Endorsement Marketing: What Works & Why?

Endorsement Marketing: What Works & Why?

It’s no secret that athletes have become the standard in the brand marketing game.  Almost every product has a celebrity face to it, especially when today’s world puts so much value in their support.  While using an athlete as the face of a brand does not seem difficult, determining how to market athletes is where a lot of a brands fall short.  When it comes to any kind of endorsements, there are three key theories that determine a campaign’s success.

1. Source Credibility

2. Source Attractiveness

3. Product Matchups

Each one of these components attempts to secure the target audience and bolster a company’s consumer recognition.  In terms of source credibility, it combines a sense of expertise with trust.  The athlete chosen to be the spokesperson requires some amount of sincerity and authority for the consumer to actually buy it – literally and figuratively.  Audiences are not as susceptible to insincerity as once believed. 

Attractiveness supports any credibility and can almost make up for a slight lacking in it.  This, of course, does not mean you forgo any credibility for the allure of a professional athlete – as you will see in the failing examples below.  Each of these theories works together to support the campaign, and require a delicate balance.  Attractiveness acts as the likability factor -- the familiarity -- that consumers look for to make a connection with the endorser.

Finally, and most importantly, the product needs to match with the established brand of the athlete.  A product should fit into the overall plan of the athlete’s marketing as an extension, not just a move for more money.  Consumer reactions are all based on a connection with their heroes, and anything that does not help to create that image will fall flat.

So what are some of the worst endorsements we’ve seen? Here are three examples of marketing gone wrong:

Michael Jordan’s Slam Bowling Ball – It’s hard to knock Michael Jordan in any category as he has created one of the most recognizable brands in sports, but this venture did not go over well.  His AMF basketball-styled bowling ball debuted in 1998.  While he teamed up with an official bowling company, the ball was grooved, like a basketball, and did not meet regulations.  Not only was it unusable, the market for the product was small.  His parlay into baseball didn’t meet expectations, so why would his bowling?

Kellogg’s Partnership with Michael Phelps – Kellogg is known as a family brand and choosing an Olympic athlete to grace the cover of your cereal box seems like a good choice – until the marijuana scandal accompanied by the previous DUI case in 2004. This proves it is important to take the products demographic into consideration – mothers and fathers buying for their children.   A “bad boy” image just won’t work.

Joe Montana’s Sketchers “Shape-ups” – This one just seems out of left field.  A former football great endorsing ugly toning sneakers just screams it was all about the contract, not the product.  Random placement will not automatically create credibility and a star endorser may not do anything for your product if not supported by the other components.


-Mia

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Media And Women's Basketball

Media And Women's Basketball

When assessing the pulse of the fan, the theme in Women’s Basketball is consistent: it’s overlooked.  This sport is one of the few that doesn’t get the media coverage it deserves.  Talk ‘N’ Ticker gets it, and more importantly we agree.  Since its inception in 1996 and the first game in 1997, there have been significant developments in terms of women’s and girls’ basketball activities and it’s time that they be recognized. Thirteen years of strong history has laid the groundwork for a major change.

This is where ASI’s client, Inside Women’s Basketball is making strides to change the game.  Not only do they publish a quarterly digital magazine, but they have effectively kept their readers engaged and updated in the “other” world of basketball through social media. 

By telling the history and actively providing coverage of high school, college and WNBA communities, Inside Women’s Basketball has gained the love, respect, and appreciation of true fans.  In order to continue to do so, ASI’s partnership is assisting in cultivating sponsorships and ad placements throughout the digital magazine.

In August, the New York Times published an article describing the dedication of former players to the WNBA.  According to the article, “These women are survivors, pioneers who had to seek out a game.” Just as the players and executives are passionate about bringing the game to a wider fan base, the fans have a responsibility to seek out coverage of the sport and the people that bring life to women’s basketball. 


-Andrea

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Tips on How to Protect Endorsements

Tips on How to Protect Endorsements

Endorsements are a staple in the sports business world, but that does not mean they come easy for athletes.  It is up to the client to uphold their public image in order to protect their product deals.  Companies are going to look out for their brands in the same manner and need some sort of insurance policy and sometimes more importantly, an exit strategy.  Morality clauses are becoming increasingly popular. These are agreements that allow companies to end a deal due to a scandal or indiscretion by direct involvement of the athlete.  Unfortunately for them, athletes are on a main stage for scrutiny, they have to be prepared.  Indeed all clients are different, but all effective crisis communication requires management before, during, and after any crisis.

Here are some tips for dealing with crisis communications:

1. All communication after a crisis has to be fast-paced.  Always respond in a timely manner. Stalling gives the illusion of not being sure of oneself. This can cause an audience to question the validity of statements. 

2. Correct all inaccurate information quickly. Never allow 24 hours to pass without addressing errors in any statement. With new media, not correcting immediately, causes a domino effect. At that point your responses are at a disadvantage.

3. Never lie, without having a justified reason to do so. This tip is probably the trickiest. A general rule of thumb is that if your statements cannot be justified by someone else, do not do it. It will probably come back to hurt your credibility.

4. Any cooperation on your part helps resolve things quickly. Especially in matters of the law, always abide by the rules of law enforcement.

5. Ride it out and focus on your sport. Everything in media is a phase. The first phase is the hardest to go through. Stick to your plan and follow it through. After all, that’s why crisis plans are created in the first place.

6. Use media attention to your advantage. Always try to spin a negative into a positive. Divert the topic of the crisis by interjecting additional stories that represent good references to combat the bad.

- Amira 

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The Battle Between Salaries & Endorsements

The Battle Between Salaries & Endorsements

Top 10 Earners of 2010:

   
While an athlete might be sitting on a nice salary, what is truly essential in sky rocketing their careers are product endorsements.  In dealing with products and sponsorships, it seems that athletes are unstoppable.  Over the past year, the average earnings of Sports Illustrated Fortune 50 has grown to 26.2 million, up 11% from the '09 list.  There is no denying the fact that endorsements play a large role in that growth.  Athletes like Tiger Woods have taken a hit in the public image sector, but the golfer still tops the list with 70 million in endorsements, more than triple his yearly salary.


The lists below show how endorsement deals almost turn the top 10 salaries upside down.
TOP SALARY EARNINGS (winnings included):
1) Floyd Mayweather: $60,000,000

2) Alex Rodriguez: $33,000,000

3) Kobe Bryant: $23,034,375

4) Shaquille O'Neal: $21,000,000

4) Derek Jeter: $21,000,000

6) Tiger Woods: $20,508,163

7) Peyton Manning: $15,800,000

8) LeBron James: $15,779,912

8) Dwayne Wade: $15,779,912

10) Phil Mickelson: $9,660,757

TOP ENDORSEMENT EARNINGS:

1) Tiger Woods: $70,000,000

2) Phil Mickelson: $52,000,000

3) LeBron James: $30,000,000

4) Peyton Manning: $15,000,000

4) Shaquille O'Neal: $15,000,000

6) Dwayne Wade: $12,000,000

7) Kobe Bryant: $10,000,000

7) Derek Jeter: $10,000,000

9) Alex Rodriguez: $4,000,000

10) Floyd Mayweather: $250,000

- Liz

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The Most Disliked Athlete in America?

The Most Disliked Athlete in America?

     Sports history is full of athletes that after having risen to the pinnacle of their careers saw it all fall apart by engaging in acts that were illegal or morally reprehensible. Not all of them make it back to the top (Mike Tyson, O.J.Simpson) but more often than not, the public is willing to accept their fallen heroes if their fall from grace and their comeback was handled with humility and genuineness. Lance Armstrong for example has managed to stay above the fray from ongoing doping allegations and investigations by remaining actively involved in his charity work. And though Armstrong has never been formally charged with steroid use, many other athletes have had their careers toppled by the mere hint of illegal or immoral acts. Which brings us to the case of Michael Vick.

     Michael Vick was the number one draft pick in the 2001 NFL draft, an athlete with undeniable talent who at the height of his career was the highest earning quarterback in the NFL, with a $130 million contract at the Atlanta Falcons. Then came 2007 and the events which derailed his promising career. Vick was charged with dog fighting charges and subsequently spent 18 months in prison. An athlete who once had endorsement deals from prominent companies such as AirTran, Nike, Hasbro, Kraft Foods, EA Sports and Powerade was seemingly overnight turned into the pariah of the marketing world. When the dust cleared, Vick had lost over $100 million in endorsement deals and salary.

      Fast forward to today, only one year since his release from federal prison and Michael Vick was just named as the starting quarterback for the Philadelphia Eagles, the only team which opted to give him a chance at redemption. While the opportunity to start for the Eagles only opened up following the injury of the original starter, Kevin Kolb, his injury has proven to be a blessing in disguise of sorts for Vick. It has mobilized hungry Eagles fans (who have been clamoring for a Superbowl appearance since 2005) to support the use of Vick in future games, an interesting turn of public opinion.

     So now that Vick’s on-the-field performance has football fans sitting up and taking notice, will he have an opportunity to once again regain the support of corporate sponsors? For every supporter who believes that Vick has paid for his actions, there are those detractors that will never be satisfied that he is on his way back to success. So what do the marketers have to say?

    Well thus far, marketers are staying far away from the quarterback. Nike recently publicly denied that it had entered into a contractual agreement with Vick, stating that it had only agreed to supply him with gear much as it does with many other athletes who are not official spokespeople for the brand. But as Vick continues to display humility and an understanding of his past mistakes it will be interesting to see just how many sponsors will be willing to go out on a limb for this undeniably electric talent.

According to recently released information on athlete Q scores, which is a metric that marketers use when considering how to align themselves with a personality, Michael Vick is the athlete most disliked by Americans. That is a tough label to have and whether or not Michael Vick can shed it will have as much to do with his on-the-field performance as his off-the-field work.

    I had the opportunity to hear Vick speak to a group of young, minority males at the Urban Youth Racing School’s What It Takes event in Philadelphia and call me naïve but I was impressed by his humility and the determination he displayed to turn his life and image around. It may take some time, but if Vick continues to be a force to be reckoned with on-the-field and can continue with community initiatives that humanize him and gain him fans off-the-field, the time will come when marketers will have to decide if they’re losing out by not being affiliated with him.


-Khaila

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