BUSINESS COMMUNICATION NIKE

NIKE INC. COMMUNICATION

PRACTICES
INTRODUCTION:

We choose to write this report on Nike Inc., as this company delivers innovative products,
experiences and services to inspire athletes and they have remained consistent on communicating
with their customers. We want to know; how much authentic this information is. So, we will be
making a report about the communication practices of Nike Inc., whether they are
communicating on international standards with their customers and which type of barriers they
are facing on communicating with their customers. After evaluation and analysis of whole report
we will get a clear view of Nike Inc., whether it is really effective in its communication or not.

COMMUNICATION PRACTICES:
Nike is an international brand so; its communication depends on international standards:

Advertising Nike Inc.’s Products

In advertising, Nike Inc.’s goal is to reach large populations of target customers with the biggest
possible impact. Successful advertisements promote the brand to customers. These
advertisements also improve consumers’ perception about the company and its products. Even
though advertising is an effective marketing communications tactic, it is typically costly,
especially when involving traditional media like television, radio and print. Still, through
successful implementation, Nike reaps the rewards of a stronger brand image and higher demand
for its products. Thus, despite the high cost of advertising, the company achieves net benefits in
its financial performance.

Nike Inc. uses celebrities to represent the ideal customer of its products. The company’s
advertisements present highly popular personalities, such as professional athletes. Target
customers see that their favorite celebrities use Nike’s products. As a result, these customers
become motivated to purchase and use these products. Through celebrity figures in advertising,
the company’s marketing communications mix effectively promotes products to customers by
motivating them to mimic how these celebrities prefer the Nike brand.
BUSINESS COMMUNICATION NIKE

Nike’s Personal Selling

Nike’s personal selling efforts typically happen in stores. Store personnel are trained to provide
assistance to customers. These personnel are expected to know more about the company’s
products, and to persuade consumers to buy these products. In some cases, sales personnel
promote the company through personalized services that help in finding the right Nike product.
Personal selling facilitates the purchasing process and, thus, contributes to the company’s
profitability.

Personal selling contributes to positive customer experience. Customer experience is enhanced

because of trained assistance and persuasion from sales personnel. Customers feel empowered in
making informed buying decisions. This tactic helps make customers feel good about the
products they buy from the company. Thus, Nike’s marketing communications mix uses personal
BUSINESS COMMUNICATION NIKE

selling to create better customer experience and customer relations, while promoting the
company’s products.

Direct Marketing
Nike Inc. uses direct marketing to promote new products to target markets. These new products
are usually heavily advertised. However, to make a bigger impact, the company uses salespeople
to approach certain organizations or individuals in target market segments. For example, the
company approaches and promotes its products to sports organizations in colleges and
universities. Nike’s marketing communications mix uses direct marketing to establish stronger
relations with target customers and motivate them to purchase the company’s products.

Direct marketing contributes to Nike’s competitiveness through customer loyalty. For example,
in directly communicating with target organizations, schools, colleges, and universities, the
company develops loyalty among target consumers, who become more frequently exposed to the
Nike brand. This condition helps improve the company’s competitiveness and address the strong
force of competition determined in the Porter’s Five Forces analysis of Nike Inc. This means that
strategic approaches to promotion are directly linked to the development of the company’s
competitive advantages.
BUSINESS COMMUNICATION NIKE

Sales Promotions
Nike’s sales promotions are usually in the form of special offers given to target customers. The
company uses sales promotions to motivate new customers by giving additional benefits, such as
the savings they can make by purchasing when discounts or special offers are applied. Sales
promotions in Nike’s marketing communications mix drive demand from new customers by
motivating them to purchase the company’s products on the basis of these perceived benefits.
BUSINESS COMMUNICATION NIKE

Public Relations at Nike

Nike Inc. uses public relations in marketing communications. In this business case, the company
implements public relations as a way of addressing social issues linked to its business. For
example, the company experiences social pressure regarding the use of sweatshops, as well as
pressure to improve green technology integration in the business. Many of these issues are
included among the considerations in developing Nike Inc.’s corporate social responsibility
strategy and stakeholder management approaches. This condition shows that the company also
uses public relations to deliver information to stakeholders regarding current and planned
corporate citizenship activities to improve the business and its effect on stakeholder groups.

The company applies public relations by sponsoring sports events and similar activities, and uses
these activities to communicate to target customers regarding what the business does to address
relevant social issues. In this regard, Nike’s promotional mix involves public relations to address
social issues and to promote the brand, so that current and potential customers develop a better
perception about the company and its products.
BUSINESS COMMUNICATION NIKE