Answer to Question #166744 in Marketing for Sunny

Question #166744

Nike Digital sport, is a new division he company launched in 2010. On one level, it aims to develop devices and technologies that allow users to track their personal statistics in any sport in which they participate. Its best - known product is the Nike+ running sensor, the blockbuster performance- tracking tool developed with Apple AAPL - 0.61%. Some 5 million runners now log on to NKE- 0.62% to check their performance. Last month Digital Sport released its first major follow- up product, a wristbrand that tracks energy output called the Fuel Band. Just rry to recall the last couple of Nike commercials you saw on television. Don't be surprised when you can't Nike's spending on TV and print advertising in he U.S has dropped by 40% in just three years, even as its total marketing budget has steadily climbed upward to hit a record $ 2.4 billion last year. "There's barely any media advertising these days for Nike." says Brian collins, a brand consultant and long time Madison Avenue creative executive.

The reason for the shift is simple: Nike is going where its customers is and its core customer, a 17- year old who spends 20% more on shoes than his adult counterparts, has given up television to skip across myriad online communities. Not only does Nike think it can do without the mega - TV campaigns - may be as closely as it did in its early days, when founder Phil Knight sold track shoes out of his car in the 1960s. That's a major change, Nike CEO Mark Parker explained to Fortune during a recent interview in his tchotchke - filled office in Beaverton. "Connecting used to be," Here's some products, and here's some advertising. We hope you like it', " he says, "connecting today is a

a. Analyse the reasons behind the growing clout of social media in marketing communications.

b. Discuss and debate the advantages that Nike has enjoyed by being an early adopter of digital marketing strategies?

c. Explore the ways in which Nike can further use its digital marketing strategies to reach its target customer base?

Expert's answer

a) 1. Improved brand awareness. There will be improved brand awareness when one is using social media. Thus gaining more customers.

2. Cost effective. The use of social media to promote your business is cost effective thus giving you more in return.

3. Increased traffic. When using social media to advertise your business,more people are being reached by the adverts thus making the traffic of customers to your business to go up.

b) 1. Larger market share. Because of it's early venture into social media marketing Nike has garnered a large market share.

2. Good customer relations. Nike has good customer relations throughout the years.

3. Increased traffic. This is due to their high quality products that they offer to their customers.


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