1. 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 or consumer 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.

2. 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 selling to create better customer experience and customer
relations, while promoting the company’s products.
 3. 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.

4. 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.
 5. 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.