Celebrity Endorsement and Customer Engagement of Nike

School of Languages,
Cultures and Societies[pic 1]

Faculty of Arts, Humanities and Cultures

Standard Cover Sheet for Assessed Coursework

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Please complete each of the following sections:-

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Celebrity endorsement and Customer engagement of Nike

Introduction

The common belief among marketing managers is that using celebrity endorsement and customer engagement are able to build a long-term stable relationship with the customer, which will create profits for company persistently. In order to fulfill the needs and demands of customers, Companies are seen to combine celebrity endorsement and customer engagement together for more efficient marketing strategies. This approach appears to reactive in Nike which is one of the biggest sports companies in the world. Nike has lots of different categories varying from basketball to golf and each category has different inside marketing strategies classified by gender, age, and other factors. In this article, I argue that the celebrity endorsement helps Nike to attract more customers to purchase their product and customer engagement strategy strengthen the effect created by celebrity endorsement, maintaining a long-term value-relationship between the Nike and customers. On-going technological advances, and their widespread adoption and use in society, also have induced considerable changes in people's social lifestyles (Romero,2011), i.e. when applying these two marketing strategies, Nike is inevitable to take advantage of the advanced technology such as the Internet and smart phone.

Rationale

Celebrity endorsement:

As one of the marketing strategies, celebrity endorsement is defined that a form of brand or advertising campaign that involves a well-known person using their fame to help promote a product or service (businessdictionary.com). In another word, celebrity endorsement is that celebrity and company are linked into a reciprocal relationship, which exerts certain benefits for the company to perform their marketing strategies (Phua, J. 2014). However, there are two essential attributions of celebrity to be considered when a company selects their endorsement. The first one is marketing influence (the more they have, the efficient marketing works) and the second one is credibility (the endorser's performance and dependability must be stable and positive) (Srinivasan,2013). For example, the Tiger Wood and Kobe Bryant brought lots of profits to Nike, although they exerted negative effects when they lose their credibility.