Tag Archives: consumer behavior

Athletes as Endorsers

Athletes as celebrity endorsers play a major role in marketing and building brand awareness around the globe. An individual celebrity who endorses a product can often be seen as an effective spokesperson and help to generate awareness and sales for products. In fact, sports sponsorship is a $60 billion industry globally and includes endorsements for sportswear, beverages, technology, and more.

According to Forbes magazine, four top athletes – Roger Federer, LeBron James, Stephen Curry, and Kevin Durant – earn more from endorsements than from their sports winnings! But, great as these athletes are, a younger generation of athletes under 25 years old are on their way up, and brands are on the lookout.

To help determine an athlete’s marketability, Nielsen Sports researches social media data to arrive at an “Athlete Influencer Score” comprised of evaluating an athlete’s relevance, reach, return, and resonance. It incorporates factors such as social following, fanbase growth, and media value. The company’s report includes this year’s 50 most marketable, young athletes.

Among the top pro contenders are:

  • Kylian Mbappe, age 20, France, soccer
  • Simone Biles, age 22, U.S., gymnast
  • Patrick Mahomes, age 23, U.S., football
  • Naomi Osaka, age 21, Japan, tennis
  • Rose LaVelle, age 24, U.S., soccer

It’s not always easy for any celebrity to become an effective brand ambassador. The celebrity’s built-in fan base usually comes with specific consumer behaviors and purchases. There are many ways for brands and their athlete partners to reach fans. In particular, social media platforms are very effective in speaking directly to fans and can provide meaningful communications.

Which athlete do you trust?

Group Activities and Discussion Questions:

  1. Discuss the communication process: sender, encoding, message, medium, decoding, and receiver.
  2. What role do celebrity endorsements play in the communications and marketing roles?
  3. What features make an athlete an effective spokesperson for a product or brand?
  4. Link to report from Nielsen Sport: (must register on Nielsen) https://nielsensports.com/50-most-marketable-athletes/
  5. More information: http://nielsensports.com/wp-content/uploads/2014/09/nielsen-power-of-one-athletes-as-endorsers.pdf
  6. Divide students into teams. Have each team identify 10 different athletes that they have seen endorse products.
  7. Are these successful, or unsuccessful, spokespeople?
  8. Finally, select a number of industries or products and have students discuss which athletes best fit the product.

Source:  Forbes; Nielsen Research

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Black Friday/Cyber Monday 2020

Since we wrote about November 11 – Singles Day in China, it seemed only fitting to next cover U.S. shopping over Black Friday and Cyber Monday. And, while the gross revenue sales in the U.S. fell well beneath the 2020 Singles Day record of more than $75 billion in purchases over an 11-day period, U.S. shopping still hit record levels of roughly $9.6 billion on Black Friday, an increase of 21.6% from 2019!

Black Friday shopping was followed by another strong shopping day tallying $10.6 billion on Cyber Monday. To many marketers, more interesting than the dollar amounts are the shifts in habit to online shopping. In particular, sales on mobile devices accounted for an estimated 40% of purchases for a total of $3.6 billion, an increase of 23% compared to last year. Mobile is where it’s at these days.

Some additional shopping highlights:

  • People spent an average of $312 on holiday purchases between Thanksgiving and Cyber Monday.
  • Americans spent 116.6 million hours shopping online.
  • Consumers spent $6.3 million per minute online.
  • Average spending per consumer online was $27.50.
  • Biggest categories were electronics, clothing, and toys.
  • In-store shopping on Black Friday declined 37% .
  • Online shopping on Black Friday increased 8%.

Consumer shopping habits are certainly changing. Now marketers have to keep up!

Group Activities and Discussion Questions:

  1. Discuss the changes in U.S. consumers’ shopping habits.
  2. What new shopping habits have the students formed?
  3. Where do they shop? Why? Online and in person?
  4. Show video about the changes in store for Black Friday shopping: https://www.wsj.com/video/the-end-of-the-mad-rush-how-2020-is-reshaping-black-friday/FD19834F-9701-46E9-A6D5-14A1AE2F9601.html
  5. Poll students about their shopping over Thanksgiving Week – Cyber Monday. How much was spent, which products were sought after, etc.?
  6. Divide students into teams.
  7. Considering the increasing use of shopping on smart phones, have students develop a marketing campaign specifically for mobile devices.

Source: AdWeek; CNBC; New York Times; Wall Street Journal; other news sources

 

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Digital Commerce Continues to Grow

More than any single factor, the pandemic has impacted virtually all industries, but it has most impacted how consumers shop. Prior to 2020, consumers may have shopped online for many different products and services, but since mid-2020 buying habits have changed significantly. Consumers now feel more comfortable buying what were once in-person purchases such as cars, food, and medical or health care needs.

A recent survey by McKinsey & Co. highlighted that since the pandemic began, three out of four people have tried new shopping and delivery methods. More than half of the consumers surveyed intend to continue to use curbside pickup or delivery services after the pandemic ends. Roughly 70% of those consumers intend to keep buying online. Among the changes are increases in online streaming, grocery delivery, restaurant curbside pickup and delivery, and store curbside pickup. Consumers are going online not just for shopping; they now go online for medical appointments, fitness classes, tutoring, and more.

While these changes are good for digital commerce providers, they are not so good for traditional brick-and-mortar retailers. This year will likely see a record of store closings, bankruptcies, and liquidations. And, retailers have had to shift how they deliver services, including more online experiences such as digital events, contactless payment methods, virtual online services, and curbside pickup.

Overall, ecommerce in the U.S. rose to 16.1% from 10.8% a year ago. New shopping habits also extend to a decline in cash and an increase in credit and debit card use.

To quote Bob Dylan, “the times they are a changing.”

Group Activities and Discussion Questions:

  1. As class begins, poll students about their shopping.
  2. What are the last three websites they visited? Did they buy anything? Why or why not?
  3. How have their shopping habits changed this year?
  4. Do they have new online shopping habits?
  5. Will they keep these new habits once the pandemic is contained?
  6. Show video about how pandemic has changed shopping habits: https://www.wsj.com/video/the-future-of-retail-how-will-the-pandemic-change-how-we-shop/526ADB88-F6D1-4B77-AA97-BAA323496D4D.html

Source:  Wall Street Journal

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