Professional Selling Plan for Nike+
By:
Daniel DeMaiolo, Marc Russell, James Kopanic, Tiffany Sokol, Kelsey Rupert, and
Zachary Mehl
Dr. Cynthia E. Anderson
MKTG 3740 Selling Plan
October 11, 2008
Table of Contents
1. Executive Summary………………..2
2. Product Description…….………….6
3. SWOT Analysis……………………8
4. Target Market……………….……11
5. Product Strategy…………………..14
6. Customer Strategy………………..16
7. Relationship Strategy…………….17
8. Presentation Strategy………….....19
9. Works Cited………………..….....25
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Executive Summary
Introduction
With technology advancing at rapid rates in modern society, individual
components are swiftly converging to form brand new products that consumers will
enjoy; moreover, this unprecedented metamorphosis is shaking up entire industries.
In short, technology, the catalyst of increased performance in the free market, has
become ever more prominent in extending the marketability of already existing
goods. To be more specific, the convergence of consumer goods that are physical and
technological in nature, such as tennis shoes and iPods respectively, have rapidly
shifted the infrastructure of the global markets for each individual component and, in
its wake, left a brand new market. In order to demonstrate the success of both
industries individually, further research is requisite. In 2002, the United States
Census Bureau for the NAICS categories of “sporting and athletic goods
manufacturing” and the “audio and video equipment” reported that the two industries
boasted a colossal “$11.89 and 8.82 billion dollars” respectively in “sales, shipments,
and receipts” due to the mature markets present (U.S. Census Bureau). Because of
the popularity of both industries, fierce competition was evident as in 2002 there were
“2,233 establishments in the sporting and athletic goods manufacturing industry” and
“571 in the audio and video equipment manufacturing industry” all competing for the
consumer dollars (U.S. Census Bureau).
This report shows how the convergence of Nike’s signature tennis shoes in
conjunction with Apple’s iPod has dramatically altered the business environment for
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their respective industries from the perspective of personal selling to individual
consumers. In order to accomplish this, extensive research came from the companies’
websites, the United States Census Bureau, peer-reviewed journals and articles,
consumer reports, personal experience, and a highly accredited and Universityadopted textbook.
To increase the understanding of this report, Apple’s iPod and its relevant
program, iTunes, need significant definition. The iPod is essentially a digital music
storage device with much iteration including the Nano and Shuffle. iTunes is
essentially a computer application/music media player that stores music files and,
more recently, workout information.
This report describes the personal selling plan to individual consumers for the
newly created Nike+ product in three main components: the product evaluation,
target market analysis, and appropriate selling strategies. During the product
evaluation, the Nike+ shoe will be thoroughly described in the product description
and further explained in the SWOT analysis to illustrate the position of the product.
Next, the target market analysis will provide a detailed demographic and
psychographic profile of the prospects. Finally, the report will conclude with
suggested personal selling strategies, including the product strategy, customer
strategy, relationship strategy, and presentation strategy, for the sales force to employ
in order to persuade potential customers to purchase the Nike+.
Summary
As technology continues to rapidly evolve and subsequently morphs entire
industries through value-adding convergent products, it is absolutely vital for Nike
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and Apple to thoroughly research the Nike+ product’s situation, analyze the target
markets, and develop effective selling strategies in order to ensure survival and
competitive advantage by continuing to generate sales. This report highlights how
the research components help in deciding appropriate selling strategies.
After determining the importance of the research, the report suggests a product
evaluation and target market analysis are vital to understanding the prospect. By
holistically understanding the interrelation of the research between Nike+’s features,
advantages, and benefits, strengths, weaknesses, opportunities, and threats, and target
market demographics and psychographics, the brand is able to develop an identity of
which attributes will add value and further spawn sales; moreover, it becomes evident
which sales strategies are needed in order to continue to push sales and generate
success. This research functions as the building blocks of the strategies. In
particular, research shows that the prospective and current customers are males and
females between the ages of 18-36 with incomes of $5,000-45,000, graduated from
high school, and have completed or are pursuing post-secondary education and place
prominence on image, peer perception, and technology. Also, many of these
prospects are traditional athletes, individuals with physically demanding or time
consuming jobs, and consumers who want to increase their fitness.
Finally, the report demonstrates how the research component of the report
ultimately produces suggested strategies related to the product, customer,
relationship, and presentation. In particular, the product strategy will focus on many
features, advantages, and benefits of each particular segment will communicate these
attributes accordingly. In terms of the customer and relationship strategies, effective
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warranties and information will be provided to strengthen the buyer-seller
relationship. Finally, the presentation strategy will embody different tactics that the
salesperson can use in a one on one selling situation such as the survey,
demonstration, and showmanship approaches to generate interest, the customer
benefit plan to outline the proposition, and the standing-room-only close to target the
consumers’ looking-glass self concept and evoke a sense of urgency in an eventual
purchase. These strategies, representative of what the customers want to see before
purchasing the Nike+, embody an effective sales plan that will inevitably help
continue the momentum of the Nike+ long into the future by specifically targeting
valuable attributes desired by the prospective customer.
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Product Description
Many runners and joggers set goals for themselves, either hoping to run a certain
distance, burn a set amount of calories, or just run for a certain amount of time; however,
they lacked consistency in measuring these factors accurately. Although pedometers and
other devices were said to be able to measure these elements correctly, for the most part,
they were inefficient.
In 2006, Nike Inc. teamed up with Apple Inc. to produce the Nike+ product which
monitors a runner's performance via a radio device in the shoe which links to an iPod
Nano. This marriage between the most innovative computer company and most popular
athletic shoe manufacturer has lead to one of the biggest breakthroughs in the running
world. The Nike+ software tracks distance, pace, time, and calories burned during a
workout. After a workout the runner can send information to the Nike+ website at
nikeplus.com. Once on the website, they can set goals for themselves, challenge their
friends, and map their runs. It is very simple and easy to use.
There are two ways to effectively use Nike+: the new Nike+ Sport Band or the
iPod. For runners who prefer to run without music, the Sport Band is the best option and
for those who want music will prefer the iPod functionality.
The Nike+ Sport Band is relatively new considering the extensive lifespan of the
Nike+ product line dating back to 2006. Released in 2008, two years after the launch of
the Nike+ product line, the Nike+ Sport Band comes with a little sensor, sometimes
known as a “chip,” which can be inserted into over forty Nike+ running shoes that are
easily identified by the Nike "swoosh" and the "+" logo. In essence, the sensor
communicates to the Nike+ Sport Band with every stride the runner takes, giving the
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runner information on distance, speed, and the number of calories burned. When the
consumer is done with his/her run, they can pull out the Nike+ link from their Nike+
Sport Band, which looks like a small USB pen drive, and insert it into a computer. All of
the information from their run will automatically be sent to www.nikeplus.com where
they can set goals for themselves, review their workout, and find personal coaching. The
Nike+ Sport Band also shows the time of day, so when the athlete is not running, they
can use it as a watch.
The second and far more popular way to use Nike+ is directly through the iPod
Nano. The iPod Nano delivers more functionality and is the best option if the athlete
prefers running with music. To use the iPod Nano with Nike+, the Sport Kit is needed.
The Sport Kit contains a sensor for the shoe and a receiver for the iPod Nano. The sensor
drops into the Nike+ shoe under the insole and the receiver plugs into the iPod Nano.
Like the Sport Band, the sensor tracks distance, speed, and calories burned. While
running, the athlete can push the center button on the iPod Nano, which will tell them
immediately how far they have run, have many calories they have burned, and how fast
they are running. When they feel tired or when they feel that their energy is starting to
dip, the individual can press and hold the center button which will automatically trigger
their “Power Song”---a motivational track that is pre-selected by the runner. Upon
completing the run, they can connect their iPod Nano to their computer where the
information will be sent directly to www.nikeplus.com similar to the Nike+ link included
with the Sport Band.
Nikeplus.com, the only intangible attribute of the Nike+ product, is where
everything comes together: the runner can look up past runs, display details for
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accumulated activities in graphical format, review a history of their workouts over time,
track progress toward a predetermined goal, and utilize the Nike+ Coach which helps the
runner train for any distance they want to achieve---from a 5K to a marathon---by
providing a daily run schedule and tracking the runner's progress over time. In addition,
the challenge section provides friendly competitions that the runner can join or create on
their own.
In August of 2008 Nike launched a brand new facet of Nike+, Nike+ iPod Gym,
which allows users to record their workouts on gym equipment including Life Fitness
treadmills, cross-trainers, and upright and recumbent bikes. Users do not need a Nike+
Sports Kit as they can simply plug their iPod Nano into the iPod connector on the cardio
equipment in their gym. In essence, Nike+ lets a user track this data as cardio miles on
the web site. Also, as of September 9, 2008, Apple has integrated the second generation
iPod, Touch, to house built-in Nike+ capabilities---effectively eliminating the need for
the external receiver. This, along with many new and exciting improvements, will lead to
better and more efficient tools for Nike+.
SWOT Analysis
Strengths:
Nike+ has much strength that differentiates it from its competition. In example,
the main strength of Nike+ is that it is the first of its kind. Prior to the Nike+, runners
used several devices to calculate their time, heart rate, and calories burned which were
often cumbersome to runners and caused hassle and inaccuracies. In addition, they did
not have the amount of features existent in the Nike+/iPod Nano combination which
allows a runner to listen to music and receive running statistics (calories burned, time
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elapsed, distance run, etc.). In addition to Nike+’s features, a runner may also customize
their own workout. Through this functionality, the runner may sync certain music for
different points in their workout to serve as motivation. Additionally, the consumer may
also plug their results into iTunes and share specific songs with friends and family.
Because this product is the first of its kind, it fills an empty market. In summary, this
product is unique, convenient, and technologically advanced.
Another strength that the product has is its coalition with the iPod. Although the
Nike+ and the iPod are sold separately, a very strong partnership has been developed
between the two. Nike, as well as Apple, has a very strong reputation with its customers
as being a reliable company. In conjunction with having a strong and reliable reputation,
Apple’s coalition with Nike on the Nike+ diversifies a market that was once dominated
by devices that can only produce one third of the features as the Nike+. Although the
Nike+ is capable of performing many services and having more features than any of its
competitors’ devices, its strength relies on the fact that it is still as user-friendly as the
iPod. To illustrate, no settings or adjustments on the Nike+ are needed aside from the
initial process of setting up the device. In naming a few strengths that the Nike+
possesses, it is safe to comprehend the desirability of this product.
Weaknesses
Unlike our product’s many strengths, Nike+ has a few minor weaknesses. The
most relevant of the weaknesses is that this product is marketing towards a limited target
market. Currently, Nike+ is specifically targeted at runners. Though Nike+ may be used
for any cardiovascular endeavor, this seems to be a fact that is not widely publicized;
therefore Nike+ is limiting its customers to a very specific type of athletes.
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As previously mentioned, the features of this product most definitely serve as a
source of strength; however, some of these features may be somewhat costly to a
beginner and subsequently draw many weaknesses. Even if a consumer already owns an
iPod Nano, he/she still needs to purchase the Nike+ sport kit, iTunes songs, and Nike+
ready shoes. Again, the high initial costs serve as a limitation of prospective Nike+
consumers.
Opportunities
As previously mentioned, Nike+ is limited to runners; however, Nike+ has the
opportunity to re-launch itself for all athletes and consumers interested in fitness. Nike+
may be used to condition athletes at the collegiate level, and professional level. Serving
as an opportunity, the Nike+ brand should try to position itself among athletic programs
in schools. In addition, Nike+ may be placed into workout/weight loss programs such as
Curves gyms, Jenny Craig, Weight Watchers, etc which will allow a larger market to be
exposed to the product. Given the current obesity crisis in America, segmenting the
Nike+ brand into these potential prospects will greatly increase the opportunities present.
After analyzing the opportunities within the market, we realize that it is important
to discuss the opportunities within the product itself. Although the product is already
exceedingly advanced in technology, it still has room for advancement. To illustrate, the
Nike+ is paving the way for exercise criteria devices. The product can not only advance
with its developments but it can advance with its use. In addition to being used for
running, it can advance into other sports and uses as well. Because the brand is
extremely popular among our targeted segments, there are also opportunities to expand
the brand to newer models, clothing apparel lines, and other accessories such as
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headphones.
Threats
After evaluating the strengths, weaknesses, and opportunities, one major threat
arose in this analysis. As previously mentioned, Nike+ is the first of its kind. Because
this product is such a new advancement for the industry, companies will want to design
and produce similar products to compete with the Nike+ which will create extensive
competition and imminent reductions in profit margins. In the past, Apple, one of the
major benefactors in the merged brand, has closed its infrastructure, as it as with its
iTunes, which inevitably created its downfall in the computer market. To combat this
threat, Apple will need to keep an open mind and work with third party developers in
order to expand the opportunities, such as apparel lines and accessories, and keep the
brand name active.
Target Market
Although there are a variety of markets that can be targeted for the Nike+ product,
the main focus for this sales strategy is the end consumer. There are many different types
of end consumers who could potentially reap benefits from this product including:
serious athletes, individuals with physically challenging jobs, regular gym users, and
even the occasional exerciser. The brand needs to be aggressive in targeting these
consumers now – early in the product life cycle – because the competitors currently don’t
have any direct competitive advantage. In other words, it is only a matter of time before
Reebok and Adidas, direct competitors with Nike, and Microsoft, a direct competitor
with Apple, develop similar products.
Most new product marketers in the athletic shoe and apparel industry are highly
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concerned with convincing retailers to take a risk on distributing a product that isn’t
proven to sell in high quantities; however, this should not be a problem for Nike because
this product is produced by a leading manufacturer in the athletic shoe market. The
agreement between Nike and leading technological manufacturer, Apple, only
strengthens this position. The major stores that already stock Nike products such as
Dick’s Sporting Goods and Footlocker will be easy sales for this new product. Clearly
this product will also be available at retailers owned by Nike.
The business-to-business strategy is relatively simple, but the firm is really trying
to target end consumers with this sales plan. Consumers who are most likely to purchase
this product fall into one of three categories: serious athletes, physical laborers, and those
concerned about physical fitness.
The first market targeted by Nike with this new product is the serious athlete who,
among all the target markets, places the highest prominence and applicability on the
Nike+ features. To make improvements in physical capabilities, progress must obviously
be tracked to motivate further development which the Nike+ will enable athletes to track
progress in the palms of their hands without the assistance of a coach or trainer. If the
statistics aren’t enough motivation, Nike+ triggers the athlete’s iPod to play music that
will motivate them towards higher performance. Although this market was a good
starting point to introduce Nike+, we must expand sales to other consumers to ensure the
products ultimate success.
In addition, Nike+ will target physical laborers. As research shows, people with
physically challenging jobs either don’t have a need or the time for the gym as they get
their workout throughout the extensive workday. Retail workers, United States Postal
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Service carriers, and a long list of other professionals have very physically demanding
jobs, and often wonder how many miles they walk and how many calories they burn in a
days work. For the worker who is allowed to wear headphones on the job, this product
may even increase productivity as music adds to their motivation.
Finally, the Nike+ will target those concerned about physical fitness. Throughout
this market, a growing concern on obesity exists and will ultimately be the strongest
appeal for the Nike+ sales plan. According to a recent Robert Wood Johnson Foundation
study, “adult obesity rates have doubled since 1980 to 30% from 15%...[and] children are
faring even worse, as obesity rates for our youth have nearly tripled during the same
period (Lauer, “Heavy”). The study illustrates more specifically that “heart disease and
hypertension are increasing, with one in four Americans having some form of heart
disease and one in three Americans suffering from high blood pressure...[and] nearly
200,000 individuals under the age of 20 have type 2 diabetes and 2 million adolescents
ages 12 to 19 have pre-diabetes symptoms [which means that] obese and overweight
children are highly likely to become obese adults and run the risk of living the rest of
their lives in poor health” (Lauer, “Heavy”). To take advantage of this growing niche,
product development has led to compatibility with cardio workout machines popular in
today’s gym which inevitably makes Nike+ even more appealing to this new target
market. Consumers within this new target market for the product are represented by both
genders equally between the ages of 18 and 36. In addition, these individuals are single,
high school graduates who have completed or are pursuing post-secondary education, and
highly value image and peer perception. Finally, they are also technologically savvy and
frequently on the cutting edge of new advances in technology.
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Product Strategy
Nike, being the leader in producing sport equipment, gathered fame from
developing superior running shoes. Continuing the tradition of excellence in engineering
innovative running gear, Nike teamed with Apple to create the Nike+ system. The key to
the Nike+ system is the Nike shoe and its resident accelerometer. This sensor is a
pedometer that is waterproof and shock resistant. Nike currently sells over 40 pairs of
shoes that are compatible with the Nike+ system, which contain a pocket to encase the
accelerometer. This pocket allows the accelerometer to be firmly fixed in place, making
it stationary while in use. Without the pocket, the accelerometer would easily be
dislodged, degrading the accuracy of the accelerometer. In time, Nike will forge ahead
with their product by making all shoes compatible with the Nike+ system.
One option when using the Nike+ system is to pair it with a Nike Sport Band. By
including the purchasing option of the Nike Sport Band, Nike+ users gain the
convenience of tracking information about each run because the USB clip detaches from
the watch and can be inserted directly into the user’s computer allowing immediate
access to the runner’s statistics that are automatically uploaded onto the
www.nikeplus.com website. The Sport Band specifically benefits athletes when music is
prohibited during a race, marathon, or other event in which running statistics are desired.
The Sport Band can also be used as a normal watch that directly adds benefits to its users.
Once charged for at least two hours, the Sports Band provides fourteen hours of use.
With only two buttons, the user can begin navigating the Sports Band within mere
seconds of purchase without consulting a manual. Its ease of use and ingenuity make it
the perfect companion for today’s computer savvy world.
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For the musically motivated athlete, the Nike+ system can also be paired with
Apple’s iPod Nano or iPod Touch. The iPod Nano can hold 2,000 to 4,000 songs,
depending on the model while the iPod Touch can hold up to 16,000 songs. Using these
devices, music can quickly be downloaded via the free iTunes application. Music can be
purchased from the iTunes store or downloaded from one’s own personal music
collection. As of June 2008, the iTunes store has sold an estimated 5 billion songs,
accounting for more than 70% of worldwide online digital music sales. With more than 8
million songs available, including exclusive tracks from numerous popular artists, iTunes
is the fastest growing music retailer. With so many musical choices, each athlete can
have multiple running soundtracks at their fingertips to correspond with the course
they’re running, their mood, or their pace; furthermore, the iPod can be used similarly to
the Sports Band to track running statistics. Another benefit of the iPod Nano is its use of
flash memory. With no moving parts, the iPod Nano is resistant to hard disk failure
resulting from sudden movement which will allow for consistent listening, free of
skipping or stopping while exercising. Because the iPod Nano weighs less than an ounce
and a half, it feels nearly weightless.
For the ultimate convenience in running, Nike has a line of workout clothing
designed to house the iPod Nano. Nike offers long-sleeved shirts, cap-sleeved shirts,
fitted tanks, featherweight shorts and jackets, each containing a pocket and a headphone
port. The pocket is specifically designed to provide easy access to the iPod controls
while in the middle of an activity.
Apple recently patented a future Nike+ system that would utilize a combination of
GPS sensors and a processor unit to monitor an athlete's performance in real time and
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give the runner feedback based on his or her age, weight, and gender. The system would
also keep track of a shoe's durability, alerting the runner when the shoes have become too
worn out and could increase the risk of injury. Because the Nike+ product offers so
many features and subsequent advantages and benefits, it is easy to see how the
implementation of the product strategy that targets those specific attributes will generate
future sales.
Customer Strategy
Our customer strategy focuses on several areas of consideration. Initially people
may purchase Nike Plus based on emotion, but our goal is to change their perception for
their next shoe purchase. First, the brand must make sure that the customers are aware of
our product being superior to any future competition which will cause our customers to
have a patronage-buying motive when they make future shoe purchases. To instill the
patronage-buying motive within the prospects is often best done through production of an
excellent product from the beginning. After realizing the quality of the product, the
consumers will recommend the Nike+ to their family and friends. Ultimately this word
of mouth strategy exemplifies the best advertising because consumers are often
influenced by reference group members, such as friends, more so than messages provided
by commercials and salespeople. The reference group will naturally be runners, since
this product is designed for them. By building the Nike+ image in consumer’s minds as a
name brand, the sales force will lead more productive and effective presentations and
subsequently generate more sales than generic competition. Inevitably, this strategy will
ensure that Nike+ shoes will be a leader in this new market for years to come.
To keep our customers happy, the firm will provide excellent customer service.
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If there are any problems with the Nike+, a toll free number will be available with a
person that can speak fluent English to assist our customers in the United States and
Canada. In addition, a website, with customer service representatives, will be available
for the more tech savvy consumers. In summary, the organization will strive to ensure
that that the shoes/technology works properly, but, in the event that they do not,
immediate resolution will be sought. In order to evaluate and subsequently maintain
effective customer strategy, the Nike+ brand will send surveys to a randomly selected
group of customers that have purchased the product; moreover, received responses will
help us to make product and customer service improvements.
Relationship Strategies
Before discussing relationship strategies with current customers, greater focus on
prospecting new customers is requisite. As previously identified, one of the main
weaknesses of the product is the lack of its presence within the mass market. Before we
can attempt to solve that problem, the organization must begin by taking a look at the
prospecting tactics of both Nike and Apple. First, the Nike+ brand needs to take a more
active role in prospecting new customers, while strengthening the relationship with
current customers. For instance, Apple products send several direct marketing pieces via
email to all of their current customers. It is only logical that this brand continue to utilize
these email lists to an advantage. To further illustrate this point, current Apple customers
may be unaware of the Nike+ product’s true potential despite being informed of the
product’s existence. Nike may utilize the same technique with their customers as well.
In essence, the email lists serve a dual purpose as the firm can now send offers and
coupons via email to new and current customers of Nike and Apple to both further
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strengthen relationships with current customers and simultaneously entice prospective
customers to purchase Nike+.
Nike and Apple have built two recognizable brands that are associated with
excellence in their respective fields. The power they hold separately can only be matched
with this merged product and subsequent merge of customers. In order to continue this
reputation of excellence, the two brands must work together to build joint-customer
relationships. One way to accomplish this goal is to intrinsically reach the customers.
Currently, Nike+ holds a 5k marathon that features celebrity runners such as Matthew
McConaughey. Nike+ can re-launch this event to include Nike+ customers and
prospects. Nike+ customers may compete along side the celebrities and receive Nike+
apparel. In addition, Nike+ plans to launch clothing apparel in the near future, so, the
marathon will act as an incubator for promotional material as well. Customers will gain a
feeling of status as they will be the first to receive this apparel and are able to compete
with other Nike+ users and celebrities.
In addition to the launch of their clothing line, Nike+ will be launching a product
tailored to in-door workout machines such as treadmills and ellipticals. Again, this is an
opportunity for Nike+ to intrinsically reach their customers through a series of launch
events throughout the country. To illustrate, this can be done by partnering with a
specific national gym such as Gold’s Gym. In example, Nike+ representatives can take
their products to the gyms and offer a free trial to all gym members while existing
customers may also test the original Nike+ product. After their trial, prospective
customers may purchase the new Nike+ product on the spot. The Gold’s Gym launch
event will not only increase customer service practices, but it will ultimately increase
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sales of the original Nike+ and gym-equipment Nike+.
Another way to strengthen customer relationships is to provide a customer loyalty
program that is specific to Nike+. Apple and Nike each have their own forms of
customer loyalty plans; however, they have yet to develop one particularly for Nike+
users. One suggestion is to provide coupons in athletic stores and online and anytime a
customer purchases a Nike product, they will receive a coupon for $10 gift card to
iTunes. In addition, anytime a customer purchases an Apple product, they will receive
$10 off a Nike+ ready shoe or apparel. Ultimately this program will be beneficial for
several reasons. First, it entices customers to purchase the Nike+ product because both
companies are offering coupons for components of the product. Second, it rewards
current Nike+ customers for their patronage.
Presentation Strategy
Objectives:
1. Begin opening with a demonstration of the product in action in order to
capture attention and generate interest through the showmanship approach
2. Briefly discuss the significance of the Nike and Apple
3. Increase awareness of the convergence of Apple’s iPod and Nike’s shoes to
form the Nike+
4. Highlight the product’s Features, Advantages, and Benefits and move the
audience from interest to desire
5. Provide distribution information to increase awareness of the product
6. Eliminate buyer resistance because of price by showing how money is saved
from convergent technologies
7. Change the consumer’s perception that Nike+ is a want into a need and close
in the conviction stage
8. Persuade the audience to purchase the product either now or in the near future
9. Provide future contact information for after the sale service
After researching extensively, the firm has determined that the target market
consists of males and females between the ages of 18-36 with incomes of $5,000-45,000,
graduated from high school, and have completed or are pursuing post-secondary
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education; additionally these individuals place prominence on image, peer perception,
and technology. Bearing this in mind, the most effective presentation strategy will
involve satisfying those role types and generating audience participation (something a
younger audience undoubtedly will want in the presentation). The presentation will most
likely be offered in a salesperson to buyer situation and will utilize a formula presentation
strategy because there is “more flexibility and less direction” which will allow more
“buyer-seller interaction” that the target market will be seeking (Futrell, 251).
To begin, the presentation will begin “opening with a demonstration” that
combines the product and showmanship approaches. The purpose behind this brief
demonstration emerges from satisfying the target’s role types and moving the audience
from the attention to the interest step in the mental buying process. By offering an
interactive demonstration of the Nike+ that forces the audience to participate and inspect
the convergent technologies, the presentation will immediately spark attention and create
positive reactions and interest. To employ the combined approaches, the salesperson will
simply set the Nike+ shoe on a surface and wait for the buyer(s) to comment that there
doesn’t appear to be anything special about the product except for the redesign. Upon
this type of comment, the salesperson immediately demonstrates how the Nike+ exceeds
that of any ordinary iPod or Nike shoe. Finally, the salesperson will then conclude with
the survey approach by surveying the buyer to see if this individual already purchases
iPods and Nike shoes (which research shows the need already exists). By surveying the
buyer, the salesperson will remind the individual of his/her want for the individual
brands. Ultimately it becomes obvious that the target market, consisting of Generation Y
and Millennials, covet technology, and incorporating each approach with the latest gear
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will effectively cater to them.
After uncovering obvious needs (prior research already shows that the majority of
the target market already buys both separate components) in the approach, the presenter
then will cautiously highlight the wants for products produced specifically by Nike and
Apple such as an iPod and Nike tennis shoe. Throughout the approach, the firm will
highlight the significance of Nike and Apple, two highly recognizable and trusted
companies for this particular market, and illustrate how the quality of such brand names
converge to take an inadequacy such as lack of music during exercise and create a perfect
product solution in the form of the Nike+. Because the role types of these individuals are
time starved, lacking financial stability, and more tech savvy/innovators, the previously
mentioned approaches will generate a solid appeal to save money from convergent
technologies and, at the same time, demonstrate the most modern health and high tech
trends.
Although up to this point the presenter has generated considerable interest in the
product, an illustrative demonstration is absolutely vital to the more engaging, younger
audience in order to transition the buyer into a desire state and fully highlight the
complete customer benefit plan. To demonstrate, the presenter can either show a video
clip or, more appropriately, allow the audience to experiment with the product while
he/she explains the various features, advantages, and benefits. In particular, the presenter
will focus on the features of converging music into an athletic sneaker and will explain
how such an attribute (feature) will help the end-user enjoy and relax during exercise
(advantage) which will eventually allow the individual to become healthier and more fit
(benefit). Also, the presenter should provide a list of retailers that will be carrying the
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product so that the buyers are familiar with its current location, detail how simple the
product is through a strong marketing communications effort (presenter may allude to
displayed advertisements and public relations events), and finally reassure the buyer of a
solid warranty. Ultimately these factors are critical in developing a solid marketing plan
that will convince the target market that the Nike+ is an incredible product and move
them toward the conviction stage.
After illustrating the significant selling points about Nike+, the seller will move
into the business proposition which will explore price in relation to a cost benefit
analysis. During this time, it is extremely important that the presenter mention price but
in relation to how it is in fact more affordable as a bundled convergent technology that
has additional features as opposed to the purchase of Nike tennis shoes and an iPod
separately (the most commonly anticipated objection). Also, the presenter will intently
focus on the costs associated with rising health care and unhealthy lifestyles in order to
maximize the effect of the value analysis. To take full advantage of this analysis, the
presenter can draw from a recent Robert Wood Johnson Foundation study indicating “the
total cost of obesity and physical inactivity in 2000 was estimated to be $117 billion” and
a “2008 study [that] reported that obese employees cost private employers approximately
$45 billion per year as a result of medical expenses and excessive absenteeism; moreover,
obesity has been linked to a 36% increase in healthcare spending, which is currently more
than smoking or alcohol” (Lauer, “Heavy”). By illustrating how obesity and unhealthy
lifestyles cost more than the initial one time cost of a Nike+ product, the greatest cause of
buyer resistance is effectively minimized. To accomplish this, the presenter can then
provide retail prices that show how the two widely purchased separate components, an
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already established need for the target market, and the health care costs associated with
obesity cost more than in fact the Nike+ kit. To strengthen this point, the presenter will
state that a $10 coupon good for any iTune song, all Nike+ apparel, and select Nike+
shoes will be included with every purchase to entice customers. Additionally this will
alter the consumer’s perception that the Nike+ bundle is a need instead of a want because
of the target markets’ role types. Shortly after discussing this potential objection, the
presenter will offer a trial close to test whether or not the price comparisons have
eliminated that or any other source of buy resistance. At this point, the presenter can also
generate feedback from the audience before proceeding to a suggested purchase order.
During this time, the presenter will gauge how many items can be purchased and will
negotiate accordingly while trying to sell at least three pairs of different varieties.
Finally, the presenter will establish/suggest a payment plan and once again offer a trial
close to see whether or not there is any remaining buyer resistance.
After completing a thorough presentation of the features, advantages, benefits,
marketing plan, business proposition, and suggested sales order and answering all
relevant objections, the presenter will finally move to close with a “standing-room-only
close” because it will “get the prospects so excited that they cannot wait to buy” (Futrell,
388). Because Nike and Apple have in the past released high demand products (in
particular Apple’s iPod), the standing-room-only close will effectively convince the
buyers that this new innovative product may not be around much longer. Ultimately
given that the buyers are usually looking for a better lifestyle with the highest
technological value as a means of compensating for lower levels of education, it is clear
that the standing-room-only close will play off of their desire to have a strong “looking-
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glass self” or positive view on how “others regard them” (96). Having completed the
close in the conviction stage, the presenter will exit by reminding the purchaser that
he/she can buy today or in the near future at a certain designated retailer and provide
future contact information for additional after the sale service.
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Works Cited
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Futrell, Charles M. ABC’s of Relationship Selling through Service. 10th edition.
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Kahney, Leander. “Making the IPod More Sensitive.” Online posting. 30 May 2006.
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Lauer, Charles S. "A Heavy Burden." Modern Healthcare Sep. 2008: 38+. Academic
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