High-performance marketing: an interview with Nike's Phil Knight. Interview by Geraldine E. Willigan

Nike's advertising slogans--"Bo Knows," "Just Do It," and "There Is No Finish Line"--have moved beyond advertising into popular expression. Its athletic footwear and clothing have become a piece of Americana. Its brand name is as well known around the world as IBM and Coke. Behind the slogans and the flashy TV commercials is the vision of its founder, chairman, and CEO, Phil Knight. Since forming the company in 1962, Knight has taken Nike from a small-time distributor of Japanese track shoes to the top of the athletic shoe and apparel market. But not without a stumble. Along the way, Knight discovered that technological innovation alone could not continue to drive growth. When sales stagnated in the mid-1980s, Knight and Nike learned several hard lessons on how to build brands and understand consumers, and they transformed their technology company into a marketing company whose product is its most important marketing tool. "Ultimately," says Knight, "we wanted Nike to be the world's best sports and fitness company. Once you say that, you have a focus. You don't end up making wing tips or sponsoring the next Rolling Stones world tour." To keep the company growing, Nike began splitting its brands into sub-brands. In tennis, Nike divided its shoes into Challenge Court--for younger, more active players--and Supreme Court--for older, more mature players. That approach brought the company to a broader range of consumers while preserving the customer base. And to create an emotional tie with the consumer, Nike started advertising on TV. "Sports is at the heart of American culture," Knight says. "You can't explain much in 60 seconds, but when you show Michael Jordan, you don't have to. It's that simple."