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