What are the advantages and disadvantages for companies of product endorsement?

Hello teacher, my name is TTYN. I am delighted to be here today to tell you about
advantages and disadvantages for company of product endorsement. And I =will start
with the advantages of product endorsement

First of all, product endorsements helps your brand be able to stand out. Celebrity
endorsement will help people remember the ad, including someone who is well-known in
an advertisement may also attract consumer ad recall, because it leaves an impression in
their mind. That means your product becomes the first choice if a consumer find it is
relevant. Then, it may open up new markets for your business. A celebrity
endorsement gives you the opportunity to reach out to a different set of demographics and
new markets with the products that you offer. One classic example of this benefit is Nike.
Before they partnered with Michael Jordan (Jú đân), the sportswear brand was primarily a
track and tennis brand. After they set up their partnership, the company grew so much
that it has been able to reach (ri) into other sports as well. Next, it creates a (ri ây tờ)
higher retention rate for future customers. When you have a proper endorsement
pitching your goods or services, the customers that do convert for you come at a 40%
higher retention rate compared to a standard (stan đơ) advertisement. If your endorsement
is through an influencer, then the rates are even higher. Finally, it creates a brand
trigger for consumers. When a well-known name is endorsing products or services, it
creates a trigger in the mind of the consumer. Every time they see that person
somewhere, there is a chance that they will think of the product being pitched.

Besides the upsides that it brings, they still exist (tiu lịt xịt)some downsides. Firstly,
celebrities become overexposed. When a celebrity works with so many companies, the
celebrity’s credibility may suffer. People may feel that the celebrity will endorse anything
to make a buck. Secondly, a good endorsement can not fix a bad product.
Endorsements are based on the idea that the product being pitched is a good one. If your
product quality is lacking (lát king), then even the best endorsement won’t be able to save
your business from the fallout which will occur. If businesses don’t fix the problems that
have, then will be out the cost of the endorsement and still be dealing with negative
reviews. Thirdly, it is expensive to hire people to endorse products. Example, PepsiCo
once signed Beyonce for a 10-year endorsement contract that was worth $50 million.
Derrick Rose once signed a 13-year contract with Adidas for $185 million. These are
very valuable validity contracts. If you want to put a popularity with your product to pitch
it, there is going to be a cost associated with it that some businesses may not be able to
afford. Finally,the endorsement may one day eclipse the product. There are times
when an advertisement, an endorsement, or even a celebrity may overcome the brand
message that is being offered to patron. PepsiCo encountered this issue in 2017 when
they hired Kendall Jenner to serve as a “bridge” between protestors by offering a police
officer a can of soda. Instead of promoting the beverage, the advertising’s messages (mé
sơ giịt)were strongly criticized and that drove purchasers away.
These product endorsement advantages and disadvantages show that a well-maintained
relationship with a celebrity or an important figure can boost (bút) attention, sales, and
loyalty. If the image of the endorsement changes, then the results can be catastrophic.
Even with proper vetting, it can be difficult to predict human behavior. That is why any
relationship like this should be approached with caution, especially from a small business
perspective. That brings us to the end of my presentation. Thank you for listening!!