentimental setting that somehow successfully mixed Catholic Church imagery and Pepsi into the same 2 min clip

Celebrity Endorsements: International Scene

Celebrity Endorsements: International Scene

What happened in reality : March 3 :All hair break loose! as Madonnas own version of Like A Prayer made its heavy rotation debut on MTV

Celebrity Endorsements: International Scene

The Impact on Pepsi / Pepsico : Reverend Donald Wilmond of the American Family Association, a self righteous Christian Group, threatened together with his AFA Journal 380,000 subscribers to boycott Pepsi
Wilmond demanded Pepsi to nullify their deal with Madonna

Pepsi immediately put on hold the further broadcasting of the Madonna commercial until they could see which way to draw Rene Gracido, a Catholic Bishop from Texas, jumped into the fray and labeled Madonnas video as offensive
Gracido not only called for a boycott of Pepsi but of its other holdings as well, including multimillion dollar fast food restaurants Taco Bell, Pizza Hut and Kentucky Fried Chicken

In additional, Catholic groups in Italy started to protest The Pope released a statement via the Vatican, banning Madonna from appearing in Italy

Celebrity Endorsements: International Scene

The Result : Pepsi decided to discontinue broadcasting Madonnas Ad Pepsi dropped their sponsorship of her next concert tour Pepsi allowed Madonna to keep the USD 5 Million agreed earlier Madonnas name become bigger and shinier as a result of this controversy

Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

Conclusion The high costs associated with product advertising make it imperative that advertising messages effectively increase consumers interest in the product

Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

Conclusion The endorsement advertising effectiveness can be strongly influenced by consumers inferences concerning whether the endorser truly likes the product

Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

Conclusion Despite the obvious economic advantage of using relatively unknown personalities as endorsers in advertising campaigns, the choices of celebrities to fulfill that role has become common practice for brands competing in todays cluttered media.

Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

Conclusion A brief assessment of the current market situation indicates that CE ad strategies can justify the high cost associated with this form of advertising provided that marketers really disciplined in a choice of celebrity

Celebrities endorsement and its impact on customers attitudes, beliefs and behaviours

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