MCOM4040 Summer 2017: Marketing and Communication Strategies of Nike

This report provides a comprehensive analysis of Nike's marketing and communication strategies. It begins with an introduction to marketing orientation and the marketing environment, including macro and micro factors influencing Nike's operations. The report then delves into market segmentation, examining geographic, demographic, and psychographic segmentation, and identifies Nike's target markets. A key section focuses on the marketing mix, detailing product, place, promotion, price, people, and process strategies. The report explores the impact of internal and external environmental factors, such as social, technological, and economic factors, on Nike's operations. It highlights the importance of market segmentation in planning marketing strategies and describes the role of communication campaigns. The report also discusses the competitive landscape, focusing on competitors like Adidas and Puma. The analysis includes a discussion of internal environmental factors affecting Nike's operations, such as organizational culture and employee motivation. Overall, the report provides a detailed overview of Nike's marketing practices and strategic approaches.

Marketing
and
Communication

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1. Marketing Orientation........................................................................................................1
TASK 2............................................................................................................................................2
a) Component of marketing environment analysis.................................................................2
b) Three macro environmental factors and their impact in organisation................................2
c) Two forces in micro environment related to the Nike........................................................3
d) Three internal environmental factor which affect the operation of Nike...........................3
TASK 3............................................................................................................................................4
a) Importance of market segmentation in planning a marketing strategy for Nike 150.........4
b) Target Markets...................................................................................................................4
TASK 4............................................................................................................................................5
a) Marketing Mix....................................................................................................................5
PART 2............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is a process by which company buy or sell their products or services to the
customers through advertisement and promotional activity (Kernbach, Eppler and Bresciani,
2015). It can be said that selling or promoting is a social or managerial process where
organisation needs to perform all those activities which can satisfy the need of the customers.
The present report describes the marketing and communication strategies of NIKE company.
Whole study is divided into two parts. In first part, it describes the marketing orientation and
environments such as macro and micro factors who affect the activity. It also explains the
various marketing strategies and marketing mix to evaluating the need of the products. In second
part, it describes the role of communication campaign with the help of poster.
TASK 1
1. Marketing Orientation
Marketing is a concept in which all the company try to provide those products which help
to satisfy the demand and need of the customers. The main objective of a company is to make an
eye-catching product so that they will get attention to the customers. Marketing orientation is an
approach which is essential for every organisation (Gonzalez-Padron, Hult and Ferrell, 2016). It
is necessary for every organisation is to create all those products which satisfy the human need.
It can be said that marketing orientation is a very useful activity which ensure that all the
marketing researcher make efforts to invent new products so that firm can satisfy the need of the
customers. This concept is basically related to the three pillars. Nike is a company who always
try to create those products which is related to the demand of the customers. It can be said that
cited company is customer- focused and heavily committed to satisfy the demand. This firm is
completely dedicated and serve their services in well-defined target markets so that it is
beneficial to the customers. For example: Top launch new women store in London, NIKE
company always motivated their employees to deliver high quality of services to the customers.
Organisation knows that if they give preference to the taste and need of customers than clients
will also give positive attitude towards the company. In order to this, cited firm maintain a good
relationship with the customers and provide effective strategy of selling their products which
make positive impact in their profitability, customer and market share.
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TASK 2
a) Component of marketing environment analysis
Marketing environment affects the forces which make directly as well as indirectly
influence the organisation's capability. Basically, there are two components which affect the
NIKE company's operational activity which are as follows:
Internal environment: It includes all those marketing component which affect inside the
organisation (Jaber, 2015). It includes stakeholders and other functional areas which make great
impact in business operations. For example: Nike company face problem with their stakeholder
who invest their capital in the organisation. Position of shareholders, power, need etc. are the
major factors which affect the selling the of sports women shoos in the market.
External environment: It includes all those components which affect outside the
company. It is divided into two parts: Macro environment and Micro Environment. Macro
environment include all those elements which having large scale such as employees, staff and
their function which make positive and negative impact in NIKE marketing strategy. On the
other hand, Micro environment such as political, legal, social, technological etc. which plays an
important role for the growth of their marketing techniques.
b) Three macro environmental factors and their impact in organisation
Social Factors: It includes factors such as trends, customs and beliefs which affect the
company's growth. Nike faces the problems of taste and preferences of customers. As per the
report, consumers switch themselves from sports to fashion so that there will be less demand of
sports shoes in the market. On the other hand, company uses promotional activity through
internet. In respect to this, firm highly influence the young girls and motivating women's, young
consumers by providing leisure activity.
Technological Factors: Effective use of information techniques is followed by the NIKE
company. Manager also tries to create an effective distribution channel through marketing
information system. Firm also adopt advanced techniques so that it can make proper research of
the products. For example: By launching heavy design and athletic footwear in different shapes
will highly influence the demand of women (Doeksen and Symes, 2015).
Economic Factors: It includes level of income, policies and inflation rate which make
positive as well as negative impact in Nike operations. For example: Chinese footwear market is
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expanding rapidly and it’s expected to surpass the US in the next decade as the world largest
consumer market. Hence, it shows that unemployment level in UK fall to 7.7%
Hence, all three macro factors make great impact on Nike operational activity. In some
cases, all these factors affect positively which means company has an opportunity to grow itself
by using effective marketing techniques (Houdet, Trommetter and Weber, 2012). On the other
hand, it also shows the weakness of company because all these factors make negative impact in
their operations.
c) Two forces in micro environment related to the Nike
Customers: Nike focus on middle class age group for selling their products. As per the
given scenario, company mainly focus on women demands by marketing their products in
London. Firm analysis the preferences and demand of the women and make various efforts to
adopt innovative changes in their products. For example: Developing shoes in bright colours
with advanced techniques.
Competitors: It includes various companies which are available in the market with their
substitutes. For example: Nike face competition with Adidas, Puma which launched new
varieties of shoes for women in the market.
By analysing the factors, firm try to adopt new changes so that it can beat the competition
by using new marketing strategies.
d) Three internal environmental factor which affect the operation of Nike
Internal surroundings consider all those component which impact inside the organisation.
It is important because it makes great impact in people's thoughts, feel and do at work. It
includes organisational culture which is set as per the values, beliefs and attitude which are
shared by the members of the company (Bull, 2016). It includes all the componentwhich highly
influenced in an operational activity. Nike company is very good at developing a strong
organizational culture. Though employees need to work for long time they still enjoy working at
Nike because it offers a comfortable environment for employees. To motivate employees to work
hard Nike has set up the benefits program which provides employees with the opportunity to stay
fit, ensure the wellness of their families, and create a positive working environment. That is why
every branch provides for variable health coverage, fitness centre memberships, time off,
retirement savings, and more. Nike is more than just a place to work, it’s a comfortable and
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stimulating environment filled with full-service facilities designed to help you perform better.
From leading-edge sports research labs and footwear and apparel design facilities to highly-
touted childcare and pre-school centres, Nike campus life reflects the company’s value and
interest in its employee’s career growth and balance of work and family. They make employees
feeling like they are working in the big family so that employees can work hard at their job.
TASK 3
a) Importance of market segmentation in planning a marketing strategy for Nike 150
Geographic Segmentation: In this segmentation market is divided as per the
geographical areas such as cities, towns, countries etc. It is important for Nike Company because
firm get advantages to launch their products which help to increase its sales. Company also
develop a marketing strategies so that it can satisfy customers in different areas.
Demographic Segmentation: It includes classification of marketing strategies as per the
age, gender, occupation, income, size of family and level of education etc. Nike company always
make efforts to become a customer focused. In order to this, firm launched new women shoes
and free training store in London which is totally based on the preferences of women (Bahadir,
Bharadwaj and Srivastava, 2015).
Psycho graphic Segmentation: It gives a picture about social class, standards,
characteristics, and the life style- opinions, beliefs, interests and values of customers. Nike uses
athlete where it influences consumer to be interested on their shoes and footwear. Nike promotes
a positive and confident attitude, target always those kinds of people
b) Target Markets
Nike company launched women shoes in London. In order to this, it focuses on 18-30
year old women because they want to themselves appear to others to be fit, healthy and athletic.
Firm also focus on middle-high income social class group people so that it can achieve growth in
diversified economy. Nike advertise its products by using various modes of promotion such as
advertisement, personal selling, media etc. They also develop customer relationship so that it can
make long term relationship with them. Women today want equality with men, to be seen as just
as able bodied and finally, both genders will buy Nike because it's expensive and shows that they
have the money to buy Nike, just as people buy Mercedes cars when a Fiat does the same job.
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TASK 4
a) Marketing Mix
Marketing mix is considered as one of the essential aspect that helps in increasing
business performance of the entity. If company is using effective promotional strategies then it
supports in raising its revenues to great extent. Nike is the international brand which has strong
marketing mix strategies. Marketing mix of the cited firm is as following:
Product:
Nike offers wide range of women products to the customers. It identifies needs of women
and accordingly provides them services. It offers sports shoes for football, running, gym etc.
Sports shoes of Nike are very popular among the women. It offers all types of sports shoes for
different age group people (Anton, 2015).
Place
It is another element of marketing mix, Nike sells its products through physical outlets. It
has many shops in domestic and international market. In addition, cited firm sells its wide range
of products through retailers, online stores as well. It helps the entity in reaching to the mass
audience. That is why sales volume of the company is very high. Its all retail outlets are available
at visible place so that normal customers can go there easily and can buy its likeable shoes.
Promotion
Nike adopts various promotional strategies to promote its brand. Mainly it uses
advertisement, social media marketing and sales promotions techniques. Social media marketing
is the most effective method through which cite firm make communication with mass audience
that helps in increasing its revenues.
Price
It is another element of marketing mix, Nike offers products at affordable rates. It adopts
value based pricing strategy. This strategy helps the cited firm in maximizing its profit. It also
adopts competitive pricing strategy and keeps its products price by considering the competitors
rates. That assist in gaining competitive advantage to the entity.
People
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Nike hires skilled people in the organization those who can deal with the customers
effectively. Its customer service workers provides immediate services to the clients and resolve
their issues soon. That helps in increasing satisfaction level of valuable customers.
Process
Process of Nike is very smooth, people can get services and products of the entity easily.
That effectiveness of the process aids in minimizing cost and enhancing revenues of the firm.
Physical evidence
Physical stores of Nike are impressive, it trains its staff members well so that they can
deal with customers significantly (Amran, Ooi and Devi, 2015). It gives attracting information
on its official site about the products so that people can get detail from its website. That helps in
attracting more people towards the Nike and creating unique brand image in the mind of
potential buyers.
PART 2
Covered in poster
CONCLUSION
As per the above detailed, it has been concluded that marketing strategies are essential for
Nike company. It is necessary for the firm to adopt appropriate marketing strategies so that it can
accomplish its future goals. This report present the selling strategies which help to launched
women shoes in London. This document focused on marketing orientation and analysis the
environment such as micro & macro factors to evaluate the strength or weakness of the company.
At last, by analysing the merchandising strategies and marketing mix cited firm also analysis its
actual position in the market (Adar, 2016).
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REFERENCES
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Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis.
Bahadir, S. C., Bharadwaj, S. G. and Srivastava, R. K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal
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Bull, J. W. and et.al., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis
of the ecosystem services framework. Ecosystem Services. 17. pp.99-111.
Doeksen, A. and Symes, D., 2015. Business strategies for resilience: the case of Zeeland's oyster
industry. Sociologia Ruralis. 55(3). pp.325-342.
Gonzalez-Padron, T. L., Hult, G. T. M. and Ferrell, O. C., 2016. A Stakeholder Marketing
Approach to Sustainable Business. Marketing in and for a Sustainable Society (Review of
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Springer Berlin Heidelberg.
Houdet, J., Trommetter, M. and Weber, J., 2012. Understanding changes in business strategies
regarding biodiversity and ecosystem services. Ecological Economics. 73. pp.37-46.
Jaber, J. O. and et.al., 2015. Employment of renewable energy in Jordan: Current status, SWOT
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Kernbach, S., Eppler, M. J. and Bresciani, S., 2015. The Use of Visualization in the
Communication of Business Strategies An Experimental Evaluation. International Journal
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Online
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Dr. Philip Kotler Answers Your Questions on Marketing. 2016. [Online]. Available through:
<http://www.kotlermarketing.com/phil_questions.shtml>. [Accessed on 29 July 2017].
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