STP Strategy Used by Nike in Marketing Management

Running Head: MARKETING MANAGMENT
Marketing management
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MARKETING MANAGMENT 1
Introduction
Due to globalization, the world is facing uncertain dynamic changes related to all business
activities on the global platform and therefore it has become very challenging for every
organization to remain sustainable. In this situation, a strong customer base plays a very
important role not only in attaining the proper growth but also in offering a sustainable business
life to the organization (Kose, Otrok & Whiteman, 2008). Due to heavy competition, every
organization is trying to attain possible maximum share that it can in order to gain a unique place
in the business market especially for those companies which are related to sports products such
as Nike.
STP strategy used by Nike
Segmentation
This is one of the important steps used by Nike organization in business strategy to segregate the
mass market into different crystal with similar wants and demands. The purpose of carrying out
this step is to get detailed information related to the potential customer in order to attain a
competitive advantage over other organization (Khan, 2013). This also helps the organization to
offer a better service to potential customers. Usually, Nike organization uses two types of pattern
in segmentation to achieve its target audience, one is Psychographic and other is demographic. In
Psychographic, Nike organization segregates the mass market on the base of lifestyle, their social
and physical presence. In addition, Nike organization also tries to trigger emotional appeal of the
customer towards their brand. While in demographics, this organization segregate the open
market on the base of age, family size, income level and status (Jun, 2011). They mainly focus
on middle and high class section of the society who are looking for comfort with a healthy life.
Targeting
In this step, Nike organization selects its target audience on the base of criteria in order to
evaluate the business market. These criteria are based on some particular factors like segment
size, structural attractiveness and objective, and resources of the organization because a business
decision is totally based on the fulfillment of these market change factors.

MARKETING MANAGMENT 2
Positioning
This step is considered as the final stage of formulating the final strategic plan along with the
final objective. In this situation, Nike organization starts developing such a promotional program
by which they will be able to form a strong presence in the minds of potential customer with the
help of effective marketing tools like advertisement, teaser videos, promotion through social
media (Jia et al., 2015). In addition, this organization displays an emotional connection between
their product and the community in which they are seeing their potential buyers.
Example – Adidas organization in America usually target those customers which are somehow
related to healthy lifestyle despite their age group. In addition, Adidas organization makes use of
digital marketing tool as the main medium of communicating their promotional message in order
to create a unique image in the minds of potential American buyers.
Managing product and steps used in new development product by Nike
In order to manage products, Nike organization makes use of product service management in
which they utilize a combined effort of technology right from designing to promote their product
(Zott & Amit, 2008). In this situation, technology is first utilized in developing the product and
then for the promotion of the product through their websites, social media pages, and
advertisements. Nike made use of their website to test their product credibility by displaying it to
small sample target which offers them an idea about their current position of their product in the
business market in which they are going to enter (Nike, 2019). In addition, Nike makes use of
this product service management system to offer protection to their products with the help of
paper.
Usually, Nike use eight steps new product development strategy in order to hit the target
business section on a global platform which are
Generating – In this step, Nike organization do a SWOT analysis of their internal and external
business environment along with current market trend. In addition, organization is trying to gain
cost competency over other organization operating in the same market.