Description
Document covers topics like the benefits, control mechanisms, objectives, cost effectiveness, ethical considerations and behavioural factors in branding Nike tshirts, apparel, shoes and merchandise.
NIKE IMC
Executive Summary
This is an essay about integrated marketing communication or IMC—its definitions, framework, and the advantages it creates for organizations.
Moreover, a concise case study of the internationally acclaimed manufacturer of sports gears, Nike Inc. is also tackled in this essay. More specifically, the company?s IMC objectives, the cost-effectiveness of its IMC activities, the ethical considerations, behavioural factors that affect its IMC programs, and the control mechanisms that evaluate such activities are examined herewith. Last discussed are the recommendations or suggestions that may be applied to further enhance the function of integrated marketing communications in the concerned organization.
Definition
Integrated marketing communication (IMC) may be defined in various ways, but the most comprehensive definition is that of the American Association of Advertising Agencies—“A concept of marketing communications planning that recognises the strategic roles of a variety of communications discipline and combines them to provide clarity, consistency and maximum communications impact through the seamless integration of discrete messages.”
In IMC, it is important to consider the fact that consumers do not perceive the various tools of marketing communications—public relations, advertising, sales, online, and so on— as separate and divisible elements. The concern of the target market is not where the message
originates; what they notice is the content of the message. And as they receive a wide array of messages that come from a variety of organizations, they develop positive and negative impressions of various companies? goods and services ( 1998, p. 68).
One could therefore derive that the essence of IMC is quite simple—the realization of the need for a holistic approach in the application of the tools of marketing communication, instead of the separate utilization of these elements. Thus, there is a call for organizations to apply modified planning strategies to guarantee consistency and effective sending of a focused message to the target market ( 1998, p. 68).
A Framework for Integrated Marketing Communications
Although it is a simple concept, the effective application and operation of IMC is a complex task. It requires an efficient and adaptable marketing strategy that could only be devised through widespread research on significant customer information. It is therefore necessary to apply a step-by-step approach of an integrated marketing plan: situation analysis, target market identification, strategies, tactics, and evaluation of results („? 2006).
Situation analysis takes into consideration certain issues that a company is faced with such as market competitiveness, profitability, political, and legal situations, while the identification of the target market effectively examine and evaluates the consumers? purchasing behaviours („? 2006).
Once the circumstances are analysed and the target market is well scrutinized, an organization could then make use of the gathered information that would determine the strategies to be used in the marketing and sales of its products and services. Then, the organization could eventually apply the tactics that was previously determined, to the needs and demands of the target market. Lastly, the strategy and tactics applied by the organization
could be assessed or evaluated, so that necessary adjustments could be made for future purposes („? 2006).
Benefits of Integrated Marketing Communication
Integrated marketing communication could be advantageous to both the organization and its target market. Since IMC aims for a harmonious integration of the elements of marketing communication the organization is not restricted to only one strategy. If the corporation realizes that their products or services are weakly promoted through a certain tactic, it could resort to a different strategy that could effectively endorse these. Thus, through IMC, it is possible to maximize most, if not all, of the marketing communication strategies, depending on which is most useful and effective.
Evidently, the target market would also benefit from IMC. As was mentioned earlier, the consumers? concern is the content of the messages communicated by organizations, and these are also the ideas that could affect their perception of a product or service. As a result, organizations would tailor-fit their marketing tactics, based on the customers? needs and wants. Thus, through intensive research, analysis, and modifications involved in IMC, the consumers would rightly get what companies promise to deliver to them.
Case Study: Nike Inc.
Nike Inc., or Nike, is a globally acclaimed designer, manufacturer, marketer, and distributor of athletic footwear, clothing, apparel, sports equipment, and accessories for various sports and health endeavours („? 2006). Almost all of Nike?s goods are usually
produced outside the United States, and are made by independent contract companies who normally manufacture for other internationally recognized brands („? 2006).
Moreover, Nike owns the following established subsidiaries, all of which are based in the United States—Cole Haan Holdings, Inc., Bauer Nike Hockey, Hurley International LLC, Nike IHM Inc., Converse Inc., and Exeter Brands Group LLC („? 2006). Instrumental to Nike?s development and evident success is its efficiency in integrated marketing communication. The company has learned to apply a strategy wherein it could constantly communicate its messages through all media instruments, and consequently, to every consumer; this according to (2006), was made possible through Nike?s combination of conventional and modern advertising.
Integrated Marketing Communication Objectives “To bring inspiration and innovation to every athlete in the world.” This statement was inspired by , a highly esteemed track and field coach and co-founder of Nike Inc. This motto is the company?s foremost mission, but strategically integrated with this goal are a number of IMC objectives that assist the organization towards effective integrated marketing communication.
One such IMC objective is to employ a range of marketing communication tactics that would cater to the organization?s target market, who have different nationalities, genders, cultures, and ages. To enact this, Nike introduces its latest products through a marketing communication group that could strengthen the “positioning of, and key messages about, the Nike brand,” through different forms of visual aids and point-of-purchase advertising („? 2002).
Another IMC goal of Nike is related to the company?s quality and innovative products. Nike first develops its goods and services that would eventually cater to the needs and demands of people all over the world. As a result, its market share would increase, and more revenue would be generated for the organization. Evidently, this goal has been almost fully realized, since Nike has branches in different parts of the world, such as in Europe, Asia, and the like.
In connection to this, Nike continuously aims to apply marketing tactics that are appropriate with the people who reside in these continents or nations. For example, aside from traditional advertising in the form of television, billboards, and the like, Nike also makes use of contemporary marketing instruments such as the internet, wherein people in almost any part of the world could access various sites to customize Nike shoes and products.
Cost Effectiveness of IMC Programs
Nike applies integrated marketing communication and at the same time still relatively manages to be cost-effective in terms of its marketing programs. Although Nike?s marketing expenses may seem excessive—they employ internationally recognized celebrity athletes; they overflow retail networks with promotions of products and other giveaways; and during America?s Super Bowl, they had television time at $40,000 per second („? 2004)—they still have that marketing tactic that may sound simple but is remarkably effective.
Just do it. This line has been associated to the brand and is recognized and used by almost everyone all over the world. And whenever a person utters these three words, they unknowingly support the company?s products and infect others with the Nike virus („? 2004).
Although Nike has spent $1.74 billion for marketing expenses in the present year (, 2006), it still manages to be one of the most profitable multinational organisations
worldwide, with the help of its straightforward but smart marketing message that is exceptionally effective to reach out to the target market.
Ethical Considerations
It is quite interesting to examine the ethical considerations involved in the IMC of Nike, because there are two sides that to this issue—one that supports the fact that the company religiously complies to its social corporate responsibility, and the other side confirms different forms of violations to human rights. First, to positively support Nike?s ethical compliance, there have already been a number of projects and charitable acts that the organization has been involved in. For example, last July 11, 2006, Nike?s Portland Factory store held the annual community investment grants, wherein the corporation imparted $100,000 to 18 neighbourhood nonprofit groups. These organizations cater to the youth?s physical interests, guidance, and education, as well as to minorities? and women?s economic progress („? 2006). Moreover, it is a fortunate fact that since 1974, Nike has devoted $1.2 million for the North and Northeast Portland neighbourhood, and has even provided employment for the people („? 2006).
Another charitable act participated in by Nike occurred in July 2, 2006, wherein the company auctioned a limited edition collection set of Nike football Bearbrick toys that symbolised the eight teams sponsored by Nike, all of which were included in the 1996 World Cup („? 2006). The proceeds of this auction was for the fund-raising operations of the United Nations High Commissioner for Refugees (UNHCR) which aims to generate brighter opportunities for the nine million refugee youths all over the world, through education and sports („? 2006).
On the other hand, there are also proofs that Nike violates its ethical responsibilities through violation of human rights. This is illustrated by the issue that the company employs children in the production of its goods or products. Normally, Nike?s products are created in developing or third world countries, where an authoritarian government and cheap labour exists, and where is deficiencies in human rights demands and union associations. Examples of such countries are Pakistan, Indonesia, India, and Bangladesh, wherein more than 200 kids, some of whom are as young as 4 years old, are employed in factories that produce Nike goods („? 2006).
Moreover, according to human rights investigators, young labourers in China create Nike goods in conditions that are similar to forced labour camps, where they are hit, mistreated, and forced to work overtime, while their salaries are below the required Chinese minimum wage policy ( 1997, p. 6). Furthermore, there are also investigations that revealed that young women in Vietnam work 65 hours a week in air so dreadful that 78% of these workers have respiratory disorders; they earn only $10 ( 1997, p. 6). Because of these findings, Nike?s abused workers call for the boycott of the corporation?s product through strikes or demonstrations. One example of which occurred in 1996 wherein Indonesian workers rallied against Nike and its subcontractors because they were refused of the $6.60-a-month attendance allowance promised to them (1997, p. 6)
Effects of Behavioural Factors
In any organisation, the key officials, most especially the CEO or President, are vital factors that would determine the company?s failure or success. Evidently, in the case of Nike, the company President, his behaviours, and how he handles the organisation contributes to the incessant development of the company.
For instance, one could examine a successful marketing strategy that Nike utilized, which was the selection of famed golfer, Tiger Woods. He was signed for a five-year endorsement contract for Nike and was packaged by the organization as the Jackie Robinson of golf, who can break down barriers whenever he treads on a golf course (2006).
Such efforts returned to Nike what it expected—profit and a further favourable image to people worldwide. Not surprisingly, the decision to employ Woods came from Nike?s CEO himself,
has been depicted in a variety of ways—odd, enigmatic, unpredictable, distinctive, reserved, aloof ( 2006). But he is also acknowledged as the “most powerful man in sports,” who is aggressive, inventive, brilliant, and extremely successful ( 2006). But whatever his true traits may be, his behaviours have positively affected the corporation he handles through effective governance and rightful concern for the consumers.
Control Mechanisms
Control mechanisms may be defined as the persons or tools that guide the efforts and activities of people in organizations so as to attain the company?s objectives. There are different forms of control mechanisms, one of which is a manager who has a strong and aggressive character who employs individual control mechanism over his employees. With Nike?s case, the foremost control mechanism that evaluates IMC activities is not the chief officer of the company, but the organization?s target market. As was mentioned earlier, integrated marketing communication aims to integrate the marketing strategies necessary, based from the researched needs and wants of the consumers. For instance, if they respond positively to a newly launched product, Nike should continue such promo endeavours. On the other hand, if the target market unenthusiastically reacts to the
corporation?s marketing efforts, Nike should then improve on certain aspects, or stop the attempt, altogether. Therefore, it is Nike?s customers? role as control mechanisms, who would determine whether the advertising or marketing activities of the concerned organization contributes to the failure or success of the company.
Recommendations Nike?s strengths and weaknesses with regard to its integrated marketing communications have been elaborated in this composition. As for its strengths, the vital objectives and goals of Nike have been effectively determined by the company and these serve as guide for all of Nike?s endeavours. Moreover, the long-established marketing strategies employed by Nike—from promotions that cost billions, to its simple tagline—have been modified as the years pass, to cater to the increasing demands and needs of its countless consumers. Also, the company?s employees, key officials, and, most importantly, leader posses the necessary behaviours which are required from people who have to live up to an esteemed company?s positive international image.
On the other hand, a major weakness of Nike that adversely affects the positive role of IMC in this organisation is the issue that it does not comply with its ethical responsibilities. It is true that the company participates in various generous efforts but it is likewise involved in issues of child and human rights violations. Nike should accordingly focus its efforts on the improvement or total eradication of this sensitive ethical consideration.
Thus, through the utilization of integrated marketing communication, it is recommended that the company?s strengths be used to the company?s further advantage and its weaknesses be improved.
Conclusion
Nike Inc. is one example of a multinational company that makes use of the concept of integrated marketing communication in its organization. As was discussed in this essay, it utilizes a wide array of marketing strategies which the company readily adapts, based on the needs and wants of the target market. As a result, the concerned company remains to be one of the top organizations that are wanted and needed by different types of people from all over the globe.
Thus, generally, integrated marketing communication in organizations is evidently essential for any company?s success because effective application of this concept results to the fulfilment and loyalty of consumers.
doc_424955196.docx
Document covers topics like the benefits, control mechanisms, objectives, cost effectiveness, ethical considerations and behavioural factors in branding Nike tshirts, apparel, shoes and merchandise.
NIKE IMC
Executive Summary
This is an essay about integrated marketing communication or IMC—its definitions, framework, and the advantages it creates for organizations.
Moreover, a concise case study of the internationally acclaimed manufacturer of sports gears, Nike Inc. is also tackled in this essay. More specifically, the company?s IMC objectives, the cost-effectiveness of its IMC activities, the ethical considerations, behavioural factors that affect its IMC programs, and the control mechanisms that evaluate such activities are examined herewith. Last discussed are the recommendations or suggestions that may be applied to further enhance the function of integrated marketing communications in the concerned organization.
Definition
Integrated marketing communication (IMC) may be defined in various ways, but the most comprehensive definition is that of the American Association of Advertising Agencies—“A concept of marketing communications planning that recognises the strategic roles of a variety of communications discipline and combines them to provide clarity, consistency and maximum communications impact through the seamless integration of discrete messages.”
In IMC, it is important to consider the fact that consumers do not perceive the various tools of marketing communications—public relations, advertising, sales, online, and so on— as separate and divisible elements. The concern of the target market is not where the message
originates; what they notice is the content of the message. And as they receive a wide array of messages that come from a variety of organizations, they develop positive and negative impressions of various companies? goods and services ( 1998, p. 68).
One could therefore derive that the essence of IMC is quite simple—the realization of the need for a holistic approach in the application of the tools of marketing communication, instead of the separate utilization of these elements. Thus, there is a call for organizations to apply modified planning strategies to guarantee consistency and effective sending of a focused message to the target market ( 1998, p. 68).
A Framework for Integrated Marketing Communications
Although it is a simple concept, the effective application and operation of IMC is a complex task. It requires an efficient and adaptable marketing strategy that could only be devised through widespread research on significant customer information. It is therefore necessary to apply a step-by-step approach of an integrated marketing plan: situation analysis, target market identification, strategies, tactics, and evaluation of results („? 2006).
Situation analysis takes into consideration certain issues that a company is faced with such as market competitiveness, profitability, political, and legal situations, while the identification of the target market effectively examine and evaluates the consumers? purchasing behaviours („? 2006).
Once the circumstances are analysed and the target market is well scrutinized, an organization could then make use of the gathered information that would determine the strategies to be used in the marketing and sales of its products and services. Then, the organization could eventually apply the tactics that was previously determined, to the needs and demands of the target market. Lastly, the strategy and tactics applied by the organization
could be assessed or evaluated, so that necessary adjustments could be made for future purposes („? 2006).
Benefits of Integrated Marketing Communication
Integrated marketing communication could be advantageous to both the organization and its target market. Since IMC aims for a harmonious integration of the elements of marketing communication the organization is not restricted to only one strategy. If the corporation realizes that their products or services are weakly promoted through a certain tactic, it could resort to a different strategy that could effectively endorse these. Thus, through IMC, it is possible to maximize most, if not all, of the marketing communication strategies, depending on which is most useful and effective.
Evidently, the target market would also benefit from IMC. As was mentioned earlier, the consumers? concern is the content of the messages communicated by organizations, and these are also the ideas that could affect their perception of a product or service. As a result, organizations would tailor-fit their marketing tactics, based on the customers? needs and wants. Thus, through intensive research, analysis, and modifications involved in IMC, the consumers would rightly get what companies promise to deliver to them.
Case Study: Nike Inc.
Nike Inc., or Nike, is a globally acclaimed designer, manufacturer, marketer, and distributor of athletic footwear, clothing, apparel, sports equipment, and accessories for various sports and health endeavours („? 2006). Almost all of Nike?s goods are usually
produced outside the United States, and are made by independent contract companies who normally manufacture for other internationally recognized brands („? 2006).
Moreover, Nike owns the following established subsidiaries, all of which are based in the United States—Cole Haan Holdings, Inc., Bauer Nike Hockey, Hurley International LLC, Nike IHM Inc., Converse Inc., and Exeter Brands Group LLC („? 2006). Instrumental to Nike?s development and evident success is its efficiency in integrated marketing communication. The company has learned to apply a strategy wherein it could constantly communicate its messages through all media instruments, and consequently, to every consumer; this according to (2006), was made possible through Nike?s combination of conventional and modern advertising.
Integrated Marketing Communication Objectives “To bring inspiration and innovation to every athlete in the world.” This statement was inspired by , a highly esteemed track and field coach and co-founder of Nike Inc. This motto is the company?s foremost mission, but strategically integrated with this goal are a number of IMC objectives that assist the organization towards effective integrated marketing communication.
One such IMC objective is to employ a range of marketing communication tactics that would cater to the organization?s target market, who have different nationalities, genders, cultures, and ages. To enact this, Nike introduces its latest products through a marketing communication group that could strengthen the “positioning of, and key messages about, the Nike brand,” through different forms of visual aids and point-of-purchase advertising („? 2002).
Another IMC goal of Nike is related to the company?s quality and innovative products. Nike first develops its goods and services that would eventually cater to the needs and demands of people all over the world. As a result, its market share would increase, and more revenue would be generated for the organization. Evidently, this goal has been almost fully realized, since Nike has branches in different parts of the world, such as in Europe, Asia, and the like.
In connection to this, Nike continuously aims to apply marketing tactics that are appropriate with the people who reside in these continents or nations. For example, aside from traditional advertising in the form of television, billboards, and the like, Nike also makes use of contemporary marketing instruments such as the internet, wherein people in almost any part of the world could access various sites to customize Nike shoes and products.
Cost Effectiveness of IMC Programs
Nike applies integrated marketing communication and at the same time still relatively manages to be cost-effective in terms of its marketing programs. Although Nike?s marketing expenses may seem excessive—they employ internationally recognized celebrity athletes; they overflow retail networks with promotions of products and other giveaways; and during America?s Super Bowl, they had television time at $40,000 per second („? 2004)—they still have that marketing tactic that may sound simple but is remarkably effective.
Just do it. This line has been associated to the brand and is recognized and used by almost everyone all over the world. And whenever a person utters these three words, they unknowingly support the company?s products and infect others with the Nike virus („? 2004).
Although Nike has spent $1.74 billion for marketing expenses in the present year (, 2006), it still manages to be one of the most profitable multinational organisations
worldwide, with the help of its straightforward but smart marketing message that is exceptionally effective to reach out to the target market.
Ethical Considerations
It is quite interesting to examine the ethical considerations involved in the IMC of Nike, because there are two sides that to this issue—one that supports the fact that the company religiously complies to its social corporate responsibility, and the other side confirms different forms of violations to human rights. First, to positively support Nike?s ethical compliance, there have already been a number of projects and charitable acts that the organization has been involved in. For example, last July 11, 2006, Nike?s Portland Factory store held the annual community investment grants, wherein the corporation imparted $100,000 to 18 neighbourhood nonprofit groups. These organizations cater to the youth?s physical interests, guidance, and education, as well as to minorities? and women?s economic progress („? 2006). Moreover, it is a fortunate fact that since 1974, Nike has devoted $1.2 million for the North and Northeast Portland neighbourhood, and has even provided employment for the people („? 2006).
Another charitable act participated in by Nike occurred in July 2, 2006, wherein the company auctioned a limited edition collection set of Nike football Bearbrick toys that symbolised the eight teams sponsored by Nike, all of which were included in the 1996 World Cup („? 2006). The proceeds of this auction was for the fund-raising operations of the United Nations High Commissioner for Refugees (UNHCR) which aims to generate brighter opportunities for the nine million refugee youths all over the world, through education and sports („? 2006).
On the other hand, there are also proofs that Nike violates its ethical responsibilities through violation of human rights. This is illustrated by the issue that the company employs children in the production of its goods or products. Normally, Nike?s products are created in developing or third world countries, where an authoritarian government and cheap labour exists, and where is deficiencies in human rights demands and union associations. Examples of such countries are Pakistan, Indonesia, India, and Bangladesh, wherein more than 200 kids, some of whom are as young as 4 years old, are employed in factories that produce Nike goods („? 2006).
Moreover, according to human rights investigators, young labourers in China create Nike goods in conditions that are similar to forced labour camps, where they are hit, mistreated, and forced to work overtime, while their salaries are below the required Chinese minimum wage policy ( 1997, p. 6). Furthermore, there are also investigations that revealed that young women in Vietnam work 65 hours a week in air so dreadful that 78% of these workers have respiratory disorders; they earn only $10 ( 1997, p. 6). Because of these findings, Nike?s abused workers call for the boycott of the corporation?s product through strikes or demonstrations. One example of which occurred in 1996 wherein Indonesian workers rallied against Nike and its subcontractors because they were refused of the $6.60-a-month attendance allowance promised to them (1997, p. 6)
Effects of Behavioural Factors
In any organisation, the key officials, most especially the CEO or President, are vital factors that would determine the company?s failure or success. Evidently, in the case of Nike, the company President, his behaviours, and how he handles the organisation contributes to the incessant development of the company.
For instance, one could examine a successful marketing strategy that Nike utilized, which was the selection of famed golfer, Tiger Woods. He was signed for a five-year endorsement contract for Nike and was packaged by the organization as the Jackie Robinson of golf, who can break down barriers whenever he treads on a golf course (2006).
Such efforts returned to Nike what it expected—profit and a further favourable image to people worldwide. Not surprisingly, the decision to employ Woods came from Nike?s CEO himself,
has been depicted in a variety of ways—odd, enigmatic, unpredictable, distinctive, reserved, aloof ( 2006). But he is also acknowledged as the “most powerful man in sports,” who is aggressive, inventive, brilliant, and extremely successful ( 2006). But whatever his true traits may be, his behaviours have positively affected the corporation he handles through effective governance and rightful concern for the consumers.
Control Mechanisms
Control mechanisms may be defined as the persons or tools that guide the efforts and activities of people in organizations so as to attain the company?s objectives. There are different forms of control mechanisms, one of which is a manager who has a strong and aggressive character who employs individual control mechanism over his employees. With Nike?s case, the foremost control mechanism that evaluates IMC activities is not the chief officer of the company, but the organization?s target market. As was mentioned earlier, integrated marketing communication aims to integrate the marketing strategies necessary, based from the researched needs and wants of the consumers. For instance, if they respond positively to a newly launched product, Nike should continue such promo endeavours. On the other hand, if the target market unenthusiastically reacts to the
corporation?s marketing efforts, Nike should then improve on certain aspects, or stop the attempt, altogether. Therefore, it is Nike?s customers? role as control mechanisms, who would determine whether the advertising or marketing activities of the concerned organization contributes to the failure or success of the company.
Recommendations Nike?s strengths and weaknesses with regard to its integrated marketing communications have been elaborated in this composition. As for its strengths, the vital objectives and goals of Nike have been effectively determined by the company and these serve as guide for all of Nike?s endeavours. Moreover, the long-established marketing strategies employed by Nike—from promotions that cost billions, to its simple tagline—have been modified as the years pass, to cater to the increasing demands and needs of its countless consumers. Also, the company?s employees, key officials, and, most importantly, leader posses the necessary behaviours which are required from people who have to live up to an esteemed company?s positive international image.
On the other hand, a major weakness of Nike that adversely affects the positive role of IMC in this organisation is the issue that it does not comply with its ethical responsibilities. It is true that the company participates in various generous efforts but it is likewise involved in issues of child and human rights violations. Nike should accordingly focus its efforts on the improvement or total eradication of this sensitive ethical consideration.
Thus, through the utilization of integrated marketing communication, it is recommended that the company?s strengths be used to the company?s further advantage and its weaknesses be improved.
Conclusion
Nike Inc. is one example of a multinational company that makes use of the concept of integrated marketing communication in its organization. As was discussed in this essay, it utilizes a wide array of marketing strategies which the company readily adapts, based on the needs and wants of the target market. As a result, the concerned company remains to be one of the top organizations that are wanted and needed by different types of people from all over the globe.
Thus, generally, integrated marketing communication in organizations is evidently essential for any company?s success because effective application of this concept results to the fulfilment and loyalty of consumers.
doc_424955196.docx