Ch. 15 - Retailing

Retailing

 

All the activities directly related the sales of goods and services to the ultimate consumer for personal, non business use. Nike is the largest manufacturer in athletic footwear and apparel worldwide. Nike sells its products in over 180 stores countries worldwide through its company owned retail stores Nike town and internet sites, as well as through retailers like foot locker and dicks sporting goods. Nike divides its sales into four regions across the globe, the United States, Europe, Middle East and Africa, Asia Pacific, Central and South America. With Nike just specializing in the development and sale of athletic footwear, apparel and equipment, it keeps them focused on bringing new products to their retailers to help keep them at the position there in.

Ch. 11 - Developing and Managing Products

Developing and managing products 

 

 

Throughout Nike's business years they've managed to produce millions of sneakers and clothing as well as sponsor famous athletes and music stars. Nike always aims for innovation products that minimize environmental impact by reducing waste throughout the design and developing process. For Nike to begin their product developing process for a new product they begin with comprehensive systems thinking around the domains of design, manufacturing and the life cycle of a product, including the possibilities for closing the loops on material, product use and end of life. Innovation takes off after catching sight of technological shifts. Once all that’s done incorporating the considered design is put into all Nikes key categories, basketball, running, football, soccer, etc. For Nike to keep their vision of reality going they focus on designing products that are fully closed loop: produced using the fewest possible materials and designed for easy dis-assembly , while allowing them to be recycled into new products or safely returned to nature at the end of their life.\

Ch. 16 -Integrated Marketing Communications

Integrated Marketing Communications

 

 

"Integrated Marketing Communications: is the coordination and integration of all marketing communication tools, avenues, functions, and sources within a company into a seamless program that maximizes the impact of consumers and other end users at a minimal cost. Nike fully embraces the concept of integrated marketing communications. Their integrated approach includes traditional advertising such as, billboards, magazines, and television. Sponsoring sporting events and players, such as the super bowl and Tiger Woods. Nike engages in online marketing initiatives by allowing consumers to consumers to customize their shoes though Nike id. They also spend a great deal of money in search marketing. With this approach Nike is allowed to communicate their message constantly across all media outlets, and at the same time share their most important message with the consumer , which is use Nike products and you will increase your performance regardless of sport you are involved in.

Ch. 10 - Product Concepts

Product Concepts 

 

 

"Product concept: Management philosophy that a good product creates its market, and does not require heavy marketing expenditure. Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys , shorts, etc for a wide range of sports which include, track and field, baseball, ice hockey, tennis, soccer, football, lacrosse, basketball and cricket they sell them for those sports also. The Nike Hindsight glasses design uses Fresnel lenses, which were originally made for lighthouses and provide a wide aperture and short focal length. Even though the lenses reduce image quality, the idea is that since they are located only on the sides of the glasses, little clarity is lost in the process as the eye only detects motion in that area. Nike designed the glasses for cyclists, but the design could be handy in a more wide range of activities where detecting motion beyond the usual 180 degrees would prove advantageous. People such as marathon runners to track and field athletes could benefit from this since they are doing a lot of movement.

The original NIKE MAG was worn by the Back to the Future character Marty McFly, played by Michael J. Fox, in the year 2015. It came alive, lit up and formed to Marty’s foot. The 2011 NIKE MAG shoe was designed to be a precise replica of the original from Back to the Future II. The aesthetic is an exact match, down to the contours of the upper, the glowing LED panel and the electroluminescent NIKE in the strap. The 2011 NIKE MAG illuminates with the pinch of the “ear” of the high top, glowing for five hours per charge

Ch. 18 - Sales Promotion and Personal Selling

Sales promotion and Personal selling

 

"Sales promotion: is marketing communication activities, other than advertising, personal selling, and public relations."

"Personal selling: is a purchase situation involving a personal, paid for communication between people in an attempt to influence each other."

For Nike to promote themselves to gain more sales they largely depend on finding accessible store locations. To caught the eye of their consumers Nike uses a number of famous athletes that serve as brand ambassadors such as, the Brazilian soccer team, Lebron James for basketball, Lance Armstrong for cycling, and Tiger Woods for golf. Nike also sponsors events such as hoop it up and golden west invitational. Nike's quality products, loyal customer base and its great marketing techniques all contribute to its huge success. Nike utilizes personal selling techniques in all of their retail stores.

First starting with sales associate in these stores they are the individuals that communicate directly with the consumers who are interested in Nike products. They are suppose to be knowledgeable of the brand and should be trained in asking customers the right questions in order to find out what they are looking for. To do so Nike sends representatives to retail stores to keep sales associates up to date on their merchandise and the technology behind it to give the consumer a better feel for the product.

Ch. 17 - Advertising and Public Relations

Advertising and Public Relations

 

 

"Advertising: impersonal, one way mass communication about a product or organization that is paid for by a marketer.

Public relations: a field concerned with maintaining public image for business, non-profit organization, or high profile people.

In 1982 Nike aired its first national television ads, created by newly formed ad Weiden Kennedy agency, during the New York marathon starting a successful beginning to their advertising campaign and still is intact.
Nike introduced the world to one of the most famous and easily recognized slogans in advertising history, during a 1988 meeting of Nike's ad agency Wieden and Kennedy and a group of employee's. The saying "Just do it" captured Nike's corporate philosophy of grit, determination and passion.
Nike uses such activities as for their advertising including agreements for product sponsorship with professional athletic teams, celebrity athletes, and numerous college athletic teams to help popularize there product worldwide.

Ch. 2 - Strategic Planning for Competitive Advantage

NIKE's Strategic Plan and Competitive Advantage

Nike, Inc. is a company rooted in competition. From equipping athletes with the finest sports equipment in the world to continuously improving our own financial performance, Nike dominates its competitors. Phil Knight and Bill Bowerman probably could not have imagined in 1962 to what degree their $500 investments would yield in 2000. They did know that product quality and innovation would help athletes to achieve greater goals. Nike still operates on this philosophy today. It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness. Despite a changing marketplace for athletic footwear, we will continue to expand our product lines and marketing reach to become a more powerful global brand.

Nike is a global brand. It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognizable.

Nike mission is to be a company that surpasses all others in the athletic industry. Nike will maintain there position by providing quality footwear, apparel and equipment to institutions and individual consumers of all ages and lifestyles. They pledge to make there products easy available worldwide through the use of retail outlets, mail order and there company web site. i.e www.nike.com.

Nike’s management believes that their success lies in the hands of their teammates, customers, shareholders and the communities in which they operate. They vow to keep this in mind with the execution of every decision within there company.

Nike will focus its commitment to all stakeholders by continuing to make strides towards being a company that sets the precedents in social responsibility. Nike is continuously making efforts to ensure that all employees and members of its surrounding communities are treated in a manner that is inline with our mission. Nike has made many alliances with human rights organizations in an attempt to ensure labor rights for employees of the industry overseas. They are committed to treating their employees with the a lot of respect, which is reflected in there compensation and human resource policies. They are also committed to making good decisions in regards to their environment, resources, and the fight against pollution.

At Nike, there vision is to remain the leader in there industry. They will continue to produce the quality products that they have provided in the past. Most importantly, They will continue to meet the ever-changing needs of their customers, through product innovation.

Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage.

Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production.

Ch. 6 - Consumer Decision Making

Consumer Decision Making

 

 

"Consumer behavior: processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.' Nike is transforming its organizational structure from a product innovation orientation such as shoes, apparel, and equipment, to a consumer experience one such as basketball, soccer, and running in order to deliver richer stories for the product. To do some Nike takes several surveys explains why they make their products instead of what are their products through speeches collecting past data on previous products then implying to products to create a new experience for the customer.

Ch. 4 - The Marketing Environment

The marketing environment

 

 

Nike's management analyzes its internal environment by making decisions based on that analysis, seeing what customers would want in their products also called their target market, and how the external environment shapes and remolds that. Because of that Nike's marketing research, the company has decided to revamp its apparel division to be more fashion savvy, and there shoes to be more innovating. Nike creates designs for men, women, and children, running, basketball, and cross- training is some of its top selling product categories. Factors such as social that deals with people's values, demographic people’s age and race, economic technological all affects Nike's marketing environment with all these they learn what’s in, what could be change to improve current products and what should be best for future products keeping Nike ahead of competition where they like to be.

Ch. 3 - Ethics & Social Responsibility

Ethics and Social Responsibility 

 

 

 

Over the years Nike has become the biggest leader in the athletic shoe industry and a global entity, but with it ethical issues has been brought up.

One example is the Nike sweatshop labor case that stirred up a big amount of controversy over ethical business practices. Nike being worth 15 billion or more outsourced its manufacturing plants to different countries in order to lessen cost in making there products, and become more efficiently productive. The outcome of everything was far from what Nike expected , the company put children in hazardous condition for very low subsistence wages violating child labor laws. Nike took advantage of overseas workers an placed them in destructive working environments , putting some of them in departments with chemicals which led them to having skin or breathing problems. With all this going on the discovery became public knowledge instead of confidential bringing the government of other country's to get involved , making Nike take social responsibility for their actions.

Nike joined a task force called fair job labor association to access whether companies are abiding by the code and banish sweatshops, in the athletic shoe and clothes industry. To better themselves Nike redeemed itself by slashing over time, improve safety and ventilation, and reduce the use of toxic chemicals. Its good to see Nike took steps to improve the accusations they were accused of , but should have been taken care of as soon as it they were aware of them.

Ch. 5 - Developing Global Vision

Developing Global Vision

 

 

 

Global vision recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets". The way Nike focus on its global vision is through its long term strategy focused on innovation, collaboration, transparency, and advocacy to prepare the company, to thrive in a sustainable economy. To do so Nike considers design combines sustainability principles and innovative performance products for athletes by reducing toxics and waste and increasing the use of environmentally preferred materials. Using GX a web based marketplace designed to share intellectual property, to capture sharing and licensing patents that, when used by someone else, could lead to unlimited innovation in helping solve sustainability issue's. Work more with contract factories to train them in the implementation of specialized lean manufacturing, so that decision making is closer to the worker through skill building, teamwork and understanding. Using sports more to promote social change, because it builds networks of social entrepreneurs and community innovators and for its ability to drive positive social, economic and cultural change. And last to aim ahead of the curve of mandatory regulation, energy price increases and volatility and consumer pressure, by their formation of new coalition of consumer companies called business for innovation climate and energy policy, which is advocating for strong U.S climate and energy legislation with the aim of creating a level playing field through a cost on carbon and unblocking innovation that is essential creating technology and infrastructure solutions.