Ethical and Legal Considerations

Deceptive mobile marketing practices are both illegal and unethical.  Every year there are numerous consumers injured by these poor marketing behaviors and some companies are sued by individuals or by class action lawsuit.  Also, the federal government, specifically the Federal Trade Commission (FTC) commonly sues companies over deceptive marketing practices, but also the Consumer Financial Protection Bureau (CFPB) can investigate, or even Department of Justice (DOJ) can also choose to prosecute in coordination with the FTC, particularly in broad consumer fraud matters.

Some recent illegal mobile marketing practices that have been settled by the FTC are:

Cerebral (an online mental health care service provider)– Over deceptive cancellation practices that have led to $ 5 million in refunds sent back to consumers.  FTC allegations are they required clients to navigate a complex process in cancelling their subscriptions and slow -walking their requests and billing them in the process, along with disclosing sensitive personal health information and other sensitive data to third parties for advertising.  According to the FTC, “Cerebral violated the Restore Online Shopper’s Confidence Act by failing to clearly disclose all material terms of their cancellation policies before charging customers”.  In implementing a multi-step and multi-day process to cancel membership this had negative consequences on consumer as they are being billed for unwanted services.  If personal health information is also transmitted to third party for advertising this can have negative consequences to customers since their private information is then made public and could potentially lead to unwanted deceptive acts such as scams, phishing, etc. (Delapuente, 2025)

Another recent FTC settlement regarding deceptive marketing methods was brough against Amazon in September 2025.  The FTC allegations against Amazon is” they used deceptive methods to sign up customers for Prime subscriptions and made it exceedingly difficult to cancel” per FTC.  FTC secured a $2.5 billion settlement stating that Amazon enrolled consumers into Prime subscriptions without their consent with also making it hard to cancel.  FTC charged Amazon for violating the FTC Act and the Restore Online Shoppers’ confidence Act (ROSCA) with a $ 1 billion civil penalty and $1.5 billion in refunds back to harmed consumers (FTC Secures Historic $2.5 Billion Setttlement Against Amazon, 2025). This causes negative consequences on the consumer as they are billed for unwanted services and could potentially cause monetary harm if they don’t have the money available to pay the charges

Google was recently sued by class action lawsuit due to its “Location History” feature that allegedly continued to collect location data despite consumers turning of their location history in their device.  An agreement was approved for $62 million and under the terms of the agreement most of the money would go to third party interest groups as cy pres awards, but this is being opposed by the 250 million mobile device users (class members) and their appeal is still pending.  The law that was broken with this deceptive act is the FTC Act, Section 5. Google was also sued by California for the same violation for its California Invasion of Privacy Act (CIPA) for $93 million and also in Europe for violating the GDPR by tracking sensitive location data.  Google stated the data was used for targeted advertising ads by profiling.  The total settlement for this location tracking was $392 million, levied by governments and states against Google (Allyn, 2022)

When companies violate legal considerations, their possible penalties can be fines, restitution, injunctions, criminal charges, reputational damage, regulatory sanctions, and additional penalties based on the severity and nature of each violation and can be multiplied for each infraction.  Financially companies can be charged with fines and / civil penalties and additional charges brought if they defy a “Notice of Penalty Offense” on deceptive advertising, privacy violations, or false marketing claims (FTC, 2021).  Restitution and compensation can be levied under legal considerations by requiring the company to refund unauthorized charges, thus compensating affected parties for their losses.  If a company receives court orders to cease certain violations of deceptive advertising, then they could have an injunction to trigger greater penalties or legal action to include criminal liability.  If it is known by  company executives or employees of intentional legal violations then criminal charges of imprisonment in addition to corporate fines.  Lastly, noncompliance with legal considerations could ultimately lead to regulatory or license restrictions such as suspension of license, permit revocation, or restrictions on business activities (Kroeck, n.d.).

Despite many legal ramifications that can interfere with a company’s business, the ultimate damage done when they violate legal considerations, is loss of sales, reputation, brand loyalty, investor confidence, and loss of contracts or partnerships (Rey, 2023).

Steps and actions that an ethical marketer must take with all mobile marketing campaign:

  • Follow all applicable laws and regulations with integrity to ensure actions align with words and values that demonstrate responsibility to all stakeholders, and avoid doing harm (AMA, 2025).
  • Avoid all deceptive practices by providing truthful and accurate information regarding all products and services, avoid misleading claims or false advertising.
  • A key action should be to compile an ethical marketing policy guide through written ethical standards and guidelines for marketing practices and including what claims can and cannot be made, data collection standards, and especially an internal consequence if violations are found (Flanagin, 2024)
  • Ensure that all marketing materials are reviewed and fact-checking pipeline before releasing.
  • Always obtain users consent to include communicating collection practices and how information will be used, and ensure users are aware and agree to all terms of service.
  • Always provide clearly accessible opt-out and unsubscribe options so users can mange their preferences of settings (Flanagin, 2024).
  • Handle all personal data responsibly with secure storage and comply with all relevant data protection regulations.

References

Abogado, R. (2023, December 29). Consequences of Noncompliance with Legislation by Companies: Explained ▷ Ordinance – Rey Abogado. King Lawyer. https://reyabogado.com/us/what-happens-if-a-company-doesnt-follow-legislation/

Allyn, B. (2022, November 14). Google pays nearly $392 million to settle sweeping location-tracking case. NPR. https://www.npr.org/2022/11/14/1136521305/google-settlement-location-tracking-data-privacy

AMA. (2025, July 15). Marketing Ethics. American Marketing Association. https://www.ama.org/marketing-ethics/

Delapuente, J. (2025, November 30). When Mobile Marketing Crosses the Line: Lessons From the FTC and What Brands Must Do Next. Jhonndelapuente. https://jhonndelapuente.wordpress.com/2025/11/30/when-mobile-marketing-crosses-the-line-lessons-from-the-ftc-and-what-brands-must-do-next/

Federal Trade Commission. (2021, September 9). Notices of Penalty Offenses. Federal Trade Commission. https://www.ftc.gov/enforcement/penalty-offenses

Flanagin, J. (2024, December 24). Ethical Marketing Guide: Best Practices for Ethical Marketers. Shopify. https://www.shopify.com/blog/ethical-marketing

FTC Secures Historic $2.5 Billion Settlement Against Amazon. (2025, September 25). Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon

Kroeck, L. (n.d.). What Are the Penalties If a Corporation Violates the Law? Legal Beagle. https://legalbeagle.com/what-are-the-penalties-if-a-corporation-violates-the-law.html

MORE THAN $5 MILLION IN REFUNDS SENT TO CONSUMERS AS A RESULT OF THE FTC’S ACTION AGAINST CEREBRAL OVER DECEPTIVE CANCELLATION PRACTICES. (2025, May 8). Nexis Uni; States News Service. https://advance-lexis-com.eu1.proxy.openathens.net/document/index?crid=87a2b79c-bdc5-489e-9575-38e030fe338f&pdpermalink=484ad029-77ce-48ad-87e7-5bfc20dc2d39&pdmfid=1519360&pdisurlapi=true

Preliminary Findings and Limitations

Nike’s organizational objectives mainly focus on innovation, sustainability, community engagement, and also creating a positive impact through interaction with different sports (Nike, 2025). My market research that I have done so far on interchangeable running shoe midsoles reflect the same objectives; therefore, align with Nike’s mission and organizational objectives.  Interchangeable running shoe midsoles will be an innovative  product that promotes sustainability through less shoes being purchased and only worn parts being discarded, thus extending the life of the shoe.  By working with runners to develop and provide this unique product will show that they want to engage with the sport of running and their community.  Per Road Trail Run “The ability to swap out midsoles would allow users to adapt their running shoes to various terrains and conditions, ensuring that they can perform at their best regardless of the environment they are in” (Winebaum, 2025)

Industry trends and possible future trends that I identified during my proposal of interchangeable running shoe midsoles and some possible implications of these trends of Nike’s organization. Currently the footwear industry is experiencing significant growth with rising customer demand for comfortable and eco-friendly products that embrace innovation of materials and are reshaping the running shoe sector (Mordor Intelligence, 2023). Trends in digital transformation, innovation, and materials include:

  • Sustainability:  Eco-friendly materials and practices are being adopted to meet customer demand and reduce environmental impact (interchangeable midsoles allow for less waste, while promoting less environmental impact).
  • Implications: through integrated renewable resources used in manufacturing shoes and adopting a circular economy principle would lead to more efficient production, cost savings, improve product quality, and increase brand reputation (Pricopaia, 2025).
  • 3D printing and internet of things (IoT) will revolutionize footwear design, production, and delivery, through better efficiency and sustainability to include development of innovative designs and materials (can allow even greater future flexibilities in interchangeable midsoles) (Youyuxin, 2025).
  • Implications: Leveraging AI, AR, and IoT, in the product design and manufacturing processes can lead to more efficient product quality and production allowing for a more personalized shopping experience with enhanced customer engagement (Goel, 2024).
  • Customers prefer a more tailored approach to their individual needs to provide a more personalized experience (use of interchangeable insoles will enhance this need as it makes the shoe more personalized).
  • Implications: Use of AI to analyze customer data can offer greater user personalization to promote better informed decisions for not only product recommendations and experiences, but also regarding product launches, marketing, and customer service, thus leading to more effective marketing campaigns and improved customer service.
  • Products integrating connection to mobile devices allow a user comprehensive health tracking and sharing features to be used withing their community (enables Nike to promote uploading personalized content for the running community).
  • Implications: Use of mobile integration with products can revolutionize new engagements with its users to provide custom shipping experiences and new immersive experiences on enhancing mental health.
  • Future use of artificial intelligence (AI) in future footwear can advance AI to promote real-time feedback to user and aid in developing personalized training programs. (Future midsoles could incorporate AI technology to increase value and personalization for users) (Youyuxin, 2025).
  • Implications:  AI integration with footwear with real-time feedback can increase user overall performance and guide them in safer practices(Goel, 2024) .
  • Using augmented reality (AR) can assist with virtual training with interactive features and aid in supporting well-being with mindfulness exercises. (Youyuxin, 2025).
  • Implications: AR integration with user training and performance assessment can develop training sessions that provide safer and more actionable routine suggestions.

My proposed marketing strategy aligns with legal, ethical, and industry standards 1.  The ethical and professional standards that will apply to my mobile marketing campaign are:

American Marketing Association –

  • Honesty responsibility, fairness, respect, citizenship, and transparency by clearly defining the service offered and include all terms, conditions, and mandatory charges
  • Respecting consumer privacy to foster trust and build good faith by providing clear and easy way to unsubscribe from services or solicitations
  • Avoiding deceptive practice to avoid harming consumers such as misleading design practices or “dark patterns” to trick users into unintended actions (American Marketing Association, 2021).
  • Obtain clear consent before adding a consumer to a new service
  • Only provide services when requested
  • Honor refund requests and provide an easy way to cancel subscriptions
  • Ensure that all marketing practices are legal if conducted through other media such as mail or phone
  • Obtain express written consent from existing and prospective customers before using automated dialing equipment to send Mobile Marketing to a wireless device (Shall include notice of information practices regarding their respective privacy policies) thus ensuring the individual can make informed choice about interaction with marketer.
  • Marketers must obtain consent for all data collection and be clear about offers and terms, ensure clear opt-out options, and adhere to all laws and regulations

Regarding AI, all systems must be designed to avoid biases and discriminatory outcomes.  Data and privacy must be managed responsibly according to all regulations and avoid disclosing private information to AI tools.  Al AI tools should be “explainable” in non -technical language to ensure users can understand the benefits, limitation, and risks of this new technology.  Ethical practices should be embedded into AI solutions from the start and all leaders and professionals should possess AI ethical literacy, to ensure the applications are safe and secure (The Ethical Use of AI for Public Relations Practitioners Guidance form the PRSA Board of Etiths and Professional Standards (BEPS), 2023)

2.  The current state and federal regulations that will be considered  when implementing my mobile marketing campaign are: Federal CAN – SPAM Act, FTC “dictionary attack”, Europe’s General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), Colorado SB190, Connecticut SB 6, VirginiaSB1392,  and Utah SB227.  16 other states have customer privacy legislation currently under debate.

The current state and federal regulations that need to be considered when implementing my mobile marketing campaign with use of AI are:

The U.S. currently has no laws governing AI but regulates by executive orders (“Removing Barriers to American Leadership in AI”, “Advancing Artificial Intelligence Education for American Youth”, and agency guidelines such as TFC, EEOC, and CFPB.

States such as  California (SB 1047) and Colorado (Colorado AI Act) have laws focusing on transparency, non-discrimination, and high-risk AI systems, such as California’s SB 1047 that requires AI developers to undergo compliance audits before deployment.  (Mishova, 2025). 

3.  I will address these considerations in my campaign by:

CAN-Spam Act – no misleading header information will be used, no deceptive subject lines will be used, all e-mail recipients will receive an opt—out mechanism with the ability to process opt-out requests for at least 30 days after the e-mail is sent (menu of choices to allow user to opt-out of certain types of messages or all messages, and the email will be identified as an advertisement and include a valid physical postal address with telephone number and e-mail address included.  Company identification information to include license number if required, registered trade name, etc.   Also, full confidentiality disclaimers to reduce risk of confidentiality breach.

Regarding the EU AI Act (European AI laws) is a comprehensive framework that requires it remains under human control, keep data safe and private, and ensures transparency on all AI use.  To ensure compliance with this international law, since Nike is an international company will be paramount, therefore, these parameters will be followed at all times during the mobile marketing campaign to ensure compliance (European Parliament, 2025) Zahay, 2023).

GDPR – protects citizens of a European country, even if they are not living in Europe.

The limitations I’ve encountered in creating my market proposal for interchangeable running shoe midsoles are.

1. With a new innovative product, it can be difficult to accurately gauge customer preferences on new smart fitness technology, especially for health-conscious individuals or runners seeking injury prevention and performance enhancement.

2,  Predicting market trends on rapid changing technological and customer needs can be challenging with integration of smart features.

3.  Identification of correct target market demographics can be challenging for new technological innovations that end user will be inclined to purchase.

4.  Limited competitive analysis of how competitors are positioning new innovative products in the smart fitness market; therefore, making it difficult to gauze market growth and expansion of product.

5.  Pricing and lack of data for new product innovations and uncertainty regarding current economic conditions can affect user spending.

6.  Ensuring data privacy concerns align with regulatory landscape and will require data usage policies transparent regarding use of any connected device integration.

7.  Technology trends and innovation challenges can cause issues with integration of apps and devices; these can lead to limitations on market research and strategic planning when creating a market proposal for interchangeable running shoe midsoles.

Yes, there were some gaps in the market research conducted in secondary research due to lack of specialized innovative running shoe products, such as interchangeable running shoe midsoles, but instead focus on current broader trends such as carbon plates and foam /gels.  This can further be recognized that some demographic granularity as sub-populations man not be fully accounted for.  Also, some primary research limitations there can be sample bias to include regional and cultural variations.  This can lead to poor product-specific adoption rates of emerging technologies due to regional-specific behavior leading to a less detailed consumer experience with interchangeable running shoe midsoles.

REFERENCES

8 proven benefits of mobile device marketing for performance marketers | Kard. (2025). Getkard.com. https://www.getkard.com/blog/8-proven-benefits-of-mobile-device-marketing-for-performance-marketers

American Marketing Association. (2021, May). AMA statement of ethics. American Marketing Association. https://www.ama.org/ama-statement-of-ethics/

Deland, A. (2024, August 12). Council Post: How To Build an Effective Omnichannel Strategy. Forbes. https://www.forbes.com/councils/forbesbusinesscouncil/2023/04/19/how-to-build-an-effective-omnichannel-strategy/

Digital Marketing Institute. (2019, January 24). The Importance of Putting Mobile First. Digital Marketing Institute. https://digitalmarketinginstitute.com/blog/the-importance-of-putting-mobile-first

European Parliament. (2025, February 19). EU AI Act: First Regulation on Artificial Intelligence. European Parliament. https://www.europarl.europa.eu/topics/en/article/20230601STO93804/eu-ai-act-first-regulation-on-artificial-intelligence

Goel, A., Masurkar, S., & Pathade, G. R. (2024). An Overview of Digital Transformation and Environmental Sustainability: Threats, Opportunities, and Solutions. Sustainability, 16(24), 11079. https://doi.org/10.3390/su162411079

Kurzweg, J. (2025, January 2). Top 11 Mobile App Analytics Tools 2020 (Updated). Bluespace. https://uxcam.com/blog/top-10-analytics-tool-for-mobile-in-2018/

Mandala Team. (2023). Mandala AI. Mandalasystem.com. https://blog.mandalasystem.com/en/omnichannel-analytics

Mishova, A. (2025, September 17). AI Regulations in the US: What You Need to Know in 2025 – GDPR Local. GDPR Local. https://gdprlocal.com/ai-regulations-in-the-us/

MobileAction. (2025, July 7). Mobile marketing analytics demystified: Key concepts and trends | MobileAction. MobileAction. https://www.mobileaction.co/blog/mobile-marketing-analytics/

Mordor Intelligence. (2023). Footwear Market | 2021 – 26 | Industry Share, Size, Growth – Mordor Intelligence. http://Www.mordorintelligence.com. https://www.mordorintelligence.com/industry-reports/footwear-market

Nike. (2025). FY23 NIKE, Inc. Impact Report. Nike.com. https://about.nike.com/en/mission/

Pricopoaia, O., Cristache, N., Lupașc, A., & Iancu, D. (2025). The implications of digital transformation and environmental innovation for sustainability. Journal of Innovation & Knowledge, 10(3), 100713. https://doi.org/10.1016/j.jik.2025.100713

Smilansky, V. (2023, April 20). Data-Driven Decision Making: How to Make Informed Choices. ThoughtSpot. https://www.thoughtspot.com/data-trends/best-practices/data-driven-decision-making

The Ethical Use of AI For Public Relations Practitioners Guidance from the PRSA Board of Ethics and Professional Standards (BEPS). (2023). https://www.prsa.org/docs/default-source/about/ethics/ethicaluseofai.pdf?sfvrsn=5d02139f_2

The Top 14 Mobile App Analytics Tools for 2023. (2023). Heap. https://www.heap.io/topics/the-top-14-mobile-app-analytics-tools-for-2023

Winebaum, S. (2025, December 5). NNormal Kboix Details & Initial Analysis: Modular/Interchangeable 3 Super Foams Midsole Trail Shoe. Roadtrailrun.com. https://www.roadtrailrun.com/2023/11/nnormal-kboix-initial-analysis-and.html

youyuxin. (2025, May 8). Future Trends in the Footwear Manufacturing Industry. Fuzhou Heva Shoes Co., Ltd. https://hevashoeinc.com/future-trends-in-the-footwear-manufacturing-industry/

Zahay, D., Labrecque, L., Reavey, B., & Mary Lou Roberts. (2023). Digital Marketing Foundations and Strategy. Cengage Learning.

Marketing Advantage of Mobile Phones and Tablets

Blog:  Marketing Advantages of Mobile Phones and Tablets

The primary reason for accessing and using digital marketing channels on mobile phones and tablets are that they generally are within arm’s reach of customers at all times, thus allowing for timely and relevant messages.  There are over 6.7 billion mobile devices in use worldwide with an extended reach into most markets.  Mobile digital marketing allows for complete flexibility using omnichannel filters such as apps, social media, and websites.  Engaging with potential consumers at their preferred location and time allows for location-based market targeting to increase product sales and awareness.  Traditional marketing channels of TV, mail, or print ads is very expensive, time consuming, large environmental impact, difficult to measure effectiveness, and generalizes to a broad market with limited viewers (Racca, 2025).  A primary reason for its continued existence is that print ads continue to be a more trusted form of advertising, sometimes the material is kept for up to 17 days, and magazines can be collected to have longer shelf life.  Print ads are shown to have a longer view life by at least a double margin (Racca, 2025).

Use of mobile marketing enables personalized targeted campaigns to drive sales with easier reach to potential consumers.  Mobile marketing allows for increased brand awareness and increases point-of-sale conversions by using geo-fencing with reminder of product availability when they visit or are near a physical store.  Mobile devices are excellent tools to engage customers and ideal for them to use and manage loyalty programs that are offered or integrated into apps; thus, the consumer can easily track points and redeem rewards at their own leisure, fostering further brand loyalty.  Mobile channels can facilitate direct communication vis SMS marketing and allow promotional updates with push notifications as a direct communication line to consumers (Koehler, 2019).  Per Klaviyo, “Worldwide spending on mobile advertising achieved a 23% year-on-year growth in 2021.  Mobile ad spending is also expected to exceed $330 billion by the end of 2022” (Gilbert, 2022).

Mobile marketing campaigns can generate dialogue-marketing contacts and is replacing the term ‘direct marketing” in common speech.  Dialogue marketing is defined as “all marketing activities in which media is used with the intention of establishing an interactive relationship with individuals.  The aim is to initiate an individual, measurable response from the recipient”.

Rather than mass marketing techniques businesses must adapt to targeting groups of individual customers to encompass a specific niche.  Use of dialogue-oriented media reduces a campaigns high scattered losses, thus the need for internet-based communications in marketing, customer service, and even sales.  Use of interaction via multichannel mediums and make responding to their ads as simple as possible, such as:  helplines, pre-addressed envelopes, and even financial incentives such as discounts, early bird offers, discounts for referrals, and money-back if dissatisfied.  All of these elements can be measured and tracked for their success and return-on-investment (ROI).  Key-point-indicators (KPI) can easily be tracked with data analysis of metrics using many tracking tools such as Google Analytics, Piwik, and etracker.  In highly competitive markets, customer relationships create brand loyalty and decrease scattering loss though effective advertising and affective communications.  The cost-effectiveness of keeping customers with investment of dialogue marketing is much less expensive than recruiting new customers.  So, with the right message the perception reputation can be sustained and loyalty kept with personalized offers to regular customers, even if return feedback is not received (What is Dialogue Marketing, 2022).  Current dialogue marketing methods used are:

Customer loyalty is led by mobile marketing campaigns by tailoring content based on individual preferences and behaviors that resonate with users.  Successful use of mobile marketing can foster a deeper brand loyalty via interactive / immersive experiences.  Apps that require repeat interactions such as gamification can encourage community building among its users.  Seamless omnichannel experiences with mobile applications that integrate online and offline customer engagement, thus engaging customer touchpoints.  Brands that leverage this experience can connect deeply with their customers and lead to increased brand loyalty and advocacy (Hasson, 2025)

Some strategies to addressing the common constraints that mobile marketing faces are transparency regarding data collection and usage to build trust with a brand.  To reduce ad fatigue marketers should focus on providing value through personalized messaging to include frequency caps, deliver only requested relevant content, and most of all avoiding overexposure to ads.  Per Miller-Bernstein “Pop-up, banner, and other display ads have become so pervasive that many consumers are in the habit of ignoring them completely.  With a pop-up, for instance, you many only get your ad in front of a buyers’ eyes for as long as it takes them to find the button to close it.  Many Millennial and Gen Z generations use ad blockers and pop-up blockers when they browse’ (Racca, 2025).

References

Gilbert, N. (2022, April 15). Benefits and Advantages of Mobile Marketing: What You Need to Know. Financesonline.com. https://financesonline.com/benefits-and-advantages-of-mobile-marketing-what-you-need-to-know/

Hassan, S. (2025, January 6). The rise of mobile technology has transformed how brands connect with consumers. Mobile marketing, defined as promotional activities delivered through smartphones, tablets, and other mobile devices, has become a core strategy for modern businesses. Linkedin.com. https://www.linkedin.com/pulse/impact-mobile-marketing-consumer-engagement-shayaike-hassan-w00re/

Koehler, E. (2019, November 11). Marketing Advantages of Mobile Phones and Tablets. EK Marketing Blog by Ericka Koehler. https://ekoehler7.wordpress.com/2019/11/10/advantages-of-mobile-phones-and-tablets-as-a-marketing-tool-over-traditional-marketing-channels/

Racca, A. (2025, February 19). Are Print Ads Still Worth It? The Pros and Cons of Print Advertising in the Digital Age | Miller Bernstein. Miller Bernstein. https://millerbernstein.com/2025/02/19/are-print-ads-still-worth-it-the-pros-and-cons-of-print-advertising-in-the-digital-age/What is Dialogue Marketing? (2022, October 27). IONOS Digitalguide. https://www.ionos.com/digitalguide/online-marketing/online-sales/dialogue-marketing-interactive-relationships-with-customers

Student Blog

Nike Adjustable Shoe Insole

Nike is a fortune 500 company with many distinct innovations in the running shoe market and is a leading player gathering an approximated 24% – 25% of the running shoe market, with it remaining as the top of the market despite competition from brands such as On and Hoka (Nike Inc. Market share relative to its competitors as of Q3 2023 – CSIMarket).

Current Technological Innovation:

Nike’s most recent innovation is its ReactX Technology that is aimed at optimizing energy return with a lower carbon footprint.   “ReactX is an advanced foam technology using a research and development with refinement over a 5-year test period; to optimize running performance with inclusion of decreased carbon footprint by at least 43% thru reduced energy in manufacturing process and an increased energy return of 13%” per Nike.com (Nike Releases Its ReactX Technology, Aiming to Optimize Energy Return, Lower Carbon Footprint, 2024).  Nike’s initiative was to find balance between runner’s performance needs and the environmental impact of foam production by using injection molding thru intense research and development. This advancement will affect Nike’s total bottom line (TBL) and its goal of “Move to Zero” initiative of decreasing its environmental impact (planet) by reducing greenhouse emissions and waste to improve their planetary bottom line of this framework.  Using this innovative advancement in its integrated TBL strategy, Nike aims to create long-term value for shareholders and other stakeholders (Nike, 2024).

Projected Upcoming Innovation:  Adjustable Shoe soles / inserts

Diversity in the running shoe and specifically within runner categorical dynamics such as:  beginner, intermediate, advanced, elite, and professional can create unique challenges regarding needs and wants in any style of shoe, generally due to different concepts in running.  Common classification of the three running phases in strides is loading (where foot makes initial contact with the ground), propulsion (push-off from the ground to move forward, and recovery (period when the leg swings forward in the air to prepare for the next stride) or even types of runners based on style such as neutral, overpronation, and under pronation.  Some further metrics of tracked devices are ground contact time or vertical oscillation (HOW TO RUN:  UNDERSTANDING THE PHASES OF RUNNING – Precision).  Lastly, running levels may refer to metrics tracked by devices such as: ground contact time (amount of time each foot spends on the ground), vertical oscillation (amount of up-and-down movement of the torso during the run), stride length (distance covered with each stride), and cadence (the number of steps per minute) (Running Dynamics: Garmin Technology, 2022).

Due to different needs related due diversity of runners a new innovation of an adjustable sole / insert would allow individual runners to make adjustments based on their needs to obtain maximum efficiency of each foot strike and stride with least effort and greater momentum of energy return.  When the foot touches down against the ground, it absorbs shock from the ground (heel) and as the foot begins to push off of the ground again, its acts as a rigid lever known as the “Windlass Mechanism” and is used to describe the action of the foot per Foot Solutions (How Poor Foot Health Affects Your Knees, Hips, and Back – Foot Solutions, 2025).

Soles:

  • Thicker heels absorb impact thus reducing stress on joints and especially when running on hard surfaces, making the run more comfortable, with less risk of issues such as stress fractures, shin splints, and joint pain.  Additionally, a thicker heel can provide stability and reduce strain on Achilles tendon and calf muscles (What Heel-to-Toe Drop is, and Why It Matters, 2016).
  • Use of replaceable sole heel module consisting of air bags or foam that could be used interdependently based on specific running needs and conditions of each runner and the terrain or style of running.
  • Use of replaceable sole ball of the shoe module consisting of air bags or foam that could be used interdependently based on specific running needs and conditions of each runner and the terrain or style of running.
  • Use of the sole modules could aid in decreasing pressure that causes Metatarsalgia (Mayo Clinic, 2019), decrease risk of plantar fasciitis and other foot injury and conditions (How Poor Foot Health Affects Your Knees, Hips, and Back – Foot Solutions, 2025).

My proposed research design and objectives are:

My research design will use secondary data used for analyzing data on different types of impact recovery with energy return innovations to determine which are primarily used by runners, along with data within Nike’s data base to identify trends among consumers to determine which type of replaceable soles would be most efficient and wanted by runners so that they can assess their own needs and try different configurations to find their optimal shoe pairing.  By using existing data to start with the initial cost can be controlled and if required more data can be obtained based on current findings to simplify additional needed data to control costs.

Secondly, using market research of runners by offering them to try shoes at running events with survey at the end of the run, purchase discount for future purchase if they try product and give initial survey after use, or even giving pairs of shoes with soles away at large running events to top athletes for promotional purposes and they give feedback that can be used for research and development or even marketing once product is launched as a brand influencer or ambassador.

My objectives with my research design are to find the correct balance of shoe and how many different types of insoles to introduce to give greater flexibility to runners, while also controlling overhead and production costs of having excessive products that will not be purchased.  Also, analyzing data from information received from surveys and current data in Nike’s data warehouse to determine style, colors, and costs of production, packaging, transportation, and the sales of different types of shoe products.  Initially, these products will be marketed toward the running shoe niche market as they will be the first to want to try a new innovative product, to see if it improves their running times, cushions the impact during running to decrease fatigue, how the shoe feels and fits to decrease risk of blistering, and also overall weight of the shoe.  “Runners” usually purchase more than 1 shoe due to the many needs of different types of runs based on length of run or even terrain and this makes it a very expensive sport.  Therefore, purchasing a set of shoes that fit well and designed the way a runner prefers thru simply adjusting the sole of the shoe to fit the type run or terrain would be more efficient for the runner and more cost efficient for a manufacturer and would also be better for TBL regarding person, planet, and profit (helps runners, better for planet with less production and energy use, and can increase profitability my decreasing overall cost of transportation and production processes making it sustainable).

References

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Nike Releases Its ReactX Technology, Aiming To Optimize Energy Return, Lower Carbon Footprint. (2024, July 15). Nike.com. https://www.nike.com/a/reactx-foam-release-info?msockid=2fb4bd51c00361751a21a997c18060c6

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