The main objective lie behind the preparation of this report is to develop the understanding about the various concepts of marketing. In this report, detailed information related to the different aspects of the marketing concept is searched and analyzed. A detailed report about the marketing mix and its components has been provided. Along with it, relationships between different factors are also developed. Various factors that be seemed as beneficial for the organization has been analyzed. The Nike Company has been chosen for this report and all the segments of this report are evaluated in terms of the company.
(a)Marketing orientation approach used by Nike for its innovative offerings
Definition of Marketing Orientation: Marketing orientation is the strategy of marketing in which a company focused on ascertaining and fulfilling the wants and needs of its consumers with the help of product mix. Marketing orientation can be called as the customer-based strategy in which company produces the products according to the different needs of customers.
Marketing orientation is very basic concept for enhancing the brand value which is used by Nike.
Nike is totally devoted its strategy towards satisfying the customers in terms of quality, design and value by innovating products according to target market and different needs (Conlon, 2016). Different type of products offered by Nike such as sports footwear- footwear for defender, mid fielders, studs for striker and Apparel- Apparels for sports persons as headwear, jackets, shorts, polo, shocks and sports equipments as bags, ball, watches etc and also expanded its line in Women sportswear and free training classes for women (Borland and Lindgreen, 2013). The price charged by Nike for its products is high and increases every year by 4 to 5 % because customers are satisfied against the value and quality and durability of products. Nike believes in fashion and identifying the needs of customers and promoting by saying “if you have a body, you are an athlete”. In terms of target marketing strategy, Nike distributed its product line in more than 100 countries which covers Asia Pacific and Europe (Kaser and Oelkers, 2015). To promote the products and create motivation among customers Lebron James and Michael Jordan both the athletes are used by Nike.
(a) The components of a marketing environment analysis
Environment analysis refers to the process of identifying strengths and opportunities and their impact on the functioning of the organisation. There are basically two components involved in the analysis of marketing environment. These components are internal components and external components. Accompany is required to analysis these factors in depth in order to identify the opportunities and threats and different methods that can help in overcoming that barriers.
Internal Components: Internal component or environment refers to those factors which lies within the organisation and have direct or indirect impact on the performance of the organisation. A company can put control on this type of components. Various factors jointly comprise the internal components like the technology used by company in order to produce goods and services, different business risks that are associated with the organisation. In order to survive in the dynamic business environment, a firm is required to keep its information up to date and in accordance with the modern scenario.
External Components: External components can also called as external environment. It refers to all those factors that lies beyond the range of the organisation and have direct or indirect impact on the performance of the organisation. As these factors are lies beyond the range of the company, it is quite difficult for a company to put a control on these factors. Several reforms in tax made by the government, political factors, social and legal factors and advancement and upgradation relating to the technology are included in the external components (Lambin, 2013).
(b) Three macro environmental factors that impact Nike’s marketing decisions
Technological Factors: Today, business organizations are working in a very dynamic environment. Technology has upgrading itself within the minutes of a second. Therefore, a company is also required to upgrade its technology according with the modern scenario. In context of Nike Company, the company has benefitted a lot form the technological advancement. It has used upgraded technology in order to interpret the demand level and classifying its customers into different segments. Different types of technologies are linked with different operations of the business (Kotler and Keller, 2012).
Economic Factors: Economic factors refer to those factors which are linked with the financial aspect of the organization. In the scenario of Nike Company, the financial aspect of the economy has not proved favorable since the era of 2008-2009. This is the period when the financial crises have occurred in the economy. These crises badly hamper the performance and growth rate of the organization. Despite of this, The Company was successful in taking advantage of increased demand with the help of existing good image.
Political factors: This factor includes different policies, reforms and tax imposed by the government. In respect of the Company, several reforms that are favorable for the company are laid down by the government. The policies of the government can be considered as growth-oriented having positive aspects like low interest rates, stable currency exchange system.
(c) Two forces in Nike’s micro environment that should be monitored
Micro environment forces refer to that component of micro environment that have a direct influence on the functioning and growth of an organization. A company is required to thoroughly study these factors before implementing any strategy relating to market. There are several components of micro environment that affects a business like customers, suppliers, competitors, share holders and employees. The two forces that are studied in details with reference of Nike are customers and suppliers of the company (Kotler and Keller, 2012).
Customers: Customers refer to the individuals or group of persons who buys the goods and services produced by an organization. They can be considered as the main key of generating revenue for the firm. Accompany is required to keep a regular eye on the different aspects of the customers like taste and preferences, buying pattern of customers.
Suppliers: Suppliers refer to the persons who provide material to the company in exchange of the payments. The company is required to keep regular watch on its suppliers in order to get competitive price that helps in reducing the cost of production of the company.
(d) Internal environmental factors that can be as strengths or weaknesses in Nike’s operation,
Innovation: Innovation refers to the process of adding up of new methodologies and technologies in the existing structure of the business in order to reduce the different costs. It helps in maintaining the effective level of competition among its rivals. The Company has gained a lot through the implementation of different innovations in the firm. It has developed a method of making payments through online system that removes the burden of carrying cash with the customers. It also helps in keeping up-to-date knowledge about trends of market and makes a lead over its competitors (Miles Media, 2016).
Strategic Risks: It enhances the ability of a firm to reach its customers effectively. By applying effective promotional strategies, the company can easily create a good image in the mind of the customers. With the help of this, the company can easily persuade the customers to buy its products.
Finance: Finance plays a direct and major role in the efficient functioning of an organization. By keeping optimum control on its finance, company can reduce its cost of production as well as maximizes its profits. A company is required to keep double eye on its cash inflows and outflows in order to avoid any type of errors.
(a)Significance of market segmentation in developing a marketing policy for Nike
Market segmentation is the process of dividing whole market into the smaller segments of target customers who are similar in needs and wants and each segment is different from another based on particular type of customers.
The segmentation of whole market plays very important role in developing the marketing strategy of Nike’s products. Majority of market share of Nike’s products is covered by sportsman. It is great advantage for Nike Company that sports person can easily select, buy and pay for its offering that are shoes, sports equipments and apparels etc. Nike classified its products and targeted customers according to demographic profile such as age, occupation, gender, life style and stages of life cycle etc (Van and Weed, 2014). Majority of consumers covered by Nike is between the ages of 14 to 43 years. In USA, mainly baseball and football players are targeted and Nike focused on promotion campaign related to these players with the help of athletes. Particular lifestyle and different personalities are targeted by Nike under segmentation based on psychographic factors such as persons who likes to watch and play different sports.
(b) Targeting market strategy used by Nike for its women’s offerings
In present scenario Nike is concentrating on three types of customers which are Women, runners and Young athletes. Under Undifferentiated marketing, whole market is targeted without dividing it into particular segments. This marketing policy depends on single product, single price, single promotional strategy and one distribution channel to satisfy more and more target customers. Under Differentiate marketing, company focuses on the various market segments and produces products according to the needs and demands of target market segments (Dalgic and Yeniceri, 2012).
Currently Nike is growing in women’s apparel sector particular in tights and bras for sports women. So, Nike is using differentiated marketing strategy to attract and promote more and more women who loves sports. Recently a target sale of Nike was increased in particular areas like training for women and apparels for running women etc. The company also started selling new style collection such as lace-trimmed jerseys, leggings and skirts for women particularly for the purpose of errands, brunch and gym (NikePlus, 2017). The forecasting of sales of products related to women done by Nike Company as more than 2.5 billion sales additional in 2017.
For example, Nike’s fast growing saying “Better for It” for proposes of stimulating and authorizing women against increasing terrorist activities in the world. This activity is also promoting and attracting more and more women towards (Nike Malcolm, 2015).
(a) Nike women’s existing marketing mix strategy with the help of 7ps
Nike is considered as top most brand in terms of marketing, product quality and customer satisfaction. Marketing mix is one of the major factors which is responsible for the growth and success of a company (Kotler and Keller, 2012). With the help of 7ps Nike’s marketing policy of products and services for women can be described as follows:
Nike’s Products for women: Mainly Nike provides different variety of products in sports equipments, shoes and apparels etc. Currently Nike is growing in women’s apparel sector particular in tights and bras for sports women. The company also started selling new style collection such as lace-trimmed jerseys, leggings, t-shirts, pullovers and skirts for women particularly for the purpose of errands, brunch and gym. Its product line is totally based on customization.
Price of Nike’s offering for women: The price charged by Nike is very competitive against other retailers in whole world in terms of quality and valued offered.
Distribution Channel: Nike offered its products throughout the whole world by multi brands retailers, licensees and stores of the Nike. Nike also provides wide variety of products through online marketing so consumers can purchase at any time at any place.
Promotion of Nike’s offering for women: The promotion of women offering is mainly done by providing free training services, fitness programmes for women which attract many new women consumers. Brand name, tag line and logo are also plays very important part in the promotion of its offerings.
People as main marketing tool: Sales person and retailers play important role in maintaining relationship with customers for long term.
Physical Evidence: Quality and value of products are very important for Nike’s customers. Brand name and tag line and quality becomes the physical evidence for its products
Process of delivering Services: Online and offline services provided by Nike for the better convenience of its consumers. Training and fitness services are also provided for attracting more women and sports person.
Conclusion:
From the given case and overall study it can be concluded that Nike is one of the biggest brands and quality provider in terms of customers satisfaction and value provided to its consumers. Major part of the products is covered by sports material, apparels and equipments for men, women and girls, boys, sports people and runner-ups. This report gives knowledge and understanding about the marketing concept, marketing mix and relationship between company and customer satisfaction. The overall study provides learning about theories and marketing communications techniques which helps in customer satisfaction and growth of company.
This assessment articulates the marketing mix strategy to persuade the potential customers with respect to the Nike’s Women’s Store. It also includes the communication campaign as poster to aware the internal and external stakeholder about the new product development of organization.
Poster
Promotional mix is the combination of multiple ways to aware and persuade the people through attracting towards the buying the product or services. Basically, promotional mix can be defined as the strategy to promote the product or service that the organization want to sell in the market (Bhasin, 2016). At the same time, it is effective tools or techniques which support the organization to increase the sales of organization. Promotional mix combines five major tools in order to influence the market customers. Organization can use the advertising, direct selling, public relations, sales promotion and selling to inform and lure the customer toward buying decision for customers.
Target audience can be defined as the specific group of people as potential customer for which the strategy and policies are designed to influence them in order to make their decision to purchase the product (Pride and Ferrell, 2015). For the Nike’s women store the target market is internal and external stakeholder are specified as employee and end customer from the perspective market.
Communication plan would be designed in order to attract the both target market customer to take the free training to the people so that the habit for exercise may lead to the higher sales of athletic apparel and sports equipments.
Nike women’s store can implement the successful promotional campaign in order to gain the market customer that would enable to surge organizational new product development. With this, company can use the advertising strategy for the viable delivery of desired communication message.
On the other hand, against the traditional promotional tools, company can use the modern marketing promotional tools such as online promotion through using different social sights.
The key communication message for the Nike’s women’s store is to explore the promotional activities for free training service to women for futuristic business development through targeting the internal and external stakeholders with the rationality of designed objectives. With this the organization is aimed to increase the awareness of free training service in London, from 12% to 25% by December 2017.
AIDA, a marketing communication model is developed to attain the designed objectives. AIDA is referred as the combination of attention, interest, desire and action.
Attention: This is the first action that would be catered by the company to influence the target market customer to aware the people about training service through effective presentation of poster.
Interest: It would be a complex phase for the marketers to awaken the interest of potential market customers through effective communication message.
Desire: This is the just forward action of the targeted people to show the interest and desire for the sake of organizational sales to being influenced by the poster message (Hanlon2013).
Action: This is the last objective for the organization to sell the product of company to the target audience.
The company would collect the feedback for the campaign through direct interaction with the customer of perspective for which the advertising strategy has been used through communicating key message by poster. At the same time, it can also collect the feedback by online mode.
Conclusion
The communication plan for Nike’s women’s store would be focused on the achievement of the aims and objectives to affect the potential market customers immensely. It can also be concluded that the poster will supports the promotional mix and marketing communication.
References
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