| Company and Marketing Strategy: Partnering to Build Customer Relationships 37
Chapter 2 | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
Nike still invests hundreds of mil- lions of dollars each year on creative advertising. However, it now spends less than one-third of its $593 million annual promotion budget on television and other traditional media, down from 55 percent 10 years ago. These days, behind the bright lights, Nike has developed a host of innovative new relationship-building approaches.
Using community-oriented, digi- tally led, social-networking tools, Nike is now building communities of cus- tomers who talk not just with the com- pany about the brand but with each other. “Nike’s latest masterstroke is so- cial networking, online and off,” says one Nike watcher. Whether customers come to know Nike through ads, in- person events at a Niketown store, a local Nike running club, or at a one of the company’s many community Web sites, more and more people are bonding closely with the Nike brand experience. Consider this example:
Twice a week, 30 or more people gather at a Nike store in virtually in the second annual global
Nike creates deep
Portland, Oregon, and go for an evening run. Afterward, “Human Race” 10K, posting their
brand community
the members of the Niketown running club chat in the store times on Nike⫹, comparing them-
with its customers.
over refreshments. Nike’s staff keeps track of their per- selves with runners worldwide, and
For example, the
formances and hails members who have logged more than seeing how their cities or countries
Nike⫹ running
100 miles. The event is a classic example of up-close-and- performed. The long-term goal is to
system can be the
personal relationship building with core customers. have 15 percent of the world’s 100 mil-
next best thing to
Nike augments such events with an online social net-
lion runners using the system.
your own personal
work aimed at striking up meaningful and long-term interac-
trainer or jogging
tions with even more runners. The Nike⫹ running Web site
Thanks to efforts like Nike⫹, Nike has buddy.
lets customers with iPod-linked Nike shoes monitor their built a new kinship and sense of commu- performances—the distance, pace, time, and calories burned
nity with and between its customers. More than just something during their runs. Runners can upload and track their own per-
to buy, Nike products have once again become a part of cus- formances over time, compare them with those of other run-
tomers’ lives and times. As a result, the world’s largest sports- ners, and even participate in local or worldwide challenges.
wear company is once again achieving outstanding results. Over Talk about brand involvement. Nike⫹ can be the next
the past five years, Nike’s global sales and profits have surged best thing to your own personal trainer or jogging buddy. The
nearly 40 percent. In the past three years, Nike’s share of the U.S. Nike⫹ Web site offers a “Nike Coach” that provides advice
running shoe market has grown from 48 percent to 61 percent. In and training routines to help you prepare for competitive
2008 and 2009, as the faltering economy had most sports apparel races. When running, if you have earphones, at the end of
and footwear competitors gasping for breath, Nike raced ahead. every mile a friendly voice tells you how far you’ve gone and
It’s global sales grew 14 and 3 percent, respectively. In troubled then counts down the final meters. If you hit the wall while
2010, despite flat sales, Nike’s profits shot ahead 28 percent. By running, the push of a button brings up a personally selected
contrast, at largest rival Adidas, sales fell 7 percent, and profits “power song” that gives you an extra boost and gets you go-
dropped by 68 percent.
ing again. Back home again, after a quick upload of your run- In fact, Nike views uncertain economic times as “an incredible ning data, Nike⫹ charts and helps you analyze your run.
opportunity” to take advantage of its strong brand. As in sports In four years, two million Nike⫹ members have logged
competition, the strongest and best-prepared athlete has the best more than 233 million miles
chance of winning. With deep on the site. Collectively,
customer relationships comes the Nike⫹ community has
a powerful competitive advan- run the equivalent of 9,400
Nike’s customer-focused mission and strategy have
tage. And Nike is once again trips around the world or
helped Nike to build strong customer relationships and
very close to its customers. As 490 journeys to the moon
a deep sense of brand community. As a result, while
one writer notes, “Nike is blur- and back. Last October, a
other sports gear companies are gasping for breath,
ring the line between brand million runners competed
Nike is sprinting ahead.
and experience.” 1
Objective OUTLINE
Explain company-wide strategic planning and its four steps. Company-Wide Strategic Planning: Defining Marketing’s Role (38–40)
Discuss how to design business portfolios and develop growth strategies. Designing the Business Portfolio (40–45)
Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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