partnership with famous athletes
FAQs:
1. Why does Nike partners with famous athletes such as LeBron James and Rory McIlory?
Answer:
First Reason: It can build Nike's awareness by capitalizing the athletes' positive public images. The best deals work to match a proper brand image with an athlete's image. Nike would be wise to pay LeBron James more endorsement money in order to maintain an advantage against other competitive brands.
Second Reason: Athletes might be the best fit for promoting certain products such as Nike Air, giving the impression that his or her physical performance results from practicing in that shoes.
Third Reason: Brand equity is the value a company realizes from a product with a recognizable name. Endorsement deals can increase brand equity for brands as well as athletes. In 2012 LeBron James earned $15 million from Nike, but Nike sold over $100 million worth of James’ signature shoe just in the U.S. alone.
ALL LEADS TO.....
Endorsements from athletes help create competitive advantages in the marketplace which leads to long-term success and increase of the profit. The increase in revenue created from these competitive advantages from athlete endorsements easily outweighs the costs brands pay athletes in order to endorse products, making athlete product endorsements highly effective.
2. Who do those partnerships benefit and how?
Answer:
First of all, the partnerships benefit Nike, as mentioned above. It is one of the greatest ways to maximize the profit of the company. Partnering up with famous athletes is a privilege for Nike, it is an opportunity to make ourselves known and expand the company furthermore.
Not only the partnerships benefit the company itself, but also they obviously benefit the athletes.
So, here are Nike's 11 honorable mentions of highest paid endorsement deals to sports players (yearly).
1. Why does Nike partners with famous athletes such as LeBron James and Rory McIlory?
Answer:
First Reason: It can build Nike's awareness by capitalizing the athletes' positive public images. The best deals work to match a proper brand image with an athlete's image. Nike would be wise to pay LeBron James more endorsement money in order to maintain an advantage against other competitive brands.
Second Reason: Athletes might be the best fit for promoting certain products such as Nike Air, giving the impression that his or her physical performance results from practicing in that shoes.
Third Reason: Brand equity is the value a company realizes from a product with a recognizable name. Endorsement deals can increase brand equity for brands as well as athletes. In 2012 LeBron James earned $15 million from Nike, but Nike sold over $100 million worth of James’ signature shoe just in the U.S. alone.
ALL LEADS TO.....
Endorsements from athletes help create competitive advantages in the marketplace which leads to long-term success and increase of the profit. The increase in revenue created from these competitive advantages from athlete endorsements easily outweighs the costs brands pay athletes in order to endorse products, making athlete product endorsements highly effective.
2. Who do those partnerships benefit and how?
Answer:
First of all, the partnerships benefit Nike, as mentioned above. It is one of the greatest ways to maximize the profit of the company. Partnering up with famous athletes is a privilege for Nike, it is an opportunity to make ourselves known and expand the company furthermore.
Not only the partnerships benefit the company itself, but also they obviously benefit the athletes.
So, here are Nike's 11 honorable mentions of highest paid endorsement deals to sports players (yearly).