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Extension Meeting Management and Program Support

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Page 1: Celebrity endrosement

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OL + CE

Opinion Leadership&

Celebrity Endorsement

Presentation on Presentation on

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OL + CE Opinion Leadership

Celebrity Endorsement

AGENDA

AGENDA

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OL + CE Books

Websites www.iitk.ac.in www.rediff.com www.indiatimes.com www.financialexpress.com

Sources Sources

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Opinion Leadership (Word-of-Mouth communications) is the process by which one person (the opinion leader) informally influenced the action or attitudes of others, who may be opinion seekers or merely opinion recipients.

What is Opinion Leadership ?

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They key characteristics of influence is that it is interpersonal and informal and takes place between two or more people, none of whom represents the commercial selling that would gain directly from the sale of something.

This often called word-of-mouth communication or the opinion leadership process

What is Opinion Leadership ?

Contd...

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word-of-mouth implies personal, or face-to-face, communication, although it may also take place in a telephone conversation or in the context of chat group on the internet

What is Opinion Leadership ?

Contd...

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Dynamics of the Opinion Leadership Process

• CREDIBILITY• POSITIVE AND NEGATIVE PRODUCT

INFORMATION• INFORMATION AND ADVICE

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OPINION LEADERSHIP IS CATEGORY SPECIFIC

9% Financial Services

18% Automotives

22% Travel

24% Consumer Electronics

36% Computer HW/SW

69% Restaurants

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OPINION LEADERSHIP IS TWO WAY STREET

• The consumer who are opinion leaders in one

product-related situation my become opinion

receivers in another situation.

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THE MOTIVATION BEHIND OPINION LEADERSHIP

• NEEDS OF OPINION LEADERS

• NEEDS OF OPINON RECEIVERS

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MEASUREMENT OF OPINION LEADERSHIP

There are four basic measurement techniques.

1. The self-designating method2. The sociometric method3. The key informant method4. Objective method

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SELF-DESIGNATING METHOD

The self-designation method is the most commonly used technique in opinion leader identification.

Here, respondents are asked to evaluate the extent to which they have provided other with information about a product category or specific brand or have otherwise influenced the purchase decisions of others.

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SELF-DESIGNATING METHODContd…

The Self-designating technique is used more often than other methods for measuring opinion leadership because consumer researchers find it easy to include in market research questionnaires. Because this method relies on the respondent’s self-evaluation.

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SELF-DESIGNATING METHOD

SINGLE-QUESTION APPROACH:In the last six months have u been asked you advice or

opinion about “golf equipment”

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SELF-DESIGNATING METHOD

MULTIPLE-QUESTION APPROACH: Measured on a 5-point bipolar “Agree\Disagree” scale)

1. Friends and neighbors frequently ask my advice about golf equipment

2. I sometimes influence the types of golf equipment friends buy.

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SELF-DESIGNATING METHOD

3.My friends come to me more often than I go to them about golf equipment

4.I feel that I am generally regarded by my friends as a good source of advice about golf equipment

5.I can think of at least three people whom I have spoken to about golf equipment in the past six months.

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SOCIOMETRIC METHOD

Sociometric, the second method, involves tracing the communication patterns among group members. It measures the person-to-person informal communication of consumers concerning products or product categories. In this method respondents asked to identify (1) the specific individuals (if any) to whom they provided advice about the product or brand under study and (2) the specific individuals (if any) who provided them with advice about the product or brand under study.

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Contd…

Members of social systems are asked to identify to whom they give advice and to whom they go for advice and information about a product category.

Sociometric questions have the greatest degree of validity and are easy to administer.

Sociometric is the most precise method, but it is expensive and very difficult to execute and complex.

Requires a large number of respondents.

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Contd…

SAMPLE QUESTION ASKED:“Whom do you ask?”“Who asks you for information about that product category?”

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KEY INFORMANT METHOD

Opinion leadership can also be measured through the use of a key informant, a person who is keenly aware of or knowledgeable about the nature of social communication among members of a specific group.

The key informant is asked to identify those individuals in the group who are most likely to be opinion leaders.

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Contd…

Carefully selected key informants in a social system are asked to designate opinion leaders.

This method is relatively inexpensive because it requires that only one individual or at most several individuals be intensively interviewed, where as the self-designating and sociometric methods require that a consumer sample or entire community be interviewed.

Informants who are not thoroughly familiar with the social system are likely to provide invalid information.

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Contd…

SAMPLE QUESTION ASKED:“Who are the most influential people in the group?”

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OBJECTIVE METHOD

Objective method is much like a “controlled experiment” – it involves placing new products or new-product information with selected individuals and then tracing resulting “web” of interpersonal communication concerning the relevant products.

It artificially places individuals in a position to act as opinion leaders and measures results of their efforts.

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Contd…

SAMPLE QUESTION ASKED:“Have you tried the product?”

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Contd…

SAMPLE QUESTION ASKED:“Whom do you ask?”“Who asks you for information about that product category?”

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Contd…

SAMPLE QUESTION ASKED:“Whom do you ask?”“Who asks you for information about that product category?”

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CELEBRITY

ENDORSEMENT

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Factors Critical in Celebrity Advertising

Cost Credibility Crisis Factor

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Forms of Celebrity Endorsement

As spoke personIn print and electronic advertisementsIn outdoor media like hoardingsAs brand ambassadorsThe use of brands by celebrities in movies.

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Reasons for Celebrity Endorsement

Brand has close substitutes available.Need to create a clear differentiation.Entry into the market.When the life cycle of the brand is feared short.

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CUSTOMERS

BRAND

CELEBRITYAdvisement

Adv

isem

ent Advisem

ent

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Why Celebrity themselves would like to endorse products…

Huge compensationLevel of Acknowledgement Endorsement breeds Endorsement

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Why Customers accept the Celebrities

MessagesCelebrity Expertise perceived relevantCelebrities are perceived TrustworthyAmbitious psychePhysical Attraction

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Critical Issue Related To Celebrity Management

Duration of endorsementMultiple endorsement Celebrity Life CycleVampiring

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1.Cost incurred on the celebrity as a percentage of budget

2.Currently or recently endorsements of the celebrity with another entity

3.Whether the celebrity is strongly identified with another product, company or not.

Possible Check List before a Celebrity Endorsement is done

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4.The number of commercials or ads the celebrity has appeared in over his or her career

5.Does the celebrity identify with a trend or fashion style?

6.Is the celebrity regarded as controversial?

7.Is the celebrity likely to alienate certain market segments?

Contd...

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When it doesn’t work

Improper positioningBrand-celebrity disconnectClutter FlutterDissatisfaction with product qualityConfusion

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Is it smart to use celebrity endorsements for branding?

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The rewards of using celebrities for your brands

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CONCLUSION

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Is it smart to use celebrity endorsements for branding?

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[email protected]

Thank you for your proper

response and

support!For further information contact:

[email protected]

From : Parakhiya Vasant