Principles and Practices of Marketing: A Case Study of Nike Inc.

This report explores the principles and practices of marketing using Nike Inc. as a case study. It discusses the promotional mix and activities of the company, as well as different models and theories used to formulate effective marketing strategies.

Principle and practices of
marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Background of the Company.......................................................................................................3
Promotional mix and the activities of the Company...................................................................4
TASK 2............................................................................................................................................8
Model 1........................................................................................................................................8
Model 2........................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The project is based on determining the principles and practices of marketing. It is
important for organizations in order to develop a relationship with both B2C and B2B consumers
in order to satisfy the organizational requirements in a better manner. Marketing is nothing but
attracting and influencing large number of clients for exchange of products and services in order
to achieve organizational growth and stability in the market place. Marketing plays in very
crucial role that shoulders the responsibility of enhancing the profitability and sales margin of the
organisation. The report is in the context of Nike Inc. which is a multinational corporation in the
industry of apparel, accessory and sports equipment. It was founded by Bill Bowerman and Phill
Knight. Capturing future of market in the international platform this public limited organisation
is one of the leading brand for delivering sports equipment, society and apparels. It is an
American multinational organisation founded in the year 1964 and headquartered in Oregon, US.
The main objective of the report is to determine detailed investigation that how marketing
benefits the association to reach out the targeted customers and clients. This report defines
different models and theories used by the organisation to formulate effective marketing strategies
such as promotional mix and the related activities in order to promote the goods and services of
the association and models used by the organisation in order to implement effective marketing
strategies (Edelman and Brandi, 2015).
MAIN BODY
TASK 1
Background of the Company
Nike Inc.is the American sportswear organisation headquartered in Oregon, US. After the
first retail outlet in the year 1966, Nike became a global leader operating in more than 170
countries in the 21st century. The logo of the organisation became the brand identity of a long
card check which is also called as Swoosh. Nike is one of the world’s largest Marketer of athletic
footwear of holding of market share more than 37%. About 22,000 retail accounts are in United
States, the company offers products in more than 170 countries (French and Russell-Bennett,
2015). In the end the main motive of the organisation is to drive innovation and higher
performance for the Athletes. The products of the association are manufactured by independent

contractors. The athletic shoes and apparels sold by the organizations are under the flagship of
Nike. The organisation delivers products by innovations and attractive designs of its products
and heavy promotions for the business growth while developing a new product with innovative
features and utilities. The primary motive of the organisation is to manufacture and design and
conduct worldwide marketing and sales of its products and services. It is one of the world’s
highest producer of sports equipment and the supplier of the athletic shoes. Nike also markets its
products to different ranges such as Nike pro, Nike plus, Nike Call, air Jordan, air max and other
subsidiaries. Nike chooses its sponsors who are high profile athletes from worldwide the
trademark of the brand “just do it” and the “swoosh” logo. The association have acquired
different companies offering apparels and sports equipment, the association have deployed a
Nike lab in order to deliver higher Innovation and design to the products and services (Khan,
2019).
Promotional mix and the activities of the Company
Promotional Tactics are established in order to determine that Who will be the target
audience of the organisation, the products and services offered to the segments and the strategies
involved in order to influence and convince the segments. Promotion is an integration of
different elements such as advertisement, sales promotion, social media, public relation and
others in order to promote the brand awareness of the organisation in the marketplace. Nike uses
different promotional platforms and tools in order to influence the purchase decisions of the
consumer prospects. This includes an integration of different elements such as advertising public
relation, social media et cetera. Promotion mix is in process and integration of different elements
such as advertising public relations and others in order to meet their marketing objectives, such
promotional strategies implemented by the association are discussed below in brief:
Advertising
Advertising is simply used in order to promote the marketing objectives and attract a large
number of customers pertaining to the products and services the organisation offers (Lee, 2016).
Nike uses different platforms in order to advertise its products and services such as social media,
company’s website, TV, newspaper and others. Donation use social media such as Facebook
Instagram and Twitter to communicate with the target prospects and deliver the marketing
objectives, they use personal emails and newsletters to endorse the brand. The important motive

of the organisation is to focusing on the customer requirements and needs and Establishing
desired products and services or adding features and value to the existing products. Nike selects a
target customer from the age group of 15 to 40. The association caters to the needs of both men
and women and give more focus to the teenage Segments to build strong brand loyalty. The
brand positioning strategy of Nike is very simple and direct, it gives a clear brand message of
comfort and confidence for perfect shoes and apparels for every sport event. The company
presents popular personalities and Professional athletes for advertising its products and services
so that when the target customers see their favourite celebrities they get driven to buy, despite of
the huge advertisement expenses paid by the organisation, it focuses over delivering effective
marketing and advertising approaches to attract more customers.
Public relations and publicity
It is defined by establishing a strong relationship with the stakeholders and desired users. It helps
to establish a direct communication of the organisation with the Stakeholders of the brand. Nike
uses public relations to communicate with the stakeholders, the Association uses public relation
to raise social issues pertaining to the business (Luca, Hibbert and McDonald, 2016). The
association is criticized for improving green technology and social pressures pertaining to the use
of sweatshops. The association develops Nike Inc.’s corporate social responsibility strategy and
stakeholder management approaches. It delivers the information with the help of public relation
to the stakeholders by disclosing planned corporate citizen ship activities taken by the business to
improve its activities.
The association uses PR by sponsoring sports events and other sports activities in order to
communicate and interact with the target prospects that how business address different social
issues in order to develop a strong consumer perception pertaining to the product.
Sales promotion
Is a process of influencing the consumers by delivering desired products and services. It is a
short-term promotional tactic that helps to enhance the sales and profitability margin of the
business it is a suitable method of earning the long term relationship and loyalty of the customers
(Mahamad, 2015). Nike Delivers special offers by using sales promotion for attracting new
customers and retaining the old customers by delivering additional benefits from special

discounts, such as savings that consumers can make after availing the special discounts and
offers put into the products of the company.
Direct marketing
Nike Inc. uses direct marketing with the sole motive of promoting its products and services to the
final prospects. These products and services are advertised in order to get a bigger response of its
products and services. As a part of direct marketing the association uses salesperson and
individuals in target market segments. The association promotes its products and services in
different sales organizations, colleges and universities. The association uses direct marketing
approaches in order Strong consumer relation and stimulate them to purchase the market
offerings. Apart from that Nike also communicates with the target prospects by using emails, as
the company sends emails to the target prospects to different operating countries and languages
to communicate one-on-one and deliver all the necessary information to the final prospects
(Mitchell, Madill and Chreim, 2015).
Events and experience
Nike uses events and experience in order to promote its products and offerings and stimulate the
purchase behaviour of the final prospects. Nike Arranges events and experiences wherein the
customers can get direct invitations to Exclusive Nike events in the geography kill area. Wherein
the customers a rags to download the Nike app and turn on the push notifications to get timely
reminders and information. Nike experiences are great set of opportunities to the Nike members
wherein they can participate in different sports events. Nike experiences are being hosted for its
Nike members by simply answering to the questions related to sports or Through 10k online
sessions on nutrition or on a Park cleanup. The company addresses corporate social
responsibilities by running these events and experiences that reflects the responsibility of the
association towards the society and the environment it motivates and attracts customers from
different locations and develop a strong brand identity in the international marketplace (Murphy,
Laczniak and Harris, 2016).
Interactive marketing
Interactive marketing used by the association helps to determine the decision making of the
association where in the brand find out the best way that values the customers and deliver what

actually they want. Nike gives several reasons for its customers to come back to the website and
engage with association. The brand promises to deliver value where the customers get fitness
regime and interact with their friends. Nike interacts with the consumers this two-way
conversation helps to analyze the needs and Evaluate the effectiveness of the products offered.
Interactive marketing helps the association to meet needs and deliver innovation by integrating
all the customer responses.
Word of Mouth Marketing
Nike uses different social media sites such as YouTube, Facebook, Twitter, Instagram in order to
deliver effective word of mouth marketing to its final prospects. Nike always finds new
alternatives of engaging with the customers such as responding to the customer queries or
playing a context before the launch of new shoes so that the customers can share their
experiences with the friends and family. Nike also uses famous and professional athletes in order
to promote the brand features and represent The marketing message to the target audience. The
company also uses advertisement in order to address the social Issues for which the company is
criticized such as sweatshops and utilization of green technology. The association uses
philanthropy and comparative exercises in order to address issues superior brand value to the
final prospects (Peattie, 2016).
Social Media Marketing
Nike has a total of 318 social media profiles in order to deliver the brand awareness to the final
prospects. It is one of the most followed brand in the social media platform. These include
Facebook, Twitter, YouTube, Instagram with millions of followers in Facebook Nike post
frequent videos and posts in Facebook. Nike spends over £2.4 billion on social media
advertising, the social media advertising helps to enhance lifestyle and two-way communication
between the fans and brand. With the help of frequent interaction with its fans. In the social
media marketing the brand highlights by using sports team and it leads in order to create a
positive brand image. Nike have different sub-brands such as Nike golf, Nike plus run club et
cetera these brands reflects product ranges and also Nike women page. Nike also uses Instagram
by adding frequent posts to influence purchase decision of the customers (Světlík, 2017).

TASK 2
Model 1
AIDA model
It stands for attention, interest, desire and action. This model Is used by businesses in order to
promote its market offering band lies in different stages of which the buyer goes through. The
AIDA model used by Nike, is discussed below:
Attention
At this phase Nike family’s strategy to grab the tension of the final prospects wherein the brand
delivers awareness to the customers about the offerings delivered by the organisation. Nike
promotes its market offerings by delivering the utilities and features of the products using
different communication channels such as social media and the company’s website to render
effective awareness to the users of the brand (Terho and Jalkala, 2017).
Interest
It is an important tool where in Nike draws attention through the brand awareness created at the
first stage. In this stage the customers become responsive towards the brand Nike collect the
feedbacks and reviews of the customers putting to products and services offered. Nike also
initiates to be communication bond lies in the customer requirements and responses for example
if a customer wants comfort with higher performance, Nike records the responses of millions of
its users and initiates changes in the products as per the customer requirements.
Desires
At this stage Nike records the user satisfaction of the products and services delivered. The main
motive of the brand is to satisfy the customer preferences in demand in order to retain them for a
long period of time. If the customers do not show a positive response towards the products
Offered by Nike, the brand redesign its product as per the customer preferences as for Nike
customers are the greatest asset to the business. Nike delivers special training approaches to its
employees in order to record customer responses and deliver appropriate strategies as per their
requirements. Here the main motive of the brand is to retain employees by maintaining their
Satisfaction of the products and services delivered.

Action
This is the stage when the users of the products and services shows willingness to purchase the
products and services of the company. In order to ensure that the customers select the products of
Nike apart from any other substitute product in the market, Nike implements corrective actions
in order to build the trust of the users. Right from customer oriented and customer response
strategies the brand fulfils all the requirements to deliver value to its customers.
Evaluation of effectiveness
The company also evaluate the effectiveness of the overall marketing strategy by collecting the
customer responses by different analytical tools, such as:
Total site visits
Nike estimates the effectiveness of the marketing campaign best to meeting the traffic in the
websites. It helps to determine the total customer traffic So the company can achieve accurate
results of the marketing campaign (Van Heerde and et.al., 2021).
Time on site
It is a performance metric tool that helps to analyze the time spent by each customer in the
website it also has to evaluate that time spent for different Set of products by the customers.
Model 2
Communication Model
Communication model is determined by delivering the marketing objectives to the target
customers. These involves deciding the appropriate channels of communication, the ideas and
the information that has to be delivered, developing strategies and other different tools that helps
to deliver right information and interact with the target prospects. The communication model
includes different elements such as sender, receiver, including, decoding and messages.
Communication model used by Nike is discussed below in brief:
Sender

Sender is the person who delivers information. Nike delivers right information to the customers
in order to attract large number of segments using the latest market trends and networking
channels of engaging with the prospects.
Encoding
Nike generates the consumer data and transfers it into useful information by analyzing the
market demand, consumer preferences and delivering utilities to the consumer, the organisation
adds their own ideas and decisions by adding shape and structure, delivering it to the final
prospect using advertising and promotional approaches.
Message
Nike Develops message which involves the marketing objectives and the set of information
which is crucial for all the customers and stakeholders of the brand. This message consists of all
the information pertaining to the approaches such as actions taken by the association pertaining
to the social issues, the promotional strategies, new products and services in order to improve the
customer engagement.
Communication channel
Nike selects the right communication channel these involve social media, company’s website,
email, traditional channels like newspaper, Hoardings, and physical outlet of the business.
Receiver
Receiver is defined by the person who receives the transmitted message. Nike Delivers the
communication message to selected audiences and the stakeholders of the business.
Decoding
Decoding is determined of what the consumers understands from the brand awareness and the
marketing objectives delivered by the association. The effective communication message often
influences the consumer which results to increased site traffic and enhances sales & profitability
(Vella, 2015).
Feedback

In this stage it involves collecting the reviews and customer responses to evaluate the
effectiveness of the marketing campaign and the products and services offered to the final
prospects, it is an important element as it determines the positioning of the brand in the minds of
the consumer. In order to collect the feedback Nike uses company’s website, emails, Social
media, physical outlets in order to Collect the responses of the consumers.
Evaluation of effectiveness
Nike evaluates the effectiveness of the communicational message from different analytical and
performance metric tools such as:
Click through rates
It is a performance metric an analytical tool that helps to determine the effectiveness of the
marketing campaign, Nike estimates the cost per click and the total revenue generated through
marketing campaigns such as email marketing and other paid campaigns.
Value per visit
It helps to evaluate the total revenue generated by estimating the number of clicks by the
customers, the total time spent and the total purchases that each customers makes.
CONCLUSION
In a nutshell, the above detailed report defines different marketing principles and
practices used by the association in order to promote the goods and services of the company.
Marketing is a crucial element that helps to communicate and engage with the stakeholders of
the business with the primary objectives of enhancing the profitability and sales margin. It
involves formulation of tactics and policies based on the business environment and the changes
in the national marketplace. The two main models used by station determines how a station is
using marketing strategies to benefit both the users and the business. The AIDA model and
communication process determines developing and establishing networks among the users to
influence the purchase decisions, these models helps in managing strong customer relationship
and focus on changing market environment to implement desirable marketing strategies.

REFERENCES
Books and Journals
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initiative for Integrated Marketing Approach.
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social marketing. Journal of Social Marketing.
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Terho, H. and Jalkala, A., 2017. Customer reference marketing: Conceptualization, measurement
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Van Heerde, H. J. and et.al., 2021. Reality check: Infusing ecological value into academic
marketing research.
Vella, K. J., 2015. Selection by consequences and the marketing firm (Doctoral dissertation,
Cardiff University).