Tuesday, September 18, 2012

A good reputation is good for business: A look at Nike

The dictionary defines reputation as: (1) the views that are generally held about somebody or something and (2) something that somebody is know for; particular qualities or attributes. Cartier is known for fine jewelry and watches, Marriott - hotels and Ferrari - beautiful sports cars. Nike is recognized as one of the leaders in sports apparel, primarily shoes.

Phil Knight has built Nike into a multibillion dollar company based on the reputation of the product and customer service. What has taken decades to create was recently threatened by two events: child labor in Asia and the infamous Tiger Woods scandal. Why did these events threaten Nike's strangle hold on the market? A damaged reputation! No one questioned the functionality of the shoes or clothing. The issue is choosing to be a supporter of a company that supports child-abuse and a serial adulterer. Phil Knight did the unexpected by taking responsibility for the child labor matter and voiced his commitment to addressing the issue. His accountability was well received, however, there were still questions about manufacturing improvements worldwide as of 2011. Regarding Tiger, he stood by him (when others abandoned him) during a very difficult time despite open criticism from numerous people.

So, what do the previous stories have to do with digital marketing? Because of the information highway, confirmation of the "sweatshops" and poor behavior of a primary spokesman spread faster than a wildfire. Individuals monitor developments pertaining to these issues and post about it. Such activities affect the reputation of the brand which affects the revenue stream.

It is very important for companies to protect their reputation. This can be accomplished with web analytics. Constant monitoring the web for buzz about their brand will allow them to adjust to positives and address negatives.

Submitted by Paul James

http://www.reputationmanagementfor.com/blog/tag/nike/
http://www.brandchannel.com/brand_speak.asp?bs_id=77
http://www1.american.edu/TED/nike.htm
http://www.globalexchange.org/sweatfree/nike/stillwaiting

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