Chapter 16. Advertising, Public Relations and Sales Promotion

Advertising 

Nike has an enormous amount of sales promotion to advertise all their new products. The four main ways Nike uses sales promotion are currently through television commercials, social media, billboard adds, and using athletes from every major sports league as a representative who represents them. For example, LeBron James for Basketball, Serena Williams for Tennis , Lionel Messi for Soccer, Calvin Johnson for Football & Derek Jeter for baseball. Nike spends millions on advertising alone in a single year to insure that their product is being seen and hopefully it will motivate people to head to the stores to purchase.

Public Relations

Considering Nike’s successful history in sales and athletic sponsorships, they have taken a beating when it comes to public relations and social responsibility, having seen their share of accusations over time.  Problems like these have plagued major corporations, such as Wal-mart and McDonald’s, forcing them to find ways to drive from being associated with greed and corruption. However, in a recent "Corporate Responsibility report". Nike’s focus was recognizing the impacts of declining natural resources. This seems to be a continuation of their goal to reach a model that achieves zero waste with products that can be reused. 

Sales Promotion

Nike isn't known for having much sells but they opened an outlet at the Citadel Outlet in Los Angeles.  Nike's expansion plan calls for a mix of discount type Nike stores in outlet malls and Niketown stores, which sell newer and exclusive items and are often found in upscale shopping centers all across the country. Consumers won't find the latest Nike sneakers or Air Jordans at the Nike Factory Store. Instead, the factory stores sell products left over from past seasons at prices discounted from when the items first arrived in other retail stores. Which would make it easier for customers to purchases previous items they couldn't purchase once before. 

Chapter 14. Marketing Channels and Retailing

Nike has become the world wide leader in expanding and retailing, making it easier to move and sell their product around the world. Nike has set in motion a plan to expand its global retail foothold by opening 250 to 300 new stores over the next five years. That expansion includes a Nike Factory Store that opened at the Citadel Outlet in Los Angeles. This new store is Nike's 15th factory store in California ALONE! Nike currently has 155 factory stores open in the United States. Nike's expansion plan calls for a mix of discount type Nike stores in outlet malls and Niketown stores, which sell newer and exclusive items and are often found in upscale shopping centers all across the country. Consumers won't find the latest Nike sneakers or Air Jordans at the Nike Factory Store. Instead, the factory stores sell products left over from past seasons at prices discounted from when the items first arrived in other retail stores. Which would make it easier for customers to purchases previous items they couldn't purchase once before. The factory stores stock casual clothing, as well as products for sports such as running, training, soccer and basketball. 

For Nike, retailing is based on the customers  desires and or needs. And thats where Niketown comes into place. Niketown stores focus on selling newer footwear and apparel. Select Niketown stores, such as one in New York, Central Park feature NikeiD studios, where consumers can choose custom colors and materials on shoes made to order specifically. As a part of Nike's increased retail efforts, the company recently remodeled a Niketown location in London, expanding it to 42,000 square feet and adding a NIKEiD studio. The London Niketown store spans four floors and is the company's largest. NIke believes in space, the bigger the space the more product they can produce and put out to sell. Nike designs their store according to their market. Each floor is specifically for a certain age group or and sport. so each floor provides something new for the consumer. 

Chapter 6. Consumer Decision Making

Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods and services. Five steps that consumers make in decision making are: need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior. Nike is the leader in consumer decision making when it comes to athletic footwear. They have mastered the art of consumer want and thats by offering style. Nike has taken into account that not only do people need but they want! Nike has realized that most of its consumers seek not only shoes that perform but shoe that have style. Most of Nike's basketball footwear sold nowadays are bought by consumers not to wear to play the sport but to wear casually in their everyday lives. The sneakers that Nike sells now carry a hefty retail price with some ranging from $160 to $270. Nike has taken in to account that their consumer market is not necessarily a "need" market but predominantly a "want" consumer market so Nike makes stylish athletic sneakers with a hefty price tag because most of Nike's popular footwear sell out instantly, so as long as the consumer is willing to pay, Nike will continue to charge. 
     
Nike is known for their great innovations and methods of keeping up with the everyday changing trends and the different unique styles. Nike makes it easy for the consumer to know what they want when they want it. Nike does most of their consumer making through advertisements, the athletes, and celebrity who represents them.

Chapter 5. Developing a Global Vision

Nike as a  company is focus on Sustainable business and Innovation. This will be integrated across Nike's business strategies, creating a more sustainable approach aimed at providing greater returns to its business, communities, factory workers, consumers planets across seas.

Nike expects products to have an environmental impact, contract factory workers who will gain from more sustainable manufacturing and their employees and shareholders who will be rewarded by a company that is prepared for the future. Recognizing the impacts of declining natural resources and the need to move to a low-carbon economy. At Nike, the goal is to achieve zero waste in the supply chain and have products and materials that can be continuously reused, no pre or post consumer waste. This vision is designed to drive innovative and sustainable business processes and models.

Other goals remains more challenging such as managing overtime in contract factories. Nike has also revised or clarified targets in a few instances due to a better understanding of the complexities of the issue or a change in strategy over seas with their plants and conditions. 

Improving Performance 

Factories that make footwear, apparel and sports equipment have a wide variety of environmental impacts, including their use of energy, water and diverse materials; the related creation of waste, greenhouse gases and other emissions and release of toxins. They have worked with contract factories for several years to improve their management of energy, water, waste, toxic materials and water discharges. Their committed to a goal of zero discharge of hazardous chemicals by their material vendors and contract manufacturers by 2020. Many of these environmental issues are also social issues as well. They expect the factories that make their products to comply with all legal and Nike requirements set out in their Code of Conduct and Code Leadership Standards and to be good towards the environment. As natural resources come under increasing pressure, a factory’s capability to use resources efficiently and reduce its environmental footprint is an indicator of its potential for long-term success, and at Nike this is what it's all about. Making product thats efficient, environmental and productive.