A Report on Nike's Marketing Strategy and Concepts

This report provides an analysis of the marketing concepts employed by Nike, a leading global brand. It explores how Nike has utilized various concepts including the production concept, focusing on operational efficiency and mass production; the product concept, emphasizing innovation and quality; the selling concept, which, while present, is tempered by a focus on customer understanding; the marketing concept, where customer needs are central to the company's operations; and finally, the societal marketing concept, examining Nike's evolution towards ethical and sustainable practices. The report highlights Nike's strategies, including its use of technology, market segmentation, and brand perception, backed by statistical data and references to demonstrate its market dominance and continuous efforts in adapting to the evolving marketing landscape. The analysis covers Nike's evolution in ethical and social practices and provides insights into its strategies, including its use of technology, market segmentation, and brand perception.

Marketing concepts for Nike
Nike is a company which has leveraged almost all marketing concepts across their
journey of becoming a leading brand in the world.
1. Production concept
Under the production concept, which is an operations-oriented concept, the companies
believe that consumers would prefer those products which are cheaper and widely available
across the globe (oxidian.ch).
Nike has established itself as a premium brand in the market. Though Nike products are
not low priced but are widely available across nations, produced at 500+ manufacturing units
and has highest market share and penetration (Liam O'Connell). Nike management has been
focussing on improving its operational and mass production efficiency while maintaining
quality since inception. For instance, Nike started using flyknit technology for operational
efficiency in producing sneakers, reducing huge amounts of waste.
2. Product concept
The product concept works on the philosophy that customer prefers product which are
innovative, best in quality and have better availability. Hence, companies invest more in
quality improvement processes (oxidian.ch).
Since its inception, Nike aims to bring inspiration and innovation for each
sportsperson across the globe. It works continuously on improving products with latest
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features and design to enhance overall performance of an athlete or a user. Nike has been a
pioneer of product innovation in digital era such as launching of Nike fit app. Furthermore,
Nike aims to become retail technology company; recently launching flagship products like
Nike Air Max 270, ZoomX, & Reactt, etc.
3. Selling concept
It has been observed that Selling concept emphasis on selling of every single unit of the
product to their customers irrespective of their needs or demands. This philosophy does not
favour the aspect of customer relationship or satisfaction, but the company only intends to
sell products produced by them (Bhasin).
Here, Nike certainly persuades its customers to buy their premium products, selling
across 700 exclusive outlets globally but it does not completely follow selling concepts;
rather, they tend to understand the customer needs first and then proceed for product
development plan.
4. Marketing concept
The marketing concept is defined by placing customers at the centre of organisational
operations. The company focuses on client requirement and develops most innovative
products which deliver better results than their competitors (Gamble, Gilmore and McCartan-
Quinn).
Nike is a good example for marketing concept, as they utilise the psychographic
segmentation to divide their target market and have developed capability to identify
their needs with intensive research. They come up with most innovative products which
benefits the customers, high in style and fashion; promises and delivers value. Nike follows
pull strategy, where its brand perception is very high and convincing for the customers to buy
their products over other competitors. Nike proves this statement by capturing ~28% of
market share in footwear and apparel industry (Bhasin).
5. Societal marketing concept
The latest marketing tactics revolves around societal marketing concepts which
emphasis on maintaining customer well-being in the society and adapting social and ethical
practices in their practices.
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Considering the current scenario, Nike has been facing several issues related to child
labour, less pay, inappropriate workplace conditions, etc (ethicalconsumer.org/). However,
the company has evolved its ethical and social practices which promotes better
sustainability in the society. Company has abandoned using hazardous chemicals, reduced
waste and improved workplace environment to promote sustainable brand image
(goodonyou.eco/how-ethical-is-nike).
References
Bhasin, Hitesh. Marketing Strategy of Nike – Nike Marketing Strategy. 6 March 2018. April
2020.
ethicalconsumer.org/. Nike Inc. 2019. Website. April 2020.
Gamble, Jordan Robert, et al. "The Marketing concept in the 21st century: A review of how
Marketing has been defined since the 1960s." The Marketing Review 11.3 (2011).
goodonyou.eco/how-ethical-is-nike. How Ethical is Nike? 6 September 2019. Website. April
2020.
Liam O'Connell. Nike: number of stores worldwide 2009-2019. 29 July 2019. April 2020.
oxidian.ch. THE FIVE MARKETING CONCEPTS EXPLAINED. 2019. April 2020.
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