Nobody would argue that Tiger Woods not only is a skilled athlete but that he deploys his personality and charisma well enough to draw audiences and attention to the events that he appears in. In addition, he is an undeniably powerful marketing symbol for a host of corporations. In spite of that drawing power and name recognition, it appears that even Tiger Woods could not save General Motors. As reported by here in the Guardian and other media, Tiger Woods has acceded to the request to end a sponsorship deal worth US$ 10 million annually.
Again, it is unsurprising that corporations are so enchanted with celebrities that they are unwilling to consider whether there is real value in attaching a name to a product. Endorsement deals are probably useful but the design of the payment scheme should be such that it is based on real improved sales that can be attributed to the endorsement. A ten year contract such as this is obviously not the best way to promote sales for the Buick.
The moral of this story: it is not enough to have one of the most recognizable athletes to promote cars that few people wish to buy. I am sure that this common sense dictum is one that many marketing executives tend to be oblivious of and wish that their clients do not notice. At a more cynical level, what really is the value added by endorsements?
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2 comments:
Even tiger is scared of the debt, its' ridiculous. The media is blowing it out of proportion. The bailout's are leading to easier ways for you and I to get out of debt. The debt situation is getting better. With the recent bailout, it has opened more doors for the consumer. Most people don't take the time to check all options before claiming bankruptcy.
Debted.blogspot.com
Tiger Woods Accenture advertisement..is the case point.
simple ,well written snippet.
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