Celebrity Endorsement

Topics: Brand, Brand management, Brand equity Pages: 14 (3949 words) Published: June 22, 2011
INTERNATIONAL MARKETING ASSIGNMENT

THE IMPACT OF LOCAL
CELEBRITY ENDORSEMENTS
ON FAMOUS BRANDS IN INDIA & CHINA

TABLE OF CONTENTS
Pages
1.0 INTRODUCTION4
1.01 Evolution Of Celebrity Endorsement4
1.02 How Endorsement Advertisement Has Evolved 4
1.03 Celebrity Endorsement In India 5
1.04 Celebrity Endorsement In China5
1.05 Globalisation Of Celebrity Endorsements6
1.06 Localisation Of Celebrity Endorsement On International Brands 6

1.1 DEFINITION OF CELEBRITY ENDORSEMENT7

1.2 CRITERIA OF CELEBRITY ENDORSEMENTS 8
1.21 Familiarity8
1.22 Relevance9
1.23 Esteem10
1.24 Differentiation10

1.3 IMPACT OF CELEBRITY ENDORSEMENT ON BRAND IMAGE11
1.31 Instant Awareness12
1.32 Knowledge About Brand And Easy Recall 12
1.33 Brand Values And Image Is Defined, Highlighted And Refreshed 13 1.34 Credibility, Trust, Association, Aspiration And Connectivity To Brand 13 1.35 Multiple Product And Multiple Celebrity Endorsements13

1.4 IMPACT OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOUR14 1.41 Purchase Intentions15
1.42 Consumer Association15
1.43 Attractiveness16
1.44 Consumer Attitude16
1.45 Credibility of the Endorser17

1.5 IMPACT OF CELEBRITY ENDORSEMENT ON ECONOMY17
1.51 The Effect Of Celebrity Endorsement On Sales In India19 1.52 The Effect Of Celebrity Endorsement On Sales In China20

1.6 CONCLUSION21
1.7 REFERENCES 22
1.8 BIBLIOGRAPHY

1.0 INTRODUCTION

1.01 Evolution Of Celebrity Endorsement

Celebrity Endorsement has stamped its mark ever since the 16th century. It has evolved significantly in invoking a brand image and it has become the most powerful marketing tools in international marketing. Today, marketers invest a substantial investment to align their brands. Leveraging the endorsement of products by celebrities, as a marketing practice, has a distinguished history. (Erdogan & Baker, 2008)

1.02 How Endorsement Advertisement Has Evolved

Endorsement has changed its’ pattern or strategies from the 16th century to present endorsement. The first endorsement to appear within an advertisement for a London concert was published in the London Gazette of 9 April 1691. During this time the royal family, Princess Anne of Denmark, being used as a celebrity to endorse and to encourage attendance for the concert whereby, those who are present might expect to see or even meet a member of the royal family. Her expected presence was also a guarantee of the quality of the performance. (Harbor, 2009),

Josiah Wedgwood, the famed pioneer potter used Queen Charlotte to his advantage when they began to use his products in the 18th century by referring himself as “potter to Her Majesty” (Seno & Lukas, 2007). This is also one mode of endorsement by the royalty.

Centuries later, celebrity usage in brand endorsement strategy has taken remarkable changes. Marketers have been juxtaposing their brands and themselves with celebrity endorses (e.g., athletes, actors) in the hope that celebrities my boost effectiveness of their marketing and/or corporate communication attempts. Queen Victoria is one of the early patrons who endorsed Cadbury’s Cocoa (Erdogan & Baker, 2008)

1.03 Celebrity Endorsement In India

India started engaging celebrities during the late 1970’s and early 80’s, engaging film stars and sportspersons to endorse prominent brands. One of the first sports endorsements in India was when Farokh Engineer became the first Indian cricketer to model for Brylcreem. The Indian cricket team now earns roughly Rs. 100 crore through endorsements. Advertisements featuring stars like Late Jalal Agha (Pan Parag), Kapil Dev (Palmolive shaving Cream) and Tabassum (Prestige Pressure Cookers) (Kulkarni & Gaulkar, 2007)

1.04 Celebrity Endorsement In China

As...

References: 1.2 CRITERIA OF CELEBRITY ENDORSEMENTS
Harbor (2009) suggested a celebrity should meet 4 baseline criteria identified as FRED - Familiarity, Relevance, Esteem and Differentiation.
1.3 IMPACT OF CELEBRITY ENDORSEMENT ON BRAND IMAGE
Brand image from a layman’s perspective is defined as visual, emotional, rational and cultural image (Joshi and Ahluwalia, 2008)
According to Stiff (2006), products are made in the factory, but brands are created in the mind. Below explains what celebrity endorsements actually do to brand image, according to Joshi & Ahluwalia (2008).
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