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

2. Nike+ Smart Product

3. 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

4. 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).