Nikes Marketing Mojo
Nike is one the largest sports company in the world and they communicate with the world like no other company. They have developed a very strong brand. When people think of Nike, they think of the best quality and the prestige of wearing or owning their products. The brand has done such a great job promoting their products; almost everyone around the world is familiar with their product(s). Over the years Nike has had a diverse mix of marketing communications, which included advertising, sales promotions, public relations and publicity (Integrated Marketing Communications, Kotler, 491).
Although Nike’s budget for advertising has grown to almost $2. 4 billion, they have dropped their TV and print advertising by 40% and their profits still continue to grow. Nike is no longer primarily focusing on celebrity endorsements or advertising campaigns to sell their products; they are skipping the middleman and going straight to the consumer through digital technology devices. In 2010, Nike launched a new division called Nike Digital Sport (Nike+), a technology developed by Nike and Apple.
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The division is best known for creating devices and technologies that allow consumers to track information. One product is a device that connects to footwear with interactive mobile web applications. It allows the user to set goals and review their results. Not only is Nike going directly to the consumer, they are reaching out to them and engaging them in online communities and social media marketing. As of this year, over 6 million users are using Nike+ products. One of reasons Nike has cut their TV and print ads is because they are following the consumer.
Their target audience is getting younger and they don’t spend as much time watching television as they use to, they are more involved with social media such as Facebook & Twitter (Identify Target Audience, Kotler, 476). Young adults aged 17-19 spend 20% more on shoes than adults. By knowing their audience, Nike feels they can give up some of its TV campaigns and go into the digital world and interact and learn more about their consumers by interacting with them directly (Personal Communication Channels, Kotler, 482).
Nike is not new the digital age, in 2005, they had their Nike ID online store that would allow customers to create and design their own shows and Nike had over $100 million in sales within a couple years in custom shoes sales alone. In 2006, Nike engineers took notice of the IPod craze on local college campuses, so Nike partnered up with Apple to create an app that offered synchronized jogging data with an IPod. From this creation, Nike+ was created. The success behind the Nike brand is their Integrated Marketing Communication.
Nike has done massive promotion, online media, and advertisement, which has made Nike internationally recognized. Since the brands are already famous, one of Nike’s goals is be to maintain customer loyalty and creating products to attract more customers, since they already have a solid brand image.
Cendrowski, Scott. “Nike’s New Marketing Mojo. ” Management and Career RSS. N. p. , 13 Feb. 2012. Web. 10 Nov. 2012. <http://management. fortune. cnn. com/2012/02/13/nike-digital-marketing/>.