Fame sells

July 05, 2007

What do Kylie, Paul Newman, and Celine Dion have in common" They are all celebrity entrepreneurs. But does selling their own products rather than endorsing others help boost sales"

Celebrity entrepreneurs can sell their own products better than those stars who simply endorse those of other companies, according to business analysts writing in this month's issue of Inderscience's International Journal of Entrepreneurship and Small Business. Those celebs are not only more heavily involved in their own products and so have a vested interest in sales, but their direct connection to the product makes them more effective in communicating why you, the consumer, should buy it.

Endorsements by the rich and famous have long been a staple of the advertising industry. They can give an otherwise mundane product, such as a shaver or carpet cleaner, a sprinkle of star dust and turn lacklustre sales into lucrative blockbusters. They can even boost sales still further for classic brands that only need a marketing shot in the arm. Market research has shown repeatedly that celebrities can "instantly" add personality and appeal to even unknown products and make or break recognised brands.

However, pop stars, sports personalities, and film actors quick to exploit their fame and image, have themselves begun creating their own brand identity. Think about Kylie's lingerie, Paul Newman's Own food products, and Celine Dion's perfume. These and many other celebrity entrepreneurs can advertise and endorse their product directly, cutting out a third party company from the business deal.

Erik Hunter of Jönköping International Business School in Sweden working with Per Davidsson of the Brisbane Graduate School of Business, Australia, have carried out the first analysis of the marketing of celebrity products and have found that a celebrity's own involvement in the product is truly the key to its success compared with the old-style endorsement marketing.

They add that from the consumer's perspective, the celebrity's involvement in their product essentially rubs off and adds to the value of the product compared with a product being endorsed but not celebrity branded.

There are four main groups who will benefit from Hunter and Davidsson's detailed analysis. First the celebrity entrepreneurs themselves who can find out whether or not being fully involved in a product is a more effective use of their "celebrity capital" rather than simply being paid to endorse an independent brand. Secondly, marketing executives and advertising agencies can discover whether they can get better value for money in selling a product in this way. Thirdly, academic researchers and economists hoping to understand consumer decisions will benefit from the analysis.

Finally, consumers and consumer groups can become better informed as to whether a celebrity truly values their product or whether it is exploitation in the name of fame. After all, do you know whether Kylie wears her own-brand lingerie, or Celine scents up with her perfume" Does Paul Newman really drizzle his Own salad dressing on his salads" Find out and you will be on to a marketing winner.
-end-


Inderscience Publishers

Related Marketing Articles from Brightsurf:

How to maximize the potential of marketing agility
Marketing agility is best suited for those marketing decisions where the market response is highly unpredictable, the decision parameters can be broken down into smaller components, and when it is feasible to get quick customer feedback, and when there is less dependence on third parties for executing the marketing activity.

Covert tobacco industry marketing tactics exposed by former employees
Tobacco companies use covert marketing tactics and exploit loopholes in Australian tobacco control laws to promote their products despite current tobacco advertising bans, finds new research from University of Sydney and Cancer Council NSW.

The three strategic priorities of marketing excellence
Investors value marketing excellence more highly than they value strategies based on market orientation and marketing capabilities.

How nonprofits can boost donations using the marketing mix
Nonprofits may better meet their missions by learning to effectively employ the entirety of the marketing mix to attract individuals to available donation opportunities.

Marketing researchers identify the three most powerful drivers of effective crowdfunding
While the concept of crowdfunding is still in its early phases of development, a group of marketing researchers have conducted a study that reveals the most powerful drivers behind effective crowdfunding campaigns.

Alcohol marketing and underage drinking
A new study by a research team including scientists from the Prevention Research Center of the Pacific Institute for Research and Evaluation provides a systematic review of research that examines relationships between exposure to alcohol marketing and alcohol use behaviors among adolescents and young adults.

Scholars explore role of digital environments in international marketing
Journal of International Marketing launched its 2020 volume with a special issue examining new implications of the digital environment related to the study of international marketing.

Study: Pharmaceutical companies marketing stimulants to physicians
Results of a new study show that a large number of physicians in the US may have received marketing payments from pharmaceutical companies that produce stimulant medications.

Automated text analysis: The next frontier of marketing innovation
The volumes of text data generated in the marketplace can be valuable in generating marketing insights using the newest text analysis methods and technologies.

Global study reveals most popular marketing metrics
Satisfaction is the most popular metric for marketing decisions around the world, according to a new study from the University of Technology Sydney.

Read More: Marketing News and Marketing Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.