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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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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Iverson's Latest Woes

Iverson's Latest Woes

ESPN and The Philadelphia Inquirer are both reporting that multiple sources from the NBA are speaking out about Allen Iverson and his recent problems. According to the sources, Iverson is facing serious alcohol and gambling issues in the wake of his latest family drama.


The Sixer announced he would go on indefinite leave due to an undisclosed illness his four year old daughter is battling in late February. Combined with that strain, his wife of 8 ½ years just filed for divorce on March 4. Tawanna Iverson is claiming that their marriage is beyond repair and is filing for full custody of their five children, child support and alimony.

Not only the people surrounding him are claiming that the All-Star guard's life is getting out of control, but Iverson took to his personal Twitter account to say admit that he is dealing with a rough patch.

He said: "To my fans: You all know that my life isn't perfect. I am going through some very tough times right now, like I am sure that we all do from time to time. However, I will stand tall like always with 'rhino' thick skin."

These problems are not new for Iverson, as he has been banned from multiple casinos, due to his gambling, in Atlantic City, N.J. and Detroit. It was thought that returning to Philadelphia, where he spent 10 ½ seasons, won 4 scoring titles and the 2000-01 MVP award, would be the catalyst for his career that was slowly slipping away from him. Iverson bounced around with a couple of teams after leaving the 76ers, but was picked up again as a free agent in December of 2009. It was just announced on March 2nd he will not be finishing out the season with the team.

Members of his personal circle are coming out in support of him as he struggles with marital woes and potential addictions. One of those people, his business manager Gary Moore, expressed concern that Iverson is heading on a downward spiral. Stephen A. Smith of the Inquirer, who has been following him for many years, agrees that Iverson’s demise is imminent without help.

As for Iverson, his personal matters seem to be piling up -- and quickly -- but dealing with the essential issues at hand right now is the only way to get through this tough time. Taking the leave of absence from the game to be with his daughter was most certainly a difficult decision, but made the most sense at the time. Hopefully, Iverson will return to the game and revitalize his career before it is too late.

-Mia Spadoni

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Bloopers

Bloopers

We wanted to post the next couple of NBA clips just to brighten your day and get you in a sports mood.

First up, LeBron James shows that he can do more than play basketball on the court. This video was taken during a timeout during the December 4th game versus the Bulls. He was seen dancing during the broadcast, but here are some new moves you didn’t see. Who knew he was such a dancing machine?

http://www.youtube.com/watch?v=XXjNkFvZcaw

The next clip is from the NBA All-Star Celebrity Basketball game. Globetrotter “Special K” has been known to be quite the prankster, and as a follow-up to last year’s confetti toss on ESPN’s Jon Barry, he decided to douse him with something a little more... well, wet.

http://www.youtube.com/watch?v=i0xEwLBHa-I&feature=player_embedded

Our last clip of the post is Memphis’ Rudy Gay’s trigger-happy shot against the Lakers in early February. With time expiring in the 1st quarter, the Grizzlies snag the ball from Los Angeles for a chance to add to their 3-point lead. Instead, Gay takes the shot too quickly, leading to Kobe’s 3-pointer to tie the game.

http://www.youtube.com/watch?v=P-nuQDxHN5k

-Mia Spadoni

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NBA Trades

NBA Trades

The NBA trade deadline has come and gone and, in its wake, left many a confused fan. Over the past few weeks, the 76ers had been immersed in trade rumors, many of these rumors revolving around swingman Andre Iguodala.
The Sixers have been associated with trade negotiations involving Phoenix Suns’ forward Amar’e Stoudemire, Cleveland Cavaliers’ center Zydrunas Ilgauskus, Dallas Mavericks’ forward Josh Howard, and Houston Rockets’ swingman Tracy McGrady. Many people figured—or hoped—that we’d come out of this trade with one of these big-namers who would bend over backwards and help the Sixers through this limbo they’ve been stuck in.

The Suns had their eye on Iguodala, offering up Amar’e Stoudemire, who would potentially be a good match with Elton Brand. The Rockets were only willing to trade McGrady if Iguodala was involved; they proposed trading McGrady and rookie guard-forward Chase Budinger for Iguodala and Samuel Dalembert. Sounds like some good possibilities, right? 73% of readers polled on Philly.com voted for the McGrady/Budinger-Iguodala/Dalembert deal.

Fast forward. It’s now post-trade and we’re down two seldom-used players, guard Royal Ivey and center Primoz Brezec and a 2010 second round draft pick, and we gained rookie guard Jodie Meeks and center Fransisco Elson. Does our seemingly pointless, low-impact trade make any sense?
According to Sixers General Manager Ed Stefanski, yes. His goal for this trade was not to make a deal based on money, but on performance., “protect[ing] his young nucleus.” Both Stoudemire ($17 million) and McGrady’s ($23 million) contracts are expiring.

“We’re very active and a lot of teams are looking for us to do financial deals, to send back expiring contracts—we want to improve the product on the court,” Stefanski said, courtside. “We are in the market to get better players if possible, or equal-value players, to make this team better.”
In her “Deep Sixer blog on Philly.com, Kate Fagan says the bottom line was that the Sixers weren’t going to make the trade for McGrady’s expiring contract if that “was the heart of the deal.”

Regardless of what the fans think of the deal, it was a success in Stefanski’s eyes. His focus was on the acquisition of Meeks, who was high on the Sixer’s 2009 Draft board, and that’s who he got. Kate Fagan suggests that the “lack of a headline-worthy deal” shows that Stefanski has faith in the roster he already has. Meeks could fill a void in the team’s shooting department next season,too, proving to be a valuble piece to the Sixer’s puzzle.

“I think I fit in well. I get up and down the court well just like this team isn known for—I think I’m a smart player who can make an open shot,” Meeks said. “I just have to knock ‘em dead.”

-Liz Trubey

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