Companies try constantly to extend their markets by attracting different target customers and increasing their brand awareness. The present study investigates how and why endorsing their products by athletes is an always more extensively and popular tool in the companies’ marketing mix.
Michael Jordan, a retired American basketball star, who has gained lots of media attention, has endorsed numerous products. Especially his endorsement contract with Nike has become an excellent case study for the current trend of athlete endorsement in the international market. The results of this case study provide insights into factors that may influence the success of athlete endorsement as a company’s marketing strategy.
Table of Contents
I. INTRODUCTION
II. MARKETING
1. MARKETING DEFINITION
2. MARKETING MIX
3. INTEGRATED MARKETING COMMUNICATION
4. THE ROLE OF PROMOTION
4.1. The Promotional Mix
4.2. Advertising
5. THE COMMUNICATION PROCESS
III. ENDORSEMENT
6. DEFINITION OF ENDORSERS
7. CELEBRITY ENDORSEMENT STRATEGY
7.1. Athlete Endorsement
8. SOURCE CREDIBILITY AND SOURCE ATTRACTIVENESS
8.1. Source Credibility
8.2. Source Atravtiveness
9. THE MATCH-UP HYPOTHESIS
9.1. Balance Theory
9.2. The Match-up Effect of Athlete Endorsements
10. THE MEANING TRANSFER MODEL
11. CELEBRITY SELECTION
11.1. On-field and Off-field Attributes
11.2. TEARS Model
12. RISKS
13. ADVANTAGES AND ECONOMIC VALUE
14. LEGAL SIDE
15. MEASURING THE RETURN ON INVESTMENT (ROI)
IV. A CASE STUDY OF NIKE AND MICHAEL JORDAN
16. NIKE, INC.
16.1. Company Information
16.2. Brand Image
16.3. Endorsement Strategies
17. MICHAEL JORDAN
17.1. Background Information and Economic Value
17.2. Influence on Nike’s Values
17.3. Air Jordan
17.4. Effect Measuring and Economic Value
V. CONCLUSIONS
Objectives and Research Focus
The primary objective of this thesis is to provide a comprehensive analysis of how and why companies utilize athlete endorsement as a core component of their marketing strategy, specifically examining the dynamics of consumer perception, brand image, and the practical application of these strategies.
- The definition and role of marketing, promotion, and integrated communication.
- The theoretical frameworks of celebrity endorsement, including Source Credibility, Source Attractiveness, and the Match-up Hypothesis.
- The practical implications and risks associated with athlete endorsement, such as moral clauses and potential negative publicity.
- The case study of the partnership between Nike, Inc. and Michael Jordan as a primary example of endorsement strategy.
Excerpt from the Book
11.1. On-field and Off-field Attributes
First of all, the company has to find a celebrity who fits best and represents the image of the product and/or brand and its meaning. The credibility of the celebrity is important to create a believable relationship between the meanings, which is associated with the celebrity, and the product. A celebrity spokesperson has to have expertise, trustworthiness, and physical attractiveness in order to be targeted with credibility and also to come up with the match-up factors between the celebrity and the consumer’s brand attitude. Every product has its own personality and if the celebrity and product’s personality is very close to each other or very similar with each other then the results will be more effective. Sports athletes and celebrities draw huge attention from corporate sponsors and its endorsement creates exposure for the brand. An athlete endorsing a product can transform a brand. It starts with recognition, consideration, favorability, and loyalty, which lends to an increase of the sales volume of a product. However, it can also fail and create an undesired outcome as initially desired. In a successful product endorsement, the athlete does so much more than just selling the product. The athlete actually becomes a human brand. To describe that fact, the key attributes have to been considerate. They are divided into two groups, the ones that are seen on the field and those off of it. Also these two groups have to be congruent in consistency and authenticity.
Summary of Chapters
I. INTRODUCTION: Outlines the motivation for the research, the significance of athlete endorsement, and the structure of the thesis.
II. MARKETING: Defines core marketing concepts, the marketing mix, and the strategic importance of integrated marketing communication.
III. ENDORSEMENT: Explores theoretical models like the Match-up Hypothesis and Meaning Transfer Model, while detailing celebrity selection and risks.
IV. A CASE STUDY OF NIKE AND MICHAEL JORDAN: Provides a practical application by analyzing the historic partnership between Nike and Michael Jordan and its impact on the brand.
V. CONCLUSIONS: Summarizes the key findings, confirming the value of a well-chosen athlete endorser for brand equity and economic success.
Keywords
Marketing, Communication, Promotion, Advertisement, Athlete endorsement, Nike, Michael Jordan, Brand equity, Celebrity endorsement, Consumer behavior, Source credibility, Marketing mix, Sponsorship, Brand image, ROI.
Frequently Asked Questions
What is the primary focus of this thesis?
The work investigates the strategic role of athlete endorsement in modern marketing, exploring how it helps companies reach wider audiences and increase brand awareness.
What are the central themes discussed in the study?
The study centers on marketing communications, the psychological mechanisms behind celebrity endorsements, risks in endorsement contracts, and the business impact of these partnerships.
What is the core research objective?
The aim is to gain a deeper understanding of why companies choose to endorse athletes and how these relationships effectively translate into brand success and sales growth.
Which scientific methods were utilized?
The author employed a literature review of existing marketing and sports studies combined with a practical case study analysis of Nike and Michael Jordan.
What is covered in the main section of the book?
The main sections explain the promotional mix, define models like TEARS and the Meaning Transfer Model, and provide a legal perspective on moral clauses in contracts.
Which keywords characterize this work?
Key terms include athlete endorsement, brand equity, marketing mix, source credibility, and the Michael Jordan/Nike partnership.
What does the "Match-up Hypothesis" explain in this context?
It explains that the effectiveness of an endorsement is largely dependent on the perceived fit between the athlete's personality and the brand's image.
Why is the partnership between Nike and Michael Jordan considered significant?
It represents an exceptionally successful long-term collaboration that moved Nike from a local American brand to a global leader, establishing a new sub-brand, "Air Jordan".
How do companies mitigate risks associated with athlete endorsements?
Companies utilize moral clauses in endorsement contracts to protect their brand image in the event of athlete scandals or negative public behavior.
- Quote paper
- Virginia Masár (Author), 2014, Athlete Endorsement as a Marketing Strategy. Nike and Michael Jordan, Munich, GRIN Verlag, https://www.grin.com/document/285682
