Negatives Of Celebrity Endorsement

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Marketing Management & concept design-assignment 2 | Negative Effects of Celebrity Endorsement | Jeneef Joshua V.J-215111077 | | I MBA,2011-2013 | | Celebrity marketing has become a common affair in today’s breakneck competition. There has been a traditional belief that when a celebrity endorses a product or a brand, it tends to perform well in the market. In the next few pages I will be taking you through an analysis of how a celebrity’s endorsement affects a company’s market share and more importantly the negative side of celebrity endorsement. Celebrity endorsement is a key marketing strategy which is now widely adopted by many brands to gain a significant pie of the market. It has become one of the key marketing mix elements. Though there is no doubt about its effectiveness in bringing in a fortune to the company there is also the risk of it going wrong in its principal objective of bringing in more revenue. The risk involved is huge to the extent that a company considering the use of celebrity has to make a very careful analysis on certain attributes before venturing into it. What really is a celebrity endorsement? It is a marketing process by which a brand gets into a contract with a celebrity and makes the celebrity to endorse the use of its products in a way that it creates trust among the customers. It depends on the celebrity’s image and ability to add value to the brand. The risks associated with celebrity endorsement are as follows: 1) The reputation of the celebrity may derogate after he/she has endorsed the product. Example: Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson, Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on the brand, celebrity endorsers may at times become liabilities to the brands they endorse. The recent and the most popular one is the scandal caused by the

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