Marketing Communications Strategy in Modern Society - Dissertation Example

?An enquiry into the efficiency of celebrity endorsement as a marketing communications strategy in modern society Findings, Analysis and Discussion: As stated in the previous chapter (i.e. Methodology) personal interviews, of a focus group comprising of 10 people, were carried out to collect data. The interviews were based on a questionnaire which was specifically designed to gauge the expectations and perceptions of consumers with regard to celebrity endorsements. The design of the questionnaire ensured that all the key variables which are vital for the study such as, the attitudes of the consumers towards a certain brand; attitudes towards the celebrities endorsing the brand; perception of consumers with regard the brand or product based on its association with a celebrity; the degree to which the consumers' purchase decision were influenced by the association of the celebrity with the said brand, product or service etc were taken into consideration. Furthermore, factors such as the gender and age of the focus group were also taken into consideration as it greatly affects the findings of the study. On the basis of this study, it was observed that findings regarding the effect of celebrity endorsements as a marketing communications strategy could be divided into three key areas, namely – the perception of consumers with regard to a particular celebrity and his /her association with a brand / product or service; key factors which must be taken into consideration while choosing a celebrity for endorsing a particular brand or product; and finally develop a strategic model for Data Analysis: In order to measure the attitudes and perception of consumers towards a product celebrity endorsements various variables will be studied such as - their views on the advertisement; perception of the brand based on that advertisement; and the influence on their purchase decision. The differences in their perceptions with regard to the celebrity endorsements will be measured on the basis of their attitudes towards single celebrity ads (i.e. a product endorsed by one celebrity) and multiple celebrity ads (i.e. same product endorsed by multiple celebrities). The data will be then analyzed on the basis of percentage of respondents in accordance with these variables such as gender, age, educational background etc. On the basis of the literature review, and the observations likely to be made on the basis of the personal interviews, it could be stated that the success or failure of any celebrity endorsement is a result of several attributes, which will be presented in the questionnaire. This includes - match between the product and the celebrity endorsing it; the choice of celebrity and the target audience; the popularity of the celebrity; the credibility or image of that celebrity in the industry; the values they endorse; their physical appearances; their appeal i.e. locally as well as globally; the likelihood of the risk of them (celebrities) getting involved in a conflict or a controversy; and the number of brands endorsed by the said celebrity. These attributes play a key role in influencing the consumer’s purchase decision and hence must be taken into consideration by the marketers / organizations prior to associating themselves with a celebrity. This information will be presented in the form of graphs, for better clarification the same is depicted in the figure below: Figure 1: Factors taken into consideration while selecting a celebrity for endorsing a given brand / product: The rating will be shown on the x axis while the attributes will be shown on the Y axis. The numbers 1 to 9 indicate the attributes mentioned above, which are taken into consideration by marketers while endorsing a product. The findings in this chart will be based on the observations made as well as on the findings observed in literature review section. In recent times, the global business has become highly complicated and hence the choice of a right celebrity for the product is extremely crucial for the organizations. Their decision strategy may significantly affect the company's profits as well as their brand image either negatively or positively, depending upon the attributes mentioned above. The perceptions of the consumers, or their likeability with regard to a given product or brand, depends a lot on the celebrities endorsing the same. The chart proposed to be used in this study would help in ascertaining the degree of relevance of such factors and its likely impact on the success or failure of the said endorsement. The Davie Brown index is also widely popular and used extensively in such studies comprising of study of celebrities used for brand endorsement as a marketing strategy. The index was developed by Davie Brown Entertainment in association with i-think Inc, and is used for measuring the value of celebrities via a systematic method. The index uses eight key criteria for evaluation which includes, appeal; notice; trend setting; influence; trust; endorsement; aspiration and awareness. On the basis of this index, and the answers provided by the focus group in the course of personal interviews, the top rated celebrities in UK, as perceived by them could be developed and represented through graphical description. The popularity of a celebrity endorsement relies heavily on the celebrity himself / herself and hence it is of utmost significance to ascertain the true value or credibility or market standing of the said celebrity in the industry or in the eyes of the consumers. Various tests can be applied to measure the same such as – the Davie Brown Test, E-score and Q-score tests. These tests are of extreme significance to the marketers as they are highly interested in knowing the market value of the celebrities, and the results of such a test would reveal to them, the popularity and perception of the consumers regarding that celebrity and hence decision can be made to use the celebrity for endorsing a given product, based on such perception. The following figure shows the various tests which are used for measuring celebrity attributes. The same will be used in this study. Figure 2: Source: Wall Street Journal (2010). Furthermore the findings will also be categorized in accordance with other key attributes of the focus group such as the amount of time spent in using their mobiles, on the internet or viewing television. This is because most of the advertisers now, promote their products via these three key tools, and the amount of time spent by the consumers while using either of these three tools, would help in determining their degree of exposure and the likelihood of them viewing the advertisement. Their exposure to various advertisements and the media in general, results in creation and development of their perception regarding the celebrity as well as the brand, and ultimately leads to a purchase decision. Key Findings: On the basis of the theories discussed in the previous sections of this study, it is observed that the strategy of using celebrities for product endorsement has come to be known as a popular marketing strategy, in the highly competitive environment, over the decade. The literature review helped in highlighting various key points pertaining to the key factors which are to be taken into consideration while taking such a decision (that of using a celebrity for endorsing their product /brand) and factors that should be avoided at all costs. These findings act as a guideline for the managers, based on which a strategic model can be developed to effectively develop celebrity-based campaigns as a marketing strategy. The following are the major findings observed during the study: Certain attributes of the celebrities such as their availability as well as acceptability by the masses or the consumers; their star appeal in the regional as well as international markets; the degree of their popularity; their personal characteristics such as - attitudes, beliefs, value system etc are of crucial importance and play a major role in product purchase and decision making on the part of the consumers. For instance: The UK football superstar, David Beckham is extremely popular not only in the UK but worldwide. This is evident from the success of various brands endorsed by the celebrity in various countries. According to the celebrity DBI the awareness score of Beckham is 81.74, and over 70 in terms of appeal, in the U.S. markets. The American consumers find the star highly appealing and are aware of his charisma and success on the field. He has been currently signed on by Pepsi owing to his huge popularity in the states, and his clean image. He is currently ranked 10th in terms of influence and hence a highly desirable choice for most brands. He has also been signed on as the global brand endorser by Samsung. Figure 3: David Beckham’s global popularity – signed on as the global brand ambassador by Samsung The consumers expect various attributes from the association of a celebrity to a particular brand, such as the credibility and market standing of the celebrity and the acceptability of the endorser for instance; since the purchase decision is observed to be highly influenced by these key factors. Association of a brand with a celebrity with a negative image can substantially affect the brand. For instance: Tiger Woods, who has been consistently signed on by various brands and was regarded as a celebrity with a global appeal was soon dropped by many, after the scandal. The celebrity has been performing consistently and was signed by many brands including top brands such as Accenture and Nike, considering his immense success in his field. However, due to the scandal and a string of allegations proving his infidelity, he was dropped by all the major brands, in anticipation of rejection and boycott by consumers, as well as to disassociate themselves from celebrities with a negative social image. This substantiates the impact of celebrity on the product decision of the consumers, and the relevance of choosing an appropriate celebrity to match the brand (Business Week, 2009). The number of endorsements of the celebrity concerned. If the celebrity is known to endorse a string of products, the credibility of the same is perceived to be very low by the consumers, as it creates a clutter in their minds making the purchase decision extremely difficult. Furthermore the celebrity endorsing various brands is seemed to lose the trust aspect, in the minds of the consumer, and hence they choose to 'not' buy the product instead. However, the power of the brand is also regarded to be of utmost significance, since it helps the consumers in making a purchase decision. Thus, in case the brand is highly powerful and has a high market standing, the presence of a celebrity endorsing multiple products simultaneously, doesn't deter the consumer from purchasing the product. It is also observed that there should be a perfect match / fit between the celebrity and the brand / product as the consumers choice of a product depend entirely on this fit. If the celebrity and the brand do not fit, it creates a feeling of distrust among the consumers, who are not motivated to buy the product and in fact creates doubts in their minds regarding the same leading to a negative purchase decision instead. On the basis of these findings, the key attributes of the celebrity which must be taken into consideration are shown in the following diagram. Figure 4: In the above figure: 1. Match between the celebrity and the product / brand 2. The use of celebrity and the target audience 3. The popularity of the celebrity 4. The market standing of the celebrity 5. The personal values of the celebrity 6. Physical appearance 7. Regional and local presence and awareness 8. Relationship between the use of celebrity and the idea of the endorsement 9. The use of the product by the celebrity himself / herself 10. History of previous endorsements of the celebrity 11. Effective utilization of the medium of endorsement 12. The capability of the celebrity to make or break the brand 13. The management team involved in endorsing the product 14. The uniqueness of the product endorsement 15. The interest of the celebrity in the endorsement as well as the product 16. The power of the celebrity to influence the consumers 17. The availability of celebrity 18. The number of products endorsed by the celebrity 19. The risks or controversies associated with the celebrity 20. The actual effectiveness of the product itself Some of the key findings mentioned above are discussed below: 1. Match between the celebrity and the product /brand: According to the match up hypothesis, there is a direct and positive relationship between the celebrity and the product which is being endorsed by them. The theory further states that the higher the congruence between the celebrity and the product, the better its impact on the consumer (Kahle & Homer, 1985). The consumers are keen to understand and ascertain the motive of the celebrities for associating with the said brand, and the same belief or perception goes on to influence their choice of product while making a purchase decision. 2. The use of celebrity and the target audience: The celebrity is the face of the brand and carries a vital responsibility of communicating the values which the brand stands for and communicate vital information regarding the product being endorsed. Hence the personal characteristics of the celebrity such as their outer personality - i.e. their physical appearance, or their inner traits such as their morals and values, are of crucial importance while associating with the brand. The marketers involved in promoting the product choose a celebrity based on the demographic elements of their product i.e. the availability of the product across various market segments. The views of the consumers in each of those geographical segments regarding the celebrity used for endorsing the brand, hence is also of extreme significance to the marketers. Thus, the marketers always attempt to ensure that the celebrities used for endorsing their product have some kind of association with their target market in terms of characteristics, inspirational value, association with the morals or values which the celebrity stands for etc. (Kamins, 1994). 3. The popularity of the celebrity Empirical findings indicate that the celebrities are known to have a direct and positive impact on the consumers and play a key role in influencing their purchase decision (Grace, O’Cass, 2002). This is mainly due to the fact that the awareness level regarding celebrities is relatively higher as compared to that of non-celebrity endorsers, which makes the celebrity endorses highly credible in the eyes of the consumers. However, the impact of the celebrity endorsers varies in accordance with their level of popularity in the market. Hence the brand will be highly successful if it is endorsed by a popular celebrity rather than a less popular one, as it affects the recall value of the consumers. Celebrities who do not have global or national popularity and who are only popular within a restricted geographical area, cannot make great brand endorsers, because the recall value in their case is relatively lower. The consumers cannot identify the celebrity or associate them with the brand / product being endorsed and hence display low trust in the brand. On the contrary, if the celebrity is highly popular then the consumers quickly identify him/her and associate their characteristics with that of the brand and make favorable purchase decision. 4. The market standing of the celebrity The market standing of the celebrity is also observed to be a highly crucial element of brand endorsements. This is because the consumers associate the trustworthiness of the celebrity with that of the product qualities and attributes. Hence if the celebrity endorsing the brand is perceived to be trustworthy or of high credibility by the consumers then the product endorsed by him /her would also be perceived to be credible by them. Furthermore various personal traits of the celebrities are also directly linked to that of the product, by the consumers, for instance, the physical appearance if perceived by the consumers as pleasant, wise and qualified then the celebrity is considered to be dignified and so is the product. 5. The personal values of the celebrity The branding of a product is a carefully planned strategic process which entails the deliberate association of the celebrity with the product endorsed by them. Thus, the personal characteristics and values of the celebrities are transferred to the product. If the celebrity is perceived as highly stylish and glamorous then the promotion of brands such as fragrances or high fashion clothing line would be an apt choice such as is observed in the case of David and Victoria Beckham endorsing Armani or Madonna endorsing Louis Vuitton products. These celebrities have a highly influential public image and thus the brands or products endorsed by them are considered to have similar traits. 6. Physical appearance Physical appearances of the celebrities are the key factor which is most often exploited by the brands in order to influence the consumers and entice them in buying their product. The physical attractiveness of the celebrity is the most used and highly effective marketing used by brand endorsers, since it is known to have a positive influence on the consumers' perception of the brand. It is also observed that the celebrities who are considered to be highly attractive are far better endorsers than those who are not so attractive in the eyes of the consumers (Bridson & Evans, 2004). The attractive celebrities are regarded as more likeable by the consumers and hence they are easily influenced in purchasing the product endorsed by them. The latest example is the teen sensations Justin Bieber and Emma Watson. The young singing star and the Harry Potter star are perceived to be highly attractive by the teenage groups and using him for product endorsements makes a highly profitable strategic decision. 7. Regional and local presence and awareness Another significant finding is the level of popularity enjoyed by the celebrity in the regional as well as global market. Choosing a celebrity with a wider outreach and impact is always a wise strategic decision as this ensures wider publicity and ultimately acceptance of the product. Stars such as Michael Jackson, David Beckham, Tiger Woods, Madonna, etc are celebrities with a strong international presence, as they are recognized widely across the globe. Thus the products endorsed by them are more likely to create a wider awareness as compared to those endorsed by a relatively lower popular celebrity. For instance, if a lower popular celebrity such as Jade Goody is used to endorse a product outside UK or U.S. where she is hardly recognized, the products endorsed by her would be perceived as one endorsed by an ordinary consumer and would not generate a higher recall value. However, if the same is endorsed by Lady Gaga or Emma Watson, it would not only generate higher interest but also can translate into positive purchase decision, owing to their popularity and market credibility. 8. Relationship between the use of celebrity and the idea of the endorsement The involvement of the celebrity into controversies or scandals is likely to affect the brand negatively. This has been discussed in the previous sections with the examples of Tiger Woods and Michael Jackson. 9. The use of the product by the celebrity himself / herself For an endorsement to be effective, it is of utmost significance for the consumers to believe or perceive the product being used by the endorsers themselves. If the consumers doubt its use by the endorser they become highly vary of the product and might not purchase it. For instance, in case of the Nike golf balls controversy, prominent golfer Tiger Woods was dragged to court, for apparently not using the product he endorsed and misguiding the consumers. 10. History of previous endorsements of the celebrity The previous products endorsed by the celebrity also play a key role in influencing the consumers and must be considered by the marketers as well, since such an observation would help the endorsers in making strategic decisions and ascertain the dedication and professional commitment of the star with the product. 11. Effective utilization of the medium of endorsement Initially television or newspapers were considered to be highly effective tools / medium of brand endorsements, however, with the development of technology, newer and more sophisticated means of communication have been developed over the last decade. This includes the over growing craze and importance of social networking sites such as Facebook, MySpace, Twitter; blogs; as well as high tech gadgets such as mobile phones etc. The use of the medium used for endorsing a product, today, plays a major role in increasing the brand visibility and making an impact on the consumers. 12. The capability of the celebrity to make or break the brand On the basis of theoretical as well as empirical studies, it has been observed that the entire process of endorsing a brand by celebrities is a highly strategic marketing decisions which entails co-branding, aimed at leveraging the popularity of the celebrities for enhancing the brand image. Thus, the influence and power of the celebrity chosen to endorse a certain brand, is of crucial significance for the marketers, and must be taken into consideration prior to signing on a celebrity. References: Bridson, K. and Evans, J. (2004) The secret to a fashion advantage is brand orientation. Journal of Retail Distribution Management 32 (8): 403–411. Grace, D. and O'Cass, A. (2002) Brand associations: Looking through the eye of the beholder. Qualitative Market Research: An International Journal 5 (2): 96–111. Kahle, L.R. and Homer, P.M. (1985), "Physical Attractiveness of Celebrity Endorser: A Social Adaptation Perspective", Journal of Consumer Research, 11, (March) Kamins, M.A. (1989), "Celebrity and Non-Celebrity Advertising in a Two-Sided Context", Journal of Advertising Research, 29, No.3, pp. 34-42. Business Week (2009). Tiger Woods and the decline of celebrity endorsements [Online] Available at: http://www.businessweek.com/managing/content/dec2009/ca20091215_901506.htm [Accessed: May 7, 2011] Wall Street Journal (2010). Lights, Camera, Calculator! The new celebrity math [Online] Available at: http://online.wsj.com/article/SB10001424052748704479404575088143982459472.html [Accessed: May 7, 2011] Read More