Social Media amplifies the power of word-of-mouth and this plays a large part in consumer behaviour. Brands such as Nike have realised this allowing them to dominate the online world.
21,920,178 likes – Facebook
4.1 million followers – Twitter
163,700 followers – Vine
59,626 followers – Pinterest
7,167,071 followers- Instagram
1,862,828 subscribers – YouTube
“For retailers in particular Word-of-mouth (WOM) has been an effective component of their marketing armoury for decades. The power of personal recommendations has of course now taken on a completely new and far-reaching persona in the shape of social media networks” (David Howell, 2014).
Nike started off back in 1964 and has expanded on from the traditional store. Nike has opened its doors to every kind of media. Nike covers Facebook, Twitter, Pinterest, Vine, YouTube and now has created apps for smartphones. Nike has used Facebook to communicate with consumers from all over the world. Nike also demonstrates understanding in cross cultural consumer behaviour by developing sub-categories within their Facebook page. For example they have pages specifically for football, golf and pages such as; Nike running France. This allows for Nike to address the difference in consumers due to their culture.
Nike has also taken on Twitter to develop exceptional customer service. Like their Facebook page Nike has separate feeds for each of their products. Nike updates their consumers on new arrivals and if a product has sold out, where else they can find it. Nike utilises Twitter in a way that allows them to develop credibility, which is essential for online marketing as this is where word-of-mouth happens. ‘In terms of customer support, Nike is continually voted the best in the business’ (Walker, A, 2014).
Social media allows for companies and their consumers to strengthen the relationship and engage more. Social media also allows for consumers to evaluate products before purchasing them. Consumers can read reviews on a certain product from other consumers, this can result in either positive or negative feedback. Consumers can also be persuaded to purchase a product through celebrity endorsement. Nike has entered the health market via the use of sponsoring health gurus such as; Kayla Itsines who has a large following of young females. Having Kayla endorse Nike shoes and clothing influences consumers who follow her on Instagram or Twitter to associate Nike with a positive feeling as their brand will assist them in achieving the healthier lifestyle.
Nike has developed a strong understanding of how social media and marketing can work well together.
David Howell, 2014, How social media amplifies the power of word-of-mouth, USM, http://usefulsocialmedia.com/marketing/how-social-media-amplifies-power-word-mouth#sthash.1fqVqfPU.dpuf
Walker, A, 2014, Brand FocusL How Nike Excels in social media, nukesuite, http://www.nukesuite.com/brand-focus-nike-excels-on-social-media/