Research

 

Look Here

            In the world of promoting your business, companies will pay a lot of money to have people see their name. The idea of marketing is to make consumers see the company name or product they are promoting. This can be done in a variety of ways. Marketing is a strategic game to target a specific customer group. Groups range from young to old and male and female. There are different methods for targeting these groups based on what the consumers like. If a company has a person represent their company through endorsement or use social media to target groups sales can increase.  

Companies pick specific target groups to try to sell or promote a product. The use of social media to target these groups is a growing trend. Companies use to target individuals in these groups. More and more people use social media every single day. The current estimated number of people that used social media sites such as Facebook, Twitter ect. is 1.73 Billion. This is a massive pool of people for marketers to draw information from. To learn trends and customer patterns. Technology has made it considerably easier to analyze data of consumer spending habits and where to advertise. This has facilitated companies expansion nearly exponentially. Business put their names beside everything they feel can better the name of the corporation. For example you see Nike or Under Armor associated with everything sports. These companies purposely advertise to those who watch sports and are involved in them. They can advertise to these certain individuals from the user’s internet searches. The company will then place there ad on the individuals screen for them to see, consequently increasing sales for the company.

            Endorsements are also a big part of marketing. If a corporation feels a person will promote and embrace the main ideas of the company, they will hire them to wear or embrace a product. We all know the phrase “did you eat your Wheaties this morning?” This statement was made famous by the athletes that indorsed the Wheaties product. In a study taking 100 professional athletes 93.7% of those athletes endorsing a food product, endorsed a product or drink that was high in sugar or not categorized as a healthy product. All of the products that the athletes endorsed increased in sales. With health standards set aside, people still bought more of the product. Clearly there is an inclination when backing your product with a big name, not only limited to the athletic field. In the world of sports, endorsements are a major deal. Normally contracts mean a lot of money for the person endorsing a product. For example in 2011 Tom Brady signed a multi-million dollar deal with Under Armor. After the endorsement of Tom Brady to the Under Armor product line sales increased by 31 percent from 2011-12. A Harvard study states “performance statistics for athletes are readily available and often fluctuate dramatically over relatively short periods of time.” A celebrity endorsement can raise sales 14% to 19%. Celebrity endorsements are useful to a company and can have positive impacts on the business and sales of a product. You would typically see celebrities endorse body care or appearance products, the way the media portrays the celebrities these days everyone is endeavoring to be like them as much as possible. This is why an endorsement in the cosmetics field usually fit high profile celebrities the best. Although firms normally see a greater return on investment on an athlete especially if an athlete is preforming well on the field and has numbers to back it up. This phenomenon was best seen by all of the world when two-sport professional athlete Bo Jackson endorsed Nike. The explosion of the Nike brand was almost overnight, Bo Jackson was viewed as a legend in the eyes of the American people. Jackson was seen as someone that was not from the planet, everyone wanted to be like him. Knowing that Bo Jackson wore Nike apparel, people flocked to the brand. Nike launched The “Bo Knows” campaign and sales exploded. Sales grew exponentially. Nike sales also grew in part of other major athletes Nike had co-signed with. Michael Jordan was one of them, arguably the greatest basketball player ever to live.

            Technology is growing and continues to develop, more and more people use the internet every day. This is something business’ see and want to utilize. Companies find a specific group they want to target, then with the power of the internet they use key search words that individuals type on search engines. Once the word has been searched, specific ads pop up for the user to see.  Special software works with search engines for keyword analytics to place ads. When you search something on the internet it leaves a data trail, these are called cookies. Companies store this “cookie” data and use it to target your next move on the internet. This is based off how many times you may have looked up or researched merchandise. Corporations are also discovering how to better leverage analytics tools in order to collect and examine data across all integrated media channels in order to make better marketing decisions. Companies strategically place ads so future customers want to buy their product. Ads that appeal to customer’s instinct is to automatically make someone want to purchase the item. Many companies are successfully integrating digital marketing strategies with direct response television advertising, print, and radio. Finding the perfect mix of where to place ads is the challenge right now for many companies. Businesses want to spend as little as possible on marketing there product, while seeing the greatest returns.  Placing ads on a user’s screen is not only more efficient than placing an ad on a billboard or on the television screen, it is cheaper. Growing databases are currently helping companies figure out the right mix as of where to advertise. The challenge that is presenting itself is the target market. Take elder people for example if you want to show a product such as a walking cane to a specific age group you are most likely not going to put ads for the cane on the internet, where most elder people are not acclimated with the internet. You would place this ad on a show that has an elder audience and watches TV.

Text Box: Figure 1: This graph represents the growth of the internet in just the first quarter of the 2013 fiscal year            Online ads are rising in Popularity and will someday be the premiere way of advertising. Over the past year alone http://venturebeat.files.wordpress.com/2013/10/screen-shot-2013-10-09-at-12-28-09-pm.png?w=700&h=online advertising had risen 18% to 20 Billion dollars in just the first half of 2013, a new record for internet advertising. As we can see that the internet will be a powerful apparatus for companies to use. This will be the primary way to get customers to buy their product. Online advertising has more bang for its buck verse the traditional print text you would see in the everyday newspaper, simply because electronic advertising is becoming the way to go. The companies that make the most off available advertising space are the top ten visited websites on the internet. Such as Facebook, Google and other social media outlets and search engines. Evidently it would make sense why these companies can make the most off that specific advertising spot on the website, they are in such high demand.

            As the internet continues to grow and future athletes will rule the fields or courts of their particular sport, companies will continue to exploit their resources. Associating a brand name with a top notch athlete or a website of a choice can not only bring a good return on its money, but it can reap the benefits of doing so with massive surplus. All while spreading the name of your brand across the board on a global scale. The internet is accessible anywhere in the world and anyone can view your specific website, where in the older days of newspapers this would simply not be possible. The significance of the internet is vital to those trying to expand a business, it is easily accessible by those who are not located in the same area. The internet’s vast reach can allow advertisers to reach significantly more people than traditional advertising media at a fraction of the cost. There are several advantages with the internet and associating your brand name with a celebrity or a big name sports athlete. The moral of the story is that it will boost income for your place of business, if a collaboration of the two is done correctly companies can see sales sprout through the roof. Advertise smart and be represented well and your business might succeed in this feast or fathom global scale economy. 

 

 

 

 

 

References

 

v  Marie A. Bragg, Department of Social and Behavioral Sciences, Harvard School of Public Health, Boston, Massachusetts.

Ø  http://pediatrics.aappublications.org/content/early/2013/10/02/peds.2013-0093.abstract

v  Jeron Verleun, Harvard Business School, Cambridge, MA

Ø  http://www.people.hbs.edu/aelberse/publications/Elberse_Verleun_2012.pdf

Ø  http://money.cnn.com/2013/06/13/leadership/under-armour-endorsements.pr.fortune/

v  Philip H. Knight, Chairman of the Board, Nike

Ø  http://investors.nikeinc.com/files/doc_financials/Annual_Report_90.pdf

v  http://www.onguardonline.gov/articles/0042-cookies-leaving-trail-web

v  Brent Gleeson, Forbes Magizine

Ø  http://www.forbes.com/sites/brentgleeson/2012/11/20/tv-advertising-vs-digital-marketing/

v  Michaela Draganska, Drexel University, Wesley R. Hartmann, Stanford GSB

Ø  http://faculty-gsb.stanford.edu/hartmann/Internet_vs_TV.pdf

v  John Koetsier, Venture Beat, Website.

Ø  http://venturebeat.com/2013/10/09/online-ad-revenues-jump-18-to-20b-in-first-6-months-of-2013-a-new-record/

Ø  http://venturebeat.com/2013/10/09/online-ad-revenues-jump-18-to-20b-in-first-6-months-of-2013-a-new-record/#jp-carousel-830961

v  David Ingram, Houston Chronicle.

Ø  http://smallbusiness.chron.com/advantages-disadvantages-advertising-internet-4029.html