Chapter 44 Endorsements The Federal Trade Commission FTC defines an endorsement as any advertising message that consumers are likely to believe reflects the opinions beliefs findings or ID: 274671
Download Presentation The PPT/PDF document "Endorsements" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Endorsements
Chapter 4.4Slide2
Endorsements
The Federal Trade Commission (FTC) defines an endorsement as any advertising message [that]
consumers
are likely to believe reflects the
opinions
, beliefs, findings, or
experience
of a party other than the sponsoring advertiser.”
In other words, an endorsement is a person’s public
expression
of approval or support for a
product
or service.
Endorsements are a
promotional
tool rather than a form of sponsorship.
The
FTC
, also offers clarifying examples of what is and is not an endorsement. Slide3
Endorsement Examples
For example: a film critic’s comments, if used by the
filmmaker
in and
advertisement
are legally endorsements.
A commercial featuring two unidentified teenagers
talking
about a product or store is
not
an endorsement because the teens are not “real” and they are acting as spokespersons for the company.
However, a commercial starring a well-known racecar driver for a brand of tires is an endorsement. Slide4
Legal Restrictions on Endorsements
The FTC has several guidelines that must be met by the endorser and the sponsoring company, including:
1.
Endorsements must always reflect the honest opinions, findings, and beliefs or experiences of the endorser.
2.
The endorser must have real experience with the product.
3.
The endorsements may not contain any deceptive or misleading statements. The statements must be able to be substantiated by the advertiser.Slide5
Legal Restrictions on Endorsements
4.
Endorsements may not be presented out of context or reworded so as to distort in any way the endorser’s opinion.
5.
The endorser must use and continue to use and believe in the product for as long as the endorser is used in the advertisements.
6.
If the product changes in any way, the company must notify the endorser, and the endorser must continue to use and believe in the new or revised product.Slide6
Athlete Endorsements
American businesses pay more than $1
billion
to athletes for endorsements
.
There are over 2,000 athletes who make endorsementsSlide7
Advantages
Advertising endorsements are advantageous to businesses in at least three ways:
Consumers will buy products endorsed by celebrities more often than products that are not endorsed.
Viewers, listeners, and fans are less likely to turn off a commercial featuring a celebrity than a commercial featuring a fictitious character.
Consumers tend to believe celebrities, especially those who are chosen for their good public image.Slide8
Disadvantages
Endorsement as a means of promotion has a few disadvantages, too.
Endorsements are very expensive to the sponsoring company.
The endorser may not agree to endorse one product.
The risk of negative publicity if the endorser commits a crime or a serious social blunder.Slide9
How Controversial Can an Endorser Be?
One of the common-sense decisions to be made when choosing an endorser is whether the endorser is a
positive
representative for the product or service.
Most businesses and advisers turn away from any sort of negative publicity.
But there is a
difference
between harmful endorsement and questionable endorsement. Slide10
What Businesses Look for in an Endorser
Brad
Vom
Bauer, the director of account planning at Harris and Love, a Salt Lake City advertising firm, once said, “If you want to create a personality for your product, the easiest way to do it is to buy a personality.” When searching for a celebrity endorser, businesses look for:
Someone with a positive, charismatic, trustworthy image who is respected by consumers.
A celebrity most consumers know.
A celebrity whose career is in process.
Someone who presents few risks.
Someone who has a believable relationship with the product
.Slide11
Speaking ability, personal appearance, and
educational
background are not among the top requirements.
Businesses believe these
deficiencies
can be remedied with voice coaches and wardrobe assistants.