Marketing Concepts and Theories
Added on 2020-01-07
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Preview caseNike
INTRODUCTIONIn the present scenario, firms are facing cut throat competition with each other in theindustry due to which surviving in the long run is very difficult for them. To sustain for longerspan of time, it is essential for companies to give due emphasis on appropriate marketingprinciples and practices with the help of which business can run its activities in s such a way thathigher profits with customer satisfaction can be gained (Bhasin, 2017). To retain the customersfor longer period is necessary to stay in competition for which conducting marketing activities inan effectual manner is essential. In the present report, case study of Nike is given with respect towhich various concepts related to marketing principles and practices will be studied. Here, keymarketing concepts and terminologies will be discussed along with explaining the role ofmarketing strategies and programs. Apart from that, relationship of marketing functions of Nikewith its other functional areas is also discussed in detail.a) Explaining marketing concepts and terminology related to NikeThere are some specific key concepts in marketing which are required to be used in sucha way that set objectives of organisation will be achieved in the most effective and efficientmanner. However, form one organisation to another, these concepts differ each other. Along withthat, the functions with which these concepts deal also vary to a high extent. But, according tothe need of market, all these concepts have been as well as taken in use by the firms. In relationwith the given case study of Nike, key marketing concepts are stated as below:Production – Only those goods and services are purchased and used by the people thatare available at high quality and affordable prices, that is, as per the capacity of customers tospend. Also, it is important that at every nearby location of the target customers, these productswill be available to provide them convenience that will increase the sale of products as well(Brooks and Simkin, 2012). In comparison to the other concepts, it can be said that the idea ofproduction is highly concerned with operations. For Nike, to conduct the production processeffectually is one of the major concerns and this is the reason; since a long time, it is serving thesociety with high quality products. For the purpose of retaining customers for a long period, Nikeunderstands its responsibility to carry out product process in an ethical and effectual manner. It isbecause; company aims at increasing its customer base every year so as to maximise the profitsand goodwill in the market (Ettouzani, Yates and Mena, 2012). As per the give case, it can beassessed that at present, athlete footwear market across the world is highly dominated by Nike as
it is having the maximum shares in comparison to other competitor firms. It has been seen thatorganisation takes due care of its customers as their bodies which shows the extent to which Nikeis performing production activities effectually as well as ethically.Product – It has been seen that people always favour those products that are havingsuperior quality in comparison to the other available substitutes and give better results at areasonable price. In the present scenario, firms as well as customers give maximum value andemphasis to the innovation in accordance with the tastes and preferences of customers that aregetting changed in the dynamic environment at a fast pace. This is the reason; to remain in therace and attain success with sustainability, this is necessary to provide innovation as well asdifferentiation in the products and services offered (Faisal, 2010). There are several reasons dueto which Nike has been the first choice for sports person. In case of the Nike Flyknit, there are 4benefits attached to the product one is that the shoe is light weight, another form fitting,sustainability and the performance. Due to this reason, it is difficult for the other shoe brand tocompete with the organization. In accordance with the concept of product, gaining loyalty ofcustomers is highly important for which high quality in products and services is required to beoffered by Nike. In addition to this, if firm will offer various benefits and value to the targetaudience, they will trust the brand and would be willing to stay with the firm for longer duration.Nike is offering high quality products around popular athletes which played a significant role inchanging the face of sports marketing in entire world. However, Nike is covering the majorsegment of basketball shoes with technical superiority over all other available brands. Currently,company is leading in the sector in terms of product development and innovation as it is enteringin different product categories and grabbing the attention of maximum customers (Mukerjee,2013). In today’s scenario where there is intense competition among firm, to operatesuccessfully, Nike is offering products for dozen of new sports that involve -line skating, wallclimbing, baseball, street hockey, golf and hiking. Selling – Nike is making sincere efforts for the promotion as well as selling of itsproducts and services in the market aggressively. It has been seen that when businesses promoteand sell products aggressively, customers get influenced to buy the same that proves to bebeneficial for the organisation. In today’s era where Nike is performing their marketing withgiving due consideration on the major reason behind it, that is, customer satisfaction, itunderstands the fact that only by selling, intending customers with increasing the number would
not be possible. This is the reason; company is using various marketing tactics depending on thesuitability of business (French, 2010). Owing to this, Nike performs various activities as itorganises many campaigns based on the welfare of society like girl’s education and also, itconducts several CSR activities. Apart from that, company does promotion in such a manner thatwithin a short period of time, attention of large customer base can be grabbed like; throughgiving ads on digital media. By using all these marketing tactics, it has reached at earning of $9billion. To increase the sales, Nike had to increase its product range as thus, at present, companyis providing offerings like hockey sticks, sunglasses, batting gloves and soccer balls (Kotler andArmstrong, 2010). Along with that, it is planning to launch some more products and services soas to maintain the leading position in market. Marketing – Nike performs all its marketing activities with the purpose of gainingcompetitive edge over others in the market. Company is performing all its marketing activities insuch a way that customer satisfaction at the utmost level can be gained so that they can beretained in the long run. However, it is not that since the year company got established, businessis earning profits as in the year 1998, sales of the firm has declined as its competitors likeReebok and Adidas have grabbed the market share that was higher from Nike. But, to regain theleading position in market, Nike again moved to its basics and started giving major emphasis oninnovation as well as on developing the new product lines with improving the sub-brands too(Lovelock, 2011). For the purpose of capturing attention of target customers, Nike promotes itsproducts in such a manner that it is able to grab a large customer base and earning higher profitswith market share. Hundreds of millions of dollars have been spent the firm on its big-nameendorsements that it conducts almost every year with the help of organising splashy promotionalevents along with giving several ads that proved to be successful in grabbing the attention oftarget audience. Apart from that, company is making sincere efforts in order to keep thecustomers highly satisfied so that they would remain with the firm in the long run and would notswitch over any other competitor brand (Hair Jr and Lukas, 2014). The main motive of Nike is to“sell the benefit of the product”, it focuses on presenting the benefit of the product rather thanonly product.The organization has effectively captured the market through Instagram as the firmis captivating by the videos and the photos on the social sites. It is famous for positing high anduseful content which can help in enhancing the brand image of the firm. Further, high value is
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