Chapter 7: Business Marketing

Business Marketing: the marketing of goods and services to individuals and organizations for purposes other than personal consumption. The sales of Nike products to soccer club are an example of business marketing.  Each year Nike’s sale percentage increases, this shows us (public) how successful they are and also, it shows us that no matter what Nike always trying to give us the quality products.

Cristiano Ronaldo is one of the best soccer player in the world right now and Nike targets him as a Business model because Nike created a whole brand new collection called CR7 Collection. Because of him being one of the greatest, a lot of young athletes see him as a role model. 

Business Marketing on the Internet: The use of internet to facilitate the exchange of goods, services, and information between organizations. Nike’s other large amount of income, comes from their much modernized website. It’s easy to use and there are lots of features. Most useable one is NikeID because it provides people to customize the product that they choice for example they could change the color, they could add their initials and their favorite number, with this feature Nike tells us (public) create your style, tell other people that this is my shoe. Also, Nike almost have every sports on their website from soccer to swimming.

http://www.nike.com/us/en_us/
http://www.nike.com/us/en_us/lp/nikeid

As everybody knows World Cup is one of best and friendly competition in the world. Nike had the best percentage of World Cup internet buzz, as you see on the chart.

Nike has created a commercials about the competitions.

Chapter 8: Segmenting and Targeting Makets

Just like other companies Nike apply methods of segmenting and targeting markets in order to get the most out of their products. Nike describes the market and segment depending on the product that they are selling. Mainly Nike uses demographic segmentation, because when Nike creates a product that depends on the gender, age, income, and ethic background. For instance when Nike creates a soccer cleats, they make it as unisex.

Fernando Torres

Alex Morgan

When the gender is established,they usually have a foot chart,based on the ages of the customer (Youth Sizes,Big Kid Sizes and Adult Sizes). But Nike does not make a lot of soccer products for youth size, because they are just kid and they don't really know how to play. But of course age 10 and up Nike provides most of their cleats for kid, adult size Nike goes up to size 12 on their websites. Youth size (10c), Big Kid size (7y), and Adult size (11)

A lot of Nike products are broken down into different lifestyle; golf,soccer,football,swimming,and tennis of course there are more sports that Nike involved but these are the most common ones. These sports are Nike's target market for their clothing and sneaker products. Nike also uses it's Air Technology which makes the sneaker more comfortable, for clothing like jerseys, shorts, and socks Nike uses a very different kind of technology from their competitors. For example; DriFit is the most common one because Nike applies this technology to team jerseys, shorts, and socks. There are more than 10 different type of technology that Nike has created, and you could find them in this website (http://help-en-us.nike.com/app/answers/detail/article/product-technology/a_id/32760/p/3897)

Chapter 11: Developing and Managing Products

                        Since Nike been in business, they produced more than million sneakers.In Product Creation and Development, we are involved in the first stages of creating new products, commercialization and getting them to our consumers. This involves everything from idea generation, materials and construction, materials sourcing, product testing and product confirmation. One of the Nike’s upcoming soccer cleat “All Conditions Control” the previous shoes was Nike CTR360.

These are the facts and benefits between Nike ACC and Nike CTR360

                                                      DEADLY IN ALL CONDITIONS

The Nike GS Concept II Men's Soccer Cleat features the industry's first All Conditions Control (ACC) technology offering optimal ball control in wet and dry conditions. Made with only 160 grams of recycled and renewable materials, the Nike GS Concept II is among the lightest and greenest cleats Nike has ever made.

BENEFITS

• All Conditions Control (ACC) technology to help you grip the ball for the same control in any weather
• Solvent-free Kanga-Lite synthetic upper with zonal reinforcement for exceptional touch and control
• Diamond-silhouette spine for optimal flex and agility
• Nike GS lightweight traction plate designed with a high-performance chassis for strength, responsiveness and agility
• Anatomical and asymmetrical heel counter that locks the foot down for stability and support

 MULTIDIRECTIONAL TRACTION

The 360-degree cleat placement includes round cleats on the medial side and blades on the lateral side for ground-gripping traction in all directions. The firm-ground (FG) cleats are designed for use on short-grass fields that may be slightly wet, but rarely muddy.
LIGHTWEIGHT COMFORT
The Nike CTR360 Maestri III cleat offers a comfortable fit in a lightweight package. The EVA sockliner has PORON ® inserts for added cushioning and reduced cleat pressure, while minimal stitching in the forefoot reduces irritation without sacrificing lockdown.
MORE BENEFITS

• Low-profile, super-durable plate for responsive support and durability 
• TPU cleat islands for extra durability and impact protection in high-wear zones 
• Textured forefoot and midfoot for enhanced friction and control
• Asymmetrical lacing system for expanded ball control surface
• Upper material sits close to the foot for natural touch and fit

Nike always uses a famous soccer player to advertise this product. But the 2013 ACC did not release and Nike already used many players to advertise this product, for earlier version Nike used mostly middle-field players because of their ability to change the game.

Like every other company Nike has their product life cycle.

• Research and Development: Prototypes, Design briefs, Instrumentation, measurements, and tools to                                                    ensure satisfaction
• Marketing: Endorsments, TV, Magazines, and Bilboard.
• Manufacturing: Sweatshops, and Nike is the industry leader.
• Packaging: Corrugated cardboard, and Box Renovations
• Sales, Distribution & Transportation: $10.2 billion in footwear sales in 2009, Nike $19.01 billion in revenue $8.8 billion gross profit, 33% of the global market share, Many distribution channels, 20,000 retailers worldwide, and Variety of transportation including.
• Consumer Use: Variety of uses, and 300-400 miles per shoe
• Final Disposition: Nike being successful, and loyal customers.

SOURCE:http://www.personal.psu.edu/cdb5278/team1project1/Nike%20Product%20Life%20Cycle_files/frame.htm

Chapter 16: Integrated Marketing Communication

Integrated Marketing Communications is the coordination and intergration of all marketing communication tools, avenues, and sources..
Nike fully includes themselves to the concept of integrated marketing communications. Their integrated approach includes traditional advertising such as, billboards, magazines, and television.

this is an ad from a magazine

Sponsoring sporting players, and events such as World Cup, Euro Cup and Cristiano Ronaldo, Tiger Woods, and LeBron James. With Nike online marketing strategy, Nike ID gives consumers to customize their own product.

this is an ad from a bilboard

Just like other brands Nike wants know about what the receiver thinking about the product so Nike has created a forum where you can discuss or communicate with other people and let other people see you feedback's about the products (http://niketalk.com/f/).

Nike has at least more than 10 stores in many country which make them one of the best in the world.

Chapter 10: Product Concepts

Product concept: Management philosophy that a good product creates its market, and does not require heavy marketing expenditure. Nike's goal is to give customers the best quality products. Nike's first sports product was track running shoes, but after years Nike decided not to focus on just one product, they expanded the idea of including other sports like; Soccer, Football, Baseball, Basketball, Hockey, Tennis, and Golf these are just a few sports that Nike is participating. People use Nike products for many reasons. Many people believe that Nike give out what the costumers wants quality sneakers, jerseys, and shorts. Nike added a technology to most of their products, Dri-FIT is Nike's moisture managing material that expels perspiration from the body to the surface of the garment so the moisture can evaporate. The Dri-FIT technology is found within many of Nike's apparel items such as tops, bottoms and jackets for the ultimate in comfort. Dri-FIT is a high performance fiber made of polyester that is suitable for both cold and hot weather conditions. In hot weather, the Dri-FIT pulls moisture from the skin to the top of the fabric so it can evaporate. During cold weather conditions, the Dri-FIT fabric keeps moisture away from the skin to keep you warm and dry. 

The way Nike markets and advertise their products, the consumers right away creates an idea that Nike is a special product. A lot of people purchases their favorite teams jerseys, shorts, cleats Nike gives their costumers to customize their own cleats and if they want they could add their favorite team logo, which makes people interesting to buy it, this give Nike a huge advantage against their competitors. Nike is trying to create different kind of technology and apply it to their new products.This is how Nike created the technology to make the players faster.

This is how Nike created the technology to make the players faster.

Cristiano Ronaldo racing versus one of the fastest cars in the world and BEATING IT!

Nike shows us what type of materials they use to make a nice shoes.

Chapter 18: Sales Promotion and Personal Selling

        Sales Promotion: is marketing communication activities, other than advertising, personal selling, and public relation. Like all other companies Nike promotes sales every season by season Nike’s percentage of selling products increases because of sales promotion. Nike also, offers people to subscribe their email, monthly sales, and to presents a lot of coupons when there is a season sales. Just like other companies Nike also has franchisee stores like Modell’s, footlocker, and other similar sport store.

This is a running shoe from Nike's official website.

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

Seven Steps in the Personal Selling

1) Generating Leads                                              

2) Qualifying Leads

3) Approaching the customer and probing needs

4) Developing and proposing solutions

5) Handling objections

6) Closing the sale

7) Following up
                                                                                                                                         As you see on the chart Nike has the lead because of Nike's special created products for World Cup for example the jerseys, t-shirts, soccer balls, and special edition soccer cleats. Nike has a great way to deliver their products to customers when they place their order. For example one of my friend ordered one of these cleats and they told him you will be able to get them in one week, they also told him that he could track his order. After a week he got them, and hes still wearing them even tho it's been two years. Nike's leading the world's sports industry; "the Nike brand is worth $15 billion and has a 38% share of branded footwear industry. Following Nike is ESPN with $11,5 billion, Adidas with $5 billion, Sky Sports, and Gatorade".

(Source: http://society.ezinemark.com/worlds-top-sports-brands-2011-77371273fed0.html )

Chapter 17: Advertising and Public Relations

The next wave are here. Neymar, M'Vila, Götze. Hungry to break through. Unafraid to line up with Ribéry, Sneijder, Ronaldo. Followed by thousands more. Ready for the chance. Are you? Watch the film, then find what it takes to make it.

      

Advertising is impersonal, one-way mass communication about a product or organization that is paid for by a marketer. When a company advertise their product that company needs to have a good Public Relations; the marketing function that evaluates public attitudes identifies areas within the organization the public may be interested in and executes a program of action to earn public understating and acceptance. When Nike advertise they have advertising strategies just like the other competitors.
Advertising Strategies,

• Designed to make a connection to the consumer.
• Seldom pitch the product directly or talk about product attributes.
• Sometimes do not even mention the company's name featuring instead only the swoosh logo.
• Seek to portray the core value of sports.
• Collaboration ADs with another strong branded product such as Apple Ipod.

Source: http://www.scribd.com/doc/77555533/Advertising-Strategy-of-Nike

Also, Nike's strongest way to advertise is employing so many athletes that are famous and everybody in the world knows them, such as; Cristiano Ronaldo, LeBron James, Ronaldinho, Tiger Woods, Serena Williams, and Michael Jordan. These are the athletes from different sports.

Cristiano Ronaldo                     Serena Williams                                            Tiger Woods  

       Its been years since the sweatshop article in the media alleging that factories in China and Indonesia were forcing workers to work long hours for low pay. This cause created a public relations nightmare for Nike Inc. Nike was in huge crises because the didn't know what to do but 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. Knight promised to meet the U.S Occupational Safety and Health Administration (OSHA). He said that the minimum worker age for Nike factory would raused to 18 years for full-time employees and 16 for the part-time ones.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. And that how Nike fixed the problem with the public.

Jim Keady were interviewed by ESPN about the "SweatShops"