Co-Creation of Value in Marketing

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  • 0:03 Nike's Co-Creation Story
  • 1:13 Co-Creation of Value…
  • 4:19 Lesson Summary
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Lesson Transcript
Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Co-creation in marketing relies on relationships that are mutually beneficial to both brand and consumer. In this lesson, you'll learn more about co-creation and how it can be used effectively.

Nike's Co-Creation Story

Leading shoe creator and sporting apparel designer, Nike, is well known around the world for its sneakers, clothes, and famous saying: ''Just Do It.'' In 2000, Nike took its own advice and created a revolutionary way of looking at sneakers and how consumers purchase them.

When NikeID launched, it was the first program of its kind in retail. Rather than standard-issue shoes in the same patterns and colors for all sneaker fans, NikeID allowed customers to build their own custom sneaker creations - selecting different colors, materials, and personalization to match favorite colors, styles, and moods. Nike's personalization strategy has helped their direct-to-consumer business, which includes the NikeID platform, account for 22 percent of its total revenue for one quarter of the 2015 fiscal year.

The sports giant's NikeID program is just one example of the strategy of co-creation in marketing, a process by which customers are not only consumers, but engage in interactive relationships with brands and businesses. For Nike and many others, co-creation has opened the door to better customer experiences and growing revenue.

Co-Creation of Value in Marketing

Co-creation of value is a business strategy, one that promotes and encourages active involvement from the customer to create on-demand and made-to-order products. With co-creation, consumers get exactly what they want and have a hand in making it happen. Like the NikeID platform, co-creation makes the design process fun through a user-friendly site with great product visuals. Co-creation, then, becomes as much about the process of the product as purchasing the product itself.

Retailers are using co-creation primarily in an e-commerce setting where it is easier to engage customers in a more interactive experience, but the model can also be seen in some brick-and-mortar stores, like Build-A-Bear Workshop. For businesses, there are reduced manufacturing and production inefficiencies and failures because products are built based on consumer demand, enhancing customer satisfaction.

Co-creation, in many ways, is a collaborative creation between a brand and its fans. It has evolved the sales and marketing of products from a one-to-many formula to a one-to-one formula, a more personalized approach. For marketing professionals, it has turned the communication from active brand/passive consumer to one where both sides are active and engaged.

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