Download Final Marketing Paper + Bibliography

Paul Kuhn
Seminar: Visual Culture
Avra Spector
Research Paper: Marketing
4/27/14
Celebrity or Non-Celebrity Marketing
Which Trend Will the Future Follow?
Coca- Cola, Apple, Chanel, Starbucks, NIKE, McDonalds are just a few of the worlds
most valuable and successful brands in todays time1. These companies and brands have
dominated the world by the service they have provided and there iconic advertisements.
Some of these brands use help in marketing using Celebrities to endorse their product,
whereas some maintain a secure marketing with non-Celebrity help.
What is Marketing and advertising? Advertising is a single component of marketing
process. It is the part that involves getting the word out regarding your business, product
or the service that you are offering. It also involves the process of developing strategies
such as advertisement, frequency etc. advertising involves in placement of an ad like
newspaper, magazine, billboards, television, radio and of course the Internet. Advertising
has been said to be the largest and most expensive marketing plans, with public relations
following a close second and marketing research not falling behind. 2 Within time
marketing had jumped from using a simple non-famous actors to be a part in the
1
“World’s Most Valuable Brands.” Forbes, accessed May 6, 2014, http://www.forbes.com/powerfulbrands/list/
2 “Marketing vs. Advertising: What’s the Difference?” About, accessed May 2, 2014,
http://marketing.about.com/cs/advertising/a/marketvsad.htm
marketing and advertisement, to the usage of celebrity or a famous person to help them
sell the product.
Celebrities are people who have a prominent profile and command some degree of public
fascination and influence in day-to-day media. The term is very often synonymous with
wealth, popularity, and prominence in a particular field primarily in the areas towards
sports and entertainment for example actress, football player, singer etc and is easily
recognize by the general public. However in today’s society the term celebrity can be
used very easily due to media attention for the wealth, connection to famous person, or
even for their misdeeds as for example a socialite, reality star and more.3
Even though advertising is still the main visual representation, public relation has taken
over the marketing world, specifically regarding celebrity4. Celebrity marketing has been
done for a very long time and been used across all mediums, from print to television to
now the Internet. Celebrity endorsed drinks, candy, clothes and the list goes on. Celebrity
marketing is a tactic featuring a famous person to offer an endorsement of a product or
service. The celebrity doesn’t necessary need to be an international star, they only need to
be familiar to the target market5, however the biggest marketing which takes over the
world are mostly to the star that almost everyone are interested in.
3
Emma Brockes, “I want to be famous,” The Guardian Life and Style, April 16, 2010, accessed May 2,
2014, http://www.theguardian.com/lifeandstyle/2010/apr/17/i-want-to-be-famous
4 FreshGigs Team. “Celebrities Invade and Change the Marketing World.” FreshGigs, September 30,
2013. Accessed May 2, 2014. https://www.freshgigs.ca/blog/celebrities-invade-and-change-the-marketingworld/
5 “What is Celebrity Marketing?” Marketing-School, accessed May 2, 2014, http://www.marketingschools.org/types-of-marketing/celebrity-marketing.html
A celebrity involvement can range from an explicit to an implicit endorsement of a
product. Some celebrity marketing campaigns try to suggest that the star uses the product
personally and enjoys it. Others simply involve the celebrity in the image of the brand
relying on the celebrity’s reputation rather than their outright endorsement to market a
product6. There are however still many companies and brands, which does not use the
help of having a celebrity within their marketing, and is growing very strong with sales
and recognition. This shows that the marketing world is still somewhat diverse in that
some marketing uses non-celebrity and some use celebrity. With that where is marketing
going to go in the future? Even though both methods are still in use, by examining what
we see now we can see that in the future the marketing industry will gravitate towards
marketing with celebrity rather than without them.
Having a product be advertise which features a celebrity it will appeal more towards the
community and spark visibility that the brand wants. Consumers are very interested in
celebrity activities they are definitely more likely to notice a product with a famous
person than others7. Having a celebrity within the marketing process through advertising
from print, Internet or television can bring a big advantage. The influence towards the
6
“What is Celebrity Marketing?”
Tina Amo and Demand Media. “The Effect of Celebrities in Advertisements.” Houston Chronicle,
accessed May 2, 2014, http://smallbusiness.chron.com/effect-celebrities-advertisements-56821.html
7
consumers are very high, consumers want the look or what the celebrity is doing. It
builds awareness as it builds it much faster than other types of advertise8.
There are hundreds of well-known examples of celebrity endorsement, most of which
were hugely successful due to proper endorsement strategy. Italian luxury brand Versace
has used stars like Madonna and Demi Moore in their ad prints. Likewise actresses like
Sharon stone and Jennifer Lawrence in Dior ads. Not only luxury brands but non-luxury
brands as well, Gap has used start Sarah Jessica Parker to promote its brand. Similarly
Catherine Zeta Jones for T-Mobile and many more list, which all have done successfully
towards the brand, and has made a long contract for those celebrities to keep being the
face of the brand9.
A more detail example of the powerful usage of celebrity marketing is Nike. Nike was
ranked the worlds 3st most valuable brand in terms of its brand value, making over 10.8
billion thus far, and this is thanks to one of its biggest endorsement deals with Michael
Jordan. It was so successful that they launched a new brand in the company. With this
example it shows that having a celebrity as the face of your brand can make the brand not
only its recognition but also money in the bank. Another Nike example of a success
celebrity endorsement was with Tiger woods, where the best golfer in the world made
Nike first golfing area a highly success, Tiger had also made many success for other
8
Rick Suttle and Demand Media. “What Are Five Advantages to Using Celebrities in Advertising.”
Houston Chronicle accessed May 2, 2014, http://smallbusiness.chron.com/five-advantages-usingcelebrities-advertising-34394.html
9 Debiprasad Mukherjee, “Impact of Celebrity Endorsements on Brand Image,“ August 2009, accessed
May 2, 2014, https://usdr.us/usdrinc/downloads/Celebrity-Endorsements.pdf
brands like Tag Heuer, AT&T, Accenture and Gatorade in the following years 10 .
However with that because of Tiger woods personal problems that went publicity known
in 2009 many of these brands had to dropped him out of the company. Accenture have
said that “However, given the circumstances of the last two weeks, after careful
consideration and analysis, the company has determined that he is no longer the right
representative for its advertising. Accenture said that it wishes only the best for Tiger
Woods and his family” showing that because of woods bad actions it would have effected
the companies by making joined in the scandal as well. The big company must have been
frightened to have consumers backing away from the product/brand11. With that we can
see that having a celebrity as the brand within your company can bring a greatness yet
can also be very risky for the brand, which can cost companies millions and millions of
dollars, just by how the celebrities are behaving towards the public.
Although its a successful marketing scheme to have a celebrity the face of a companies
brand. There is much other successful advertisement without the use of any celebrity.
Lisa Arledge leader of a media relations and digital multimedia production have said that
having celebrity getting a lot of income to advertise a brand is often a waste of money.
Star power is no media guarantee, celebrities behaving badly, and that real people
actually do well. Many consumers enjoy to hear and see real people sell there story in an
10
Martin Roll, Venture Republic. “Branding and Celebrity Endorsements.” accessed May 2, 2014,
http://www.venturerepublic.com/resources/branding_celebrities_brand_endorsements_brand_leadership.as
p
11 Michael S. James and Alice Gomstyn, “AT&T Drops Tiger Woods,” ABC News, December 31, 2009,
accessed May 2, 2014, http://abcnews.go.com/Business/att-drops-tiger-woods/story?id=9455339
advertisement that fits in with the brand of the company so that the consumer can fell
more in touch towards the product12. Having real people makes the brand seem more
genuine and authentic, as some people may have a hard time believing that celebrities use
the product they endorse, do they actually buy it themselves 13 . Martin found that
advertisements with real people were more effective due to greater concern with keeping
up with neighbors than with the unattainable life of the rich and famous14. There have
been a few different companies and brands, which have never used a celebrity to help the
marketing of their products yet still making bank, by just having a good old fashion
unique marketing scheme, from brands like Nordstrom, FedEx, Dove and more.
Company’s like Dove beauty products had a very successful marketing which features
non celebrity or models as there model. Doves marketing director Stacie Bright had a
moral problem within the product using mainstream unrealistic models and celebrity15.
Dove decided to use everyday middle-aged women in the buff showing real women buys
and uses dove and it works for them, representing a great use of real people in that
consumers can relate and buy the product16. With that Dove Company has doubled their
profits within years of changing their marketing strategy, showing that a non-celebrity
marketing scheme is still as strong as marketing with celebrity.
12
Sarah Larsen and Lisa Arledge, “Should consumer-facing marketing campaigns use celebrity
endorsers?,” PR Week, December 1, 2012, accessed May 2, 2014,
http://www.prweekus.com/article/consumer-facing-marketing-campaigns-use-celebrity-endorsers/1277417
13 Lucia Moses “What Do These Real Pople Think of Ads Starring Real People?,” AD Week, May 1, 2012,
accessed May 2, 2014, http://www.adweek.com/news/advertising-branding/what-do-these-real-peoplethink-ads-starring-real-people-139960
14 “Use Real People or Celebrities in Your Advertising Campaign?” Monster, accessed May 2, 2014,
http://career-advice.monster.com/in-the-office/workplace-issues/real-people-or-celebrities-inads/article.aspx
15 Christopher Ratcliff, Econsultancy Achieve Digital Excellence. “Telling stories: five successful
marketing examples.” accessed May 2, 2014, https://econsultancy.com/blog/63710-telling-stories-fivesuccessful-marketing-examples#i.aq29q8d75ei4sq
16 “Use Real People or Celebrities in Your Advertising Campaign?”
From the above it shows that both of the strategic schemes have pros and cons, which can
be better or worst for a company. Even though it seems to be more relevant and more
examples of stronger and successful marketing with celebrity’s on the face, there are also
many marketing without celebrities which have the same strength and power than
marketing with celebrities. Some marketing plans can do well without the help of
celebrities and some may need all the help they can from celebrities.
Research from Millward brown, a research-based marketing consultancy have shown that
in the U.S., one client had used a celebrity in some of its ads over a ten year period, and
wanted to know if they should continue the relationship. Their analysis showed that the
ads featuring the celebrity performed better on key measures than those without the
celebrity. However there is little difference overall between the performance on both ads
and marketing with celebrities versus those without, where branding levels tend to be
similar17. But over the last decade, corporate brands have increasingly turned to
Hollywood celebrities and musicians to sell their products. Stars showed up in nearly 14
percent of ads last year, according to Millward Brown, a marketing research agency.
While that number has more than doubled in the past decade, it is off from a peak of 19
percent in 2004. It has also shown lots of higher sales rate for companies with using
celebrities18.
17Knowledge
Point “What are the Benefits of Celebrity-based Campaigns?” Millward Brown, accessed
May 2, 2014,
http://www.millwardbrown.com/Libraries/MB_Knowledge_Points_Downloads/MillwardBrown_Knowled
gePoint_Celebrity-basedCampaigns.sflb.ashx
18 Julie Creswell, “Nothing Sells Like Celebrity,” New York Times, June 22, 2008, accessed May 2, 2014,
http://www.nytimes.com/2008/06/22/business/media/22celeb.html?pagewanted=all&_r=0
Even though statistics have shown that advertisement with celebrities is enjoyed similarly
with advertisement without. Companies, which have celebrities due, make a significant
amount more money. Andre Pfelberg a corporate and finance attorney for middle –
market companies in the U.S. have stated that if we see that someone we admire and trust
to some degree is associated with a specific brand, we want to be associated with that
brand as well. In the best-case scenario, we’ll buy the product; but at worst, we’ll
recognize the brand in the future19.
Not only that because of the growth in social media and celebrity-obsessed culture
towards our society, Celebrity marketing would in fact take over and always is way more
powerful than non-celebrity marketing. Diet coke is a very known and successful brand
to the entire world; with such a huge audience already they wouldn’t need to have a
celebrity to endorse their brand. Nevertheless the company realize the power of
celebrities have on fans. They have just recently signed Taylor Swift as their brand
ambassador, just to make extra few millions to make their sales higher, but to also to get
all of Taylor Swifts Facebook and Twitter Fans to Like Diet coke brand page and make it
an even wider product 20 . But what are the futures for these celebrity marketing and
endorsement? What trend will it follow, having more celebrity or more real people?
19
Andrew Apfelberg, “Building your Brand: Leveraging the Power of Celebrity Endorsement.” Bulldog
Reporter, January 6, 2014, accessed May 2, 2014.
http://www.bulldogreporter.com/dailydog/article/thought-leaders/building-your-brand-leveraging-thepower-of-celebrity-endorsement
20 Henry Riggall, “Why Justin Bieber’s Influence Will Never End, and Brands know it.” Advertising Week,
March 5, 2014, accessed May 2, 2014, http://www.theawsc.com/2014/03/05/why-justin-biebers-influencewill-never-end-and-brands-know-it/
The future of marketing would change in that not only will celebrity marketing be more
and more in the society as the face of a brand, celebrities won’t just be the face of the
brand. Nonetheless also be more on the business side of the marketing, making them
more involved in the company and can approach more towards consumers.
Just recently there has been a stream of celebrities being given generous promotion when
it comes to branding roles within the marketing. Its becoming more and ore evident that
the old celebrity endorsement model is long gone and its famous faces are being given inhouse marketing roles rather than just simply putting their faces to a brand and taking
chunk of the profits. Even though they have not be traditionally trained to success in the
role, their experience in gaining the trust of a specific or a wide range of demographics to
buy the product is worth a lot. List of celebrities getting more within the business process
have grown rapidly throughout the years21. From Justin Timberlake becoming creative
director of MySpace and Bud light platinum, to Will.i.am a director of
Creativeinnovation in Intel, to P Diddy a brand manager and chief marketing officer or
Ciroc Vodka22.
Beyoncé was also just recently promoted to Creative director in Pepsi, with an enormous
33 million dollar salary. She has had along relationship with Pepsi as the face of Pepsi,
where she experiences of understanding the brand and its consumers which then would
have qualified her with the job. With this latest Pepsi deal, of Beyoncé including artistic
21
“The Future of Celebrity Brand Endorsement.” Jungle Media, March 12, 2013, accessed May 5, 2014,
http://jungle-media.com/internet-marketing-articles/celebrityendorsement/
22 Mindi Chandi, “Can Celebrities take on the brand marketer’s Role?” Marketing Week, March 7, 2013,
accessed May 5, 2014. http://www.marketingweek.co.uk/analysis/essential-reads/the-celebritycmo/4005852.article
freedom and brans endorsement of the promotion for her album, Beyoncé and Pepsi have
created a marketing machine23.
Conclusively with both marketing scheme of either having marketing with celebrity or
with non-celebrity marketing, both works very well towards the marketing of the
companies and brands. Both marketing plan have brought successful and most iconic
brands and advertisements within this day, from Pepsi to Dove to Nike all very different
products, which have a very strong marketing plan. From the research, statistics have
shown that both celebrity and non-celebrity marketing have gone in a quite similar way in
terms of popularity. Nevertheless with celebrity marketing it tends to give a lot more
sales growth towards the companies, therefore shows that companies who hires
celebrities would make them more successful with income and popularity, since social
media has grown rapidly, it is easier for celebrities to promote themselves with the
product with just a click away online.
Since our society has also changed within the years of marketing world, with people
being more obsessed with celebrity and wanting more and more from famous people, it is
not enough to have celebrities as just the face, but also having them being hands on with
the companies involvements. Which is why the future of marketing will change in that
celebrity will not only be the face of a large company brand but more and more will also
get the opportunity to be behind the scene and be more involve in the process of the
marketing creatively and also in the business side of it, as it shows more dedication and
23
“The Future of Celebrity Brand Endorsement.”
care from the very much loved celebrity. Some company works better in having a
celebrity in their marketing plan, but some product tend to loose its consumer when using
a celebrity, which shows that both methods can be used depending on what the brand and
product are. It will be interesting to see how the future will then change, will now normal
people not only loose their job as a advertising actor but also peoples role as a director of
a company or even the CEO.
Bibliography
About, “Marketing vs. Advertising: What’s the Difference?” Accessed May 2, 2014,
http://marketing.about.com/cs/advertising/a/marketvsad.htm
Amo, Tina and Demand Media. “The Effect of Celebrities in Advertisements.”
Houston Chronicle. Accessed May 2, 2014. http://smallbusiness.chron.com/effectcelebrities-advertisements-56821.html
Apfelberg, Andrew. “Building your Brand: Leveraging the Power of Celebrity
Endorsement.” Bulldog Reporter, January 6, 2014. Accessed May 2, 2014.
http://www.bulldogreporter.com/dailydog/article/thought-leaders/building-yourbrand-leveraging-the-power-of-celebrity-endorsement
Brockes, Emma, “I want to be famous,” The Guardian Life and Style, April 16, 2010,
accessed May 2, 2014, http://www.theguardian.com/lifeandstyle/2010/apr/17/iwant-to-be-famous
Chahal, Mindi. “Can Celebrities take on the brand marketer’s Role?” Marketing Week,
March 7, 2013. Accessed May 5, 2014.
http://www.marketingweek.co.uk/analysis/essential-reads/the-celebritycmo/4005852.article
Creswell, Julie. “Nothing Sells Like Celebrity,” New York Times, June 22, 2008.
Accessed May 2, 2014.
http://www.nytimes.com/2008/06/22/business/media/22celeb.html?pagewanted=al
l&_r=0
Econsultancy Achieve Digital Excellence. “Telling stories: five successful marketing
examples.” Christopher Ratcliff, accessed May 2, 2014,
https://econsultancy.com/blog/63710-telling-stories-five-successful-marketingexamples#i.aq29q8d75ei4sq
Forbes, “World’s Most Valuable Brands.” Accessed May 6, 2014,
http://www.forbes.com/powerful-brands/list/
FreshGigs Team. “Celebrities Invade and Change the Marketing World.” FreshGigs,
September 30, 2013. Accessed May 2, 2014.
https://www.freshgigs.ca/blog/celebrities-invade-and-change-the-marketing-world/
James, Michael S. and Alice Gomstyn, “AT&T Drops Tiger Woods,” ABC News,
December 31, 2009, accessed May 2, 2014, http://abcnews.go.com/Business/attdrops-tiger-woods/story?id=9455339
Jungle Media. “The Future of Celebrity Brand Endorsment.” March 12, 2013. Accessed
May 5, 2014., http://jungle-media.com/internet-marketingarticles/celebrityendorsement/
Knowledge Point “What are the Benefits of Celebrity-based Campaigns?” Millward
Brown. Accessed May 2, 2014.
http://www.millwardbrown.com/Libraries/MB_Knowledge_Points_Downloads/M
illwardBrown_KnowledgePoint_Celebrity-basedCampaigns.sflb.ashx
Larsen, Sarah and Lisa Arledge, “Should consumer-facing marketing campaigns use
celebrity endorsers?,” PR Week, December 1, 2012. Accessed May 2, 2014.
http://www.prweekus.com/article/consumer-facing-marketing-campaigns-usecelebrity-endorsers/1277417
Marketing-School, “What is Celebrity Marketing?” Accessed May 2, 2014,
http://www.marketing-schools.org/types-of-marketing/celebrity-marketing.html
Monster. “Use Real People or Celebrities in Your Advertising Campaign?” Accessed
May 2, 2014, http://career-advice.monster.com/in-the-office/workplaceissues/real-people-or-celebrities-in-ads/article.aspx
Moses, Lucia, “What Do These Real Pople Think of Ads Starring Real People?,” AD
Week, May 1, 2012. Accessed May 2, 2014.
http://www.adweek.com/news/advertising-branding/what-do-these-real-peoplethink-ads-starring-real-people-139960
Mukherjee, Debiprasad. Impact of Celebrity Endorsements on Brand Image,“ August
2009. Accessed May 2, 2014. https://usdr.us/usdrinc/downloads/CelebrityEndorsements.pdf
Riggall, Henry. “Why Justin Bieber’s Influence Will Never End, and Brands know it.”
Advertising Week, March 5, 2014. Accessed May 2, 2014.
http://www.theawsc.com/2014/03/05/why-justin-biebers-influence-will-neverend-and-brands-know-it/
Suttle, Rick and Demand Media. “What Are Five Advantages to Using Celebrities in
Advertising.” Houston Chronicle. Accessed May 2, 2014,
http://smallbusiness.chron.com/five-advantages-using-celebrities-advertising34394.html
Venture Republic. “Branding and Celebrity Endorsements.” Marin Roll. Accessed May
2, 2014,
http://www.venturerepublic.com/resources/branding_celebrities_brand_endorse
ments_brand_leadership.asp