Background of the company
Discuss About The Marketing Strategy Considered As Foundation?
Marketing strategy is considered as the foundation of a marketing plan in which business entity focuses on using diverse tools to promote and publicize products and companies at the market place. Segmentation, targeting, and positioning are the primary strategies of marketing that define the ways through which business can promote its products at the market place (Zeng 2017). Thus, in this respect, the present research study has been emphasizing on Nike, Inc which is an American multinational corporation that is involved in designing and manufacturing of footwear, apparel, and other accessories. Furthermore, in the study discussion has been included regarding the relationship between STP strategies and strategic planning of the company. Lastly, the researcher has discussed implications of improper marketing strategies on Nike.
Originally, Nike was known as Blue Ribbon Sports which was founded by a track athlete Phil Knight. Nike is world’s largest supplier of athletic shoes and apparels, and this made the company grow as a developed brand. Globally, the brand has employed more than 40,000 employees all over the world. The brand is globally recognized because of some products and services which also contribute in enhancing customer base. There are varied subsidiary names of the brand such as Nike Pro, Nike Golf, Nike+, etc. Moreover, Nike is regarded as one of the greatest supporters in promoting global athletes and sports team.
With the process of market segmentation, Nike has developed the scope of organization especially in the realm of meeting the needs of the target market. Segmentation defines the ways through which customers can be segmented as per the products and services. Market segmentation of Nike is segregated according to the range of products (Velásquez & & Meunier 2017). It is also ascertained that Nike uses different advertising strategies and models to segment the target market. Therefore, Nike is focused on needs of customers especially who display similar trait. Thus, all the segmentation types are being used, b Nike. According to demographic segmentation, Nike focuses chiefly on age, occupation, lifestyle, and generation. Nike’s market is broad because of apparel and sports products; therefore the business emphasizes chiefly on the age group of 15-40. Nike caters to both men and women who are more concerned about branded products.
Nike has also come up with a variety of products in women which has made the brand fastest growing. At present, the growth rate of the business is increasing because of a range of products and this is also expected to increase significantly in the coming years. Further, Nike is also emphasizing on geographic variables wherein the products and services are introduced at market place according to different geographical locations (Zeng 2017). Nike’s largest markets are North America, China, and Western Europe; however, Nike is critically emphasizing on urban areas as well to enhance the density of products. Lifestyle is yet another attribute by which Nike introduces diverse products at the market place (Harmeling et al. 2017).
Market segmentation, target market and positioning strategy of Nike
Targeting is the process in which Nike selects a particular group of people to sell all the categories of products. The major target of Nike is professional athletes who more likely use sports products and apparels. It is also ascertained that Nike’s innovative products and services are seeking the huge attention of athletic customers. As compared to men, women’s segment is growing rapidly which contributes in enhancing the value of sales (Trump & & Newman 2017). Young athletes assist Nike to enhance the target customer base through bringing innovative products. The brand is also endorsed by celebrities that encourage public to seek for Nike’s products. At the same time, the digital sport also aids Nike to target more customers. For instance- The FuelBand helps in identifying the intensity of work; therefore it motivates the wearers to use the product for varied reasons.
This also helps Nike to engage directly with the customers; moreover, it is useful to appealing younger customers on greater extent. Customers who prefer to use sports products are more likely targeted by Nike. With the help of concentrated targeting strategy, several segments are identified which also contributes to encouraging business strengths (Steenkamp 2017). Thus, with the help of single marketing mix, Nike is focusing on the only segment especially in the case of targeting the customers. Nike has also identified that with the help of concentrated targeting strategy, needs and demands of the selected target are being met effectively. Though, Nike does not have limited resources; still, the business is emphasizing on such targeting strategy.
To position the brand, Nike has been emphasizing on “serious athletes” which also promotes sports products on greater extent. In the global market, Nike has built its strong position because the brand is focusing more towards athletic life style. In the United States, Nike is regarded as a leading sports goods company which not only attracts sports people; but also other people. Consumers have a different perception of brand influence which changes their buying decisions, and as a result, it contributes to the development of Nike’s growth and prosperity (Shah 2017). Major positioning strategy of Nike includes promotional elements in which Nike focuses on different branding and advertising strategies. This is also regarded as a major component of company’s success.
Moreover, Nike has also positioned its business as a premium brand which not only manufacturers’ well-designed products but also sells the most expensive products. Nike is also emphasizing on effective marketing mix program so that quality dimensions of the products can be promoted to the greater extent (Reddy 2017). At the same time, the focus is also laid on pricing element which aids Nike to enhance the brand image. The business has also positioned itself as a high-end product; hence this also changes customer’s perspective. Further, in this respect, Nike is also focusing on customer-based brand equity model in which focus is laid on needs and preferences of customers. Therefore, it is clear that Nike truly focuses on athletic products rather than fashionable outfitters (Heroux 2017).
Relation between market segmentation, target markets and positioning with strategic market planning of Nike
Strategic planning is the process in which strategic aspects of the company are being planned, and accordingly marketing strategies are being formulated to meet the aim of the business organization. Strategic marketing planning of Nike ensures that promotional techniques are being utilized effectively; however, that needs to be aligned with overall marketing plan of Nike (Lyons 2017). Hence, in this respect proper and right information should be delivered to the targeted audience to become more successful. Strategic marketing planning of Nike involves extensive market research; hence that allows the business entity to grab the attention of a large number of customers. Audience identification and analysis is a crucial part of strategic planning which aids Nike to know about the needs and demands of customers. This, in turn, leads to bring requisite products at the market place (Chari et al. 2017).
Furthermore, competitor analysis is yet another imperative factor of strategic planning which ensures to give relevant information about rivalries and their marketing strategies. There is a direct relationship between STP strategies and strategic planning aspects, and this also gives a roadmap to business to conduct the business operations effectually (Lohse, Kemper & & Brettel 2017). Moreover, strategic planning aids Nike to analyze requirements of customers and on that basis; the market is being segmented among women and men. Furthermore, strategic planning is considered as a broad process that is useful in addressing entire business concepts. Its main purpose is to meet organizational aims and objectives through focusing on specific strategies, and STP tactics are one of such techniques. Strategic aspects involve futuristic planning of the business; hence in this consideration, Nike focuses on creating a broader market place. Innovation at Nike is the major strategic dimension wherein employees try to produce all such products that can meet changing needs of customers.
The Nike brand is the most powerful asset in Nike, Inc and this also accounts for around 85% of total revenue. Other brands in Nike also contribute to overall growth of the business entity. Segmentation process can be suitably handled. Nike’s promotional strategy is consumer focused in which business puts many efforts in elevating the customer experience. This not only amends customer base but also it leads Nike to increase the financial capability (Lee 2017). Overall, the performance of the business is getting improved because of Nike’s marketing strategies. According to strategic planning, Nike has entered in women’s section which contributes to around $740 million in overall sales. This also encouraged the brand image of Nike in the Unites States and other top five European markets.
Implications of improper marketing strategies on Nike
The core business activities are also improved through emphasizing on market dimensions, and this contributes to making the business more successful. The process of market segmentation is carried out by identifying customer’s perspective. Hence, overall marketing process of Nike is getting improved because of strategic concepts. For instance- while introducing any new product at the market place, Nike plans every aspect so that the chances of product failure can be declined. In addition to this, strategic planning also aids Nike to enter in successful market place which leads to developed market share. This gives Nike information about the exact market in which the business should operate its business (Homburg, Jozi? & & Kuehnl 2017).
Moreover, the process of targeting the products is also carried out through essential strategies and techniques. For example- when Nike has decided about selecting the targets, it conducted strategic market research and afterward the business came to realize that athletics should be the major targets for Nike. According to strategic planning, Nike has been trying to meet all the short term and long term goals. This not only contributes to enhancing success; but also it aids in encouraging competitive position of Nike (Hisrich & & Ramadani 2017). Therefore, it can be said that with the help of strategic marketing planning, Nike can position its brand in competitive market place. At the time of promoting the brand, Nike emphasizes on sustainable benefits which encourage business’s performance. Nike’s future planning is also changing because of prevailing competition, and that makes the business to look forward towards innovative products.
The process of segmentation is essential for Nike because it aids the business entity to ascertain the types of consumers and their needs and demands. The process is also useful to enhance the focus of company by comparing specific market aspects. The appropriate market strategy can be adopted through changing the scope of business; hence it also leads to generate better results. It is also useful in increasing competitiveness through focusing on the diverse market share (Heroux 2017).
Along with this, targeting strategy aids Nike to emphasize only on specific targets so that suitable products can be brought to the market place. Targeting allows Nike to retain existing customers through focusing on specific needs and demands. Moreover, this also leads to expansion of services in varied segments (Bidar, Watson & & Barros 2017). Positioning strategy helps Nike to enhance communication between consumers and employees; as a result, better services are being delivered to the targeted customers. Therefore, with such specific marketing strategies, Nike can enhance the profitability aspects.
In the present scenario, effective marketing practices are crucial for long term success and growth of businesses such as Nike. Furthermore, marketing plays a vital role in creating demand for products and services among people in the marketplace (Harmeling et al. 2017). Nowadays, companies focus on using various online and offline marketing channels to create awareness among individuals and encourage them to buy products and services offered. On the contrary, improper marketing activities can adversely affect the figure of sales and profitability of businesses such as Nike (Bischoff 2017). The selected business is required to emphasize on carrying out effective segmentation, targeting and positioning to sustain in the marketplace. On the other hand, Nike may also face issues in attracting customers through improper marketing activities. In the modern era, the competition among businesses operating in sports and footwear industry has become highly intense. The result of this is that now, businesses have started facing challenges in increasing the volume of sales and profitability. Effective segmentation and targeting assist companies such as Nike to understand the consumer buying behavior, and at the same time, it supports in getting knowledge about the key factors which influence the buying behavior and decision making of people in the market (Geurin & & Burch 2017).
The process of segmentation includes division of entire marketplace into various subsets of potential customers. On the other hand, targeting can be termed as the process in which various tools and techniques are employed by Nike to attract customers from the selected market segment. At last, positioning can be defined as the way in which companies place themselves in the marketplace and comparison with other key competitors.
The implications of ineffective marketing practices to Nike are a decline in customer base, market share, and volume of sales. The overall brand image of the selected business enterprise is also going to be adversely affected by ineffective marketing practices. Segmentation also results in lowering the risk associated with failure of products and services in the marketplace (Chari et al. 2017). Nowadays, effective marketing practices are crucial as they support in identifying the changing demand and need of people in the market. However, it can b critically argued that carrying out the process of segmentation, targeting, and positioning is not an easy task for Nike. The selected business enterprise is required to invest a lot of resources such as human, financial and technological in the same.
Another implication of ineffective marketing practices to Nike can be considered as a decline in its overall brand value. It means that other market players will gain a competitive advantage over Nike and will be able to capture the market share (Castle & & Bebek 2017). Marketing is essential because it will support the selected business enterprise in maintaining the interest of people in its products and services. On the contrary, bad or ineffective marketing will lead to a decline in the interest of customers and will encourage them to buy the products and services offered by other players in the market. Thus, Nike needs to emphasize on developing effective marketing strategies to sustain in the market and accomplish its long terms objectives.
Conclusion
Summing up the entire research study, it can be said that Nike has been emphasizing on market capabilities which also enhances the scope of long term sustainability. Globally, products of Nike have been appreciated by consumers who also facilitate word of mouth publicity among other customer segments. Furthermore, from the study, it is also ascertained that instead of huge competition, Nike can create a competitive edge over the rivalries because of efficient marketing strategies. STP strategies assist Nike in bringing only suitable products at the market place.
References
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