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The Role of Marketing Communication in Recognition of the Global Brand: a Case Study of Nike

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The Role of Marketing Communication in Recognition of the Global Brand: a Case Study of Nike The Role of Marketing Communication In Recognition of The Global Brand: A Case Study of Nike Thesis By Aleksander Madej Submitted in Partial fulfillment Of the Requirements for the degree of Bachelor of Science In Business Administration State University of New York Empire State College 2019 Reader: Tanweer Ali Statutory Declaration / Čestné prohlášení I, Aleksander Madej, declare that the paper entitled: The Role of Marketing Communication In Recognition of The Global Brand: A Case Study of Nike was written by myself independently, using the sources and information listed in the list of references. I am aware that my work will be published in accordance with § 47b of Act No. 111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the valid publication guidelines for university graduate theses. Prohlašuji, že jsem tuto práci vypracoval/a samostatně s použitím uvedené literatury a zdrojů informací. Jsem vědom/a, že moje práce bude zveřejněna v souladu s § 47b zákona č. 111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou Směrnicí o zveřejňování vysokoškolských závěrečných prací. In Prague, 26.04.2019 Aleksander Madej 1 Acknowledgments First and foremost, I would like to thank my family for their support and the possibility to study at the Empire State College and the University of New York in Prague. Without them, I would not be able to achieve what I have today. Furthermore, I would like to express my immense gratitude to my mentor Professor Tanweer Ali, who helped and guided me along the way. I am incredibly lucky to have him. In addition, I want to thank my professors who enriched me greatly over the course of four years. 2 Table of Contents 1. Chapter 1: Introduction ................................................................................................. 5 2. Chapter 2: Critical analysis of marketing theories ........................................................ 8 2.1 Definition of a global brand ............................................................................ 8 2.2 Elements of the Global Brand Equity ........................................................... 12 2.2.1 Brand Identity, Visual Brand Identity and Brand Image ............... 12 2.2.2 Brand Positioning .......................................................................... 16 2.2.3 Marketing communication – historical models, one-way and two- way .......................................................................................................... 21 2.2.4 Integrated Marketing Communication – New concepts of communication, definitions, and tools .................................................... 25 3. Chapter 3: Analysis of building the global brand recognition on the example of Nike – case study ..................................................................................................................... 30 3.1 The history of building the brand’s capital ................................................... 30 3.2 Nike as a Global Brand ................................................................................. 33 3.3 Elements of the Global Brand Equity ........................................................... 36 3.3.1 Brand Identity, Visual Brand Identity, and Brand Image .............. 36 3.3.2 Brand Positioning .......................................................................... 40 3.3.3 Integrated Marketing Communication ........................................... 41 3.3.3.1 Advertising ...................................................................... 41 3.3.3.2 Public Relations .............................................................. 46 3.3.3.3 Digital Marketing ............................................................ 49 4. Chapter 4: Conclusion ................................................................................................ 59 5. References ................................................................................................................... 61 3 Abstract Global brands and their roles are constantly growing in today’s fast-paced world. Consumers expect to be emotionally connected with companies and their causes. The aim of this thesis is to verify the significance of a brand’s image and its recognition, the impact of various promotion-mix components regarding consumer relationships, brand stability, and placement among other brands. It is assumed that, based on the case study method of global marketing icon, Nike, we will find the answer to the following research questions, “Which theories concerning the global brand, its positioning, and Integrated Marketing Communication (IMC) presented in the literature of the subject have been reflected in the communication practices of the selected company.” The most important element in creating advantage is the brand, its positive image created in the minds of target consumers, and a clear distinction from the competition. In recent years, the concept of integration of communication has become more popular, and it is believed that it is foundational for building strong brand equity because it integrates individual communication channels. The most significant foundational concept is that communication should be tailored as much as possible to the consumer to build an emotional bond and ensure proper two-way interaction (with feedback) between sender and recipient. The analysis of the global brand, Nike, confirms the importance of a properly integrated marketing communication strategy in the brand’s success. 4 1. Introduction Rivalries for customers, similarities in products, changing attitudes, and knowing what motivates consumers are some of the challenges for companies on the contemporary fast-growing global market. In the book “Ted Levitt on Marketing” (2006), the author presents the global market as a place where the product can be accepted without adapting to the local market. For example, the products of brands like Nike, Starbucks, and Coca-Cola. This standardization results in lower costs and higher quality of the products. The role of the global brand is constantly growing and the consumers are more connected to the world than ever before. Properly selected marketing strategies are crucial in distinguishing a company from the competition and matching the brand to a broader group of consumers. The research was done in order to identify the biggest factors that influenced global brand equity in the market. An important differentiating element of a global brand is the brand’s image and its recognition from the customer. The brand needs to carefully select proper communication channels to favorably place itself in the mind of consumers. The above-mentioned premises of our fast-paced globalized world influenced the choice of the topic of this thesis, “the role of marketing communication in recognition of the global brand: a case study of Nike”. It was acknowledged that Integrated Marketing Communication (IMC) plays a significant role in creating a competitive advantage. Verification of various definitions of IMC will allow me to asses “how” and “whether” these factors affect brand recognition by consumers on the global market. In addition, 5 there is no agreement on one main definition of a global brand and its positioning in the literature on the subject. No single agreement was proven by closely analyzing the global brand, Nike. The aim of this work is to verify the significance of the brand’s image and its recognition, the impact of various promotion-mix components on consumer relationship, brand stability, and placement among other brands. It was assumed that, based on the case study method of global marketing icon Nike, we will find the answers to the following research question: “Which theories concerning the global brand, its positioning, and Integrated Marketing Communication presented in the literature of the subject have been reflected in the communication practices of the selected company?” For the purpose of the analysis, the following hypothesis was formulated: “A global brand with a high degree of recognition by the consumers achieves a stable and strong market position among the competition.” Verification of the hypothesis considers the analysis of marketing theories in scientific literature on the subject (chapter 2) and the evaluation of the results from the case study method (chapter 3). Choosing Nike for a case study justifies the long-term presence in the Interbrand Best Global Brands rankings (Interbrand, n.d.-b) and the highest position among sports brands. It was speculated that the so-called “good practices” of the brand 6 in its communication have contributed to its success and can set an example for companies wanting to participate and appear on the global market. Nike is an American company with the highest recognition in the world. They are offering footwear, clothing, and sports equipment. This global brand was created by Phil Knight and Bill Bowerman in 1971. They are selling in over 170 countries and their annual revenue for 2018 was 34,365 million United States dollars. Nike is a cultural icon that knows exactly who their audience is and how to communicate their brand’s values. The thesis is divided into four chapters. The first is the introductory part. The second, theoretical, presents selected definitions related to the topic of the thesis and they are the foundation for the research in the third chapter. The analysis of marketing theories was made in relation to the global market. The global brand is explained, as
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