Three Marketing Theories: Explained in the Context of Adidas

This document explains three marketing theories - Maslow Hierarchy of need, Customers decision making process, and Porters five forces - in the context of Adidas. It also analyzes the key marketing models used by Adidas, including Ansoff Matrix and BCG matrix. The document further explores the STP (Segmentation, Targeting, Positioning) strategy of Adidas.

Explain three marketing
theories

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Explain the three marketing theories in the context of Adidas...................................................3
Maslow Hierarchy of need ..............................................................................................................4
Customers decision making process: ..............................................................................................5
Porters five forces: ..........................................................................................................................6
Analyse the key marketing models for Adidas: ..............................................................................7
Ansoff Matrix:.................................................................................................................................8
BCG matrix of Adidas:....................................................................................................................8
STP of Adidas: ................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing refers to the different set of activities which are undertaken by the organisation
for promotion of buying and selling of the product as well as services in the well define manner.
Marketing include different kinds of theories which facilitates in providing effective information
regarding the market (Basil, 2019). This report is based upon Adidas which is an multinational
corporation and its headquarter is located in Herzogenaurach, Germany. The company provide
shoes, clothing and accessories. In this is report there are different marketing theories have been
used to describe the position of the company. Along with this, porters five force model has been
used to understand the competition present in the market. However it is essential to use STP to
understand the segment, target, position of the company.
Main Body
Explain the three marketing theories in the context of Adidas
Marketing theories help in maximizing the profit as well as sales of the company in such
a manner which help in making consumer believes that they availing high quality product and
service. Here are some marketing theories which are explained briefly down below:
Maslow Hierarchy of need
This is the theory which is consist of motivational theory comprising of five theory and
often it is described as hierarchical level of Pyramid. There are several needs which must be
satisfied before the individual can attends the needs to higher up there desire. Here are some
steps which are explained briefly down below:
Physiological need: They are basic human requirement which are required for the
human survival such as food and shelter. For the organisation like Adidas the management must
ensure about the basic need of the customers effectively as this will aid the company to
understand the needs of the customers which will the firm to offer high quality services to the
consumer.
Safety needs: After the completion of basic needs its comes the safety and security
needs. These are the most essential elements for the human being as they require stability in the
life. For Adidas they make sure they offer shoes as per the safety norms. Along with this, they
must also provide safety to their employees such as job security. This will help company to
create goodwill and brand image in the minds of customer's .

Love and belongingness needs: After the Physiological and safety needs it comes the
love and belongingness. Every human being require love and affection for towards there friends
and relatives. At this level the need for emotional relationship drives the human behaviour. For
the avoiding the problem like loneliness, depression and anxiety and this is important for the
people to feel love and accepted by the other people. For the company like Adidas manager
should ensure about there customer's are taken care with love and affection as this will help in
creating larger customers base.
Esteem needs: This is the fourth stage where customer's needs appreciation and respect
so Adidas must ensure about the while rendering the services as employees must attain the
customer in the well define manner. The company had also build the reputation as customers will
purchase the product as they have reputation and status in the society. In addition to the need for
feelings of accomplishment and prestige, esteem needs include such things as self-esteem and
personal worth. People need to sense that they are valued and by others and feel that they are
making a contribution to the organisation (Eisend and Kuss 2019).
Self actualization: This refers to the needs where people actually have to achieve their
full potential as the human being. Further this may be describe as the expatiation of talent,
capabilities and the potential etc. This belong to the personal growth and people are less
concerned with the opinion of others.
Customers decision making process:
Consumer decision making process involve the individual needs and gather the
information which assist in finding out the alternatives and make the buying decision process.
Here are the some of the steps in consumer buying decision making process which are briefly
explain down below:
Need recognition: The need recognition arise when a consumer exactly determines the
needs. Consumer feel like they are missing something which is essential to fulfil the demand as
per the requirement. So for the organisation like Adidas this is essential for the management to
identity the needs which are essential for the company to offer better quality product and
services. For example if the person is an athlete then they should identify there needs first. These
consumer decision making steps are considered to be important when an expensive brand is
under buying consideration such as shoes. So this important for the company to have proper
research as this will help in making providing high quality product to the consumer.

Information search: This is the stage where the buyer usually find out the different
alternatives for the product. The information can be obtained by the recommendation from the
other people and while having previous experience with the product or service. At this level, the
consumer tend to take risk and prepare the list of particular brand. However the company like
Adidas they have made the brand image in the market and the customers always prefer the
company who offer high quality product. This is done as people do not want to regret and their
buying decision. There are several method from which the person can gather the information
such as commercial sources as well as personnel source.
Evaluation of alternatives : This is the step where evaluation of alternatives are
available in the market with the product life cycle. This is determine by the customer as they
choose the best alternatives present in the market (Gligor and Omar 2019). For the company like
Adidas there are different alternatives present in the market such as Puma and Nike. They are
also consider as the market leader in the shoe making company and the customer's have different
choices to render the service. There are several factor on which the alternatives are based upon
which include quality, price and other factor. All this factor are taken into consideration by the
end user and choice are made as the need and wants.
Purchase decision: when all the above stages are passed the consumer finally decide to
make purchase decision. At this position consumer try to figure out all the facts and arrive at the
logical decision whether to buy the product or not. For example in the case of Adidas the
consumers find out all the alternatives present in the market on the basis of price, quality and
features and make final decision to buy Adidas shoes. This decision is either based upon the
influence of the market campaign or upon the emotional connection or personal experience.
Post purchase decision: This is the last step where the individual analyse whether the
product is useful for the consumer or not. If the product of consumer match the expatiation then
this will consider effective for the Adidas as this will aid company to expand there business at
the larger scale.
Porters five forces:
Adidas the one the leading company in the sport industry. Apart from making shoes and
apparel the company makes accessories to. In the recent years the brand have shown growth in
the market. This is a five forces analysis of Adidas that evaluates how the brand is impacted by

the five forces that are a part of every industry and every market which have been explained
down below:
Bargaining power of supplier: The company have important role in the supplier point
of view. The company have low bargaining power as there is high number but smaller size. Most
of the production at Adidas is outsourced and it works with more than 1000 independent
factories in different countries (Iankova and et., al., 2019). For ensuring the supply provide
quality product they have effective monitoring system which assist company to provide better
services to the consumer.
Bargaining power of the buyer: The bargaining power of the supplier in the case of
Adidas is low as there are many other competitor present in the market. The company like Puma
and Nike are the major player in the marketplace. If organisation like Adidas does not provide
high quality product and services this will reduce the market share effectively.
Threats to substitute: There are substitute product and services which are also offered
by the different other competitors present in the market. There are small and large number of
local as well as international companies present in the market. The major threat to Adidas are
Puma and Reebok. So firm should offer high quality product and services which is essentials for
the company to grow.
Threat to new entrants: While the company enter into to large scale business they
require large investment . There are several factors requiring large investment like technology,
skilled human resources, marketing, advertising. So in the regards of Adidas this is crucial for
the company to offer better quality product and services which will reduce the threat to new
entrants.
Competition rivalry: The competition is high as there are other companies who provide
similar product in the industry. While the level of saturation have been has increase this will help
company to provide better services and product. All brands are investing highly so this is
essential to provide better product for expansion and growth.
Analyse the key marketing models for Adidas:
The Mckinsey model is useful framework for reviewing the organisation market
capabilities from the different view point. This kind of model works in the different types of
business in all the sector and sizes. Here is the model which is explained briefly down below:

Strategies: This indicates the kind of plan and blueprint use by the company. In the
context of Adidas this is essentials for the management to make effective plan so that firm can
offer high product to the respective customer's. Also this will help in reducing the risk and
uncertainty present in the market.
Structure: This is consider as the crucial aspect for the company as this define the flow
as well as performance of the company. For Adidas the organisation must use formal structure
which will aid the firm to expand the business effectively.
System: Business process and other operational activities must be taken done efficiently
as this will support the other growth and proficiency of the firm in the well define manner. There
are other systems such as distribution network will be improve by the company in order to
maintain the demand and supply of the company.
Staff: This refers to the employees working in the organisation. In the context of Adidas
this management of the company should make sure that employees who are working for the
company should get proper remuneration and benefits as this help to empower employees to
work hard for the company.
Skills: This is the essentials elements as this help organisation to offer better quality
product and services to the customers. This refers to the capabilities and skills of the workers of
any firm.
Style: This define the culture and atmosphere of the organisation. The style of Adidas
company is more effectively as there is interaction with staff and other stakeholders.
Shared value: The company have the vision to become one of the leading company in
the world. Along with this they are other factor such as organisation value and objectives present
in the company.
Ansoff Matrix:
The Ansoff matrix has four strategies which are based upon the product and the
customer's. There are some positive and negative aspect of this model. The Adidas use this
matrix which is essentials to identify the product and its positioning in the market. Here is the
Ansoff matrix which is briefly explained down below:
Market penetration: Due to well known brand in the market the market penetration will
bring lot of revenue for the company. By the assistance of this company can improve its sales

without having any impact on the sales and strategies implemented by the company. Adidas can
attract customer by doing campaign for making larger customer's base.
Market development: The firm have strong presence in the market and they are
expanding there operation at the larger scale (Gundlach 2019). Adidas should identify the
markets where it can expand with less effort in terms of finance. For the market development
firm must offer high quality product to the customer's to gain new market.
Product development: The company like Adidas have different technologies through
which they use new product development. As they are focusing more on quality and innovation
which help them to make better product for the consumer.
Diversification: This is the essentials for the company to take risk and diversify there
product range to the other sector. The will provide Adidas to capture large market share along
with rise in revenue.
BCG matrix of Adidas:
Adidas is one of the biggest sports industry in the world hence the BCG matrix will help
company to identify the company strategic position in the detail manner:
Cash cow: For Adidas, its clothing and apparels are the cash cow items, and it is
necessary for the Adidas to view this point, and position itself well in customers mind by
targeting various geographic markets.
Stars: In the context of Adidas this is essential for the company to figure out there
competitors. Reebok and Adidas are the star in this category despite having strong competition
they share most of the market share.
Question mark: Company need to revise its strategies for turning the potential into the
benefits for the strategic objective of the organisation. As the company have low market share
but have high growth.
Dogs: The company is not successful in beating the competition in the particular industry
as there are many competitors present in the market. Hence this is essential for the company to
offer better product to the consumer.
STP of Adidas:
Segmentation: This is the process of dividing up the mass into different groups. Adidas
do its segmentation on the basis of demographic and psycho graphic segment. This help

organisation to understand the needs and wants of the customer effectively and assist in offering
better product to the customer.
Target: After segmentation them comes targeting. Adidas mainly target the young
people who are found of sports. As they have segment there product on the basis of market size
and growth.
Positioning: The final step is positioning as Adidas have created the brand image in the
market effectively and also help the consumer to offer better services to the consumer more
effectively. The quality in the product of the company will help to grow and expand their
business rapidly.
CONCLUSION
From the above mentioned report it has been concluded that, market analysis is crucial
for growth and expansion. However there use of BCG matrix which help the firm to gain better
understanding of the market. Along with STP will help the firm to analyse the segment and its
target customer so that organisation can offer better service to the customer's.

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