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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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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Questioning Roethlisberger's Decisions

Questioning Roethlisberger's Decisions

A college student in Georgia is the latest person to claim that Steelers quarterback Ben Roethlisberger sexually assaulted her. The claim comes after the two-time Superbowl winner supposedly assaulted the woman in the bathroom of a bar located in Milledgeville, GA early Friday morning.


While the police have not officially charged Roethlisberger with assault, they are said to be interviewing him over the next couple of days and plan to collect DNA as part of the investigation.

Roethlisberger is no stranger to this type of accusation, as he is currently dealing with a lawsuit brought on by another woman, who claims he raped her at a resort in Lake Tahoe back in 2008.

In preparation, Roethlisberger has not wasted any time defending himself. He adamantly denies the accusations and hired a high-powered lawyer from Atlanta, Ed Garland, as his attorney. Garland is also familiar with high-profile cases of this nature, having represented both rapper T. I. on gun charges and the Baltimore Raven’s Ray Lewis on a murder charge.

Regardless of what comes of these alleged crimes, his recent actions beg the question of why he is continually putting himself at risk. As the face of a franchise, it is not smart, nor responsible, for a man dealing with his issues to be partying late into the night with college students.

Of course he is innocent until proven guilty, but beyond his extraordinary career on the field, he has certainly battled his share of problems off of it. A motorcycle accident in 2006 almost killed him and forced him to have serious cosmetic surgery on his face because he was not wearing a helmet – a request Coach Bill Cowher made clear. He did not even have a valid motorcycle license for Pennsylvania at the time. Roethlisberger also has a reputation for skipping out on bills in the Pittsburgh area, and the Internet is swirling with pictures of him drinking.

All of these actions lead to one conclusion: he should accept the responsibility of being a star NFL quarterback. If that means growing up, going out responsibly, and keeping his hands to himself, then so be it. Even if the charges are dismissed, Roethlisberger needs to take his position seriously in order to put these charges behind him and direct media attention to his accomplishments on the field instead of his bad decisions off it.  He is the face of a Superbowl-caliber team, whether he wants to be or not, and needs to understand the responsibilities that come with that, and respect those boundaries.  The decision-making that has been shown, regardless of the level of truth in the allegations, is something that is of a concern for him in the years to come.

-Mia Spadoni

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Sport of the Week: Football

Sport of the Week: Football

As the football season came to a close a few weeks ago with the New Orleans Saints taking their first title in franchise history, some fans have been going through withdrawals. Those Sundays just aren’t the same, unless you look forward to watching coverage of the Combine. So to tide you over, we are going to take a look at what’s been going on in the NFL since the Superbowl. Just because football season is over doesn’t mean the mean the teams are staying quiet.

First up, New York Jets rookie quarterback Mark Sanchez led his team to the AFC Championship game regardless of battling with a knee injury that has been bugging him since his junior year at USC. Sanchez reinjured the patella ligament during the 2009 season and decided to have off-season surgery to correct this problem.

Sanchez recently took to his Twitter account to tell his fans not to worry:
“Out of surgery. Doc says it went exceptionally well. Thx to Dr. (Ken) Montgomery. Thx to family, friends and tweeps for the love and well wishes”

He says he will “definitely” be ready for training camp later this summer.

Next, wide receiver Dante Stallworth just signed with the Baltimore Ravens. The one-year contract will hopefully be a starting point for his comeback after dealing with the vehicular manslaughter conviction he faced back in 2009, which put him in jail for 24 days and suspended him from the league for a year. After being reinstated, the Ravens offered him a $900,000 contract. During his career in the NFL, Stallworth has previously played for the New Orleans Saints, New England Patriots, Philadelphia Eagles, and Cleveland Browns.

With one player returning to the NFL, another announces his retirement. Buffalo Bills starting right tackle Brad Butler, 26, decided to retire from the league after just four seasons. Butler said he was leaving the NFL to pursue a career in governmental issues that are close to his heart. He spent the 2008 off-season working for Congressman Jack Kemp, who happens to be a former Bills quarterback.

-Mia Spadoni

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