vMichael Jordan and Monopolistic Competition

Running Head : CELEBRITIES IN ADVERTISING

The Effectiveness of Celebrity Endorsement in Advertising

[Writer 's Name]

[Name of Institution]

The Effectiveness of Celebrity Endorsement in Advertising

Advertising is one of the most effective strategies of non-price competition , that 's why it is closely associated and widely used in terms of monopolistic competition . Companies in monopolistic competitive market can not sell more of their differentiated product without lowering the price . Thus , advertising is a great instrument to gain more customers and increase the sales without cutting the price . Despite of different

views on economic effectiveness of advertising , modern large companies in monopolistic competition spend millions of dollars for promotion of own brands , goods or services

It is a known tactic to employ celebrity endorsement for advertising own product . In particular , for many years Michael Jordan has been appearing in Nike ads , and the products of this company are associated with Jordan on global scale . Many companies use a celebrity or athlete for advertising its goods or services because celebrity endorsement attracts more attention of target audience , as well as it increases credibility and improves reputation of the brand in customers ' eyes , leading eventually to higher sales . Specialists comment that celebrity is already a known brand , and his /her endorsement of the product helps to make it more popular . You have the core brand and then you have the celebrity brand , and , when that confluence is positive , the impact can be tremendous (Storey , 2006

In my opinion , participation of professional athletes in ads of certain brands can be considered quite convincing and effective from two perspectives . First of all , only successful powerful companies , which offer mostly first-class quality products , can afford inviting famous sportsmen (like Michael Jordan or David Beckham ) to advertise their goods . Besides , sport is a passion of people of different ages . Both children and adults around the world love sports very much , and that 's why target audience of such advertising is very large . Nevertheless recently British specialists found out that currently the effectiveness of celebrity endorsement is firmly decreasing (BBC News , 2007

References

Celebrity Ads ' Impact Questioned (2007 , February 27 . BBC News . The British Broadcasting Company . Retrieved February 25 , 2008 , from

Storey , L (2006 , October 12 . Seeing Stars . The New York Times Retrieved February 25 , 2008 , from

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The Effectiveness of Celebrity Endorsement In Advertising...