Marketing Concepts and Principles in Nike's Operations

Preview case
Nike

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
a) Explaining marketing concepts and terminology related to Nike...........................................1
b) Identifying the role of marketing strategies and programs to attain Nike’s objectives
including ethical considerations..................................................................................................4
c) Explaining how marketing concepts and principles are used in Nike’s daily operations.......5
d) Explaining the relationships of marketing functions with other functional areas in Nike......6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In the present scenario, firms are facing cut throat competition with each other in the
industry due to which surviving in the long run is very difficult for them. To sustain for longer
span of time, it is essential for companies to give due emphasis on appropriate marketing
principles and practices with the help of which business can run its activities in s such a way that
higher profits with customer satisfaction can be gained (Bhasin, 2017). To retain the customers
for longer period is necessary to stay in competition for which conducting marketing activities in
an effectual manner is essential. In the present report, case study of Nike is given with respect to
which various concepts related to marketing principles and practices will be studied. Here, key
marketing concepts and terminologies will be discussed along with explaining the role of
marketing strategies and programs. Apart from that, relationship of marketing functions of Nike
with its other functional areas are also discussed in detail.
a) Explaining marketing concepts and terminology related to Nike
There are some specific key concepts in marketing which are required to be used in such
a way that set objectives of organisation will be achieved in the most effective and efficient
manner. However, form one organisation to another, these concepts differ each other. Along with
that, the functions with which these concepts deal also vary to a high extent. But, according to
the need of market, all these concepts have been as well as taken in use by the firms. In relation
with 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 that
are available at high quality and affordable prices, that is, as per the capacity of customers to
spend. Also, it is important that at every nearby location of the target customers, these products
will 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 of
production is highly concerned with operations. For Nike, to conduct the production process
effectually is one of the major concerns and this is the reason; since a long time, it is serving the
society with high quality products. For the purpose of retaining customers for a long period, Nike
understands its responsibility to carry out product process in an ethical and effectual manner. It is
because; company aims at increasing its customer base every year so as to maximise the profits
and goodwill in the market (Ettouzani, Yates and Mena, 2012). As per the give case, it can be
assessed that at present, athlete footwear market across the world is highly dominated by Nike as
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it is having the maximum shares in comparison to other competitor firms. It has been seen that
organisation takes due care of its customers as their bodies which shows the extent to which Nike
is performing production activities effectually as well as ethically.
Product – It has been seen that people always favour those products that are having
superior quality in comparison to the other available substitutes and give better results at a
reasonable price. In the present scenario, firms as well as customers give maximum value and
emphasis to the innovation in accordance with the tastes and preferences of customers that are
getting changed in the dynamic environment at a fast pace. This is the reason; to remain in the
race and attain success with sustainability, this is necessary to provide innovation as well as
differentiation in the products and services offered (Faisal, 2010). In accordance with the concept
of product, gaining loyalty of customers is highly important for which high quality in products
and services is required to be offered by Nike. In addition to this, if firm will offer various
benefits and value to the target audience, 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 in changing the face of sports marketing in entire world.
However, Nike is covering the major segment 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 entering in different product categories and grabbing the
attention of maximum customers (Mukerjee, 2013). In today’s scenario where there is intense
competition among firm, to operate successfully, Nike is offering products for dozen of new
sports that involve -line skating, wall climbing, baseball, street hockey, golf and hiking.
Selling – Nike is making sincere efforts for the promotion as well as selling of its
products and services in the market aggressively. It has been seen that when businesses promote
and sell products aggressively, customers get influenced to buy the same that proves to be
beneficial for the organisation. In today’s era where Nike is performing their marketing with
giving due consideration on the major reason behind it, that is, customer satisfaction, it
understands 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 the
suitability of business (French, 2010). Owing to this, Nike performs various activities as it
organises many campaigns based on the welfare of society like girl’s education and also, it
conducts several CSR activities. Apart from that, company does promotion in such a manner that
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