Ch. 16 - Advertising, Public Relations and Sales Promotion

Advertising has always been a strong suite for Nike Inc. They use a good mixture of Institutional Advertising, and Productive Advertising within their advertisements. In 2010, Nike launched a new division called Nike Digital Sport Their main objectives are to develop devices and technologies which allow consumers to track their personal statistics in any sport they participate in. They've recently been best known for their Nike + running sensor, the amazing performance tracking tool developed with Apple, which currently has over 10 million users according to Fortune.com In addition they are also responsible for the follow up product, the Nike FuelBand which tracks your energy output, sleep, and steps. Nike Digital Sport is not just about creating neat, must have sports gadgets, these gadgets have allowed Nike to get close to its consumers. The data holds exceptional promise for one of the world’s greatest marketers: It means Nike can follow them, build an online community for them, and forge a tighter relationship with them than ever before. It’s part of a bigger, broader effort to shift the bulk of Nike’s marketing efforts into the digital realm.

Throughout the years Nike has used a Unique Selling Proposition by adding a desirable, exclusive, believable advertising appeal to their sneakers like the Jordan brand, or the nike footwear they've been able to be the number one sportswear brand. While also being able to charge top dollar for their products. Nike has set the standard across the sportswear industry for pricing on their products. Moreover, Nike Inc has several different ways of advertising. They tend to use a lot of Monitored Media options to reach the masses of people within their target market throughout the world. Nike's advertising is well versed in television advertising, Internet and Social Media, Outdoor Media and billboards, and Magazines. I've also more recently started receiving unmonitored advertising for Nike, they sent me direct mail making me aware of their new running apparel and new sneakers for the spring/summer line. In 2013 according to Fortune.com, Nike spent over 2 Billion dollars on marketing alone to help build their brand. However Nike has dropped its spending on TV and print advertising in the U.S. by 40% in just three years. Instead, Nike is going where the customer is, spending nearly $800 million on nontraditional advertising in 2013 and foregoing $100 million-plus sponsorships and traditional media buys to focus on online campaigns first. Not only does Nike think it can do without the mega-TV campaigns of old, it says the digital world allows the brand to interact even more closely with its consumers. Nike's redirection in marketing and advertising has helped them reach new heights, and is why in 2015 they are expected to bring in over 30 billion dollars in revenue, with revenue expectations grow to as high as 36 billion by 2017 according to Bloomberg.com  

Ch. 14- Marketing Channels and Retailing

Nike Inc presently has 858 operational chain stores worldwide according to Statistica.com. The stores offer an outstanding level of service, including free marathon training, exceptional one to one membership service, and they also have Nike ID studios in most of their locations. Nike ID offers the Nike customer the opportunity to customize almost any Nike sneaker to their liking. Customers can play with different shoe color variations, the soles, place their initials or name on their shoe etc. This gives more personalization to the consumer product and also adds a unique, 1 of 1 type of concept to the Nike shoe. Nike also has a very famous online store in which many of their customers go to check out their new products (Nike.com). In 2014 according to Forbes.com Nikes saw a very impressive growth of 42% in their online sales. In the Nike store you can find ALL products Nike.  They also offer many different types of services which many of their consumers find to be very helpful.

I recently visited the Niketown flagship location located on 57^th street between 5^th avenue and Madison. And when I asked one of the employees what they offer service wise in store I was shocked. In store they offer, a marathon training program where people can run and get tips with professional marathon runners. In addition they offer a Nike + Run Analysis program which helps evaluate your running style on a treadmill in store and critique’s your running posture and style to increase stability and stamina. They also offer a sports bra fitting system for the ladies and pant hemming which tailors your attire to fit just right.