Athlete Endorsements Free Essays

string(220) " a negative impact on perceptions about a brand, and 4\) Negative publicity generated by the bad behavior of well-known celebrities is harmful because consumers tend to pay more attention to it, then positive publicity\." Sport Marketing and Promotions Introduction What is an athlete endorsement and what significance does it play in the corporate world of advertising? According to dictionary. com an â€Å"endorsement† is the act of endorsing something through approval or sanction. Companies regularly use athletes and other high profile individuals to endorse their company and/or specific products as part of a comprehensive marketing strategy. We will write a custom essay sample on Athlete Endorsements or any similar topic only for you Order Now They use the popularity of their talents to entice consumers to look favorably on their brand and to increase sales of their products or services thru their tacit approvals.These approvals or sanctions are done by having the athlete align themselves with the company thru advertisement, commercials, product or service promotions, or sports gear contract arrangements. Many endorsements deals can bring great wealth and exposure to both an athlete and a company. However, in recent years we have seen the negative side of these endorsement deals when the athlete doesn’t behave in a manner that provides a favorable image to the consumer they wish to attract. This can create difficult decisions for the company when considering whether to use sports athletes to promote their brand and image.The subject of this paper is to explore the Pros and Cons of athlete endorsement arrangements and how they can be either beneficial or detrimental to a company choosing this method of brand awareness. The Origins of Athlete Endorsements In the early 1900’s, Honus Wagner was a well-known professional baseball player who played for the Pittsburgh Pirates. Honus signed a bat contract with Hillerich Bradsby Co. on September 1st, 1905. He was believed to be the first professional athlete with an equipment endorsement deal. During this time period, he was the first major leaguer to have his signature engraved onto a baseball bat.Following Hillerich Bradsby Co’s footsteps was a non-sports company known as Gillette Razor. In 1910, Gillette won the product endorsement deal with major-league baseball stars. Gillette was the 1st non-sport endorsement deal to use professional athletes to market their products (â€Å"History of Athletes,† 2009). With the success of Gillette, more and more companies recognized this great new method of promoting their products and jumped on the proverbial band wagon by hiring high profile professional athletes to market their products.In 1917, with the advent of the Industrial Revolution, Converse All star shoes became the first mass producer of sneakers. With these new production processes, companies began to focus their attention on methods that could attract larger numbers of customers to their products. Converse was quick to recognize the potential that high profile individuals could draw and they became the first to use athlete endorsements in the sneaker industry. Converse used basketball players, such as Akron Firestones and Chuck Taylor to market their shoes (â€Å"History of Athletes,† 2009).It didn’t take long for others to also utilize this new brand awareness that these modern day gladiators could bring to their companies and products and it began a trend many still follow today. However, it wasn’t until the 1960’s when the first issues arose about the negative aspects of athlete endorsements. A prominent Los Angeles attorney, who specialized in the field of athlete endorsements, stated that using an athlete to endorsement a product could be very risky.The example the attorney used to explain th e risk associated with athletes was as follows, â€Å"Suppose a company puts several hundred thousand into a campaign featuring an athlete and suppose that two weeks later the athlete is hurt and not heard from for the rest of the year? † This is something companies have to take into consideration where using athletes to market their products (â€Å"History of Athletes,† 2009). Racial controversies began to rise in the late 1960’s in regards to athlete endorsements.Media sources claimed that black athletes missed out on endorsement deals across the country unless they were playing out of New York, Chicago, or Los Angeles; It’s a subtle form of racism. † In the 1980’s, things changed a lot in regards to using African Americans and athlete endorsements. Michael Jordan’s sneaker, know as Air Jordan’s kicked off in 1986 and became the most successful athlete endorsement in history. Nike sold more than $100 million in a single year, which helped the company hit its first billion-dollar year (â€Å"History of Athletes,† 2009). Athlete endorsements today are seen through a variety of different media ources. You can turn on the television to see Tiger Woods wearing his Nike golf shirt or go online to purchase a football jersey and see Payton Manning using a MasterCard. Athlete’s endorsements have evolved with the latest technologies today and have kept pace in maintaining their relation with their consumers. Companies use Athletes as a marketing strategy to launch new products, reposition products, and/or to reinforce brand images. This paper will explain what researchers have found on the pros and cons of using Athletes to endorse a product. Review of LiteratureIn 2003, a study was conducted to evaluate some of the reasons why celebrity endorsements can be a bad idea for corporate brands. Researchers explained that relying on a single individual, as the exclusive spokesperson for an entire product line may not always be a good idea. Well-known athletes chosen to represent a product in a major advertising campaign can have a huge impact on the company if the athlete behaves in an unprofessional manner. Professional athletes that encounter trouble with the law or act in a manner that is considered culturally undesirable can have a negative ef fect on a company or brand they wish the athlete to endorse. Through this study, researchers came up with a few different conclusions on the reasons why celebrity endorsements can have a negative effect for the companies they represent, 1) Multiple endorsements by the same celebrity can reduce the credibility and increase the liability of the individual celebrity, 2) Because of the increased level of risk associated with using celebrity endorsers, advertisers have begun using more animated characters, 3) Negative information about a celebrity tends to have a negative impact on perceptions about a brand, and 4) Negative publicity generated by the bad behavior of well-known celebrities is harmful because consumers tend to pay more attention to it, then positive publicity. You read "Athlete Endorsements" in category "Papers" If companies want to use celebrities to endorse their products, researchers all agree that the endorser must be both credible and trustworthy.Advertising research indicated that endorsers perceived as being positive role mode ls could also positively influence the perception of the product/brand they are paired endorsing. The study suggests that in order for athletes to be selected for the endorsement job, they should, as a minimum possess credibility and desirable personal characteristics (Stone, Joseph Jones, 2003). Companies pay athletes a lot of money for endorsement deals, so it is the company’s responsibility to do their due diligence when hiring athletes to endorse their brand. Another study done in 2003, identified the key segments of the Canadian sport market and investigated how Generation Y defined a sports hero. The researchers asked several questions to see how this demographic group evaluated heroism. The questions and subsequent answers helped the researchers better understand what types of athletes were selected as heroes, what sport was most frequently associated with heroism, and the important features of heroism. Results reveled that majority of the respondents felt that someone in their family and/or someone who was classified as a sports star was a hero. The sports hero that was selected by the majority of respondents was NBA star Michael Jordan. The participants felt that Jordan’s strength, agility, and celebrity status made him a sports hero. In regards to the sports most frequently associate with heroism, the National Hockey League took 1st place, followed by Major League baseball, National Basketball Association, and National Football League.The results of this study found important implications for sport marketers in regards to the perception of sport heroes and the use of athlete endorsements to target Generation Y customers. As part of the study, they found th at sport endorsements and promotions should emphasize family based promotions, since this generation values family. Sport marketers should also select an athlete who has a positive image since the image carries meaning and relevance to these consumers (Stevens, Lanthrop, Bradish, 2003). A case study was done in 2005 on Soccer Star David Beckham and his athlete endorsements in the international sports industry. Beckham has endorsed several different international companies’ products, such as sports cars, airlines, chocolate, and electronics.Beckham is considered the best-known soccer player in the world, with his personal brand value estimated at $370 million. The case study explained that sponsors consider athletes recognition, appeal to customers, and credibility when choosing an endorser. Since Beckham is a high profile athlete, he is seen as valuable endorser. He is married to Victoria Adams, who is a former female pop star, and continues to be portrayed to the media as a devoted family man. He also uses his fashion to display confidence and sex appeal, which attracts a lot of female fans. The effectiveness of a celebrity endorser, like Beckham himself, relies on physical attractiveness, trustworthiness, personal characteristics, and cultural meaning.Companies, such as Gillette have used Beckham in their marketing strategy to target a younger, global consumer. Gillette feels that Beckham could improve their image and boost its brand internationally. By using Beckham, they can reach men aged 18-34. Findings have indicated that customers have a more positive brand attitude and purchasing intentions when the product is paired with an attractive celebrity endorser. Since David Beckham is considered a high profile athlete with physical attractiveness, he is a good fit for endorsements. The conclusions from this case study indicate both sports organizations and corporations use elite athletes to expand their fan base and reach their global target markets successfully.Sports celebrities are appealing to global market players and can be used in other sport marketing activities, such as venue naming rights or event sponsorships. Given the advances in technology today, the growing interest in sports marketing is becoming more global then ever and future studies should be conducted to see what marketing strategies are most effective (Yu, 2005). David Beckham is a good example of an effective Athlete endorser who was used on an international level. In July of 2007, research was conducted on the effects of athlete endorsements on attitudes towards the product. Companies use athlete endorsements as a promotional strategy in launching new products, repositioning brands, or reinforcing brand images.In some endorsement strategies, athletes can be seen advertising non-sport pro ducts, such as computer products or electronic equipment. Marketing research asks the question, â€Å"Do consumers react favorably to non-sport endorsed products? † This study found that endorsers are more effective when there is a corresponding relationship between the endorser and the endorsed product. Researchers looked at the compatibility, creditability, attractiveness, and attitudes of individuals towards the athlete endorser and product they advertise (Kim Na, 2007). The analysis revealed that when an athlete endorses sports products, such as running shoes the credibility and attractiveness are more favorable to the consumer than non-sports products, such as perfume.Consumers see more of a relationship between the athlete and the product, especially if it related to the sport in which the athlete participates. For example, Tiger Woods can be seen wearing a Nike golf shirt when playing in the PGA Tour. This helps to show Tiger’s compatibility and credibility with the Nike brand. In 2008, Brad Carlson and Todd Donavan co nducted a study to look at athlete endorser’s effect on both brand and team-related outcomes. The study applied a social identity framework to investigate consumer responses to athlete endorsements. Researchers looked at the cognitive state of self-categorization, which exists when a fan feels belongingness with an entity, such as an athlete.They also looked at athlete identification, which is a cognitive state in which the individual evaluates the degree of overlap between their own self-schema and the athlete’s schema. The results found that fans that identified more strongly with an athlete were more likely to purchase the endorsed products. Athletes are effective endorsers when fans aspire to be like them, for example a person may associate himself or herself with the player by wearing their jersey. Fans who were identified less with an athlete endorser were more likely to abandon the teams market offerings. The findings confirmed that identifying with an athlete endorser is an important determinant of both team and brand related outcomes (Carison Donavan, 2008). Athlete Endorsements There are both pros and cons of athlete endorsements.Using an athlete as a spokesperson for an organization can be highly effective tool in building brand awareness, but it depends mostly on the target audience and how they relate to the athlete. According to Brooks International Online, some of the benefits of using an athlete to endorse products consist of raising awareness, generating media coverage, and attracting new audiences (Stuart, 2009). When selecting an athlete, companies should pick an individual whose demographics appeal to the target audience. Companies should also pick an athlete who will add value to the product they are endorsing. This past year, a case study was done on the marketing actives of Under Armor. The case looked at what types of marketing activities they used to help compete with their competitors. The main focus of this case was on athlete endorsements.Since the owner of Under Armor was an athlete himself, he felt the best way to advertise his product was by the use of athletes. He said that athletes are like a walking billboard and they help increase word of mouth marketing in the workplace (Kraft Lee, 2009). According to this article, in today’s marketplace, athlete endorsers are used to capture of attention of consumers, strengthen recall of the brand name, reinforce brand image, give the message credibility, increase product attractiveness, and increase the likelihood of purchase. The conclusion from this study showed that using athletes to endorse their product brought on more media attention then any other promotional strategies.The remaining section of this paper will give some examples of the pros and cons of athlete endorsements that have taken place over the past 20 years. PROS The following are just a few examples of positive athlete endorsers; Dale Earnhard t, Michael Jordan, Tiger Woods, LeBron James, and the Williams Sisters. Dale Earnhardt, who was teamed up with Pepsi, helped generate awareness for the energy drink Amp Energy. Pepsi feels that attaching an athlete to the marketing of their product is crucial for brand awareness. The endorsement deal with Earnhardt consisted of the Pepsi logo on his racecar and on his racing gear. When Earnhardt made the front cover of Sports Illustrated Magazine, this was huge for Pepsi.Earnhardt was basically a walking billboard for Pepsi, everywhere he was seen, and so was Pepsi (â€Å"Pepsi makes heavy,† 2009). The most successful and well-known athlete endorsement in history was Michael Jordan and Nike. The slogan that was created during Jordan’s endorsement with Nike was â€Å"Be like Mike. † Michael Jordan’s sneaker, know as Air Jordan’s kicked off in 1986 and Nike sold more than $100 million in a single year (â€Å"History of Athletes,† 2009). Michael Jordan created brand awareness and loyalty for the Company, which in return made Nike one of the best known show companies in the world. Not much longer after Jordan, Nike picked up another star athlete known as Tiger Woods. Tiger is the highest paid Athlete endorser at this time. According to Forbes. om, Tiger is the world’s top golfer and made nearly $110 million in endorsements from June 2008 to June 2009. Some of the other endorsement deals Tiger has are Buick, Gatorade, Tag Huger, ATT and Gillette. Gatorade launched Tiger Gatorade in March of 2008, which claims that it â€Å"helps focus your mind and your body†. Tiger actually picked out the flavor himself and even gets a percentage of all sales sold under his name. Tiger is predicted to be the number one sports endorser again in 2010 (Paulson, 2007). Another great sports endorser is Lebron James. Lebron James entered into the NBA right after High School at age 18. The same day James signed with the Cleveland Cavilers, Nike signed him for a $90 million endorsement deal (â€Å"Pros and Cons†, 2009).This deal was another big hit for Nike. LeBron and the Cavilers have been a playoff team for several years now and Nike has enhanced their image by using athletes who have a history of winning. The final example of positive athlete endorsements is the Williams Sisters. Both Serena and Venus have endorsement deal with large companies due to their high profile status in professional Tennis. Serena Williams currently has deals with Nike, Kraft, Wilson, and Hewlett Packard (â€Å"Serena williams hopes,† 2009). Serena just singed a new deal with Tampax. After Serena’s outburst at the line judge in the 2009 US Open, tampax decided to keep Serena as the endorser and use her temper in the ads.His latest advertisement shows Serena taking her temper out on a woman’s dressed as Mother Nature (Picchi, 2009). Serena’s older sister Venus Williams signed the most lucrative deal ever for a female athlete with Reebok. Both Sisters’ have been classified as positive athlete endorses and help build brand awareness for the companies they endorse. CONS The following are some examples of negative athlete endorsers; Michael Vick, Kobe Bryant, Manny Ramirez, and Michael Phelps. Michael Vick, who was convicted of dog fighting crimes in 2007, lost his endorsements deals with several different companies. Nike who was just about to launch the Air Zoon Vick V shoe cut all endorsement ties with Vick immediately after his conviction (Lippert, 2007).They removed all items bearing Vick’s name from company stores. This hit Nike hard financially. Reebok also pulled all Vicks jerseys and merchandise from their shelves. AirTran Airways stripped Vicks contract and made him give back his $20-$35 million signing bonus money (Kruse, 2009). All of the companies who endorsed Vick felt the negative impact on their companies. The second example is Kobe Bryant. Bryant who endorsed companies such as Nike, McDonald’s, Sprite, and Rawlings was convicted for sexually assaulting a 19-year-old woman in 2003. McDonald’s got hit the worst from this outburst since its marketing strategies are geared towards mothers and families.The study by ESPN found that incidents such as Bryant’s tarnish a company’s image (Rovell, 2003). Regardless of whether or not Bryant sexually assaulted this woman, the companies associated with him felt a negative impact through using him to promote their products. Another athlete who had a negative impact on an endorsement deal was Manny Ramirez. Ramirez, who plays for the LA Dodgers used performance-enhancing drugs and got suspended for 50 games (Jones, 2009). The game company EA Sports used Ramirez to endorse their products. Since EA sports targets younger teenagers, this had a negative impact on their brand. What mother would want to purchase a video game with Ramirez on the cover?These are some of the issues EA Sports now faces with their image. The final example of a negative athlete endorsement is Michael Phelps and his endorsement deal with Kellogg’s. Michael Phelps who is an Olympic gold medalist, had some issues with the law with drinking and driving. He was also found smoking marijuana from a picture that was posted on the Internet. Even though some companies stuck by him, Kellogg’s dropped Phelps immediately (McCarthy, 2009). Kellogg’s main target market is mothers and children. This puts a bad image on Kellogg’s to endorse an athlete who drinks and takes drugs. Ever since Phelps issue with the law, companies now see him as a risk. ConclusionThere are both pros and cons with using athletes for endorsements. Companies use Athletes as a marketing strategy to launch new products, reposition products, and/or to reinforce brand images. In many cases, the affiliation is a positive one that brings great financial reward to both an athlete and the company. When companies select athletes of high integrity and character, they impart a positive brand image on their products and generally reap the rewards of increased sales and revenue. However, when companies hire endorsers who do things culturally unacceptable for the products they are trying to sell, the relationship can have a negative impact on the bottom line.This has caused some concern among company executives and many are questioning the use of athletes to promote their products due to the risk associated with not being able to control their actions on and off their field (Sandomir, 2007). Researchers question how credible and believable athlete endorsements are in promoting their products but some case studies have proven that using athle tes to endorse sports products is more effective then endorsing non-sports products. This allows the consumer to see a relationship between the endorser and the product being endorsed. According to Millsport. com, companies need to pick an athlete who they can trust, has credibility, and demonstrates moral character.Avoiding risky endorsement deals with questionable athletes is a primary concern to decision maker’s at large national and international companies. It is important, if using an athlete to endorse your product, that a company does their due diligence in investigating the high profile individual and that it makes economic sense to insure a positive return on the investment. The athlete must fit their marketing strategies and fit the target market they are trying to reach. If companies do find an athlete that provides a good fit with their organization and brand, then using an athlete to endorse their products could be a successful way of raising brand awareness and revenue.However, do your homework as a bad endorsement deal can quickly tarnish a brands image that has taken many years to build. There are many endorsement opportunities that can build additional sales but companies need to be aware of the aspects that could negatively affect their business. References (2009). Millsport and the marketing arm. Retrieved from http://millsport. com (2009, September). History of athlete endorsements. Retrieved from http://google.com (2009). Serena williams hopes to ride u. s. open to win new endorsements. Sports Business Daily, Retrieved from http://www.sportsbusinessdaily. com/article/123828 (2009, September 5). How to cite Athlete Endorsements, Papers