SRM INSTITUTE OF SCIENCE AND

TECHNOLOGY FACULTY OF SCIENCE AND

HUMANITIES DEPARTMENT OF THE COMMERCE

UCM23303J

MARKETING MANAGEMENT

SUBMITTED BY :

HARI HARAN S

(RA2331201010011)

II B.COM (Commerce) “A”

 CERTIFICATE

This is to certify that the Project Work entitled UCM23303J -

MARKETING MANAGEMENT submitted by HARI HARAN S
(RA2331201010011) of Bachelor of Commerce, Faculty of
Science and
Humanities, SRM Institute of Science and Technology,
Kattankulathur is a
Bonafide Record of Project Work carried out by him in partial
fulfillment of the requirement for the award of degree of Bachelor of
Commerce General.

FACULTY INCHARGE HEAD OF THE

DEPARTMENT

INTERNAL EXAMINER EXTERNAL EXAMINER

Marketing Management
 UNIT -1

HOW A COMPANY BUILT ITS CUSTOMER

VALUE AND SATISFACTION:

How to Build Customer Value?

Building customer lifetime value should be at the heart of every business

strategy. But how can you effectively build customer value? Here are
some key strategies.

1. Understand Your Customer

The first step to creating value is to understand your customer thoroughly.

Who are they? What are their needs and wants? What challenges are they
facing that your product or service can help solve? Gaining a deep
understanding of your customer can help tailor your offerings to meet their
specific needs, thereby increasing the perceived value of your product or
service.

2. Deliver High-Quality Products or Services

The quality of your product or service plays a significant role in creating
customer value. Customers often equate the price they pay for a product or
service with its quality. If you deliver a high-quality product or service,
customers are likely to perceive higher value. Focus on the elements of
your product or service that directly impact customer experience and
satisfaction, such as functionality, durability, and user-friendliness.
 3. Offer Competitive Pricing
Offering competitive pricing is a crucial strategy for building customer
value. This doesn't mean you always have to be the cheapest option.
Instead, it's about ensuring that the cost of your product or service aligns
with the value it provides. When customers feel they are getting a good
deal, their perceived value increases.

4. Provide Excellent Customer Service

Excellent customer service can significantly increase the value customers
perceive. Customers value businesses that respect them, respond to their
needs promptly and resolve issues effectively. Investing in training your
customer service team and implementing customer-focused policies can
pay off in terms of increased customer value.

5. Create a Unique Customer Experience

Creating a unique customer experience is another effective way to build
customer value. This could involve anything from creating a user-friendly
website, offering personalized recommendations, to providing a seamless
purchasing process. When you offer an experience that exceeds customer
expectations, you enhance the perceived value of your product or service.

Customer Satisfaction

A satisfied customer is more likely to purchase and continue doing business with a
brand. In fact, a PwC survey found that even when people love a brand or product,
59% will walk away after several bad experiences, and 17% after just one bad
experience.

1. Listen to customer feedback

Customers have valuable insights and can provide businesses with valuable
feedback on their products, services, and overall customer experience. Collecting
and analyzing customer feedback can help businesses identify areas for
improvement, develop new products and services that meet customer needs, and
make informed decisions about how to allocate resources. By listening to customer
feedback, businesses can continuously improve their offerings, build a better
customer experience, and stay ahead of the competition.

#2. Provide excellent customer service

It is essential to address your customers in a friendly, knowledgeable, and

responsive way that caters to their needs. The best way to handle customer
concerns is to listen actively, acknowledge the issue, and work toward a resolution.
Providing prompt and transparent communication, as well as offering appropriate
compensation, can help to regain customer trust and loyalty. In addition,
companies should take feedback seriously and use it to improve their products,
services, and overall customer experience.
#3. Offer clear and transparent communication

Customers expect businesses to be transparent and open in their

communication, especially when it comes to important issues such as
pricing, product or service features, and policies. Providing clear and
concise communication helps to build trust, establish credibility, and
reduce customer frustration. It's essential to communicate important
information clearly and consistently across all channels, including
websites, social media, emails, and customer service interactions.
Companies should also be responsive to customer questions and concerns
and provide timely updates when changes are made.

#4. Show appreciation for customer loyalty

Showing appreciation for customer loyalty is an effective way to build long-term

relationships with customers and create a positive brand image. Customers who
feel valued and appreciated are more likely to continue doing business with a
company and recommend it to others. There are many ways to show appreciation
for customer loyalty that includes:

✅Offering customer loyalty programs

✅Personalized promotions
✅Exclusive discounts
✅Early member access

Companies can also show their appreciation by sending thank-you notes,

personalized emails or surprise gifts. Engaging with customers on social media
platforms and responding to customer feedback can also demonstrate a
commitment to customer satisfaction and build a positive relationship.

REAL COMPANY
TOYOTA

Toyota's reputation for producing reliable vehicles contributes significantly to

customer satisfaction. Customers trust that a Toyota will consistently perform well
over time.

1. Transparent Communication:

Honest and clear communication builds trust. Patagonia, known

for its transparency about environmental practices, connects with
customers who appreciate ethical business practices.

2. Continuous Improvement:

Listening to customer feedback and actively making

improvements demonstrates a commitment to meeting and exceeding
customer expectations. Google frequently updates its services based on
user feedback.

3.User-Friendly Design:

Products and interfaces that are easy to use contribute to a

positive customer experience. The success of platforms like Instagram
lies in their simple and intuitive design.

TOYOTO CUSTOMER VALUE AND SATISFACTION

● Positive Feedback Loop:

When businesses consistently deliver value,

customer satisfaction tends to increase, creating a positive feedback

loop that strengthens brand loyalty.

● Long-Term Relationships:

The symbiotic relationship between value and satisfaction is the

foundation for building long-term relationships with customers. Businesses that
prioritize both are more likely to retain customers and foster brand advocacy .

Real-World Examples:

1. Zappos:

Exceptional Customer Service

2. Starbucks:
Consistent Experience

CONCLUSION :

Value and satisfaction is the secret sauce for businesses aiming not just
for transactions but for enduring customer relationships. By continually
innovating, understanding customer needs, and ensuring .
 UNIT-2
Consumer Behavior in Advertising?
Consumer behavior is how a customer engages with your brand while
deciding to buy or already conducting the buying action. How they react
or feel and what they do after seeing an ad constitutes consumer
behavior.

While various consumer demographics react differently to ads, their

behavior towards the brand after seeing the ad is more or less the same.
It largely depends on the format, messaging, and branding that a
business incorporates in the ad. It's crucial to understand the buying
behavior of consumers. Their behavior provides you with a direction in
creating ads.

How Ads Affect Consumer Behavior

Advertisements create an impact on the consumers as you present your
products and services. When they come across your marketing materials,
it stirs them up depending on the message or format you use. Here are
some of what consumers usually feel or do after seeing an ad.

Brand Familiarity

Meanwhile, existing brands continuously put out ads to make their brand
relevant to their consumers. Once a consumer sees an ad, they'll
associate it with a brand. This will spark their curiosity about the product
or service that the brand can offer to them.
The search engine company Google made a joint test with
IpsosMediaCT to see if search ads contribute to brand awareness. In a
pool of 800 U.S. consumers, 14.8% connected a test brand with a
specific keyword after seeing the ad. Only 8.2% of those without
exposure to the search ad were able to recall the brand. The difference
between the two groups shows that the search ads created an average
80% increase in top-of-mind awareness for a brand.

Build Trust and Confidence

An advertisement can persuade people to try their product. It can boost

their confidence that the product or service will solve their pain points.
New products that have yet to prove their worth from consumers use ads
to establish trust from their buyers. Some ads also bring back consumer
confidence in their brand when they feature new product offerings or
variants. Pharmaceutical software solutions are increasingly turning to
advanced software solutions to optimize their advertising strategies and
better understand consumer behavior.

Other ads feature testimonials from consumers to build more trust in

their brand. It's a widespread practice among medical products such as
advertisements for medicine. Pharmaceutical firms need to convince
consumers about the effectiveness of their products. Hence, the need for
testimonial ads.
Social Perception:

The reason why most businesses hire a famous endorser is because of

the corresponding social imaging. Ads that feature a celebrity make
consumers relate with the well-known personality's status.

Making a product a status symbol is due to the ads that consumers see. It
makes them follow the current trend, all the more when a famous
individual endorses the brand. The associated social imaging persuades
the consumers to want the product that the celebrity advertises.

Research from the Wisconsin School of Business cited how print ads
overrepresent the middle and upper-class demographics, which results in
a misleading perception of lower-income consumers belonging to the
same socio-economic class. Additionally, 16% of Internet users were
able to discover a brand through a celebrity. And these celebrity-
endorsed ads are worth the hefty investment - it leads to an average
of 4% sales increase.

Motivate Them To Buy:

Businesses create ads to persuade more consumers to
buy their products. They invest in expensive
advertisements to spark the interest of potential
consumers to go to the nearest store and buy what they
offer.

Limited promotions such as discounts and sales enhance

the consumer's interest to buy. They want to take
advantage of the limited time that a product is available
for a lesser price tag. Also, ads emphasizing how they
solve a consumer's problem entices them to see it for
themselves if it's worth trying.

After seeing an Internet ad, 44% of U.S. consumers say

they purchased a product, according to a Statista finding.
When it comes to traditional out-of-home ads, 60% are
more likely to buy a product after seeing an ad during a
consumer's regular shopping trip.

Clearly Define the Product Benefits

Complicated products or services which are still new to the market
provide ads that explain the benefits of what they're offering. For
instance, startups whose products solve a specific problem have ads that
clarify how their product can simplify a complex process.
Advertisements translate how a product will benefit its consumers into
more simple terms.
Instead of lengthy videos, a short and simple presentation about the
product's features help consumers understand the benefits it can provide
to them. They make it easy for consumers to figure out how a product or
service will address the problems they're facing. Or you could make a
short video with subtitles which will describe the main points about your
product.

For consumers of food products, 67% of them want to know what goes
into the food they buy. Parents research a product before buying.
And 68% of these parents say they wished ads help them learn
something new to get the best experience out of their purchase.

EXAMPLE :
How Using the Fogg Behavior Model Increases Clicks
& Sales

he concept of convergence can be seen throughout all facets of

marketing. Products and services converge with timing to create ideal
offerings at ideal moments. Inspiration converges with market demand
to create the next big thing. And advertising converges with societal
trends to enhance brand recognition and identity.

Despite the numerous examples of convergence seen in a broad, macro

sense of strategy, however, the concept also plays a pivotal role at the
individual, micro level of marketing. In the specific case of the Fogg’s
Behavior Model, three specific elements must converge at the same
moment for a behavior to occur within an individual: motivation, ability,
and trigger.

Motivation:

In the Fogg behavior model, motivation serves as the primary driver to

persuade and prompt a desired reaction. In a marketing environment like
a post-click landing page, motivation can be seen as the emotional
backdrop that creates the desire for the consumer to continue along the
sales funnel.

This page from Tiffany & Co embodies the emotion involved in a

couple’s engagement, providing ample motivation for the user to click
through and progress through the funnel:
 UNIT -3

Impact of Pricing and Product Information on

Consumer Buying Behavior

If the product is already in abundance in the market, then pricing

will definitely play an important role because the increase in
price will discourage customers from buying it. Similarly, if
prices are lowered under such market conditions, then consumers
will increase the amount that they purchase significantly.

Introduction

In the competitive market of commodities, products, varieties,

consumers, ethnicities, and preferences, product pricing and product
packaging information descriptions have a considerable influence on the
buying behavior of consumers. To explore the cumulative effects of
product pricing and packaging on the buying behavior of consumers of
different ethnicities, it is essential to research these aspects of marketing

Marking a product with accurate information adds to its value. Consumers

are attracted to detailed labels, content, and packaging. Many people are
influenced by the way a product is packaged and presented in the market.
While the product itself may be of any quality, the relationship it produces
through its packaging has a strong influence on the purchasing attitude of the
consumer.
● Product prices significantly correlate with consumer buying
behavior.
● The product information available on packaging influences the
consumer’s buying behavior.
● Satisfaction plays a mediating role in consumer buying behavior.
● Pricing of the product plays an essential role in customer
satisfaction.
● Product information available on labels plays a significant role in
customer satisfaction.

Product Pricing and Consumer Buying Behavior

Product pricing seems to be the only direct element that generates

revenue and indicates the success or failure of a product or service.
As a result, the researchers in this study chose to emphasize this
aspect. Manali (2015) carried out research into the theoretical
dimensions of consumer purchasing behavior and the factors that
affect it.
He analyzed the relationship between consumer buying behavior
and factors affecting the buying process and decisions of the
consumers. His research provides enough evidence to show that
the internal and external influences of a consumer have a major
relationship with their purchasing behavior.
According to Al-Salamin et al. (2015), good prices of well-known
brands negatively affect the purchasing process. Young people are
eager to buy brands, but their low income hinders them from doing
so. The only aspect of the marketing mix that generates revenue is
price, whereas the others generate costs. The authors also noted
that the purchasing decisions of consumers focus on their price
perception and what they think about the actual price of a product.
The main goal of marketing is to understand how customers move
toward their price perception.

Product Packaging and Consumer Buying Behavior

Packaging a product with relevant product details contributes

positively to consumer buying behavior. Names, features, and
product packaging attract consumers.
Many people are influenced by the packaging and marketing of
items. While a product may be of any quality, the impact on
customer purchasing is essential (Rundh, 2009; Li et al.,
2021; Naseem et al., 2021).
Packaging must highlight key aspects of the product and brand,
such as material composition, purpose, and quality. To show
respect for customers, packaging should include all of this
information in regional languages. Not only is efficient packaging
important for storing and preserving products, but it is also
important for creating an interest in and generating actions toward
purchasing the product. Packaging that is environmentally friendly has
 become increasingly important. As a result, marketers should place a
high priority on this aspect and use best practices to the greatest
possible extent, including the use of environmentally friendly recycled
materials

Satisfaction of Consumers and Their Buying

Behavior

Customer value and customer satisfaction are considered important

parameters for thSe relationship between customer value and the
willingness to sacrifice (Zechmeister et al., 1997). This sacrifice is made
in accordance with an exchange mechanism that includes transaction
costs and the risk of the goods of the company.

Customer satisfaction is evaluated by obtaining feedback from

customers after purchasing products or services, and then comparing it
with their expectations. Customer satisfaction is calculated using the
performance requirements of products or services that are capable of
satisfying the needs and desires of customers.

Role of Product Packaging on Consumer Satisfaction

Packaging and labeling can be considered one of the most important

tools in marketing and communication, which means that a thorough
examination of their components and their relationships with consumer
buying behavior is necessary. According to Joewono and Kubota (2007),
consumer satisfaction results from product and service reviews based on
customer perceptions and a broad assessment of the overall consumption
experience.

[P]rice is described as giving or sacrificing for the acquisition of a

service or product,” while Kotler et al. (2012) proposed that “the price is
the amount paid for a product or service and the sum of the value
exchanged by consumers for the advantages of a product or service
available or being used.” The perceptions of customers of a given price
can have a direct relationship with the their decision to buy a product
(Zechmeister et al., 1997). Customers will pay attention to the prices
paid by their peers, and no one wants to spend more money than their
peers do. The fairness of a price can affect the perception of consumers
of the product, and ultimately their desire to become a consumer.

A satisfied consumer believes that the value of goods and services is

comparable with the price, which will encourage them to repurchase the
products. According to Zeithaml (1988), “quality can be characterized as
superiority or excellence in a broad sense.”
 UNIT -4

Objective:

The aim of this research is to explain how Micro Small Medium

Enterprises (MSMEs) implement digital marketing and
innovation, achieve competitive advantage, and improve
marketing performance.

The study also examines how digital marketing and innovation

influence marketing performance through competitive advantage.
This study centers on detailing and examining these aspects,
involving an investigation carried out on small-scale food and
beverage entrepreneurs in Bekasi, Indonesia.

Method:

This study utilizes quantitative methodologies. 100 food and beverage

micro business owners were surveyed using the simple random sampling
method. The PLS technique is utilized in the data analysis process.

Results and Discussion:

The findings indicate that competitive advantage is positively impacted

by digital marketing and innovation. Digital marketing also has a
beneficial impact on marketing effectiveness. Competitive advantage
plays a role in connecting digital marketing with marketing
performance, as well as linking innovation with competitive advantage.
Innovation does not impact marketing performance.

Research Implications:

Entrepreneurs must integrate digital marketing to enhance marketing

effectiveness and incorporate digital marketing and innovation to boost
competitive edge.

It is necessary to engage in constant communication with customers

using online platforms, ensure fast and efficient access to information,
keep product content up-to-date and in line with current trends, deliver
products as scheduled, and provide frequent updates on product
availability in the market.

They must also implement modifications in their business operations to

effectively and efficiently meet the demands and desires of their
customers.

Originality/Value:

This research adds to the existing body of research by validating that

digital marketing can enhance marketing effectiveness both directly and
through competitive advantage. Innovation does not have a direct impact
on marketing performance.
In order to enhance the marketing performance of food and beverage
MSMEs, innovation must serve as a competitive edge. The MSME
owners can be motivated by the research results to adopt digital
marketing and innovation, leading to a competitive edge for their
products. This will help enhance their marketing performance and
ensure long-term sustainability.

Marketing impact business performance

The research suggested that the majority of the respondents
recognised that their business performance had increased due to
the use of e-marketing. Furthermore, the research found that two
thirds of the MMA members acknowledged the importance of e-
marketing to connect and build relationships with their
customers.
Online marketing benefits

In addition to offering a wider reach, online marketing is: Cost-

effective. Digital messaging can be cheaper and more efficient to
produce than print . It can duplicate faster, and it can be highly
targeted to reach only the most relevant audiences, which means
it usually offers a strong
 Increase in Brand Awareness
Today, more than half of the world’s populace uses social media
platforms. It makes social media a natural place to connect with highly
targeted potential buyers. This can increase the brand awareness that
your brand deserves.

About 60 percent of Instagram users have said that they have come
across new products on this social media networking site. It means that
the customers do not just connect with brands that they already know
about but also, with the new ones that they discover on social media
platforms.

Generation of Leads
Digital media is a low-commitment way for new customers to show an
interest in a business and its products. Getting leads is a very important
advantage social media brings to any business. They signify that
customers are interested in the brand and its products.

Boost in Sales
You can sell anything on social media. An excellent digital marketing
strategy can bring in good business and opportunities for a brand. The
number of people who use social media is on the rise and social sales
tools continue to evolve. This will make social media networks
increasingly important for e-commerce and product search
 Grow Viral
Your content gets exposed to new audiences when people start liking,
sharing, and commenting on your posts. The next step in this concept is
‘going viral’. Once your content is shared in a network and the network
follows suit, your content starts to spread across the entire internet and
gets thousands or millions of shares.

Such exposure is beneficial because all the likes, shares, and comments
reflect an existing connection with your business. If a person sees that an
article has been liked by a friend, he/she is likely to check out what is
being said, even if they’ve never heard of the company before. In a
world that produces content more than anybody can consume, a social
share by a friend works like a pre-screening.

Getting viral isn’t easy but without social media, it would be impossible!

Engage Customers and Audience

Social media platforms are an opportunity for brands to interact directly
with customers and vice versa. Traditional media was a one-way street
when it came to communication, social media allows for a dialogue
between the brand and its audience. So, if you want your followers to be
engaged, you need to be engaged yourself. It is essential to stay active
and answer the comments and questions on the brand’s social media
posts in an appropriate and professional manner.
There you have it, the digital marketing benefits for business. Till now,
it’s evident that digital marketing is necessary for your business, but
what if you have just started? How can digital marketing help you?
Hence, let’s discuss more about digital marketing services for small
business.

Conclusion:
By harnessing the diverse range of digital marketing services available,
businesses can strategically position themselves to reach their target
audience, foster engagement, and achieve tangible growth results. If you
are looking to opt for digital marketing services, there are
multiple digital marketing companies in Pune and other cities that
offer digital marketing services
 UNIT 5

: Introduction
In the contemporary business landscape, social media marketing
has emerged as a vital component of growth strategies for many
companies. While platforms like Instagram, Facebook, and
TikTok provide unprecedented opportunities for engagement and
brand visibility, the notion of relying solely on these platforms
raises important considerations. This essay delves into the
intricate relationship between social media marketing and
business growth, with a particular focus on Nike—a global
leader in sports apparel and footwear. Through an examination of
Nike’s social media strategies, successes, and challenges, we can
gain insights into the benefits and risks of depending heavily on
social media for growth.

Pros of Social Media Marketing

1. Wide Reach and Targeting: Social media platforms like
Facebook, Instagram, and Twitter allow businesses to reach a vast
audience. For example, Nike effectively uses social media to
engage with its customers through visually appealing content and
targeted ads, helping them build a strong brand presence.
2. Cost-Effective: Compared to traditional advertising, social media
can be more budget-friendly. Glossier, a beauty brand, relied
heavily on social media marketing, leveraging user-generated
content to build a loyal community without a massive marketing
budget.
3. Real-Time Engagement: Social media allows brands to engage
with customers instantly. Wendy's has gained notoriety for its
witty and engaging Twitter presence, turning customer interactions
into viral marketing opportunities.
4. Brand Loyalty and Community Building: Brands can foster a
sense of community through social media. For example,
Lululemon uses its platforms to create a lifestyle brand that
resonates deeply with its audience, enhancing customer loyalty.

Cons of Sole Dependence on Social Media

1. Algorithm Changes: Reliance on social media can be risky due to
changing algorithms. For instance, many brands saw decreased
organic reach on Facebook after its algorithm updates, making it
harder to reach audiences without paid promotions.
2. Platform Limitations: Each platform has its limitations and
audience demographics. A company like Pinterest may thrive on
visual content, but that doesn’t guarantee success on more text-
driven platforms like Twitter.
3. Diverse Marketing Needs: Social media is just one channel in a
broader marketing mix. Companies like Coca-Cola leverage
multiple marketing strategies, including television ads,
sponsorships, and influencer partnerships, demonstrating that
growth can be fueled by various avenues.
4. Risk of Negative Feedback: Social media can amplify negative
feedback quickly. A misstep can lead to a public relations crisis, as
seen with United Airlines, which faced backlash over a customer
incident that spread rapidly on social media.

Nike’s Social Media Strategy

Nike’s social media marketing strategy exemplifies the effective

use of digital platforms to engage consumers and promote brand
loyalty. The brand has cultivated a multi-faceted approach across
various social media channels, each tailored to specific
audiences.

● Content Creation: Nike excels in producing high-quality,

engaging content. Their campaigns often feature compelling
 storytelling that resonates with their audience. For instance, the
“Dream Crazy” campaign, narrated by Colin Kaepernick, not only
highlighted athlete stories but also connected with broader social
issues, fostering emotional engagement with viewers.
● User-Generated Content (UGC): Nike encourages customers to
share their experiences through hashtags such as #JustDoIt and
#Nike. This strategy not only promotes brand loyalty but also
provides authentic content that resonates with potential customers.
For example, during the launch of the Air Max 270, Nike
encouraged users to post photos wearing the shoes, leading to a
flood of authentic promotion from fans.
● Influencer Partnerships: Collaborating with high-profile athletes
and influencers amplifies Nike’s reach. Partnerships with stars like
LeBron James and Serena Williams enhance credibility and
showcase the products in an aspirational light. Nike’s
collaborations extend to social media influencers who resonate
with niche markets, effectively broadening their audience base.
● Platform-Specific Strategies: Nike tailors its content for each
platform. On Instagram, they focus on visually compelling imagery
and videos that showcase products in action. On Twitter, the brand
engages in real-time conversations and utilizes trending topics to
remain relevant. On TikTok, Nike employs creative challenges and
campaigns that encourage user participation, like the
“#AirMaxDay” challenge, which went viral among younger
audiences.

: Benefits of Nike's Social Media Marketing

1. Enhanced Brand Visibility: Nike’s strategic use of social media
has significantly amplified its brand visibility. With millions of
followers across various platforms, Nike maintains a constant
stream of engagement. Their visually striking content often results
in high shares and interactions, further increasing exposure.
2. Customer Engagement and Community Building: Social media
enables Nike to foster meaningful connections with its audience.
The brand often responds to customer inquiries and engages with
user-generated content, reinforcing a sense of community. For
example, during the COVID-19 pandemic, Nike launched the
 “Play Inside” campaign, encouraging people to stay active at
home, which resonated with their audience and strengthened
community ties.
3. Crisis Management: Social media can serve as a tool for
managing brand reputation. Nike has effectively addressed
controversies by utilizing its platforms to communicate
transparently. In 2018, after facing criticism regarding labor
practices, Nike responded with a series of posts highlighting their
commitment to ethical manufacturing and sustainability initiatives,
demonstrating accountability.
4. Data-Driven Insights: Nike leverages analytics from social media
to inform its marketing strategies. By analyzing engagement
metrics, customer feedback, and trending topics, Nike can refine its
campaigns and product offerings. This data-driven approach
enables the brand to stay ahead of consumer preferences and
market trends.

: Limitations and Risks

Despite its successes, relying solely on social media marketing
poses several challenges for Nike:

1. Algorithm Dependence: The effectiveness of social media

marketing is closely tied to platform algorithms, which can shift
unpredictably. In 2020, Facebook updated its algorithm, resulting
in decreased organic reach for many brands, including Nike. This
shift necessitated increased investment in paid advertising to
maintain visibility.
2. Negative Feedback Amplification: Social media can quickly
amplify negative sentiments. Nike faced backlash over its
association with controversial figures, like Colin Kaepernick.
While this campaign ultimately proved successful, it highlighted
the risks of public sentiment, requiring brands to be vigilant in
managing their image.
3. Platform Limitations: Each social media platform caters to
different demographics and content types. While Nike thrives on
 visually driven platforms like Instagram, the brand may struggle to
engage effectively on text-focused platforms like Twitter. This
necessitates a comprehensive strategy that accounts for the
strengths and weaknesses of each platform.
4. Short-Term Focus and Trend Dependency: Social media trends
can be transient. While campaigns may achieve viral status,
sustaining long-term customer loyalty requires more than
momentary engagement. Nike must continue to invest in product
quality, customer service, and overall brand experience to build
enduring relationships

CONCLUSION
In conclusion, Nike’s experience illustrates that while social
media marketing is a powerful tool for driving growth and engagement,
it should not be the sole focus of a company’s marketing strategy. The
benefits of social media—such as enhanced visibility, customer
engagement, and real-time interaction—are significant. However, the
inherent risks associated with algorithm changes, negative feedback,
and the necessity for a multi-channel approach underscore the
importance of a balanced marketing strategy.

For sustainable growth, companies like Nike must integrate

social media with other marketing channels, including traditional
advertising, influencer partnerships, and direct engagement
strategies. As the digital landscape continues to evolve,
businesses must adapt and innovate, leveraging the strengths of
social media while addressing its limitations. This holistic
approach will ensure that brands not only achieve immediate
engagement but also foster long-term loyalty and success.
References
● Nike’s official website and annual reports.
● Social media analytics reports and case studies.
● Articles and research on social media marketing strategies
and consumer behavior.