Sports enthusiasts are in constant admiration of prominent sports figures; something which marketers have seen as a perfect opportunity to promote their products through endorsements. A consumer is likely to be influenced to prefer a product which has been endorsed by his/her favorite sports idol. This gives the company a competitive advantage over competitors, as well as increased sales.
Large corporations spend billions to have sports idols endorse their products ranging from clothing, food products, drinks and many more. However, the idea of marketing through sport seems to be losing popularity among marketers compared to past few decades. This is owed to several factors such the huge cost of the endorsements.
Take for instance, the move by Nike to launch marketing campaigns for its products which will feature the sports icon, Lin, is likely to cost millions of dollars (Antonio, 2012). Many business establishments cannot afford such costs, leaving the opportunity to only a few large firms.
In the recent past, people have witnessed endorsement deals go sour resulting in court litigation, huge costs as well as tainting of company’s image. In fear of such an occurrence, most firms are reluctant to enter into endorsement contracts. Back in 2002, Jordan’s deal with MCI-WorldCom went sour when the company became bankrupt. The process was complex and costly; something any company would be scared of (Baldridge, Berthiaume, 2007).
One cannot be wrong to say that sports marketing through endorsement of products by athletes will remain to be a practice of the rich few. However, the small firms do not have to go for the most popular sportsmen whose endorsements will cost a fortune. Sponsoring smaller sports events can be a great way to popularize their items. For example, a company can promote its clothing line by dressing players of a particular team. Taking advantage of such opportunities can be a very good way of changing the diminishing trend of athlete endorsements.
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