Nike Inc.: Marketing Practices

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Table of Contents

Introduction
Nike’s Marketing Practices
Conclusion
Works Cited

Introduction

The American Marketing Association (AMA) promotes ethical marketing practices based on integrity, respect, and fairness. The AMA Code of Ethics outlines the ethical norms and values that marketers should adhere to, to ensure that marketing activities are conducted ethically and responsibly. The Code of Ethics emphasizes the importance of honesty, accuracy, fairness, and respect for consumers, industry, and the environment. It requires marketers to be honest in their communications and to provide accurate and verifiable information to consumers. The code also requires marketers to act fairly and responsibly in all aspects of their marketing activities, including deceptive or unfair practices that could mislead or deceive consumers.

Additionally, the AMA Code of Ethics encourages marketers to be transparent and accountable in their practices and to ensure that their activities comply with all applicable laws and regulations. In addition, marketers should strive to be proactive in protecting the interests of consumers and the industry by participating in industry-wide initiatives and organizations that promote ethical marketing practices. Therefore, this essay will evaluate whether Nike’s marketing practices have violated the standards of ethical marketing proposed by AMA and provide recommendations on how Nike should change its marketing practices to meet those ethical standards. In addition, it will also discuss the effectiveness of Nike in engaging customers on two of these platforms, Twitter and Instagram.

Nike’s Marketing Practices

Past Year’s Nike’s Marketing and its Violation of the Standards of Ethical Marketing

Nike is one of the most well-known brands globally and is known for its innovative marketing strategies. The company has a history of both successes and failures when it comes to its marketing. However, in recent years, Nike has been accused of many unethical marketing practices. Nike has been accused of using sweatshops and exploiting workers in countries such as China and Vietnam (New Idea). That has been a long-standing issue brought to the forefront by human rights groups and labor advocates. However, Nike has consistently denied any wrongdoing and has argued that it has taken steps to ensure that its factories comply with labor laws and international standards. Nevertheless, Nike has also been criticized for not doing enough to monitor and improve factory conditions (How ethical is Nike Inc?). In response, Nike has said that it has implemented a Code of Conduct and has also taken steps to increase transparency and reporting requirements. The firm has also responded that it has trained its factory managers and workers on labor rights and invested in programs to help communities in the countries where its factories are located.

Additionally, Nike has been condemned for its use of child labor and its exploitation of cheap labor in developing countries. This criticism has largely focused on the working conditions of the factories that Nike contracts within countries such as China, India, and Vietnam (How ethical is Nike Inc?). In particular, the factories have been criticized for not providing adequate wages, benefits, or social protections for their employees. Nike has also been accused of using its influential market position to pressure suppliers into providing labor at below-market wages. In response to this criticism, Nike has implemented several initiatives to improve labor conditions in its factories, including establishing a code of conduct and creating a monitoring program to ensure compliance.

Moreover, Nike has also sought to increase transparency by providing information about factory locations, wages, and working conditions. Despite those efforts, Nike continues to face criticism from labor rights groups, who argue that the company has not done enough to ensure its suppliers provide fair wages and safe working conditions for employees (Long). Therefore, these practices clearly violate the AMA’s ethical standards, which emphasize the importance of respecting workers’ rights and avoiding exploitative practices.

Furthermore, Nike has also been accused of misusing its influence to target and market its products to vulnerable demographics, such as children and teenagers. It has also been accused of using unhealthy and unrealistic images in its advertising campaigns, which can be seen as an attempt to manipulate the public into buying its products. This type of marketing clearly violates the AMA’s ethical standards, which emphasize the significance of avoiding deceptive or unfair practices (AMA Code of Conduct). The American Marketing Association (AMA) has developed a Code of Ethics that outlines the importance of avoiding deceptive or unfair practices to protect consumers’ interests and the marketing profession’s integrity. This code ensures that marketers act honestly and responsibly when engaging in marketing activities. The AMA recognizes that deceptive and unfair practices can have serious consequences for consumers, and as such, it prohibits all members from engaging in such practices (AMA Code of Conduct). Specifically, the AMA states that members should not use false or misleading representations or statements or engage in deceptive practices in promoting their products or services.

Besides, Nike has also been accused of failing to protect client’s privacy and personal data. The company has been alleged of failing to protect customer data adequately and for its lack of transparency about how it uses customer data. The AMA alleged that Nike had failed to provide its customers with the appropriate information and tools to protect their data. According to the AMA, Nike had not implemented reasonable technical and administrative measures to secure customer data (AMA Code of Conduct). This accusation has created a major issue for Nike as it can damage the company’s reputation and lead to legal action.

Companies need to ensure that customer data is properly protected and managed, especially for companies like Nike, which has a large customer base. If Nike is found to have breached its customers’ privacy and personal data, it could face significant legal and financial consequences. However, Nike has already taken steps to address the issue, such as establishing a Chief Privacy Officer to oversee its data privacy practices (Long). Hence, in order to protect its customers’ privacy and personal data, Nike must continue to invest in its data security measures and make sure that its employees are properly trained on data privacy and security. Nike must also make sure that its customers are properly informed of its data privacy and security policies. Failure to do so could lead to significant legal and financial consequences.

To meet the ethical norms and values proposed by the AMA, Nike should address the unethical marketing practices it has been accused of in the past. First and foremost, Nike should comply with laws and regulations that apply to marketing activities. The company should also ensure that its marketing practices are honest and truthful and not use deceptive or unfair practices (Long). Additionally, Nike should ensure that it respects workers’ rights, avoids exploitative practices, and avoids targeting vulnerable demographics with its marketing campaigns. Finally, Nike should ensure that it adequately protects customers’ privacy and personal data and is transparent about how it uses customer data.

Nike’s Social Media Platforms Usage

Furthermore, Nike is a well-known and successful global brand that has achieved success through its effective use of social media platforms to engage customers in meaningful relationships. Nike’s five popular social media platforms are Twitter, Facebook, Instagram, Google+, and Pinterest (Fontaine). These platforms have enabled Nike to expand its reach and connect with customers worldwide in previously impossible ways. Two of this company’s most used social media platforms include Twitter and Instagram.

Nike has been using Twitter since March 2008, becoming one of the most liked social media channels for Nike (Fontaine). On Twitter, Nike has been able to engage customers with its content, share product news and updates, and provide customer service promptly. Nike also uses Twitter to promote campaigns and special offers and drive conversations around key topics and issues (Fontaine). Nike’s use of Twitter has been triumphant, and it is now widely termed one of the most successful social media channels for brands.

On Instagram, Nike has been able to engage customers differently. Nike has created a strong connection with its customers through high-quality images and engaging content (Diantari et al. 117). Nike has also been able to engage customers through its use of influencers, which help to spread the brand message and reach a wider audience. Nike’s influencer marketing strategy is built around engaging with influencers who are passionate about the brand – from professional athletes to lifestyle influencers (Ltd). This allows the brand to reach a wide variety of customers, from hardcore athletes to casual users, and to create a strong connection with its target audience. Nike also uses influencer marketing to communicate the brand’s ethos, values, and lifestyle (Diantari et al. 117). Therefore, Nike’s use of Instagram has been fortunate that it is now one of the brand’s most popular social media platforms.

From an ethical standpoint, Nike’s use of social media platforms has been largely successful. Nike has maintained a positive ethical reputation by engaging customers in a meaningful and respectful manner. Nike has also been able to ensure that its content is ethical and appropriate, and it has taken steps to ensure that its advertising does not violate any laws or regulations (How ethical is Nike Inc?). Furthermore, Nike has ensured that its social media content is not offensive or inappropriate. Nike has avoided making controversial statements and ensured that its content is respectful and appropriate. Nike has also taken steps to ensure that its content is not misleading or deceptive and has avoided making false or misleading claims (Ltd). Finally, Nike has used social media platforms to promote ethical practices and positive messages. For example, Nike has used social media channels to promote its sustainability initiatives and commitment to gender equality. Nike has also used its social media channels to promote its commitment to ethical labor practices, such as not using sweatshop labor.

Conclusion

Nike has the potential to become an ethical and responsible marketer. By taking steps to address the unethical marketing practices it has been accused of in the past and ensuring that its practices align with the ethical standards proposed by the AMA, Nike can become a model for ethical marketing. In addition, Nike has successfully used social media platforms to engage customers in meaningful relationships. Through its use of Twitter and Instagram, Nike has created a strong connection with its customers and promoted ethical practices. Nike has also taken steps to ensure its content is ethical and appropriate and has avoided making false or misleading claims. As such, Nike’s use of social media platforms to engage customers has been largely successful and in line with the ethical norms and values of the American Marketing Association.

Works Cited

New Idea. “Nike Sweatshops: The Truth about the Nike Factory Scandal.” New Idea, Web.

“How Ethical Is Nike Inc?” Ethical Consumer, Ethical Consumer Research Association Ltd, Web.

Ltd, All Answers. “Examination of Ethical Challenges at Nike.” UK Essays, Web.

Diantari, Ni Putu Eni, and Jean Richard Jokhu. “The Impact of Instagram as a Social Media Tool on Consumer Purchase Decision on Nike.” Jurnal Ilmiah Manajemen dan Bisnis 7.1 (2021): 116-127. Web.

Fontaine, Sean P. “Analyzing the Social Media Presence of Nike, Adidas, and New Balance Using Social Listening.” (2020). Web.

“AMA Code of Conduct.” AMA Online Portal, Web.

Long Nicolas. “Free Nonprofit Resources.” Nonprofit Hub, Web.

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