ISSN 1822-6515 EKONOMIKA IR VADYBA: 2007. 12
ISSN 1822-6515 ECONOMICS AND MANAGEMENT: 2007. 12
THE SOLUTIONS OF CELEBRITY ENDORSERS SELECTION FOR ADVERTISING PRODUCTS Kamil Junokait 1, Sonata Alijošien 2, Rasa Gudonavi7ien
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JSC Baltic Saitas, Lithuania,
[email protected] Kaunas University of Technology, Lithuania,
[email protected] Kaunas University of Technology, Lithuania,
[email protected]
Abstract The billions of dollars spent per year on celebrity endorsement contracts show that celebrities play an important role for the advertising industry. Nowadays many companies choose to use celebrities as endorsers for their advertising campaigns. Use of superstars in advertising campaigns attracts a lot of attention from the public and the three main questions occurs: when do companies use celebrity endorsers in their advertising; how do companies select the celebrity endorser and how do companies handle the risks of using a celebrity endorser in their advertising. In this article theories that deal with how companies select a celebrity endorser are reviewed. Since, most companies of today act in the international market, the use of celebrity endorsers as a tool to draw attention to the advertisement, has increased. A reason for this is that global marketing communication strategies can be vulnerable in individual countries because of cultural roadblocks, such as time, space, language, relationships, power, risk and other cultural differences between countries. (Hofstede, 1984) Celebrities with worldwide popularity can help companies avoid many of these problems and decrease the number of cultural roadblocks. According to Millward Brown (2006), nowadays, more than 20 percent of all TV commercials feature celebrities and endorsers are used in broadcast media, both Television and Radio, in print media and even in outdoor billboard advertising. According to Atkin and Block (1995), there are two main reasons why celebrity endorsers have gained so much popularity. First, they are traditionally viewed as being highly dynamic, having both attractive and likable qualities. Secondly, their fame is thought to attract attention to the product. Famous names can help prominent brands maintain their high profiles. But brands of lesser status need more than just high visibility. Brands with news to deliver need credibility, while brands seeking to shift or reinforce positioning need relevant celebrity values. However, finding celebrities who embody the right values can be difficult on today’s pop culture scene, where the 24 hour news media is always on a prowl of the story. The aim of this article is to describe the methodises of celebrities selection, the most attention paying to the criterion of selection and support it by a case study. In order to achieve the purpose, the following research methods have been used in this article: systematic and comparative scientific literature’s analysis, empirical investigation. The result of the research: to make theoretical studies and review theories describing how companies select between different celebrities to get the best person possible to endorse their products or brand. The practical aspect of this research – to support the prepared celebrity selection methodics with the brand of Axa Celebrity selection practice. The Axa brand is a part of Cerealia Foods, which in turn is a part of Carealia group. Axa produces and market oats based snack and breakfast products. Keywords: Celebrities selection, Celebrity Endorsement, Celebrities impact on branding
Introduction Celebrities are individuals who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement. (McCraken, 1989). According to Atkin and Block (1983) there are two main reasons why celebrity endorsers have gained so much popularity. First, they are traditionally viewed as being highly dynamic, having both attractive and likable qualities. Secondly, their fame is thought to attract attention to the problem. Nowadays, more than 20 percent of all TV commercials feature celebrities (Belch & Belch, 2001) and endorsers are used in broadcast media, both Television and Radio, in print media and even in outdoor billboard advertising, and their effectiveness in each has been tested (Redenbach, 1999). The value of celebrity endorsements has been recognised worldwide. The use of celebrities’ endorsers is not limited to any one industry. Companies use celebrity endorsers cross all industry including package goods, telecommunications, financial services and auto industry (Lane & Speigel, 1996).
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The purpose of this article is to gain a better understanding of how celebrities are used as endorsers in advertising, more detailed – how does the companies choose which celebrity should advertise their products. The selection of celebrity endorsers is an important task. In consequence, the subject has attracted a considerable amount of academic and practitioner interest, from the foundations laid by Hovland and his associates in the early 1950s (Erdogan, Baker & Tagg, 2001). Different approaches on how to select the celebrity endorsers have been developed from this foundation. The association of pop stars, movie stars and other celebrity faces to a particular product is a widely used marketing strategy. This comes naturally during this time of convergence, where the line is becoming increasingly blurred between celebrity, product and entertainment. Celebrity endorsement can be a highly effective form of dramatic communication with the consumer. This is because celebrities come with their own narratives which have been built and reinforced over a long period of repeated public performance. They embody meanings which allude to distinction in lifestyle, class, gender, age, status and personality types. Celebrity endorsement plays the role of the signalling strategy and is increasingly employed across various industries regardless of the product type. This endorsement increases market acceptability and awareness, eventually creating sales momentum. Celebrity employment in advertisement campaigns is used as a signalling strategy to achieve visibility in product launches and as a persuasive tactic to lure and dazzle consumers. That is why a very important thing is to choose a proper celebrity to endorse the companies products. The result of the research: to make theoretical studies and review theories describing how companies select between different celebrities to get the best person possible to endorse their products or brand. The practical aspect of this research – to support the prepared celebrity selection methodics with the brand of Axa Celebrity selection practice. As an example of selecting the celebrity endorsers, the Swedish company Axa is taken. The keywords of the article: Celebrity endorsers, celebrity power, celebrities’ impact on branding, celebrities selection.
The main factors, having influence on Celebrity Endorsement Celebrity endorsement is a billion dollar industry today with companies signing deals with celebrities hoping that they can help them stand out from the clutter and give them a unique and relevant position in the mind of consumer. According to Solomon (2002), the reasons for using celebrity endorsement involves its potential to create awareness, positive feelings towards their advertising and brand. Advertisement featuring celebrity endorsement is often also perceived to be entertaining. Using a famous celebrity, whether a model, sports figure, actor or political activist, can raise the profile of a company in several ways. It can help with consumer’s awareness with a brand, endorse the effects of particular product or ingredient or drive sales of a long-standing product that needs a boost. Talking about celebrity endorsement in advertising, the three most important questions are being stated: 1. When do companies use celebrity endorsers in their advertising? 2. How do companies select the celebrity endorser? 3. How do companies handle the risks of using a celebrity endorser in their advertising? In this article theories that deal with how companies select a celebrity endorser are reviewed. Selecting a celebrity spokesperson is a subjective and sometimes lengthy process. Everyone has their own opinions and the importance is whether the celebrity speaks to the demographic market the company is trying to reach. In encoding the message in the context of celebrity endorsement, perhaps the most important decision to be made, besides choosing whether or not to use celebrity endorsers at all, is the choice of celebrity. The selection of celebrity endorsers is an important task. An ideal celebrity as brand endorser should be able to infuse confidence, raise the credibility levels and bring about the change in the fortunes of the brand. In other words, the celebrity himself/herself should be a strong brand and the attributes of the celebrity brand should match the attributes of the product brand being highlighted. Different approaches on how to select celebrity endorsers have been developed. Belch & Belch (2001) offered the Source attributes and Receiver Processing mode, which represents the influence on recipient’s attitude on behaviour through different processes, named internalization, identification and compliance.
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Source attributes of a celebrity
Credibility
Process:
Internalization
Expertise
Trustworthiness
Attractiveness
Power
Identification
Compliance
Similarity
Likeability
Figure 1. Source Attributes and Receiver Processing Modes Source: paper authors according to Belch & Belch
So, before any brand signs on a celebrity, they should consider three main aspects: 1. Credibility of the celebrity. This principle states that for any brand-celebrity collaboration to be successful, the personal credibility of the celebrity is crucial. Credibility is defined as celebrities’ perceived expertise and trustworthiness. As celebrity endorsements act as an external cue that enable consumers to sift through tremendous brand clutter in the market, the credibility factor of the celebrity greatly influences the acceptance with the consumers. There are two important dimensions to credibility; expertise and trustworthiness. Information from a credible source can influence beliefs, opinions, attitudes and behaviour through a process called internalization, which occurs when receiver accept source influence in terms of their personal attitude and value structures (Kelman, 1961). A highly credible source is particularly important when the message receiver has a negative position toward the product, service or company. This is true because the credible source is likely to inhibit counterarguments and reduced counter arguing should result in a greater message acceptance and persuasion (Belch & Belch, 2001). 2. Attractiveness of the celebrity. This principle states that an attractive endorser will have a positive impact on the endorsement. The endorser should be attractive to the target audience in certain aspects like physical appearance, intellectual capabilities, athletic competence and lifestyle. It has been proved that an endorser that appears attractive as defined above has greater chance of enhancing the memory of the brand that he/she endorses. Attractiveness includes similarity, familiarity and likeability (McGuire, 1968). Research has shown that physical attractiveness of a source determines the effectiveness of persuasive communication through a process called identification, which is assumed to occur when information from attractive endorsers is accepted as a result of the desire to identify with such endorsers (Kelman, 1961). Physically attractive sources are more successful at changing beliefs and generating purchase intentions than their unattractive counterparts (Friedman, Termin & Washington 1976; Petty, Cacioppo & Schumann 1983; Petroshius & Crocker 1994). 3. Power of the celebrity or meaning transfer between celebrity and the brand. This principle states that the success of the brand-celebrity collaboration heavily depends on the compatibility between the brand and the celebrity in terms of identity, personality, positioning in the market and lifestyle. When a brand signs on a celebrity, these are some of the compatibility factors that have to exist for a brand to leverage the maximum from the collaboration.
Source credibility The basis of this factor is that the effectiveness of the message depends on the consumers perceived level of expertise and trustworthiness of the celebrity endorser (Solomon, 1996). The argument is that through a process called internalization, the message from a celebrity endorser can influence opinions, beliefs, attitudes and behaviour. Once the receiver internalizes an opinion or attitude, it becomes integrated into his or her belief system and may be maintained even after the source of the message is forgotten (Kelman, 1961). A highly credible source is particularly important when the message recipient have a negative position toward the product, service, brand or issue being promoted. This is true, because the credible source is likely to inhibit counterarguments and reduced counter arguing should result in greater message acceptance and persuasion (Belch & Belch, 2001).
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As through internalization process one can develop attitudes and opinions, it is important to use sources with high credibility or sources Companies choose endorsers to endorse their products according to their knowledge, experience and expertise in a particular area. When celebrities gave those qualities, they are qualified to talk about the endorsed product. It is very important that the target audience would believe in the source which is endorsing a product. So finding a proper celebrity it is important to look for a person, who has a trustworthy image. Many famous persons do not want to endorse the products because of the impact on their reputation. So there are several ways to prove the consumers that celebrity is really happy about the product he or she endorses and that this is done not because of money. One of the ways is the use of hidden cameras to show that the consumer is not a paid endorser and really thinks that the product is a proper one. The other way is the suggestion that the president of the company would be an endorser by himself in advertising the products (Belch & Belch, 2001).
Source attractiveness Another mentioned factor looks at source attractiveness. This factor argues that consumers generally have a more positive attitude towards attractive people. McGuire (1985) argues that the effectiveness of a message depends on the similarity, familiarity and liking of the endorser. Research has shown that physically attractive endorsers are more successful at changing beliefs (Chaiken, 1979). Similarity is a supposed resemblance between the source and the receiver of the message while familiarity refers to knowledge of the source through exposure. Likeability is affection for the source as a result of physical appearance, behaviour and other personal traits (Erdogan, Maker & Tagg, 2001). Source attractiveness leads to persuasion through a process of identification, where by the receiver is motivated to seek some time of relationship with the source and thus adopts similar beliefs, attitudes, preferences or behaviour. If the receiver maintains the position depends on the source’s continued support for the position as well as the receiver’s continued identification with the source. If the source changes position, the receiver may also change. Unlike internalization, identification does not usually integrate information from an attractive source into the receiver’s belief system. The receiver may maintain his or her position or behaviour only as long as it is supported by the source or the source remains attractive (Kelman, 1961). According to Belch & Belch (2001) marketers recognize that receivers of persuasive communication, such as advertising, are more likely to attend and identify with people they find likeable or similar to themselves. Likeability and similarity are the two source characteristics marketers seek when choosing an endorser for their advertising. People are more likely to be influenced by a message coming from someone with whom they feel a sense of similarity. If the endorser and receiver have similar needs, goals, interests and lifestyles, the position advocated by the source is better understood and received (Kelman, 1961). Similarity is used in various ways in marketing. In professional selling, companies select sales people whose characteristics match well with their customers. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. In a ‘slice-of-life’ commercial, the advertiser usually starts by presenting a predicament to get the consumer to think ‘I can see myself in the situation’. Generally, there are 5 different relationship types between the consumer and their favourite celebrities: 1. 2. 3. 4. 5.
Stylists (‘Give me the look’); Socialisers (‘Give me the news’); Straight shooters (‘Give me info’); Insecures (‘Stars have bad days like me’); Hopefuls (‘maybe one day…’).
It is the segmentation that can help brands tap into growing celebrity culture. The values of using endorsers who are admired have been recognized by advertisers. Athletes, television and movie stars, musicians and other popular public figures are used for the purpose of likeability. Companies use celebrity endorsers because they are considered to have stopping power, which means that a celebrity can be a very useful tool to draw attention to advertising messages in much cluttered media environment. A popular celebrity will favourably influence consumers’ feelings, attitudes and purchase behaviour. Advertisers believe that celebrities can enhance the target audience’s perceptions of the product in terms of image and performance (Belch & Belch, 2001).
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Decorative models are also used to draw attention to advertisements. This is done by a use of a physically attractive person who serves as a passive or decorative model rather that as an active endorser. Physically attractive endorsers generally have a positive impact and generate more favourable evaluations of both advertisements and products than less attractive models. The gender appropriateness of the model for the product being advertised and his or hr relevance to the product is also important considerations. Products such as cosmetics or fashionable clothing are likely to benefit from the use of an attractive model, since physical appearance is very relevant in promoting these items (Solomon, Ashmore & Longo, 1977). Some models draw attention to the advertisement but not to product or message.
Source Power The third and the final source attribute is power. According to Kelman (1961) a source has power when he or she can actually administer rewards and punishments to the receiver. As a result of this power, a source may be able to induce another person to respond to the request or position the source is advocating. In this case, influence occurs through a process known as compliance, which means that the receiver accepts the persuasive influence of the source and takes his or her position in hopes of obtaining a favourable reaction or avoid punishment. The receiver may show agreement with the source’s position in public, at the same time as he or she do not have an internal or private commitment to this position. Persuasion inducted through compliance may be superficial and last only as long as the receiver perceives that the source can administer some rewards or punishments. According to Belch & Belch (2001) source power is very difficult to apply in a nonpersonal influence situation such as advertising. An endorser in an advertisement generally can not apply any sanctions the receiver or determine whether compliance actually occurs. An indirect way of using power is by using an individual with an authoritative personality as endorser. The use of source power applies better in situations involving face – to – face communication and influence. One example is personal selling. In a selling situation the sales representative may have some power over a buyer if the latter anticipates receiving special rewards of favours for complying with a salesperson. However, sales representatives must be very careful in their use of a power position, since abusing of a power base to maximize short term gains can damage long term relationship with customers. The discussed methodics helps to answer the following questions in practise: 1. How does the Company act when they select a celebrity to endorse their product? 2. Which celebrity criteria/attributes does the Company consider to be important in the selection of a celebrity as an endorser? These questions are considered to be important in the activity of every Company while selecting a Celebrity Endorser.
How does AXA select a celebrity endorser The Axa brand is a part of Carelia foods, which in turn is a part of Carelia group. Axa produces and market oats based snack and breakfast products. Carealia’s concept is to develop, manufacture and market cereals-based food products. In Axa Company, the selection of a specific celebrity as endorser is based on the product. The celebrity must match the product, in this case Axa Gott och Mixat. When selecting celebrities to endorse this product, Axa wanted to use an athlete with star quality, who was well known in the Swedish society, who believed in the product and who was considered to be trustworthy. They preferred to talk about the selection of celebrity in terms of collaboration and were of the opinion that both parts, the company and the celebrity, should gain from this collaboration. Therefore, in the companies’ selection of the endorser, the company only considers athletes that would consume the product and athletes, where the use of this kind of products can be shown to be of importance for the athlete’s career. That was the reason why members of Swedish national track and field team were appropriate and actually selected to endorse the Axa Gott och Mixat product. However, not every type of athlete is appropriate to use as endorser for Axa. Athletes with a doubtful and questionable reputation, as well as athletes, representing a sport with the same questionable reputation such as boxing or cycling are not considered in Axa’s selection of celebrity endorsers for their products. Axa claims, that a celebrity must be able to endorse the company and their products in a trustworthy manner. The target audience must also like a celebrity and the celebrity’s image must match the product. The most important celebrity endorser attributes for Axa are trustworthiness, likeability, similarity and expertise.
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Most important Celebrity Endorser attributes for AXA Company
Trustworthiness
Likeability
Similarity
Expertise
Figure 2. The most important attributes of Celebrity Endorser for AXA Company Source: Jan Johannson & Jorgen Sparredal, 2002
The initiating reason for the choice of Ludmila Engquist as endorser for the Axa Gott och Mixat product in the end of 1999 was that she represented the Swedish national track & field team and that she fitted well into the group of other endorsers for the product. She was primarily chosen because of her popularity among the Swedish people and because that she was a role model for Swedish girls and women. Axa also considered her to match the product well and to be a trustworthy person, despite the fact that she earlier in her life had served a two year suspension for doping. Axa continued to collaborate with Ludmila Enquist also after her treatment for breast cancer. She was at her peak of popularity among the Swedish people when she made a come back after her breast cancer treatment and therefore the collaboration continued. Also Axa chose to collaborate with her when she wanted to became the first female ever to win a gold medal in both the Summer and Winter Olympics. However, this collaboration had an abrupt ending when she revealed that she had used performance-enhancing drugs at a bobsled competition in Norway. Axa’s decision to use a certain celebrity is based more on feelings than on research. According to them, no planned research is conducted to investigate which celebrity would be the most appropriate to use as an endorser for Axa’s products or how much of a certain attribute a celebrity possesses. The perceived fit between the company/product and the celebrity is not tested before the celebrity signs the contract, so the judgement of this fit is also based on feelings instead of research (Jan Johansson & Jorgen Sparredal, 2002)
Conclusions After analysing the literature about the Celebrity Endorsement, the following conclusions can be made: 1. Using a famous celebrity, whether a model, sports figure, actor or political activist, can raise the profile of a company in several ways. It can help with consumer’s awareness with a brand, endorse the effects of particular product or ingredient or drive sales of a long-standing product that needs a boost. 2. The main criteria’s for the selection of Celebrity Endorsement are: Credibility, Attractiveness and Power (Belch & Belch, 2001). 3. According to Kelman’s (1961), Belch & Belch (2001), Erdagan, Maker & Tagg (2001) offers, this article analyses the methodics for celebrity endorsers selection in advertising, which affirms that the credibility, attractiveness and power are influenced by conformable processes: credibility is influenced by internalization, attractiveness is influenced by identification and power is influenced by compliance. 4. The source credibility shows, that the effectiveness of a message depends on the consumer’s perceived level of expertise and trustworthiness. 5. The source attractiveness factor argues that consumers have a more positive attitude towards attractive people, so celebrity endorser must have the qualities of similarity, familiarity and liking. 6. A source power has an influence when he or she can actually administer rewards and punishments to the receiver. 7. According to mentioned example of Axa Company and the described methodics of selection the presumption can be made that the same methodics could be used in Lithuania’s Companies while selecting a Celebrity Endorser.
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žymybi sutartims su reklamos agent romis išleidžiami milijonai kasmet rodo, jog žymyb ms atitenka atsakingas ir reikšmingas vaidmuo reklamoje. Superžvaigžd s panaudojimas reklamin se kampanijose pritraukia didel visuomen s d mes , tod l itin aktual s tampa trys pagrindiniai klausimai: kada mon ms tikslinga naudoti žymybes savo reklamoje, pagal kokius kriterijus atsirinkti žymybes ir kokia galima su žymyb mis susijusi rizika. Šiame straipsnyje išsamiau bus nagrin jamas antrasis klausimas – žymybi parinkimo prek s reklamai aspektas, skirtas žymybi atrankos kriterij išaiškinimui. Kadangi pastaruoju metu daugelis moni veikia tarptautin se rinkose, žymybi , kaip „ rankio“ pritraukti vartotojus, panaudojimas reklamoje vis did ja. To priežastis slypi tame, jog pasaulin s marketingo komunikavimo strategijos atskirose šalyse yra lengvai pažeidžiamos d l kult rini kli 7i , bei skirtum s>lygot toki veiksni kaip laikas, erdv , kalba, santykiai ir pan. (Hofstede,1984). Pasaulinio populiarumo žymyb s gali pad ti mon ms išvengti ši skirtum ir sumažinti kult rines kli tis. Remiantis Milward Brown (2006), pastaruoju metu televizijos reklamose daugiau nei 20 procent prekini ženkl reklamuoja žymyb s. Panaši situacija ir radijo reklamose ar spaudoje. Atkin ir Block (1995) atlikt tyrim pasekoje nustat dvi priežastis, kod l reklamoje naudojami žym s žmon s. Pirma, tradiciškai juos ži rima kaip dinamiškas asmenybes, turin7ias patraukli savybi . Antra, manoma, jog j šlov pritraukia d mes prie reklamuojamos prek s. Žymi žmoni vardai gali pad ti preki ženklams tapti dar labiau žinomais ir geidžiamais. Ta7iau pasirinkti žymybes, kurios atspind t tikr>j> prekinio ženklo vertC ir jai nepakenkt yra sud tinga, nes ši dien pop kult roje žiniasklaidos priemon s tik ir laukia, kol viešum> gal s iškelti kok skandal>. Šio straipsnio tikslas – aprašyti žymybi parinkimo prek s reklamai metodik>, didžiausi> d mes skiriant žymybi atrankos kriterij nustatymui, ir j> pagr sti atvejo analize. Tam, kad pasiekti š tiksl>, straipsnyje naudojami tokie tyrimo metodai: sistemin ir palyginamoji mokslin s literat ros analiz bei anks7iau atlikt empirini tyrin jim analiz . Šio tyrimo rezultatas – aprašyti žymybi parinkimo prek s reklamai metodik>, kuri pad t mon ms atsirinkti iš daugelio žymybi tinkamiausi> reklamuoti j prekC ar prekin ženkl>. Praktinis tyrimo aspektas – aprašyt> žymybi pasirinkimo metodik> pagr sti produkt su AXA prekiniu ženklu žymybi atrankos praktika. Raktiniai žodžiai: žymybi parinkimas, žymybi panaudojimas reklamoje, žymybi taka prek s ženklui.
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