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Product endorsers can make or break a business

05/26/08

Posted under marketing

Toni and Alex Gonzaga for Faces & CurvesDRIVING BY EDSA, you can’t help but be distracted by the gigantic billboards on both sides of the road. A while back, there was Heart and Jericho (when they were still together) for Penshoppe, John Lloyd Cruz for Bench, Gretchen Barretto for Plains and Prints, and now, Toni and Alex Gonzaga for Faces & Curves.

Can product endorsers really help in marketing a business? Or are there instances when they can give the opposite desired effect (turn away customers)?

“Product endorsers can have a tremendous impact on one’s business. Awell-known and respected celebrity can add instant credibility to an otherwise unknown or untried product,” says Art Ilano, a marketing professor at the College of Business of the University of the Philippines.

Take the case of PH-care. It was an unheard of feminine hygiene brand when it came to the market, but Sharon Cuneta made it a trustworthy product to use.

Now why is there a need to get an endorsement? It all boils down to inertia. According to Ilano, people will not necessarily try out a new product just because it is in the market. This is particularly true of products in the mature product category (such as detergents, soaps, softdrinks or coffee). “[People] would rather stick to their old habits. But the backing of an endorser can change their habits, particularly if the only reason they stick with their old products is because they feel they don’t know any better. Celebrities can add both credibility and value to a product. And of course, the higher the perceived value of the product, the better a deal it seems to be!” says Ilano.

But it doesn’t work all the time. The endorser has to have the love of the fans, points out Ilano. “Kris, Aga and Sharon are blessed with this kind of love and respect. And despite whatever scrapes they get themselves into, their fans love them nevertheless. They also appear to have a certain air of authority when they are being serious, and I think that this is also an important factor.”

Second-tier or B-list celebrities may not elicit such an enthusiastic reaction. “The trust won’t be there, and the audience ends up viewing them simply as entertainment-oriented message delivery devices rather than as credible authorities,” says Ilano. “If you look at the way Cesar Montano pitches Touch Mobile (not that he’s in the B-list), this is what is happening. He is not treated as an authority but rather as an entertainment figure. So the verdict is still out as to whether the ad would be just as effective without him in it at all.”

According to Ilano, notorious and infamous celebrities do not make good endorsers, too, unless you are selling a product that is purposefully edgy or rebellious in tenor. “A classic example of the former happened in the 1970s, when Rod Navarro, an actor who was known for his acerbic humor and kontrabida roles, donned a pilot’s uniform for an ad by Philippine Air Lines. The result was an increased negative perception of the airline… because the market didn’t like the idea of someone like Rod Navarro flying their planes!”

And then there are the celebrities lacking in the looks department. Ilano shares the story of Dr. Dieter Zetsche, then the CEO of Chrysler. “In 2006, he appeared in a $100 million ad campaign endorsing his own cars. The problem was that Dr. Z, with his caricature-like handlebar mustache (he has been compared to the cartoon character on Monopoly game sets), looked more like a comical figure than a CEO. And this led to a massive failure in terms of eliciting credibility for Chrysler’s vehicles.”

So then, when thinking of getting an endorser, determine if the celebrity:

1. has the love of fans
2. is not notorious or infamous
3. is good-looking
4. is someone you can afford. An A-list celebrity endorser’s fee is no joke!





5 Feedbacks on "Product endorsers can make or break a business"



Jude Cartalaba

Yes, there is truth to what Art Ilano’s words that product endorsers can have a tremendous impact on one’s business, however, not all of them can really push a certain product.

First and foremost, endorsers also have the ‘responsibility’ of seeing to it that the products or services they are pushing has enough ‘credibility’ apart from their appearance as endorsers.

I can say that not all Sharon Cuneta or Aga Muhlach-endorsed products or brands made a good profit or let us say stayed on top of the business ballgame.

What I can recommend, businesses or entrepreneurs should also ensure if they can sustain the ‘impact’ that these endorsers can bring to them; by providing their market quality products and services and not shortchanging the real source of their bottomline. ;-)



Karen Galarpe

Good point, Jude :-)



Rodney Garcia

I’ve always wondered if the celebs and endorsers actually use the product. I mean, does Aga really use Sun cellular and quit his Globe/Smart line? Do those who promote fast food restaurants like Jollibee and McDonalds are barred from their competitors? Do those who endorse cola or juice drinks actually have a year’s supply of their product?

To be a spokesperson or endorser is a lot of pressure especially if you promote cosmetics. Will you be allowed to be seen in horrid clothes or your ‘wake-up’ face in public?

Well, I just hope people actually count the cost before they bite the bait.



Dante Castillo

i agree with you guys. really an endorser cannot be seen in public using other items except the one she/he is endorsing. so its a two way street.I am in the jeans industry and based on my experienced my first endorser has opened doors for us to be accepted in area wherein we are not present. I was approached by a mall owner down south and was offered a space right there and then because a Beautiful celebrity was my endorser then. He said ” di ba yan yung kay B_____. sige pasok ka.” although he does’nt know my brand then, it opened opportunities for us. Cost really is something one must consider in getting an endorser because it does’nt end up in just the talent fee. there is something as support during her movie or album launch. support for press people during presscon and other support that when you compute would end up bigger than you’re endorser’s talent fee. Not to mention your Billboard sites! anyway, the last time i checked, the talent fee of my previous celebrity endorser is now in 7 digit figures! whew!. Fortunately,may brand awareness na ko, even if i already let go of her.hehehe



Jude Cartalaba

Let us admit it—testimonial advertising is one of the most popular approaches for shaping the ‘perceptive’ and ‘motivational’ factors of a particular brand toward its target audience, but if you are the business owner and is considering of using such type of advertisement, perhaps you need to think it over. Although endorser credibility had its strongest impact on A&D audiences, corporate or brand credibility plays an important role in consumer’s reactions, which had its impact on A&B crowd—the danger is—such campaigns may be clouded with suspicions.

Remember the recent battle between two strongest Presidentiables in 2010—Noli De Castro and Loren Legarda? The nature of the campaign may no longer be a battle of brands and its credibility but a mere reflection of personalities taking advantage on advancing their respective image for whatever ‘unfinished business’ or ‘future ambitions’ they have.



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