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Role of technology in sport
The value of technology in sports
Impact of social media on consumer behavior
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Social media affects people’s daily lives. Think about how social media has affected your life. Many people that interact with technology do not realize how much Facebook and Twitter have affected their own lives, so they surely do not realize how much it has affected a business’s marketing structure. Bill Bowerman, once a head coach at the University of Oregon, and Phil Knight, a long distance runner once at the University of Oregon, paired up to start making athletic shoes. They first started working with a company named Blue Ribbon Sports then they paired up and their ideas and hard work resulted into the company Nike in 1971 (Nike). Nike has grown into a popular brand for athletes. Their marketing tactics heavily focus on athletes and performance. So how has social media specifically affected Nike's performance in marketing? Social media has affected Nike's marketing techniques through exploiting their brand name, products, and celebrity endorsements. Social media such as Facebook and Twitter has significantly changed the way businesses interact with customers.
Roger Warner from Marketing Week states, “Three years ago most brands didn’t really have a clear understanding of the impact social media would have on internal resources or their marketing strategies. Fast-forward and there are now roles in marketing departments focused solely on sharing and publishing content all the time. The smarter agencies have figured out that their value in the mix is on the idea rather than the day-to-day community management.”(marketing week) He expresses that in the technology world the content is reoccurring and changing everyday so an effective way for business to advertise is social media. Nike claims that for its business strategy t...
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...s Ille Natase. Michael Jordan and Spike Lee were some of the first athletes that were endorsed when Nike ads were becoming to gain global fame. (NYCT) Jordan was signed to Nike in 1984. (americanp)
In the 1980s Nike decided to go in a new direction and pull away from
Nike started experimenting the transition from traditional to nontraditional advertising in the 1900s. Nike did not run television advertisements until1982 (americanp) and in about fifteen years they already started to stray away from it because of social media. Social media in the twentieth century started to become used daily and taking over people’s attention instead of commercials on television. In 2006 Nike spent thirty three percent on advertisements with television networks and traditional advertisements. According to Advertising Age that is fifty five percent down from ten years ago.
This is in large part due to the "street cred" that comes from being associated with the likes of the larger-than-life Michael Jordan and the outrageous "dunk-punk" Dennis Rodman, US NBA basketball -- according to one poll, the most popular sport among Australian young people -- and, indirectly, African-American fashion and music. Okay, Ryan finally conceded, there is "some flow-through effect". In fact, more than 60% of Nike sales are to non-athletes. To achieve this "flow-through effect" Nike pays Jordan, the jewel in its endorsement crown, an estimated US$20 million a year to have a sandshoe named after him. In 1992, the company forked out $250 million on its advertising and promotion budget alone.
When it comes to dealing with Nike’s down falls they currently hold an extremely high inventory. The firm is hoping that with the upcoming London Olympic Games they will be able to convert this inventory into sales. Nike has also seen a recent decline in liquidity. Nike has recently spend a significant amount of money trying to enhance its revenue stream. While this tactic worked it may not be the most ideal situation in the
But what makes people buy the name brand Nike? They have great advertisement. I love to watch Nike commercials; they appeal to me as an athlete. The commercials show the inner fight in people, breaking records, becoming a stronger person, being the best you, and being the best athlete; you can be overcoming anything. I find their advertisement to be very inspiring and motivational. The Nike slogan ‘Just Do It’ plastered on so many products inspire others to get out and ‘Just Do It,' no hesitation. Nike tries to appeal to you to buy their products by placing their apparel on professional athletic. Everyone knows Lebron James he has many young athletes that look up to him and want to be just like him. What do they see Lebron James wearing? Nike apparel, for the kids that want to be just like him, they want what he has. So they want the Nike look. For me personally, I see Nike products and logos at just about all sporting events, which is a great strategy for the business.
Consumers must be aware of the changes that might occur in Nike through media and social awareness
Nike is a multinational corporation with a brand that is recognizable worldwide. For the following paper I will conduct be conducting a social media audit, and evaluating the social media strategies currently being used by Nike. Nike is American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1978. (Wikipedia, 2013)
The connection between social media and relationship marketing cannot be disregarded. This is because in the modern world that we are in now a sporting organisation can use social media to launch a well-coordinated campaign with the click of a button. Whereas, many years ago in order have a success relationship marketing a huge amount of labour, money and time were needed. Due to social media still being considered to be in the early stages, a lot of sporting organisation has not fully incorporate it into their marketing strategy in order to gain maxim potential that these powerful tools can offer. Most sporting organisation needs a better understanding of the background of social media which will potentially allow for strategies to be implemen...
An article recently published in The Wall Street Journal focused on the effects of Nike
From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded name and logo tandems ever created.
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. In 2000 Nike Inc. not only manufactured and distributed athletic shoes at every marketable price point to a global market, but over 40% of our sales came from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States).
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Nike attempts to convey themselves as an ethical and loyal company within their print advertising, by contributing multiple factors to appeal to their customer base by using tactics such as sexual appeal and tugging at people’s hearts with emotion. While Nike does not appear to be unethical, some of the techniques they use are questionable to the media and the public. When it comes down to how Nike evaluates their print advertising, they should think more so about who is endorsing their products and showing a value in character and overall community leader, then how athletic the athlete is to the public. Nike is not an unethically advertiser, but a questionable judge of character with the athletes they plan to endorse their products.
According to Diamond 2008, social media marketing is marketing that concentrates on people and not products. The company can represent the product through a promotional tool if possible, all that really matters is the customer’s feedback. Marketers are scared about social media marketing because people provide and control the content posted, therefore negative word of mouth can be said about the brand which can spread worldwide in the twinkle of an eye. Social media does not only help companies and brands expand or create awareness, it also influences consumer behavior in terms of gathering information, purchasing decisions, opinions, attitudes and brand evaluation. Marketers need to post topics that will create great conversations with consumers using the platform.
The first advantage of using social media in business is increasing brand awareness. Social media can help business to build their brand awareness by increasing interactions with a business brand. Brand awareness means the total percent of a target people who know the company exists and what the company offers of products or services. When the brand awareness is increased, the possibility of buying is increased. Thus, efforts should be made to make the brand a part of the consciousness of customers. For example, Coca- Cola is one of the best companies that enjoy unusual...
We can now connect with each other instantly over the internet. It is quicker and easier to communicate and share with each other now than it has ever been. Massive amounts of people access the internet every day, and a good number of them are using social media. This means that the ability to use social media and use it well is crucial for modern businesses. Whether for public relations or advertising social media is now one of the best ways to access consumers. Especially when it comes to younger generations, if you aren’t online you don’t exist. Social media is an excellent way to establish a presence in the minds of consumers. They can interact and establish a connection with an organization instantly. Social media is cheap and its everywhere. If a business hopes to compete in the modern world having a social media presence is absolutely
Social media is the modern version of the paper plus more. In modern society technology runs the world and the same applies to advertising and a company’s success because social media can spread the word fast and get your business recognized by a lot more consumers. Social media is "A unique opportunity for companies to stay on top of mind with current customers and get on the radar of new customers on their preferred platform." (Zeckman) Social media has a positive impact on businesses because Zeckman claimed that due to the rise in social media, more businesses can become closer to their customers and develop the trust and security that they are the right brand for their customers. In addition, Zeckman stated all businesses can use social media to their advantage by social media to get customers more interested and thinking about their product and to get new customers drawn in by ads that if we’re not posted some people would have never heard of the business. In connection it has been shown in research and surveys that social media has a very important effect on modern businesses and Ashely Zeckman continues to support this because in her article she states that "70% of marketers found that social media activities increased traffic to their website while 75% of businesses engaging