We are all familiar with the use of celebrities in marketing to promote a product or service: Jennifer Hudson has been endorsing Weight Watchers since 2010, and is seen as success story after dropping 80 pounds with the program; CoverGirl has endorsed a variety of female celebrities, in both profession and physical appearance.

But with celebrity endorsement comes the risk of celebrity scandal, which is unavoidable in an age of constant media coverage. Firms need to be cautious with celebrity contracts, as were Burberry and Chanel when model Kate Moss’ substance abuse was made public in 2005. Both companies were able to maintain brand image and reputation by cancelling contracts with the model, severing ties between Moss and the brand names.

So if there’s such a high risk, why do companies continue to endorse celebrities?

As mentioned in class, consumers can associate an endorsed product with a certain celebrity and their lifestyle, resulting in an aspirational relationship with the product. Like CoverGirl has done, celebrity endorsements can allow firms to market variety of products to specific demographics based on similarities that the consumer shares with the celebrity (age, ethnicity, body type, etc.).

Celebrity endorsements also give firms the opportunity to align their reputation with the reputation of said celebrity. Harman Audio endorsed Paul McCartney to market “concert gear,” associating McCartney’s success as a musician to the product. McCartney has been using Harman’s products since his musical career with the Beatles, thus giving the consumer the idea that the product must be of substantial quality if an acclaimed musician like McCartney is endorsing it. Paul McCartney is a well-respected name in the world of music, and by associating themselves with McCartney, Harman International Industries is able to place their brand name at a similar value.

Sources

http://www.huffingtonpost.com/2012/11/14/celebrities-weight-loss-plans-endorsed-diets_n_2124932.html

http://www.theguardian.com/uk/2005/sep/22/drugsandalcohol.vikramdodd

http://en.wikipedia.org/wiki/CoverGirl#Endorsers

http://www.bloomberg.com/news/2012-02-16/paul-mccartney-as-pitchman-may-lift-sales-of-harman-audio-gear.html