Celebrity Endorsements-Money Well Spent?

The markets are flooded with products which are differentiated in features, looks and quality; there is no point where a consumer can differentiate one product from another. So tought on price, but later it was realised that this decreased the profit margins and in turn they can't conform to the quality of the product, which leads to customer dissatisfaction. Thus, marketers decided to fight on advertising their product by creation of brands. Brand creation is a tedious process and it takes a long time for the product to become a brand but, after that selling a brand is very simple as brand recall becomes easy Brands usually have their brand personality which is reflected in their advertisements. So selection of the endorser for the brand must bear similarity with the brand philosophy. A Wrong selection of endorser may lead to wastage of money and your share in the market won't increase.

To enter into newer segment where the brand was previously not present it is a better option to have a celebrity endorsee who can represent the target market and who can work as a guide to influence the consumer behaviour. Positive attitude associated with the celebrity is reflected on the brand. The Celebrity acts as a credible source who people can believe as most of the consumer&think that advertisements are a mode of alluring them. As celebrities know their importance so they start charging higher sums of money which in turn made kep the products costlier. This may reduce the share of the market the company enjoys as other competitors would be providing the same quality and features at a lower cost.

At the same time due to the hefty amounts charged by the celebrity it's not possible for all companies to hire them as they may not be in a position to invest that much amount in their marketing communication. Also, there is a risk that the celebrity may lose his image, performance and connect with the consumers leading to decline in the market share. From the product standpoint it may be possible that the marketers may not find a suitable celebrity to match the products brand personality.

We receive more than 3,000 commercial images a day, our subconscious absorbs more than 150 images and roughly 30 reach our conscious mind. It's because we find most of the ads similar and can't differentiate them. So, we remember those ads which are very interesting or associated with celebrities as they are the role models of society and connect with people. A Celebrity helps in forming association about the brand which helps in recall. Companies sometimes use celebrity endorsements to hide their inability to innovate. A better idea and innovative product is far better than shelling out money on celebrity endorsements as you may also lose out on some of the customers and your profit margins may also drop. Marketers can also use social media marketing as word of mouth as it is very prevalent in marketing communication and is cheaper to use.