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What are the advantages and disadvantages of using celebrity endorsements in advertising
What are the advantages and disadvantages of using celebrity endorsements in advertising
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Marketing promotion
Dell Inc. is a large multi-national company which develops, manufactures, distributes, repairs and supports electronics, computers and computer related products and services. The company is among the largest technological corporation across the world. It is characterized by highly innovative and creative products. Its services and products are known for high quality and high level of customer satisfaction. This paper outlines a promotional plan for Dell inc. the costed multi-media promotional plan is designed to achieve specific marketing strategy for the organization as will be outlined in this paper.
Dell inc. is mostly known for personal computers, storage devices and computer peripherals. The company is highly innovative and has been known for its excellent direct-sales and build-to-order model that have contributed highly to the growth and profitability of the company. Dell is known for best organizational practices and organizational culture. It promotes a positive culture that encourages team spirit and good relationship between all the stakeholders. Technology industry or sector is among the toughest industries which demand much effort, innovation and effective marketing and promotional strategy in order to compete favorably.
There are several current legal and regulatory aspects that face the company. The company has to meet the entire legal requirement and frame work of operating in computer technological industry as far as quality and price regulations are concerned. Dell has been able to meet the legal and standard requirements in the manufacture, distribution and promotion of its products. For instance it offers its products at reasonable prices that reflect the industry pricing regulations. The...
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...as far as the product is concerned. In this promotional plan, the company will use celebrities who will play the role of building a strong brand image for Dell’s product. Celebrated persons are highly respected and thus associating them with the company’s product will play an important role in creating awareness and positive attitude towards the company’s products.
The company plans to manufacture and distribute a strong personal computer brand and will win loyalty and preference all over the world. A strong brand is that which is known all over the world and one that enjoys the benefit of recommendation from satisfied customers.
Indirect communication involves communicating the strong features and advantages of the product to all customers. Indirect communication will be important in building a strong brand with a positive attitude towards the company’s product.
... look out for high profile contacts and good image building activities especially due to the on going outsourcing concern. As community theatre boards include executive level staff these consulting companies could get high visibility and a sophisticated image by pairing up with something as ?cultured? as theatre. These companies can be requested by the boards of community theaters to sponsor the building and maintenance of the theatre websites in exchange for good PR and contacts.
According to business dictionary, brand is defined as a unique design, sign, symbols, words or a combination of all of these, to creating an image that identifies a product and to distinguish it from its competitors. A celebrity is known as a famous people or well-known people in certain perspective of field. In detail, celebrities are the people who enjoy high degree of public recognition and awareness by a large share of a certain group of people (Prof. Dr. G. L. Pedhiwal, 2011). According to Kurzman et al, (2007), celebrity is an omnipresent feature of society, blazing lasting impressions in the memories of all who cross its path. The use of celebrities to advertise the company products as to increase sales and recall the value of a brand is known as celebrity endorsement. McCracken (1989) defines celebrity endorser as any people who enjoy public recognition and who used his or her recognition on behalf of a consumer good by appearing with it in an advertisement (MarComs). The presence of celebrity can affect and influence consumer buying behavior positively (McCracken, 1989). Cel...
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.
Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use.
Many marketing companies have realized the importance of celebrity’s endorsement as a marketing communication tool. Corporations hire celebrities because they are individuals with “Celebrity Equality”. The awareness and association celebrities portray to consumer firm’s hope this branding transfer to the product they are selling. When corporations endorse a celebrity, they are taking on the possibility and risk of that the spokesperson may become involved in events that can have deleterious effects on the company and the product, they are advertising. “They’re human. When you sign on to a celebrity, you sign on to the whole package –the good, the bad, and the ugly” (L, Therese, & K, Robert & J, Robert, 2001). Throughout my paper, I will be using Tiger Wood as an example of the positive and negative effects of a celebrity as a spokesperson.
This strategy was carried out by selling via phone, fax and direct sales, instead of selling through retail stores. Not only this approach differentiated Dell from other competitors at the time, it also reduced its operating costs as it did not have to rent expensive retail space. In addition, Dell’s strategy of selling customised computers allowed it to hold only a small amount of inventory, which reduce...
The advertisement campaign will need to be coordinated in print, television, radio and obviously the Internet. Dell can also integrate the direct mail pieces and catalogs with the new pitch to further expand its reach and frequency. Dell can also continue to work towards the small and medium businesses through this strategy using a similar “mirror” campaign in the trade publications and in trade show displays. The idea will be to have the campaign as recognizable and incorporating the “Be Direct” slogan that made Dell what it is.
Dell Computer have recently announced changes to their business strategy and supporting supply chain. They will no longer focus on a made to order direct sales model for their personal computers. Nor will they continue to refine their renowned supply chain model that supported their sales model. Instead, they will be looking to produce personal computers with fixed configurations at lower prices. This essay looks at why Dell have changed their strategy, and then considers the customer value proposition of the new strategy, as well as lessons that other organisations can learn from the Dell experience.
In recent years customers are having increasing number of options for personal computer. Smartphones, tablets, and other gadgets like iPod have similar features and capabilities as a personal computer. Because of the accessibility, sleekness, and style of these gadgets, they are becoming very popular making personal computers more and more outdated. To compete with the smartphones and tablets, PC must differentiate itself to regain the market share. Large businesses, schools and governments buy computers in high volumes might have control on price, quality and service. But, companies can influence the customers to buy their products by creating trust in their own brand and by providing value added features. So, the bargaining power of buyers is
Optimum performance, superior technologies and reliable service are the characteristics of our computer product lines. We carry the leading brands of Personal Computers, Laptops & Notebooks loaded with licensed software and Clone Computers using the latest computer technology that comes with 1 year warranty in cash and easy installment packages of up to 1 year, user friendly designs and superb service anytime and anywhere in the Philippines.
In the 21st century, it is more likely that most of globalised companies will be a service industry rather than a manufacturing stated Bian (2005). The new economic pattern is service pattern and it is a competitive advantage for service industry. Therefore, Lenovo’s service department should take Dell and HP as a role model; Lenovo ought to offer more detail information on selling personal computers...
Dell Company has a clear understanding of its own company strengths such as selling their products directly to customers without a middle man and in designing its computers and other products to the customer's specifications. For example, Dell Company had designed its products to be more functional, lighter and more easier to use. This helps reducing the manufacturing costs that was needed. Dell Company also not forgetting its own weakness such as having no relationships with local computer dealers, which will be hard for getting supplies and support from the other companies. Besides, Dell Company is a company with a smaller capital, and at that time what they need the most will be financial support and sponsorship. Thus, with no relationship with local computer dealers disadvantages the company. Besides, they do not have unique technologies to offer the market compared to its competitors. Dell Company faced threats from other competitors such as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time. Moreover, it is hard for the Dell Company to compete in a market that the need for computers and laptops are getting lower, which these products are getting replaced by smart phones and tablets. Dell Company identified opportunity by noting that its customers were becoming more knowledgeable about computers and could specify exactly what they wanted without the help from the sales person of the company. Dell Company should release new technology and new ideas that can attract and fulfill the customers. Related to that, Dell Company has to establish its Research and Development department in order to produce new products to the market. In the mean time, Dell Company provides various enterp...
Promotional strategies will depend on the size, situation and specialties of the centre. When planning the annual strategy, it is important to ensure that the correct timing and mix of promotions is taken into consideration. When planning, it is imperative to take into consideration religious holidays, public holidays, and school holidays. Provision should also be made for major merchandising opportunities and low trading periods must not be forgotten. Before any promotional proposal is accepted, the marketing manager should be satisfied that it will be promoted and advertised adequately so that it will draw additional shoppers to the centre. It may be advisable to issue instructions on the format of advertising posters. Advertising is very necessary to support promotions. Promotion depends on heavy advertising and public relations to build brand awareness and educate shoppers on the product’s benefits. advertising is the key component of a promotion and is usually one of the most visible elements of a marketing communications program. Advertising is paid, nonpersonal communication transmitted through media such as television, radio, magazines, newspapers, direct mail, outdoor displays, the internet, and mobile devices. Internet advertising is the fastest growing medium, while traditional media such as newspapers, radio, and magazines are struggling with meaningful declines in ad revenues. Because
companies have since quite a while ago utilized characters of note to advance their items. Given the rising in thing contrasting qualities today, this has provoked a development in the totals spent on extraordinary exercises by various affiliations. One approach to accomplish this is through celebrity endorsement, which has gotten to be a standout amongst the most prominent publicizing procedures for advancing different sorts of items, administrations or brands.