Advantages and disadvantages of celebrity endorsement of celebrity in marketing

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Advantages and disadvantages of celebrity endorsement of celebrity in marketing

Golf champion and superstar Tiger Woods has been a sports icon for many years through his great reputation in the field. He has been the celebrity marketer for sports and Shoe Company known as NIKE. Since the year 1996, Tiger Woods has been the NIKE celebrity endorser and year by year he has still been able to maintain that position (Egan, 2008). The company’s manager states that the company is humbled and thrilled to still be in partnership with Tiger Woods, who has been the company’s product promoter for years, through a contract that was signed recently. Despite his marriage issues that went public in the year 2009, NIKE stood by him and as long as he kept winning on the course, his portfolio regained its stature with time. Around that period many companies distanced themselves from Woods but experts had predicted that his reputation would go back to normal with time. Currently companies such as EA sports and Rolex are seeking for contracts with him so as to market their products. Many retail companies use celebrities to promote their products with the main reason being to earn trust and credibility of products and services. The main objective of any business is to make a profit and this is only achieved through the maximum sale of products and attracting of customers (Egan, 2008). This therefore raises concern within the business marketing sector, is it advantageous for the company or disadvantageous to have a celebrity market their products or services? Below are the advantages and disadvantages of using a celebrity as an endorsement to the company’s products.


  1. It will help build product credibility

When a company starts producing a new product, the use of a celebrity to promote those products helps build trust between the company and the customers. If the market for a certain product believes in a certain celebrity the highest probability is that they will trust in the product the celebrity is endorsing. When NIKE signed a contract with Tiger Woods to promote their sportswear, the company’s product which includes caps, T-shirts, bands, shoes, and track suits; the products earned the trust of many athletes from different categories of sports including tennis, athletics, and basket-ball (Koekemoer, 2004). When potential buyers of a product see a certain celebrity using a specific product, they believe that the product is of high quality and when they use it they perceive to be as important as the celebrity if they idolize him or her.

  1. It can help a company recover its image

In several occasions a company may lose its credibility in the market due to various company flaws. However, by the use of a celebrity to promote its products a company can get back on its feet once again. For example, a company may be involved in legal issues or bankruptcy which may lead to loss of customers and their faith in the company; with the use of a celebrity to promote the product the company is able to build its rapport. Finally it is able to attract its customers back and attract more.

  1. Helps compensate on innovation

An entrepreneur may lack the ideas to add quality to his or her product but through advertisement and celebrity endorsement, the product gains credibility in the market. For example, several sports companies sell and produce the same products NIKE does and this causes high competition between NIKE and other companies. However, through the use of sports celebrities such as Tiger Woods and Michael Jordan the company has managed to outstand in the market share; their products are mostly used because the customers identify the company with these celebrities (Smart, 2005).

  1. It helps in delivering the message to t.............

Type: Essay || Words: 1319 Rating || Excellent

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