Greetings fellow students and future business entrepreneurs……The topic I will be giving a presentation on….. is one of the most interesting subjects in the field of business marketing today. ….So,…. how are businesses now using social media to communicate and market themselves, you ask?
To see the full range and scope of social media marketing today,….I chose to focus your attention on one business organization in particular…..One that is close to home and familiar around the world….Nike,…..headquartered right here in beautiful Beaverton Oregon…. is one of the most prolific users of the complete range of popular social media channels…. Let me show you the many ways in which Nike is using Social Media to communicate and market themselves today.
But first,….to give context to the application of social media marketing,…. I thought I’d take you back in time…. To a time when things seemed simpler, and a bit slower paced….. Oh yes,….you can still see remnants of these age old traditional marketing mediums being used to a lessor degree today than ever before….and yes, you may still get a telemarketing call or two on your land line phone, if you have one…..and you can still see newspapers left outside in the rain for days on end and stacks of yellow pages and direct mail that were never opened heaped into recycling bins. ….and of course,… those pesky TV commercials that ‘On-Demand’ won’t let you skip over….. …But can you recall ….the last time you saw a Nike commercial on television?
While Nike’s marketing budget has grown to a record $2.4 billion in 2011, Nike has reduced their television and print advertising by 40% in just 3 years. Nike’s marketing dollars are directed to communicating with interactive elements in a variety of web based channels. According to Advertising Age estimates, Nike spent almost $800 mil on non-traditional advertising in 2010.
Today is a new era in marketing… filled with possibilities in every direction…. Digital technology and the advent of the internet has spawned a multitude of ways for people to connect and .…..Since that is the case,….it didn’t take long for commerce to take notice and invent ways to join in on the activity…. Companies are taking advantage of the opportunity to increase their brand awareness, provide product information,get direct feedback from their customers, ….hear what others are saying about their company and products, ….watch for trends …..and use that information to design marketing strategies, ….resolve issues,…. improve or maintain favorable perceptions of their brand, ….develop better tools communicating…. and increase traffic to their digital storefront where customers can learn about and make purchases of products and services from the convenience of their home or office. Providing on-line purchase options reduces the costs of providing brick and mortar storefronts complete with furnishings, utilities and employees to operate.
“In 2006 Nikestarted experimenting with social networking and online communities, partnering with Google for a World Cup-related social network called Joga.” By the time the 2010 World Cup of Football (or Soccer, as we call it here in the US) took place,….Nike had garnered over ¼ of all the social media conversations in context to the event, which was being monitored online by Meldwater Buzz for a two week period of time. Nikewas just an unofficial sponsor of the event, ….meaning Nike supplied footwear, clothing and other gear to the athletics to wear while involved in the games, …. Positive digital conversations about a company’s products and services are highly valued and looked upon as more credible than if the company was to share the same sentiments about themselves. Positive Social Media buzz (which we used to call “word of mouth”) translates into social brand capitol.
From Nike’s main web page, they provide access to a variety of off shoot web pages focused on each specific sport which they have developed into communities. Each web page allows members of these communities to share their “likes” of content with their networks in all the major social media channels. Here is where customers can shop and log into the specialized programs developed to interact with consumers directly.
The latest great idea,… that came out of a partnership between Nike and Apple,…. has been the development of a variety of applications to synchronize individual exercise and running data onto portable devices that can be uploaded to the internet and shared with the new Nike+ communities. Shoes and sports bands with built in sensors linked by blue-tooth to computers, iPhones and iPods allow athletes to store and analyze their data, as well as share their progress, successes, routes and locations with their friends and other athletes. This platform allows Nike to study it’s customers’ behaviors and patterns to better develop strategies that in turn produce increased sales.
To introduce it’s Nike Zoom Performance shoes across three cities in China in three weeks, Nike developed and installed a Bluetooth system around designated running routes to actively engage the audience. Participants were sent set up and route details via their mobile device. After starting their run, participants interacted live with the campaign when their mobile device passed by the Bluetooth sites. Their goal was to have the best run times against the clock from the time they started. Results were reported to the online community that kept updated on participant’s progress and new times. Winners were given new running shoes with the built in Zoom chip technology along with their names prominently illuminated at one of the Bluetooth sites. ¼ mil Bluetooth messages were delivered, 15k participants and 63 pairs of Nike Zoom shoes were awarded, 1.7 bill online impressions were monitored, 19 million print impressions and 17 million target audience impressionswere reported.Quite the success.
Nike is going where their customers are,….and 17 to 25 years olds are skipping traditional television for online social networking communities like Facebook. Nike now debuts major commercials on Facebook for their fans before they are ever shown on primetime television. Nike has found that it can interact more closely and directly with it’s consumers, “maybe as closely as it did in it’s early days, when Phil Knight sold track shoes out of his car in the 1960’s” …..As Nike’s CEO, Mark Parker explained to Fortune in an interview,….”Connecting today is a dialog.”
In 2010,Nike debuted it’s “Write The Future” campaign on Nike’s Football Facebook page. When it aired, it whizzed around blogs and wall posts at warp speed, gathering 8 million views in a single week to set a viral-video record at the time. Other campaigns such as “The Chance” gives fans the opportunity to win products and the chance to train with other athletes at their private training camps.
Nike displayed updates toposts from fans on their Twitter account on a 30-story billboard in Johannesburg for passersby's to read. Nike also found a way to solve a problem by using twitter. When ever Nike came out with a specialty sneaker, such as the highly in-demand Air Jordans, they would find scores of young kids lined up camping outside their stores through the cold night just to be able to purchase the items. They were receiving reports of safety issues for the kids at night. So they devised a program in which each individual store’s twitter account would tweet announcements of new product releases, sizes and styles available and each location. Only those that responded via twitter would receive a direct tweet with a code number and time that they could come in and purchase their selection.
On YouTube, Nike presents customer educational videos for how to set up their new Nike + technology. You can find product demonstrations, testimonials, customer created entries to campaigns, such as “Find Your Greatness” and commercials.
Video playlists let you run Nike content practically non-stop all day. You can jump from playlists in one sport to another and browse the variety of videos to keep your attention and focus on Nike, Nike products and Nike’s customers to your heart’s content.
Nike uses Instagram to display product photos, images and customers wearing and using Nike products. The Nike community can become ‘Followers’ and be included in notifications of the images posted as soon as they are available on-line. If you are an Instagram member, you can comment on images and share your comments with your social network.
Nike uses LinkedIn, a business oriented social network, to inform LinkedIn members of it’s business operations, career opportunities, employee positions, employee insights, and highlightemployees’ activities.
Through partnerships with Google + and Firefox, Nike links customer ‘likes’ and on-line sales to the customer’s networks, as well as tracks customer click destinations and purchasing behavior.
Besides the on-line social media channels here in the US, Nike has also expanded into international markets with similar activities on social media channels around the world.
(Presenter reads from this slide)
So,… in conclusion, …Social Media is here to stay and growing in the areas of marketing, customer service, and product development…... As Nike has found, customers that are willing to share their ideas, positive experiences and stories of using their products and services….. with the world ……are what differentiates them from the competition. You too can choose to use Nike as a benchmark for how to use social media to communicate and market your products or services.
Ba 205 a4 final project reed l
December 5, 2012 How are Businesses Now Using Social Media to Communicate and Market Themselves, you ask?Loretta Reed BA-205Clackamas Community College Instructor Cole Chatterton
• Newspapers• Television• Radio• Catalogs• Yellow Pages• Direct Mail• Telemarketing• Bill Boards• Expo Shows• Press Release• Public Relations
Top 5 Social Media Channels Companies Are Using80% 80%70%60% 66%50% 55% 49%40% 43%30%20%10%0% Facebook Twitter YouTube LinkedIn Blogs
• China: Weibo, Ren Ren, and QQ• Russia: Vkontakte• South Africa: Mixit
Mark Parker, CEO at Nike, was quoted as saying…“You have to be open to ideas from differentparts of the company, from different parts ofthe world. The biggest sources of opportunityare collaboration and partnership. Andtoday, with digital communication, there ismore of that everywhere. We need to exposeourselves to that as a matter of doing business.”
Soloman, M.; Marshall, G.; Stuart, E.. Marketing: Real People, Real Choices, 7th ed. Upper Saddle River, NJ Pearson Education. 2012Fortune (2012, February 27) Nike’s New Marketing Mojo. Fortune.com. Retrieved November 23, 2012, from http://management.fortune.cnn.com/2012/02/13/nike-digital-marketing/Sudhaman, Arun .(2010, June 11) Nike leads social media buzz in World Cup run-up. Streetmedia.wordpress.com. Retrieved November 23, 2012, from http://streetmedia.wordpress.com/2010/06/11/nike-leads-social-media-buzz-in-world-cup-run-up/Safian, Robert. (2012, November 5). How CEO Mark Parker Runs Nike to Keep Pace With Rapid Change. Fastcompany.com. Retrieved November 23, 2012, from http://www.fastcompany.com/3002642/how-ceo- mark-parker-runs-nike-keep-pace-rapid-changeSwallow, Erica. (2011, September 22) How Nike Outruns the Social Media Competition. Mashable.com. Retrieved November 23, 2012, from http://mashable.com/2011/09/22/nike-social-media/“Why Do We Do It” readybuzz.com. Retrieved November 23, 2012, from http://readybuzz.com/why- do/#WhyDoWeDoItAssadi, Sam. (2011, November 23). The Social Media Revolution - Are You Curious To Know How It Works? Retrieved November 23, 2012, from http://www.youtube.com/watch?v=ZuySnObVhy4&feature=youtu.beNike Zoom – Quick is Deadly! Mindshareworld.com. Retrieved November 23, 2012, from http://www.mindshareworld.com/what-we-do/case-studies/@Nike-Zoom