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e-Marketing (eBiz/Mktg 543) Web address: www.arvind.info Nike Social Strategy Arvind Rangaswamy Web address: www.arvind.info email: arvindr@psu.edu November 30, 2016

Nike+ Smart Product

Smart Product A Virtuous Cycle? Greater use of smart product Deeper customer engagement/ experience More data about product use Product Platform/ Ecosystem Cheaper and more relevant Marketing Improved product

Business Impact of a Smart and “Socially Connected” Product Impact on Social Relationships (Example) Form new relationships Strengthen existing relationships Need to buy product to interact with data of others in a relevant social network (revenue gain from each unit is $30, p. 4). willingness Increase marginal -to-pay Even for interacting with data from people one already knows, the product is needed (manual data entry is infeasible). Business Impact Features, such as Leaderboard, increase chances of meeting new people; also contributes free content to Nike for marketing purposes. Posting updates on social media (e.g. Facebook, Twitter) could induce others in their network to purchase the product (lowers acquisition cost). marketing Reduce costs Give something (e.g., social benefits) to get something (lower cost, increased revenue).